Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-10-30
DAILY
POST MTELLI GENCER.
VIRGINIA READsrsTgKs.

POST. MTELLlGENCEk.|
VIRGINIA READSCsTEks.
Senators Malone and Riddelberger OF
Virginia hold the balace OF power IN the
United States Senate-that Ia to say, the
Republicans cannot reorganize that
BODY, elect new Secretary, Sergeant
alarms and other attaches, without the
co cooperation of those gentlemen. Both
are known as Readjusters.' At the
last session of the Senate they demand
cd as a condition precedent 10 co-opera-
ting with the Republicans the selection
of George G. Gorham as Secretary OF
the Senate. II is said they will insist
upon this action when the Senate again
conyenes. In view Of the prominent
part these gentlemen are TO play IN that
BODY a brief statement of tho condition
of affairs in Virginia relative to the
State debt is not ont of place.
In 1870 Virginia began borrowing
money for purposes Of internal improve
ment, and continued 70 do 30 ap to Jan
nary, 1861, owing at that time nearly
x3s, O0O, 600, for which binds bearing in
terest at six per mt. per annnm we're
outstanding, mainly held at the North
and abroad. The money was expended
in public works Of all kinds, every rail-
road but two in the State being built In
whole or in part with this borrowed
money. Interest was paid regularly
until the war began. During the war
the State was divided, West Virginia be
ing segregated and erected into State.
In 1871 the debt, with accrued interest,
amounted to $45,0OO,0O0. The Legisla-
ture that year passed an act providing
for funding two-thirds Of the debt in
six per cent. bonds, having thirty four
years TO run, interest payable semi
annually. the coupons therefor being
made receivable at maturity for all
taxes, dues and demands against the
State. For the other one-third, certifi-
oates were issued, setting forth the
amount, and that their payment should
be provided for in accort ancs with q
settlement to be subsequently made be-
tween the States of virgioh and West
Virginia. Under this act $30, coz. COO Of
the old bonds we're surrendered, and
$2OO0OO00 new bonds, bearing tax
receivable coupons issued.
In the meantime the anti bondnolders
were gaining strength, and when the
Legislature next assembled II repealed
the funding act, SO far IS to forbid the
issuance of any more bonds bearing
coupons receivable for taxes, and passed
q law f0rbidding tax collectors to re-
ceive coupons In payment therefor.
This latter act has been declared void
by the highest court OF the State and by
the United States Supreme Court. In
1881 the Readjusters, or anti-bondhold-
ers, came into full power, electing a
Governor and having heretofore con-
troll Of the Legislature. They demand
cd that the $20,OOO,0O0 six per cent.
bonds be surrendered and consolidated
with the rest of the debt. and that in
place OF the whole $45,000D00, there
shonld be issued new bonds for sc. 000.-
600, bearing interest at three per cent,
and without any guarantee for interest
payment. The main efforts of the Re
adiusters have been directed against
the tax-receiyable coupons. and with
this view they have sought TO elect
judges who would deny their validity.
In this they have failed, az the whole
matter Ia in the hands of United States
Courts.
Tho validity of the coupons as legal
tender in payment for taxes has been
affirmed by the United States Supreme
Court. In March last Chief Justice
Waite for the majority of the Court de-
clared that "any act of the State which
forbids the receipt Of these coupons for
taxes il violation of the contract and
void as against coupon holders" The
latest question which has arisen is
whether when q holder of one of the
State bonds has offered in payment of
taxes coupon or. coupons which the
State has agreed 10 receive for that pur.
pose, the State may be prevented from
taking other property Of the bondholder
70 satisfy its claim for taxes. This
question Judge Bond Of the U. s. Cir
Quit Court has recently decided in the
affirmative. The case has been ap-
pealed and decision Of the Supreme
Court IL expected soon. II the Court
affirm Judge Bonds decision the State
will have TO receive coupons for taxes
or 90 without her revenue. In brief,
the decisions thus far made declare that
while no coupon holder has vested
right TO compel the State to receive oou-
pons for taxes, the State can pass no
Law forbiddlng her officers to receive
them for that purpose. In other words,
that the coupon il legal tender for the
tai. bat the State may do without her
revenue II she choose, and that after
oher Of q coupon has been made in pay
ment Of taxes other property cannot be
taken 70 satisfy the claim. These de-
oisions have about knocked the bottom
from under the Rsadjusters. The whole
matter 10 an unsavory mess and an ex-
nitition Of very bad faith toward
holders OF the States securities.
Who hereafter win say that Repub-
iics are ungrateful. At Mount Yer
mon Barracks, Alabama, there ia
white mule which has belonged to the
Government about IS years. An order
vas made that the mule be sold. The
ofncers at the post pstitioned for per-
mission TO buy and keep Aim at their
own expense. The document went
through the various channels required by
army regulations and was forwarded BY
General Sherman to the Secretary Of
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