New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-08

n ,, r Xxi I-- 600: now he Nee .ocn bill. pro
posed bv inr so.rhi.d FGnders or Deh9a erS' Wo"'h
make II $}3 - GIL I'll lax ev) 81 40 cents no
duc.d a r,.vc IT, 3 936 - now levy # 90 GEMS
,Io.u e.. !" II Geo. ana tie State cannot stand any
more Tie, .rgrcgaje of C.t1 c,uHty SAFE ana Federal
eNActions l. 3ia cent, B 3j3 IN every h"hieu
doll Is Of our aXahle vauc4 Ihc expenses OF III Ste
q vcrnneut, incui,ng schools am UNI ni least I"
81 400 600: before the Raj ltiers cam ia they were
81 100000. 1Lc annual surplus over expenses came"
* ... 77dOoJu and there is also d., Ing dgbi OF
s2j2:}72 Bui the incIc account und tnr Mciui'o"h
ban wou,i avciagc r. thIn "a m''l"n year for ten
years auG after that "a AID per cent 1t would be SUI
more.
LEGISLATIVE ACTlbN
In lSGG-G7 ne dcb' was c'rsd'lcd by the leclSa-
turc without any COZ rec kuOwlrdgr, II assam q the
who e debt the old undivided state. lri It lrNird
tax Of If c'uts. which was Insufficient Tor me ~
po,t oI < alone. NolhHg more was done ill
the FuIt re liiI Of 1870. 1his h. assumed thai the
taxable va u x uf the - I3OO0OOO. when III
fact they were but 1886 $50 l53, and tni- uion an
assessment hgicr than Ia New York or Pchh y'Vahi"
Lis bill pllZ 4 all nt' rest winch h"d 'rru w. ana
IL undertook TO tx Triuciia' debt "i Tl3o o'"' Z"
which twu-tards $50. 100000 WAS taken I" ne the
part OF VIRGINIA. ANA tae other part dicr-" and Iil-
1.Iioa settlement with West Vrslnia l. CAV the
scf-exrcu,Iug iax-IecoIvabie coupons Plhhc opinion
declared against THIS measure ANA elected General AS
senb.y OVERWHELMINGLY HgiinstU
Me .ntnr 20 900 OJO lad been funded IL '.ci II be-
fore the y .iiIg act WAS passed. Iidi 1Wd'h was
,nogn "a The cunso. debt The remaining SlU0Jo0J
Mt thus funded was known rs the 'rea,r dent Cndcr
% 90 oIc, alton Of the Funding measure an t'c F'pralng
nc. me 'pcacr creditor got interest while tn con-
sol /, Gurs CUt on portion oil theirs 10y the eac Oi
the taA 90 jabe Though brokers' 10 spccuIa
Tors Inc tax had breI rHset To 30 cents Ddt even
with that lew the Only S2i 30 0Go AID the
txlmn rs Of Coy, rumcut wee $1,000. 90 LHGe ar
rcarages followed aud tHerc caine u general demand
Tor ready simen'.
The PLAIN alternatives were rchdiusiment or increased
taxation Yet of 40 III, nbrs Of tr House OF Dele
gates but thirteen OF the sO-caed DcDtpaNcfs WuuId
vote TO increase the Sull later, VITA dcruiuu
lation o. paid interest the amount OF 5000
and with default in school moneys Of $1,000 900. ONLY
four III lubeIs would vote 10 Increase ihc AK. Ihc
the schnols were clr.ed 1t was now 1s77. and lew
state officers aud Legislature were 10 be ,h"oc AL
large majority OF member, elect Il pleige % read
JUST the debl WITHIN the income OF the state IN" Bar
bour BIZ was passed 10 only an appropriation biu
for year 1t set apart 70 cents o the levy fo Gov
ernnen purposes 10 cent? Tor rchoois ana 10 ceHS Tor
bill which proposed {" settle OH thc b.. oi he debt a.
