The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-08-16
The State Debt

ma, as 10 the real state Of things In Nir'
rin,a. The Boston Herald, for example,
replies TO a recent article Of ours, and In
doing so says:
The Richmond Dispatch asks us to take
notice Of the fact, in Justice 10 the Demo-
Gratis Of that State, that ''more than
eli ,ooo, 900 Of interest on the public debt
was paid from 1871 to 1881 under the ope-
ration OF laws passed by the Democratic
Legislatures" We have not meant 10 I'm.
DIV that nothing was paid on the State deot
during the period OF Democratic cohtro';
bat only that no honest and Determined
effort was put forth to secure a lust ana nna'
settlement OF the question. VIII the D'S-
patch state what amount, II any, was pa'a as
Interest upon the disputed portion OF
Virginia's Indebtedness during tne eieVen
years OF which II speaksf virginia took
the position that certain portion OF tne
old State debt should be assumed ana paid
by West Virginia; but this was never
agreed to by the latter State, nor even con-
sidered in any convention or consultation
Of the representatives Of the two States.
The parent State simply set off certain
port,on-about a third, II we remember
rightly-oi the State debt, and left
itD for the younger State to pay.
Rut the creditors did not know West
Virginia, and had no valid claim against
her. II was the arbitrary action in
repudiating this portion OF the States
Indebtedness, and The long dalliance ana
DELAY in Arranging settlement OF the re-
mainder. which gave Malone his oppor-
tlnity. While we are discussing the sub
iect, will the Dispatch be kind enough TO
saw whether il considers the "readiust-
mtnt, effected by the Riddleberger bill
TO be "irreyocable Cannot the honest
people of the State, If they are in major
ity, reopen the question, and tender the
creditors full settlement, dollar for dol
lary
We have stated explicitly that in 1871
and again in 1879 the Democrats passed
laws intended to secure "a Just and final
settlement" OF the debt question. The
McCuLLocH bill OF 1870 was passed with
the appreciation OF the representatives OF
the bondholders. The act OF Assembly re-
cited the fact that the Council OF Foreign
Bondholders Of London, England. and the
Funding Association Of the United States
OF America. had expressed their willing
ness 10 endeavor to obtain the consent OF
the creditors to the abatement OF the inter-
est proposed in the MCCULLoCH law. 1t
proposed to pay 3, 4, and per cent. inter-
est upon all OF Virginia's portion Of the
public debt OF the two States-3 per cent.
for the first ten years, per cent. for the
next twenty, and 5 per cent. for the last ten.
And never was more determined pur-
pose manifested TO accomplish an OBJ
ject than was manifested by the DEM
ocrats of Virginia in this case. They
made the hills and wales OF the whole State
vocal with appeals TO the pride OF the
voters. They sent out their best speakers,
who traversed the Commonwealth from
the seaboard TO the borders OF West Vir-
ginia. Kentucky, and Tennessee, and did
all that they could by argument, by APP
peals, and by personal solicitation, to in
duce the people to accept the terms Of the
MCCULLocH bill as final settlement OF the
public debt.
As to the "disputed portion" Of the
public debt: We do not concede that there
ever was any good reason for any "dis-
pute" on the subject. West Virginia
Justly owed one fourth or one fifth OF the
debt. Virginia set aside one third to her.
But Virginia assumed to pay thirty mil
lions OF that debt twelve years ago, though
even now all the property in the State, real
and personal, is assessed at only fraction
over three hundred millions OF dollars.
Virginia assumed, as 1t was, more than her
voters were willing to pay, as was shown
in their rejection Of the McCULLocH bill in
1879, their return to the Democratic party
in 1880, and their election OF CAMERON in
1881. To reproach the Virginia Demo-
Gratis for not assuming heavier burthen-
for not shouldering an Atlantean load is
shameiully unjust.
But every creditor who funded under
the laws of 1871 and 1872 agreed to the
terms proposed by Virginia. JAMES L..
KEMPER was elected Governor in 1872. He
distinctly stated in one OF his messages that
Virginia, hardly able to pay her thirty
millions, would never pay any portion OF
the fifteen millions which had been assigned
to West Virginia.
There was no "daliance and delay" on
the part Of the Virginia Democrats. They
passed the first funding act almost as soon
as Virginia was admitted to representation
in Congrcss-namely, in March, 1871.
Again: The McCuLLocH bill QS1O pro.
yided as follows:
"The State OF Virginia will negotiate, OIL
aid the creditors (not OF Virginia but Of
West Virginia. holding all such certificate.
flor West Virginia's one third in negotia
ling with the State OF West Virginia for an
amicable settlement of the claims OF sucl
creditors against the State OF West Vir
pinIa The acceptance OF the said certif
Gates for West Virginia's one third, ISSUED
under this act, shall be taken and held as
full and absolute release Of the State o
Virginia. from all liability on account OF tn
said fWest virginia. certificates"
The McCUILooH bill, we repeat, was re
,ected by the voters in 1879, notwithstand
ing that 1t contained the provision las
above quoted. This fact shows that
would have been stupidity in the Demo
Gratis to have asked the voters TO pay Yves
Virginia's debt as well as Virginia's.
The Herald car infer from the foregoing
how " irrevocable" is the readjustmen
effected by the RmDLEBERGER bill. Wit
12s,000 negro voters massed against them
and led by white "oflicers," the Demo
Gratis would be fools indeed did they no
recognize the fact that the "honest peopl
Of the State" never will pay more Of tn
debt than Is provided for in the RIDDLE
BERGER bill. The creditors, it is as certain
AS fate, will either have TO accept that set