Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1881-02-01

but only the clauses in regard to tn
receivability of coupons for taxes ant
other dues to the Commonwealth
it was still competent Tor the holder
of original bonds to fund them ant
receive in exchange new bonds will
coupons which were not receivable
in payment of taxes. A number of tn
original creditors availed themselves o
this privilege. and received new coupon
bonds, the coupons of which were, OI
their face, not receivable in payment o
taxes. This second class of bonds il
known in commercial circles as ''peel
ers." am not advised of the amour
of this class of bonds which has beer
issued. presume itamounts to severa
millions of dollars; but il can readily b.
ascertained at the office of the Seconl
Auditor.
Thus it will be seen that we have +,
tsecond class of Virginia bonds, which
though equally just, and in equity en-
titled to stand on the same footing, arr
in law and in fact placed on a lowe
level, as the coupons cannot be used ir
the payment of taxes, &C., and in thu
stoe kfaarkets they sell for about two
fifthss Of the price that is paid for ''con'
sols," or those bonds the coupons o
which are receivable for taxes.
There is still another, or third class O.
bonds, although equally just with the
other classes, stands on q still lowel
plane. This consists of the residue o
the original bonds of the State, which
have not been funded into bonds O.
either of the two classes above named
| I have not the means at hand (nor is il
material to my present purpose) to as
certain the amount of these bonds, but
it can also be ascertained by reference
+, to the Second Auditors office. AS the
General Assembly at its last session re
l,ealed the funding bill of 1871 out and
ut, the status of these bonds cannot
n. Nv be changed.
Thus it will be seen that while all
these bonds were originally equally just
and obligatory, and at the close of the
war stood in all respects on the same
level, under the operation of the fund
ing bill, and in consequence of the su-
perior diligence of some of the creditors
tween Ih en-, which very materially af-
feet their commercial value.
It may not be inappropriate to add
that the loss arising from this new
classification of the bonds of the State
is generally supposed to have fallen
most heavily on trust-funds spro-
vided for the benefit of widows and
orphans, whose trustees could not safely
assume the responsibility of funding the
/ original bonds in their hands as trus-
| tees and on foreigners and others who
had imperfect means of informing them.
selves as to the provisions of the fund.
ing bill and of the expediency of avail.
ing themselves of them.
This review of the origin of the debt
and of the history Of the funding bill OF
1871, and Of the proceedings under. it.
has been deemed necessary to show the
| Injustice to creditors which has grown
out of it. and of the acts of subsequent
legislatures regard to it, and to make
plain to every one the difficulties which
stand in the way of a fair settlement
| I think every fair minded man must
regret the existence of these classified
tions of the bonds Of the State, and o1
the differen ces in the value of the bonds
of the different classes. They were al
given for money borrowed for purposes
connected with the best interests of the
State They were equally just, and in
equity all have equal claims to be PAID
l Oy the state.
But we must deal with facts as they
exist. The classification and disparity
jim value of the various classes confronts
us as saupborn facts. We can neither
strike them out of existence nor ignore
nor get around them. We must meet
them squarely face to face. Nor can W.
disregard that provision of the Consti
tuition of the United States which for
! bids any State from passing any law
\ which ''impairs the obligation of con-
tracts" Neither can we, as sensible
and patriotic men, set ourselves in op
position to the calm and we'll considered
| Judgment of our own Court of Appeals
| or to the well known line of decisions
Of the Supreme Court of the United
States, which support the judgment ol
our own highest judicial tribunal.
Various measures have from time tC
time been proposed to relieve us from
our difficulty We have had the INC
Culloch" bill, the barbour" bill, the
"Bocock Fowler" bill, and the "Rid
| dleberger" bill.
| The "Riddleberger" bill is an open
and undisgulsed repudiation of twelve
millions of the public debt. It assumes
the right of the State, one of the par
til es to the contract, to utterly ignore the
rights of the other party. 1t disregards
the, prohibition of the Constitution O1
the United States, and it boldly assumes
the right of the State to pay or not to
pay !. just debt, as she may think proper
it ma, kes the State the solejudge whether
she viii lpay anything or nothing, ,sat hel
arbitrar will and discretion. If she car
repudiat. at her own mere will twelve
millions # the debt. why may she not
on the san ,e principle, or rather want o.
principle, efuse to pay anything? In
deed, 7 thin the Inference may fairly
be drawn fro IN that bill that the alter
native which, it intended to present te
the creditors is, take twenty millions
in full disehar, ,e of your obligations, o,
nothing! I dt, not propose to discuss
this bill 1t must shock the moral
sense of any enlightened people,
The sIsarbour" and the "Bocock.
Fowler'' bills are less Objectionable in
for m, but not much less so in theil
eff scts. They disclaim reputation in
name. Ind eed, they recognize that the
ere ditors have some dim and shadowy
rig hts; but they regard them as very
mi sty and underlined. They, in effect
say to the credit ors. We acknowledge
the justice of your debts, and would be
gla, to see you paid indeed, we are
will ling to apply any surplus of ou,
rev, enue which may exist after the pay
mel 1t of the expens es of our Govern
men and of our public schools tc
that object But good care is taken
not to give any guarantee that any such
surp ,lus would exist. It is simply idle
to 81 oppose th at any crediitor--and more
espe cially any creditor who has the Sc
curl ty which the holder of "consop
bonds enjoys In the receivability of hif
coupons for taxes and other dues to the
Con,monwealth-wo would think for mo
ment of accepting the terms of either O.
those bills.
The "McCulloch" bill, though by nc
means free from defectN, was much less
Objectionable than eithe,r of the others
It distinctly recognized the fact tha
the creditors had rights which were en-
titled to respect, and it nonlinally sub
stituted consent for coercion in the ar
rangement which it proposed to maxi
with the creditors. It provided for tht
funding, with the consent of the credi
tors, and through the agency of "syn
dicate," the three classes of bonds abov'
enumerated into new bonds having forty