The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-23

ond general Improvement In The financial
condition OF The country, Both are now ut
hand. Some Of your readers may be dis
posed to Inquire what has the efilux OF time
and the advent Of the 1st OF July, 1881, to
do with the subject? A little consideration
OF fact which seems altogether to have
escaped public notice will show that II has
q great deal to do with IT,.
II your readers will turn 10 the Code OF
1873, page 4U0. they Will find bat by section
3 OF the funding bill OF 1871 II Is provided
that the "consoI" bonds, with interest
bearing coupons, are all required to bear
date OF LIST OF July, 1871, and that they are
TO become due and payable in tbiriy-fOnr
years from that date. but are redeemdbte at
the pleasure of the State after TEN YEARS
FROM THAT DATE. In other words, these
bonds are not, a. generally supposed, tbir-
ty-four-year bonds, but 10 "a bonds, which
the State NAV, II II chooses, redeem on the
1st OF July, 1881, or at any time thereafter,
without any violation OF the letter or spirit
OF her contract.
This is a most important fact, and yet IN
all the discussions which have taken place
in regard TO these "odous consOl" bonds,
i'm the Legislature, in the press, and In dis
cussiOns before the people, | have not OBJ
served the slightest allusiOn TO It. In my
judgment, II our people can be induced 10
act together, describing all mere party con-
sideratiOns and looking only 10 the welfare
Of the country, il opens the door to an
honorable, satisfactory. and practicable set
Element OF all our difficulties without en-
failing serious burtbens on the taxpayers.
Let us now consider the mode IN which 1t
can be effected.
1t is obvious that il the State can reeStab-
ish her credit on a sufficiently firm basis TO
he able TO "float " a debt OF thirty millions
OF non-taXable 4 per cent. bonds, the whole
matter could be settled at once, as she
would have the means OF paying off all her
present obligations, including her per
cent. "consol" bonds. which, as | have
shown, she has, according to the terms OF
the bonds themselves, the uDquestionable
right 10 redeem on and after the lst OF July,
1891. But 1t is equally clear that it will not
be necessary to float" a loan to the full
extent OF thirty millions OF dollars. The
holders Of the classes OF bonds known as
the "peelers,' and the remnant OF OLD un-
funded bonds, which together amount 10
about ten millions, will gladly accept
non-taXable bonds Of the new Issue
in exchange for their old bonds, Us
they would be large gamers by the opera
ton, and partial, though somewhat lardy,
reparation would thereby be made to them
for the wrong which they have been COM
PEELED to endure. This would dispose oil
those two classes Of bonds in an equitable
manner. and would leave only the twenty
millions OF "consol" bonds to be adjusted.
think it more than probable that many OF
the holders OF these bonds, in orderto avoid
;,,tt, mi nj n
save the commissions to brokers and delays
incident to the sale OF coupons, would be
willing to make a similar exchange OF tax.
receivable coupon bonds for bonds OF the
new issue. Ii so. that would reduce the
amount OF the bonds TO be ''flOated," to the
extent that the exchange could be Effected
But assuming, for the sake OF argument,
that am wrong in this expectation, there
would be but twenty millions Of the new
bonds to be sold with the view OF redeem
inc the "consOl" bonds.
Is this practicable: We have seen that
the House OF Representatives, by large
majority, have within feWAlays, after full
debate, passed bill for floating loan OF
$3.50, 900, 600 OF 3 per cent. bonds with
view to The application OF the proceeds to
the redemption OF the 6 and per cent.
bonds now outstanding. 1t is true that
some members insisted that the rate OF IN
terest should be increased to 3 per cent,
but the large majority favored per cent.
Now, if the United States can readily bOr-
row money at , per cent. is it unreasonable
to presume that Virginia, for Il similar OBJ
ject, could borrow $40, 900, 900 on long bonds
bearing per cent! Ii she cannot it Is
because by our yaccillating policy we have
impaired our credit by dragging our State
finances into the arena OF Federal politics.
But do not believe that the world has yet
lost all faith In the honor and integrity OF
Virginia. 1t appreciates the difficulties by
which we have been surrounded, caused by
the devastations OF the war and the uncer-
tantics incident TO our transition from the
condition OF a military district into that of a
free and equal member OF the bright galaxy
OF States. Ii Is apparent 10 all men that
Virginia is now standing on firm ground,
and that she IS about entering on new ca
reer OF unprecedented prosperity. Penn
sylvania, Maryland, Illinois, and other
States have, in other days, and from causes
OF less magnitude, been compelled to make
default and seek indulgence from their
creditors; but all that has passed away, and
their credit is now firmly reestabIished. SO
Il will be with Virginia. She has only TO
show her purpose TO fulfil her obligations
with honesty and fidelity, and Il helping
hand will soon be extended TO her. The
present dsorganiZed condition OF her
finances is an obstacle TO the advance OF the
general welfare OF the country, as well as a
hindrance to her own growth and prosper
ty. The people OF other States VIII, there
fore, have an interest in aiding her in the
restoration OF her credit.
But TO accomplish the great purpose
which we have in view it is indispensable
that we shall be united peOple-that we
shall lift the debt question out OF the arena
of politics, with which 1t has no legitimate
connection, and treat il as a business mat
ter. which vitlly affects the interests and
welfare OF all men OF all parties.
Can this be done? Why not? Is the
spirit OF patriotism dead in OuI State! Do
the majority OF our people believe that the
Interests OF the Commonwealth should be
held subordinate TO contest OF parties?
cannot think so.
How is this union OF the people OF Vir-
ginia with reference to this issue to be ac-
complished? The mode which has suggest
ed itself 10 my mind is this Let the leading
representative men OF the Republican and
Conservative parties meet together in Rich
mOnu Ut III carly Va. duu COhici, anu "siec
to hold a Joint convention OF the two par
ties to take this specific question into con-
sderation as one which belongs to neither
party. but affects equally the whole people.
| cannd permit myself TO doubt that men
like W. G. Wckham. Franklin Stearns,
Judge Riyes. Judge Hughes, Mr.. Jorgen-
sen, DR.. q. X. Gllmer, and other
Republicans OF that class, who really have
the best interests Of the State at heart,
would cheerfully unite with gentlemen OF
similar class belonging to the Conserya-
tive party TO call joint convention OF the
two parties to consider aud dispose Of this
question finally. Both parties could then