Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1883-12-12

session of the General Assembly the
act approved, Feb. 18th, 1882, estab'
lished basis upon which the creditors
of the State were invited 10 fund their
claims for principal and interest into
new bonds bearing per cent, and the
supporting enactment contained in
chapters ! and III of the acts OF AS
sembly, session 1881, have 80 fulfilled
their purpose as TO afford relief TO the
treasury and 10 make possible the dis
charge Of the foating debt, while meet.
ing promptly all cash demands for the
expenses of administration. But these
measures 10 no sense constitute set
Element Of the debt. The total amount
of old Indebtedness Of all classes, prln-
clpal and interest, funded up TO the LIST
OF October last was 50 492, o6.l9, and
under the act Of February IA, 1882.
to the same date, was 1889, SO3.30.
1t is thus apparent that while the new
bonds have been ready for delivery
during period covering more than
tvelye mouths the amount funded I'M
Ger the Riddleberger bill has been less
than G per cent. of the entire debt, aud
of the unfunded obligation, principal
and interest, outstanding against the
Common wealth, there remains The sum
of s33 All, Os6.22. Within a much
shorter period, under the McCulloch
bill. more than s0.0OO,OOO of bonds
were surrendere j, and yet that meas
nre utterly failed 10 settle the debt. 1t
"a true that the Supreme Court OF the
Tinted States, in the case Of AntOni
Va. Gieenhow, sustained the act OF
January IA, 1882, al furnishing an
ADEQUATE and constitutional remedy to
the holders Of tax.receivable coupons.
But experience has shown that act 10
be deficient IN several important par
ticulars. The enacting clauses omit
any reference to the coupons detached
from bonds of the Commonwealth un-
der the act of March %, 1873. The
eventual effect of this omission must be
either to exempt the bolders Of 10 40
coupons from the conditions imposed
upon persons presenting in payment OF
taxes coupons produced by the bonds
under the act Of March 80, 1871, or 10
force both the State and the holder OF
McCulloch coupons to rely on the act
of January %, 1882, commonly known
as "coupon-kller No. g." That act
has not been subject to the construction
Of any court Of appellate jurisdiction
State or federal. Experience has also
proved that the requirements OF section
4 of the act Of Jan. II, 1882, are not
sufficient to procure proper care of the
States interest in the suits therein
authorized to be brought 10 corporation
and county courts by persons in whom
the claims OF coupon-holders and tax
payers coDjoined." The message then
points out the fact that thousands OF
dollars of coupons have passed through
the courts without the needful scrutiny
contemplated. The Governor says:
.'Withln the official knowledge Of the
Executive coupons have passed through
the courts upon The sole evidence OF
persons who could not, by any posi-
bllity, testify with knowledge as 10 their
genuineness and legality. Judgments
haye been rendered against the State
ire asurer on coupons which had no
Eumber, and therefore were the legal
product of 10 bond" He says during
the past six months, owing TO these
causes, the funding under the Riddle
berger bill has practically ceased. No
sutton, he alleges, during The period
named has failed 10 establish his case
against the State, except where the
Executive has employed counsel 10
represent the State.
'tfhe measure of duty which seems
to apply to the executive n this case is
to seek absolute sucsess for the settle
ment attempted. 1t cannot as yet be
called in any true sense settlement.
Remaining with the General Assembly
is the duty or privilege of making to
live or 10 die the scheme Of funding |
known as the Riddleberger act. To be
successful it must be forceful. The
question now is not whether the GeDer-
al Assembly will give negative support
to an attempt which is no settlement,
but whether the majority ofthat body
will sustsin and advance the present
legislation of the debt question. Let
the responsibility remain With the
power, II is as true now as 1t has al
ways been. that readjustment to be
successful must be coercive, and that
every ultimate power residing uoder
the constitution 10 the Commonwealth
OF Virginia must be exhausted to pro.
tect her from excessive and uojust
claims"
The Governor then recommended as
follows: That the act Of January IA,
1882, be 80 amended as 10 require the
ser Vices Of attorneys for Commonwealth
second, 10 define The manner and ne
thod of verihcation Of coupons; third,
demand witnesses should be summon
ed from such departments Of the Safe
Cover nment as would at least be likely
to know which coupon was genuine or
" hich fraudulent; fourth. that the act
.boye referred 10 should be amended
30 as TO include coupons on the 1910
issue of bonds: fifth, that 10 bedience
10 the constitution no money be paid
out of the treasury uuder plea OF re-
,lamauon, except by bills Of appropria-
-.