The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-04-27

| az their purpose TO insist on settlement y
| the debt question on a basis OF PEI
cent. interest, or some other terms wniei
NAV be acceptable TO them. These gent'e
men seem to think that the creditors bav'
no rights, and that the settlement Is q mal'el
which rests entirely In the arbitrary discrc
Ition OF the debtor. They utterly ignore IN
provisions Of the Constitution OF tue Ohi.e'
States, aud the decisions OF the Court oi Ap
lpeals Of Virginia, and OF the supreme Covi
OF the United States, which place the r'gnu
az the holders Of the bonds, the coupons
which are. by contract, roceiNaDie LOT taxes
on foundation which cannot De shaken
Unless these gentlemen can nuliitY I'm
supreme law OF the land they VII
find themselves powerless TO ioose'
The grasp which the holders OIL thes
classes Of bonds have on she revenues o
Tho Commonwealth. 1t Is perfectly idle
therefore, for candidates Tor the Lesisia
lture and their friends to talk oil what the.
,oM do and what they triN not DO IN tn'
premises. The only question to be con
sdered IL, What can they do to impair o.
get rid of these obIgstionsy aud the oniA
answer to that question is, Nothing IL
perfectly within the power oil the LeSish
lure to pass law or JOINT resolution tna
the rain shall not fail, nor the winds dow
nor the sun shine, but these aosuro so
called laws and resolves will not change tnt
laws Of nature. And equally VAN WI
every effort prove 10 be which seeks 10 IN
pair the obligation OF The solemn contrac'
| into which the State has entered.
The time has come when we should throw
aside this demagogical talk aud look at the
stubborn facts as they actually exist.
4. 4. 81 "a ghf
| Under the act OF 1871 twenty millions was
| funded 10 6 per cent. bonds, win coupons
attached, which by special contract were
receivable in taxes.
Our Court Of Appeals and the supreme
| Court OF the United States have aiiirmed
! that this contract il binding, and that there
is no way by which the State, ,onh0m me
consent of the creditors, can get rid OF 1t.
These bonds have therefore been fastened
upon us irrevocably.
Under the McCulloch bill a little over
eight millions were funded and likewise
fastened on us beyond all peradventure.
But as two thirds Of this eight and frac-
lion millions funded under the McCulloch
bill amounting i'm round numbers to six
miIions) was composed OF bonds funded
under the act of 1871, the amount OF out
thereby reduced TO about fourteen millions.
IL we add to this fourteen millions the
amount funded under the McCullOch bill
viz, eight millIons-wc have, IN round
numbers, TWENTY-FIVE millions Of our debt
which has been placed beyond The control OF
our LegiSidture, and the interest on fourteen
millions of " hicb at g per cent. and eight mil
lions at 3 per cent. is self-collcctiUg by vr'
tue Of the receivpbili,y of the coupons fol
faxes. Here, then, VIC have an annual
amount of Si,OS0,OOO in the form OF tax
receivable coupons, which, turn, screw
dodge, twist, and squtm as we may, We
canuOt get rid OF.
Assuming the whole debt Of The state tC
be tbirty.two Millions which l. not fai
from the true amount-and deducting from
this aggregate The fourteen millions funded
under the act OF 1871 and the eight millions
funded under the McCullOch bill, and We
ascertain the balance which has not been
| funded to be about len millions.
This is the only portion of the debt over
which the Legislature can practically eXer
else any control. The holders of these bonds
NAV he tyrannizcd over al pleasure, for the
only security they have for payment is the
very slender and shadowy one Of the honor
aud plighted faith of Virginia.
The heders Of the funded bonds can
afford 10 laugh at the puny Efforts 10 repu'
date or readjust their debts. They have
| the substantial guarantees which the Con-
| stltutiOn and the laws give them. They are
entrenched behind the ramparts OF the Fed
eral Constitution and the judgments of jul
dicial tribunals, from Whlch-be they right
or wrOpg-there is no appeal.
1t would be interesting to know accu-
rately who are the holders of these several
classes of bonds. ! venture to express a
confident opinion that if diligcnt inquiry
were made it would be found that while the
funded bonds arc largely held by foreigners
and by shreWd and sagacious men, who
were prompt 10 avail themselves of the
privilege Cf funding, very large proper
ton of the anfunded bonds are held in our
own state by trustees for women and chill.
drcn-- widows and orphans, whose hus-
bands and fathers thought they were making
the safest possible provision for those who
were most dear TO them when they directed
that the fund set apart for their maintenance
and education should be invested in State
bonds.
These arc the classes OF people who are
cheated ard denounced and subjected to
all the pangs of poverty. These are the
"erip sackers," The "blOatcd bondhOlders,'
the "heartless ShyIocks," who are prcyng
on the vitals Of the Commonwealth.
There is one view OF this subject which
does not seem TO have been prominently
presented to the public. 1t is this: 1t can
hardly be presumed that there is any man
whose moral sense is so depraved, or whose
judgment has been so warped by prejudice,
as 10 entertain deliberate purpose to put
| the holders of different classes of bonds on
different footing, under any scheme OF re.
adjustment which may he agreed on, so as
| TO subject one class TO heavier loss than an
other. Every plan which has yet been pro.
posed, including the Barbour bill, the BO.
cock.FOHl Ter bill, and the Rlddlebcrger bill,
seems to contemplate rdtGble deduction
of either interest or principal from all
classes Of bonds. This would obviously
be required by every principle Of equity and
fair dealing. Thus, if the entire debt be
assumed TO be thirty millions OF dollars, and
it be deemed necessary to reduce it 10
twenty millions, the mode of effectng the
reduction would be, not by wiping out
bodily ten millions OF bonds, leaving the
other twenty intact, but by scaling, at the
rate Of 33j per cent, the whole amount of
thirty millions.
Have the advocates Of these various
schemes Of reimbursement by scaling,
&C., given any thought TO the difficulties
which confront them in carryiD them into
etfects How eau they scale the fourteen
millions which are outstanding ef the bonds
issued under the funding bill of 1871 How
are they to scale tue eight millions funded
under the McCulloch bill? These classes
Of bonds have been held, both by the Court
Of Appeals OF Virginia and 10y the Supreme