The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-10-21
THE VIRGINIA DEBT.
oeur. A. VI. Kelley Before sl,e
spec. ,.on Ciub OF New York Gen.
wahcno Replied TO, &c.

@ sNs, ~ Richmond, chairman 81 the
" helt' benoocratic State Committee, and
lifslla.s. n. Ficklon, well-known Nir-
W. ",,l,.,,e,,at. Among the gentlemen
gnH ,,ere Mr.. JOhnG. Davis, Mr.. John
preseE ",;ee.presidcnt of the Continental
AgncN,fr q. &. Baldwin, president of the
B'aN, ;,,e and Nashville railroad Mr. Ed
lo',ssS'scII Mr.. cyrus Yale, Mr.. John Me-
wAu ~ Jeff. NJ. Levy, Judge Samuel
heoa' Mr.. Algcrnon :. sullivan, Mr..
goh.S Vanderpool, Mr.. John y. Viii
A.'V" md Mr.. C. b. fell.
to,, ~"S5 Inner Mr.. Kelley was introduced
AZ. ~ resident. Mr.. A. J. Nanderpoel,
BY - an elaborate and interesting al
ina l'' zinc over the history OF the Nir-
dr. IN, enl answering fully every point
g'H, ~ senator Malone IN his late speech
H.1 = ,be New York Union League. In
,.,ianipg Nr. Kelley declared that IT re-
g....rsd ono little audacity on the part OF
~s~sl Malone 90 Champion the financial
80. al thr Readiustcrs in New York
-. ana before party Wanting the pu-
~. Tho very Puritanism OF their virtue
=" ,be financial behalf, and 1t needed
" ,,,re 20 warrant the extraordinary
s1,,tie, with truth which marked the
49, address. II concerned the whole
nn-..llsasr parly OF New York whether
~ Snail enter upOn q crusade against
~ in Virginia, and il concerns all
lI....i.s and an people that the truth OF his
~, s, 10 great public questions be OIL
..-yed." MIR. Kelley then referred to GEN.
-, Wahoge's published professions OF de-
lion 10 .he Democratic party only one
o.-oro md added: "ilcre, and not in
y. Ini.p League Club, might a person
s,,line ,geh professions more reasonably
i,os for congcniai company. But | am
-.,,,,ad from even an expression OF
',rrri.s AZ his political gymnastics,
t,r as chairman oi our State Demo-
Dr,ss Committee last year il was my duty
n, chang, Senator Malone then with this
r,Ficll recrcancy, and / propheSicd his
9-s.anf POLITICAL position. With greater
-, might stop q note the auGacity
rI.,b inspired General Malone to insult
m, intelligence Of this great commercial
.spirs bv announcing in substance, rs the
e,rner..toaa Of his financial creed, the con-
,.s,isnf theory that the measure q debt
~ obie.t.on 10 fulfil his covenant is his
sirty. as he pleascs % determine it,"
Nr. Kelley then proceeded 70 review
~ .b, origin and present status Of Nir-
ri,i'. urhlic debt. "eyery dollar OF
Tbicb." he coDtcndcd, "was contracted
bv ber own people; every dollar Of il save
Gst which represents capitalized interest
i1 default was contracted before the war;
yeTy dollar OF it is represented now in
mH In Virginia by the railroads, canals, and
turnpike, 10 built; 10y the public chart
M. ior The deaf. dumb, blind, and in
Sspe Il established; by the colleges and
upiyer.ity it founded or endowed, and
bv the public monument 10 her Illus
irious sons which graccs her capi-
mn. And the equal sad complete Va
Tlity OF every dollar OF it has been affirmed
by every department OF the government, by
every successive Governor since the war,
by repeated and uubrOken decisions OF or
supreme Court, and by repeated. and at
times unanimous, declarations Of the LeSis-
h.nre. N0 party and. 80 far IS am aware,
no nan. ever challenged the binding obli-
cation q the whole debt until some time
sicr liahonc's party was formed, and that
muy l., no, three years Old
Abiding TO General MahOnc's speech be-
i0ra the Union League, in which he pro-
posed 70 adjust the debt on Il basis OF
sa0.DO0Oo0. MIR. Kelley showed that Gene
ral Malone. in 1879, urged q settlement mt
8 Der cent. for forty-fiyc years on basis OF
SS2.gI7.0 0G-a settlement which Malone
s1il should be enforced by the Legislature
and the courts.
When the first funding took place, Mr.
Kelley said. General Malone was q potent
factor in Democratic politics, "but never
until h, bankrupted road had been taken
from him. and lac had twice failed to get
tlle nomination Of his party for high office,
did he suggest the slightest objection to the
assumed debt, principal or interest. Mr..
Kelley said that, according 10 the last re-
port Of the Readiuster Auditor, the debt
Of the state was S29,GS5, G9G, eXclu-
siye Of past-due interest, "and 10
repudiate one dollar Of it would De
o robbery which would be criminal
in an individual and surprisingly dis
graceful in q State" The campaign OF the
Reldiusters in 1879 was next sketchcd, ana
10 their success was attributed the defeat
Of settlement Of the debt under the Nc
Culoch bill, which would have brought
great relief. As il was, cS,jll,GOO were
funded, snd an annual interest OF S2o1,92)
with the creditors consent, saved, That
being the difference between and per
ent. on that amount OF bonds.
Mr.. Kelley next paid his respects to
Judge Davis, who introduced General Ma
hone to the Union League, and to Senator
sherman. OF Ohio, whom lie quoted as
swing, az the special session OF the Senate
Ia April last, that "anything that will
bend down the Democratic party and build
Mp our own is iuS!itiable in morals and
hw." Abiding to Judge Dayis's eulogy
Of free elections and the superior morality
OF paving something 70 paying nothing,
Mr.. Kelley said 'that while no man IN
judge DWi,'s position is bound to know
anything oi Virginia affairs, every man
who chlliengcs the attention OF the pubic
Is bound 10 inform himself OF those things
whereof he so undertakes to speak"
Mr.. Kelley combatted General Mahone's
proposition that All war interest and al IN
terest which accumulated during recon-
ytructon should be deducted from the
debt, and that all capitalizing Interest
should be apnuled. ~. Is q familiar and
fundamental law TINT war does not absolye
q State from the obligation TO pay Interest,
and among nations Of high commercial
honor If Is held that war should not even
suspend interest payments. During the
Cnmean war Russia punctuaily PAD III
gold her interest due English creditors,
sending money TO London for that pur-
pose, and England acted with the same
faith towards her foreign creditors, though
IN arm against her. France paid her
fsn'e due in Germany during her late ter
nbie struggle, and never suffered deiaut.
Aud 81 this be true Of the war interest, q
joriio5i must Il be true OF the reconstruc-
uon interest.
TIE courts, probably Of every State in
VaFisiendom, hold thst past-due interest Il
efalid consideration in law TO support
new pTOmise-bearing interest. The pIac-
Nee = 80 familiar as TO need no Illustration
u rs soundness. II was often followed by
gsaeri Malone himself in the government