elaine, under The Funding bill OF 1871 with rage
33 per cents but 1t fell t-Jon, ana nothing
came Off
THE PROPOSITION OF MR.. MCCLLOCH
1t was then that Mr. Hugh McCnliocn appeared and
rendered his services to effect settlement with credit
ORE He was not bondhOidrr and did represent the
creditors but two synicacS in New York and London
His embodied the proposition accepted aud adopted
on all sides that Virginia could stand any increased
taxation. In form and purport his scheme was an ire
pea able contract between Virginia and the brokers' |
The Iucrcs: the 'peaer and uniundod
bonds now az regsting 50 900 900. To be capital
,zed at 30 cents the dollar The Old bonds 10 be
funded AT par in proportion OF - IN coDsois to II IN
pealcrs; the new bonds to for forty at
cent for the first ten years. for the next
twenty aud 5 for the Remaining ton.
easily that TINS wa' broker Job and that
the 'rA,r creditors IL b. ar1ci0u>.y vCtIiuZrd.
They hud received the equivalent oi My TWO years H..
trrst m Fl mi wears ana on each hundIcd-lO lar bon
there wa overdue $50 " interest. Thls portion 81 thr
,nry w~Te ray.d at the mercy Of the syndratr rhc
pcaler pond. could be funded unless acconpaned by
one Of Not having he confps or thc
to buy Them tue pea'et holders iad no reconriG
f inen' NoS"dy %ruid buy ,h.m but Mr. Bic
Sona haynE aeerapd interest Of ss6 fndab at y
cents making a new cania 81 Sis the agent OF the
sy.d,caIe offered only $2i 1t w4s INDUSTRIOUS. but the
pcrler holders had iemedy. by this with
the whole ,n million 20 o. Le paler arh The symdcae
oniug their anu profits from otncr sources
on tbs 9ndne "6 TIE bill %a' n' measure re- OF orcs
compulsory d,fault Of money for interest ana which
were sold at seventy Ave cen on tue dollar
TIE POLICY OF THE READJCsTERs.
Follow the pas Of this hill cdmc the canvass OF
the Readusters against II, who carried the State
the Legislature. and elected General Malone to the Sem
ate OF their 10000 majority, $4,000 white
majority. Instead OF the snrp under the McCulloch
b az had been promised the Funders entirely m.calcu
lated and there large dcccncy the money Tor tho
schools and a~yluns diverted and pressing float
ing o. So 552 372 debt unprOvded for Underline pop
ular condemnation the McCu0ch bill was abandoned On
taking possession Rrdjustcrs found everything
disorder and Observation-Disclosures, arrearages. the
rchOOs closed the insane confined common Jdis, and
general decentralization. They set about ali improve
ment OF affairs.
They first inquired What IS the real debt and neIt.
What can be the stretch OF for the
S3l 1888 900 The Rean uotes took twothirdS OF IL
GSOi 9 Epa 1fG nny pe
GENT Interest The Riddebc ger bill, which IL the
equity on these principles Ii was to have been submit
ted to the people and If ratified would have stood
eInor vetoed IT, The v,.r,. difference between The
CONSISTS fact that the latter capitalized the simple
OF war and reconstruction. The Rcajuserr reject
claim for interest ruled out ny the exgenccs OF
aud various otner reasons independent OF that the eI
action is beyond the ability OF the State The highest
under the levy which nobody proposrs To
auirc 5000 900 the schools 100000. leaving only |
800 600 applied to the debt TINS viii pay per
cent Oh $40, 100000 and leave surplus OF 100000
But there is II pressing floating debt OF $2,552,OO0
which credit Of state is reestablished, be
provided for by short loan.
NEITHER PARTY WILLING TO INCREASE TAXES.
These facts are to be remembered: First, that no |
party in Virginia proposes increase the tax and the
Debtpayers have several times refused u do second
that under every proposed scheme which the Debtpay
have offered, they have declined 10 levy tax SUM-
for It's requirements third. that every
proposed by the Debtpayers has begun by repudiang
part OF the public obligations true of the original
Funding bill and OF the McCuocn bill fourth, that |
every party IN Virginia, the so-called Debtpayers
cudrd, proposes to readjust the debt
Gensral Malone insists that he and his party arc not
but that they take the honest method
terminiDR the legitimate debt OF State and
then OF paying the highest rate OF interest which the