New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-03-27
rIRGINIGS DISHONOR.

Foreign exchanges reveal Tic very haluia III
dignation and disgust with winch the intelh-
gence that the Supreme Courc mt Washington
will not interfere to compel Virginia officials to
recognize the State bonds is received abroad
Thus The London Duly Telegraph says:
We can only conjecture the grounds Of the decision to
be that each Federal State has jurisdiction over inc de
tails OF its taxation while we are utterly unaoe 10 re-
concIle such IN opinion with ne previous Judgments
The broad result however simply this That state
wants TO be dishonest. but does not choose openly 10
ayow that aim ingenious lawyers VIII soon discover
mode of escape from the Obligation OF keeping iaith anu
In course OF time device will BIO elaborated ehectua
enough and ut the time so far echniehy ega Us
TO secure the verdict OF the Supreme Court IN s FAVOR
Hitherto Il las been assumed in England that the Court
would be guided not by narrow technical rules but by
broad considerations OF equity, and 1t has also been
taken for granted that fact OF claimants being British
and not American bOndholdcrs would make no difference
from the judicial point OF view whether these assup
tons are to hold good any longer will be seen when fu
particulars Of the decision reach us. But one point Is
already clear enough Americans must be prepared to
see any future appeals which they make for English
capital examined in the light which this decision of the
Supreme Court throws upon their notions Of good faith
The narrative briefly recapituated is that
Virginia, being heavily indebted upon bonds
for money borrowed by her years ago, and used
expenditures for secession, has recently ar
ranged refundng" of her debt, on the SIM
pie principle of inviting holders of her bonds to
surrender them with the claim to the per cent
interest which they promised, and accept IN ex-
change a new Issue for a little more than half
the principal with interest at per cent! And
inasmuch as holders of the Old bonds had
by former laws the privilege Of using the
coupons in payment of taxes due to the State,
laws were passed by the Legislature, popularity
known as the coupon killer" laws, to the
effect that tax collectors should no longer re-
ceiye coupons, but that all taxes should be PAID
in cash Bondholders asked the Supreme
Court to override this legislation and command
DIV writ of mandamus) the tax collectors to ac-
cent the coupons. But the Court has said in
effect: The Constitution does not give us
authority to interfere between "A State and her
taxpayers on a question how domestic taxes
shall be collected. At last accounts the railroad
companies were rendering coupons IN payment
of their taxes tar-gatherers were refusing
them, and Governor Cameron was threatening
legal, and if necessary, even military, measures
Ia sustain the collectors and compel payment in
money.
Virginia ought 10 DC DCdItIiy doudhltu VI hNi
penny wise pound foolish policy. The only
immediate pressing question Is understood TO
be payment of interest, and she is in possession
of a treasury surplus of above a million, with
another million Immediately in expectation.
She has resources, organization aud prestige
sufficient to make her too proud for the dishOn-
est devices of Reputation. And besides domes-
tic reasons against it, she, in common with every
State, owes some sacrifice for the sake of pre-
serving American credit abroad. AS foreign
bondholdeIs are not taxpayers to American
Governments, they naturally do not understand
or weigh the excuses which politicians may
urge upon the people Of the State for their act
of bad faith. BY the prompt and full payment
of onerous obligations through time of unex-
ampled difficulty the Federal Government has
attained the highest credit in the money Tar-
kets of the world a credit which probably can
not be seriously shaken by the dishonesty of a
single State. But the States cannot fail to
suffer for each others acts; Reputation by one
shakes the standing of the others-indeed,
of American obligations generally. Virginia
should be ashamed.