The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1884-12-11
The state Debt Question


Daring the session of the Legislature,
recently adjourned. Judge Lybrook intro
duced aresolution looking to direct repu-
diatjoh if the holders Of the various
classes Of State bonds did not fund them
by July, 1886, Under the provisions of
the Tiddleberger bill and in accordance
Herewith. The resolution WIS not passed
1t however, drew out the following COM
munication from VIM. L. Royall, counsel
for the foreign holders of Virginia bonds ::
10 The EeiIor OF the Dispatch:
find considerable alarm prevailing amongst
our party friends lest MIR. Lybrook g resolutions
for repudiating the public debt should again
ties A brief consideration of the actual state
OF affairs will etfectually dspel this alarm.
No part OF the principal of the debt Is due for
more than twenty years. AS the principal can
not be demanded for twenty years, 1t Is idle for
the present ( gislature to say that the Legisla-
lure that will Sit twenty years from now shall
not or Will not provide for the payment of the
principal when 1t shall come due. 1t Is Idle to
say this, but If Mr.. Lybrook wants the LeRisla-
fure to saw It. in the name of common sense let
him have his way. Let our friends vote for his
proposition, putting on the record at the time
statement that they believe it wrong, but allow
1t 10 pass rather than have the people of Vir-
gnia again distracted with useless discussion
OF this subject.
think all our friends will very clearly see
their way in respect to his resolution, SO far as
the principal Is concerned. So far as the inter
est on the principal Is concerned. the fifteenth
section of the Riddleberger funding act torbids
the officers of the State Government to pay in
terest upon any part of the public debt except
the bonds TO be issued under that Riddleberger
funding act and the act of January 26, 1892 for
bids the collectors of taxes to receive the cou-
pons In payment of the taxes. In the name of
common sense. how can the interest upon the
public debt be more entirely and more en-
phatically repudiated than this?
Now, the Lynchburg platform binds all good
Democrats to sustain the Riddleberger settle
ment, and the Riddleberger settlement repudi-
ates the coupons What objection can any
good Democrat have so reaffirmipg the repudi-
alton Of she coupons. The case then comes
down to this:
Mr.. Lybrook sagnot rerudlate the principal,
because the pfslcSpai Is not due.
MIR. Lybrook basfepudiated the interest, and
therefore another reputation OF it can do no
| AS the representative OF the creditors OF the
State declare to all friends OF the public debt
! that 1t is the interest of the creditors they
| should vote for whatever proposition Mr.. Ly-
brook or any other person In favor ofrepudipt-
ing the debt may bring forward.
| AS Virginian, / entreat all Virginlans TO
| vote for the EXTREMIST repudiating measures
that Mr. Lybrook can frame.
The following communication frem
Judge Lybrook, addressed to the Wing,
will explain itself. We insert both arti-
Giles for the information of our readers,
and to confirm the belief that the debt
question is to be the paramount issue in
the election next fall for State officers
Governor, 1t. Governor. Attorney Gen
eral and members Of The General Assem-
bly,:
| RICHMOND, VA, November %, 1884,
| To The Editor Of the Whio:
In your report of what said yesterday on the
| debt question it would appear to an ordinary
| reader that there was only a difference of 81
| 900, 900 In dispute. Not SO. What | tried to
| show was this: That the old consoi and l0-40
| coupon-bearing bonds. bearing per cent. for
and resPse6o " ybe 4 a91 funded
would amount. at the maturity of these bonds.
to S30,O00,0O in interest alone The principal OF
these bonds In round numbers Is SO 900 000 This
| sum. if funded under that act. would be reduced
| to S12,000.000, to bear per cent interest But
not funded, but to remain as 1t Is now, 1t would
be 49,, 000, 900, bearing per cent coupons. The
difference would be, accommodating year after
| year at the maturing of these bonds, about
$22 900, 900. This sum- added to the old debt, say
$35,0O0,000, less the sum funded under that act,
| would leave the State debt as 1t now stands,
prospectively, 1000, Add to this the
| amount funded (S5O00,000) and unsettled and
/ outstanding coupons, say S4,OO0O00, and yoi
have a grand total of S590U0,000 for the peo-
supposing the Riddleberger bill q failure.
And SO Judge Hughes has. in effect, decided.
The whole question turns on the meaning OF
the words ''6iate of exchange" The trainers OF
4 the Riddleberger bill claim 1t means July |,
1852. Judge Hughes decision is that IL means at
the time the actual exchange takes pidce-that Is
any time in twenty-one years on the lO-4Os and
| thlrty-fiye years on the consols The difference
would ultimately be about S22, 900 800 against the
/ people. said, In my remarks yesterday that
the creditors would prefer, of course (the courts
| sustaining them as they do), to take per cent.
on So, 100000 old consols and l0-40s than
rolltnturity submit to q scale under the Riddle
berger act to Sl2 900 at per cent. This Is
the sound reason why the holders of these
bonds refuse to fund under that act. This Is the
meaning of the circular of "foreign bond
holders, and why they have employed counsel
here to press their claims to the last dollar. The
Federal courts, en- this question, are against us
and we can't help ourselves as the matter now
stands. Only about Sl,000000 OF these bonds
have been funded in the two years and six
months since the act went into partial effect
the other part of the S5,OO0.000 funded of the
other portion OF the public debt of which nc
coupons were attached
The object OF my resolution was to warn the
the bondholders that Ii they failed to fund with.
in twelve months from January l, 1884 that We
would appeal to the people and repudste the
whole, as several of the other Southern States
have done. My object was to spur up funding
and keep the people quiet for that time anC
then determine, upon the then existing state o
the debt. what should be done. The Legislature
has declined to meet the inevitable issue; and
the consequences no one can foretell. Not l
as is intimated. but the necessity OF the sit
uation, will force the issue. To the people thu
appeal must be made. and the sooner now thu
better. 4. NJ. LYBROoK.