Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1882-03-08
COUNCIL OF FOREIGN BoNDHoLD.
Frs. IL MOORGATE STREET.

position taken by yourself in sour re-
cent message to the General Assembly
of the Commonwealth with feelings
alike of regret and surprise, The com
nittee represent various classes OF the
creditors Of Virginia, some of then
still retaining the nntebellum secur tiles
Of the State, some of them holding secsl
tiles into which they have converted the
former class of holders, greatly in dim
mutton of their original just claims, but
having post-bellum sanction of the su.
preme legislative authority of Virginia
These varions classes are known ia
your excellency, and they are compress
ed in the following let: The unfounded
bonds of 1871 the peeler bonds Of 1872,
and the tenforty bonds of 1879.
'On the ante-bellum securities not
one cent has been paid by the State
since July, 1874, though l need not re-
mind you the money was lent to it for
the purpose of making public works
and improvements, of which the State
has had the full benefit, aud which it
still possesses.
And as regards the post. bellum secu-
rites the committee wish to observe
that the creditors who hold them accep.
ted them in lieu Of the anti bellum Sc
curities they previously held, in the full
belief, which it appears is not shared
by your Excellency, that the people OF
Virginia would be glad to meet their
solemn engagements 10 the extent OF
their power, and might be relied on 10
pay regular interest on an amount OF
debt largely and voluntarily reduced by
their creditors in consideration Of the
losses and sutferlngs Inflicted by the ci-
vii war.
1t has hitherto been believed here
by the creditors Of Virginia that those
who ruled in the State and its PEG pie
would be in favor OF the observance Of
good faith and ordinary homes ty to lis
creditors, not merely because in civllz-
ed society mankind have been supposed
to have some respect for these moral
qualities, but because the mere pecunia-
~ interests Of a State, with great unde =
yeloped resources and great need for
capital to bring them into fnll produc'
ton, required that its public credit
should be On a sound footing.
The present credit Of Virginia is nil,
and dcseryedly.
The committee are very confden.
that all those who are directly lntcres
ted in the progress and prosperity u
Virginia in trade and ia her industre',
agricultural, mining and commercial.
have the strongest natural inducemant
to insist that the name Of Virginia
should not be made by-word OF con .
tempt and ridicule among the capitalists
of Europe in the reputation OF her pub
lie engagements.
The committee also take leave t.
protest In the strongest manner az ,inst
the doctrine your ExcellencY sets iorli
that the present rate aud measure OF
taxation must be the necessary llni a
ton Of all that Virginia can atfO;d tc
meet the charge Of her public debt, a!iel
paSing the other requests OF civil s9v-
eminent. The committee were arier
the impression that the great re-
publcs of North America were animated
by intelligent and enlightened yi-w. .:
State obligation, aud claimed to s.. ID
example to the older European Sl IS
of il higher morality and greater
sense of public duty butifyour Excel
lency's Views are an exponent OF 'h,Nc
of the people Of Virginia, tho commit
tee takes the liberty Of assurn. your
Excellency that they are such Oald
be regarded with just derlsion by every
civilized State on this side OF the Allan.
tic.
1T is true that the civil war gr' atty
reduced the extent and resources Of the
State, but to meet the reduction Of ter
ritory Virginia herself arbitrarily reduc-
ed the capital of Ler debt by one third.
TO which, in consideration other dmin-
ished resources, a great part Of Ter cre'
d,lors have consented, while with, the
knowledge and assent Of the Legisla
ture, they have also agreed to the dim
mutton of their rate Of interest.
But if your committee are ris'!y IN.
formed by Official Documents, thc State,
even with The present rate of taxation,
is we'll able to pay the interest both on
her funded aud unfund,d debts
The committee, therefore, wish ear
neslly to impress on your EXeellency
that the boudh9lders have gone to the
extreme point Of concession 10 ,he ex-
igencles of the State Of Virginia, and
that they will resist to the utmost oil
their power all attempt 10 can eel Or set
at naught its fixed engagements; and,
further, that however regard IS YOU
may be of their just rights, ii is OF the
utmost importance not onl, to the good
name, but also to the future prosperity
of the Commonwealth itself, that the
coupons OF tie funded bonds OF 1871,
and of the three per cent. ten forty
bonds, should be taken at their full
value for taxes, or be paid at maturity
by The treasury.
AS your ExecellencT has pi. ced Ih.
question between the fJreign creditors q
Virginia aud the State III such promi-
nent position in your Excellencys
message, the committee think that they
are entitled urgently TO request youI
Exce!lency 10 lay this letter before the
General Assembly, as the view of tht
question here taken by the influential