New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-05
TJRGJ\T4'S CREDIT,

The letter of cx-Srcretarv McCullOch. which
is published to-day. deserves more than
ordinary attention from all who have any
interest in the honor and I'll, DIT Of Virginia.
We wish il cuuld I've understood 10y the voters
OF that State h.w worthy Mr.. McCuIloch Is
of cardiff and kindly hearing. Years ago,
while in business in London, he felt shame Is
an American cIt.z,n because the credit Of his
country WIS furnished by the conduct of some
of the States. He Is too intelligent not 10
rcolizr ful V how the growth and prosperity
of States n" ret ,rlrd by faithcssncss in re-
srcct to their Obligations. Ais the simple
truth that pLtt tic considerations 81 this ma
ture have led hIm t0 IN Ike many Efforts and
: .crlticcs. and to undertake prolonged and
ar1unus laimrS for winch no personal gam
that .ouId pn.,ihly have resulted would have
REPAID him. In all his efforts, too, there has
| been II sincere and genuine desire 10 arrange
| the hest terms possible for the permanent IN
| tcrasts of the people of Nirglni', whose
! crcat loses during and III consequence OF
| the war Mr.. McCulOch hls been less ready
10 forget than many of those who now
abuse him. After lab0'ing long. with
rare skill ard tact, r measure satisfactory TO
! thc creditors ard tXcerdin.ly beneficial to the
| State was passed, and he has good reason TO
| feel tat thanks and honor were due to him
frou tl,r people OF that State. rather than the
a PERSONS to VIII ch his letter refers.
| The history OF Virginia finances. a. reviewed
50 clearly ard cnncisely IN Mr.. MrCullOci =
| letter, is not plea ant one for any Am rican
cit,zrn TO read. lie describes how the debt
WAS created, mainly before tn war. and for
| improvements which have added largely to
| the wealth of the State; how creditors waited
| ma iently for resumption Ot payment alter the
| war and finally accepted compromise
new bonds for only two-thirds of their just
| claims: how the State soon after reDudlated
| the agre,m mt thus made, and shnt out from
any part of the remedy all bonds not pre-
yiousy refunded how the STATE also tried to
renu late the contract under which coupons
were m de receivable for taxes, and has been
| prevented ONLY by action in thr courts; and
| how improbable and dishonOrable for the
State the situation was when the MCulloch bill
was framed and passed. The history OF that
measure Mr.. McCulioch gives in detail, and 1t IL
emiuently credit bic to him. But even this act.
though it involved a great surrender OF just
dues by creditors who had been wronged by
| Reputation once alre DIV, was repudinted by
| the sO-calltu htadlusttrS. or. McCnllOCn
| tersely states their position thus
~ That with Il valuation undny reduced ny Road
user SCISSORS increase in tue rate of tax alton
h, allowed that IA TO say, there musi be exerton
| 10 paw
(2) That from the revenn so derived the expenses
| OF tie State Government must I've paid.
(3) Tint tho demands OF the schools and colleges mus
| be met ia full
a. II there anything left the creditors can have IT.
It cannot be said that this Is an unfair state
ment OF tho position taken by the opponents
of the McCullOch bill, as respects its practical
effect Mr.. McCulOch shows that, had refund
ing been allowed to go on, the annual interest
charge would long ago have been reduced tC
$780, 900, instead of the $1,61O,7 94 which
tue State is now bound aud will in the END
be obliged to pay. and that this reduced in
terest, with all the expenses of the Govern
ment and the demands of the school fund
could have been met without any increase Of
taxation, and a handsome surplus realized
yearly to be applied to II reduction of th,
principal of the debt. The letter of Mr.
| NJ, CulOch presents the matter, OF course
from the creditors point of view. Nor il
it unnatural that he speaks with strong feel
ing, in view OF the unjust remarks which
have been made about his course and hi
motives. But it Is letter which every self