Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1881-02-04
The State Debt.
EXTRACTS FROM THE VIEWS OF HON. A
FL. a. STUART.

Fl. q. STUART.
Letter to the Richmond Dispatch.
Is there, then, any practical solution Of
this knotty problem which-while it will
save the character of the State from the
disgrace of reputation, and do full just ice
to the creditors of all classes by placing all
on an equal footing and securing payment
in full to alEwill effect these great objects
without the agency of a 'syndicate,' with
the full and free assent of all parties, and
without imposing oppressive burdens on
the people
believe that the time has now come, or
is near at hand, when this end can be ac-
compllshed.
Heretofore no measure of che kind which
propose could be carried into effect, be-
cause two things, neither of which then
existed, were essential to its success. The
first was the etflux of ten years of time
from the LIST of July, 1871, and the second
a general Improvement in the financial
condition of the country. Both are now
at hand. Some of your readers may be
disposed to inquire what has the effiux
of time and the advent OF the LIST of July,
1851. to do with the subject. A little con-
sideration of a fact which seems altogether
to have escaped public notice will show
that it has a great deal to do with it.
If your readers will turn to the Code of
1878, page 400 they will find that by section
8 of the funding bill of 1871 1t Is provided
that the. ssconsol" 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 thirty-four
years from that date, but are Tedeenaable at
the pleasure of the State after ten gears from
that date. In other words, these bonds are
| not, as generally supposed, thirty-four-
| the state may, If 1t chooses, redeem on the
1st of July, 1871, CT at any time thereaf-
| ter, without any violation of the letter or
spirit of her contract.
This is most important fact, and yet
| in all the discussions which have taken
place IN regard to these ''odious consol''
bonds, in the legislature, in the press and
| in discussions before the people, l have not
| observed the slightest allusion to it. In
my Judgment, if the people can be induced
| to act together, discarding all mere party
considerations and looking only to the
welfare OF the country, it opens the door
| to an honorable, satisfactory and practic
| settlement of all our difficulties without en-
failing serious burthens on the taxpayers.
Let US now consider the mode in which
! it can be effected.
| 1t is obvious that if the State can re-
establish her credit on sufficiently firm
basis to be able to ''foat' a debt of thirty
| millions of non-taxable per cent. bonds,
the whole matter could be settled at once,
| and she would have the means OF paying
E,l h>r
her 6 per Cent. "cOnsOl "DOnds, which, as
| have shown, she has, according to the
terms of the bonds themselves, the un-
questionable right to redeem on and
after the first of July. 1881. But it is
equally clear that it will not be necessary
to ''1oat" loan to the full extent of thir-
ty millions of dollars. The holders of the
classes of bonds known as the ''peelers, -
and the remnant Of old unfunded bonds
which together amount to about ten mil
lions, will gladly accept non-taxable bonds
of the new issue in exchange for their old
bonds, as they would be large gamers by
the operation, aud partial, though some
what tardy, reparation would thereby be
made to them for the wrong which they
have been compelled to endure. This
would dispose of two classes of bonds in
an equitable manner, and would leave only
twenty millions of s'cOnSol' bonds to be
adjusted. 1 think it more than probable
that many of the holders of these bonds,
in order to avoid future controversy and
uncertainty, and to save the commissic ms
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. If so.
that would reduce the amount of the
bonds to be ''floated,'' to the extent that
the exchange could be effected. But as
sumlng, 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 redeemaing the
But to accomplish this 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 are
ma of politics, with which it has no 'legiti-
mate connection, and treat it as business
matter which vitally affects the interests
and welfare of all men of all parties.
Can this be done2 Why not? Is the
spirit of patriotism dead in our State?-
Do the majority of our people believe that
the interests of our commonwealth should
be held subordinate to contests of parties?
l cannot think so.
How is this union of the people of Vir-
ginia with reference to this issue to be ac-
c0mplishedS The mode which has sug-
gested itself to my mind Is this: Let the
leading representative men of the Repub-
lican and Conservative parties meet to-
gether in Richmond at an early day and
confer, and agree to bold joint conven-
ton of the two parties to take this specific
question into consideration as one which
belongst to neither party, but affects equal
ly the whole people. cannot permit my
self to doubt that men like W. &. Wick
no Ero nj in T,dn
Judge Hughes, M. Jorgensen. DIR. Il. K.
Gilmer 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 be- |
longing to the Conservative party to call a |
joint convention Of the two parties to con-
slider and dispose of this question finally |
Both parties could then unite in perfect |
ing plan upon some such basis as | have |
proposed, ana mutually pledge themselves |
to support no man for the General Assem-
bly,. or any other high Office under the |
State Government, who would not bind |
himself to carry it into effect. The con-
currence of both parties, and their joint |
pledge of united action on this question,
would at once inspire confidence and re-es-
tablish the credit OF the State to such a
degree as to enable her to retire her twen-
ty million of ''consol'' bonds.
Ii 1t be asked what security should be
offered for the punctual payment of the in
terest and ultimate redemption of the prin-
cipal? I answer: I would offer the pledge
of the faith of the State, given by the rep
resentatives of both the great parties
which compose the State; and if a more
substantial guarantee were required /
would add either the receivability of the
in taxes or do as the United
States has often done, and as every great
nation of Europe has from time to time
been obliged to do, pledge some sufficient
branch of our State revenue, the land tax
for example-as collateral security. we'll
rfmamhor thot in 1911 tho Tro.onr7 &c III