The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1885-02-19
of the Debt Question.

Re-Opening of the Debt Question.
That the question which for so many
years las played i prominent part in Viz
ginia politics will be one of the controlling
issues Of the next campaign, there is now
but little doubt. Glder the decision Of
the Federal Court rendered last week all
debt legislation since 1871 is practically
wiped ont, and the old coupons made re-
ceivahle for taxes. Should this decision
stand, theIreasary would be bankrupt in
six months /; the schools stopped the char
liable institutions crippled, and the state
remanded to the condition in which the
Readjuster party found it in 1879.
On Wednesday of last week, Judges
Bond and Hughes, in the United States
Court at Norfolk, rendered decision to
the effect that the Auditor must receive
coupons in payment of taxes. Edwin Par
sons of New York, filed bill OH Feb. I'd,
against the State, in which he sets forth
he is the owner Of "a 1856 of coupons past
due and unpaid and cut by himself from
genuine bonds OF the State OF Virginia.
issued under the act Of 1871. and that the
coupons We're refused in payment Of tax,s.
Complainant asked that an order be
granted restraining the auditor from re-
fusing to receive said coupons in payment
of taxes. Tuesday the case was argued by
ex-Gov Chamberlain and r. H. Many
| for complainant and Acknowledgement
| Blair for the State. The decision was
rendered Wednesday, and the Court grants
the injunction to restrain the defendants
from refusing to receive any Of the cou-
pons in the bill in full payment of any tax,
license tax or assessment, or other dues
due the Commonwealth of Virginia by
any taxpayer of the State.
The Baltimore sun gives the following
summary of the effects of the debt legis-
lation
! Virginia las out bonds aggregating
about $22 600, 900. These pasticnlar bonds
which do not include the whole State debt
bv any means, bear coupons which are on
their face receivable for all taxes and other
| dues to the Commonwealth. The holders
of this class of bonds absolutely refuse to
surrender them and take in their stead the
new bonds offered by the State. So far
these bondholders have preferred to re-
sort to measures aimed at forcing the
State to receive the coupons for taxes and
other dues. When the readjustment laws
of the State first went before the Supreme
Court of the United States, in the spring
of 1882, the public generally accepted the
decision which the court then made as one
fatal to the owners of the coupons. The
court in effect decided that the State had
the right to prescribe q remedy to protect
herself against fraudulent coupons and
the means by which coupons could be re-
ceived by her revenue officials. This de-
cision, it was believed, was intended to
sustain the 'cOupon-killing acts passed
by the Legislature ;.but, while it did SO. it
did not decide that the coupon was not a
legal and valid claim against the State,
and which, under aspecliic contract with
the creditors. was receivable for taxes.
The creditors and the counsel represent
ing the foreign bondholders held to the
latter view. They took the ground from
the time the dicision was announced that
it had established principles which must
result in the overthrow OF the State and a
victory for the creditors. The counsel at
Richmond has been persistently pressing
| LHtSG VIEWS VI Oltb ueGlSlOIiU vi uIle GOitI Us
of the United States in Virginia from that
time to the present. ~a
Quite number of test cases on the new
theory were prepared and carried to the
courts of the State and Of the United
States in Virginia, and thence to the .Su-
preme Court OF the United States. In the
latter court many of them have been for
the past two years awaiting their turn for
trial. At each term motions have been
made to advance these cases, but the State
has uniformly opposed the motion, and it
} has been accordingly denied The pres
| sure, however, which the creditors have
. kept upon the State has resulted in bring
ing matters to crisis. In spite of all the
legislation to the contrary. the coupons
are slowly but surely finding their way in
to the State treasury.
Under this pressure the attorney-gen-
erai Of Virginia has moved the Supreme
: Court to take up and decide the test cases
! pending on its docket upon the ground
that the State finds herself unable to col
lect her revenues. This is regarded as a
great advance on the part of the creditors,
and is viewed by many as a step OF prime
Importance to them. No later than the
9th inst. two other very unfavorable de-
cisions on the subject Of coupons were
rendered against the State-one by its own
5 Supreme Court of Appeals, and the Other
by United States District Judge Hughes
at Richmond. Summaries of these decis
ions were published in the Sun.
The position of the foreign bondholders
of Virginia was clearly defined at q meet.
: ing held in London several months ago
Resolutions passed by the present LegiS-
lature. declaring the acceptance by all The
: people of Virginia of the settlement of the
: debt provided for by the Riddleberger bill
and calling upon the creditors of the State
to fund their claims and bonds. under the
provisions of that law, had been commu
2 nicated to the foreign bondholders in Lon.
: don. Upon receipt of these resolutions &
meeting of the bondhOlders was held, al
which counter resolutions were adopted
unanimously rejecting the gratuitous adj
vice Of the Virginia legislature They
further called upon that body. in the name
! Of good faith and honesty, to repeal the
Riddeberger repudiating act, to make due
provision for the solemn undertakings Of
the State of Virginia to its public creditors
: and the specific contract Of the Legislature
, that the coupons Of the bonds should bt
: receivable for taxes. These latter resolu
) tions were sent back to Gov. Cameron &C
: companied by aletter from Sir E. F. Bou
= vene, chairman of the meeting, in which
he observes that the meeting over which
he presided was wholly indisposed to put
any faith whatever III the assurances Of
y ! the Legislature conveyed in the resolution
' Of that body that the debt settlement re
ferred to would be final. 1t is necessary.
he remarks. ito speak the plain truth il
this matter. The bondholders of Virgini;
have had too much experience of the value
of the assurances of the Virginia Legisla
! ture to have any reliance on such assur
: ances. They are justified by that exper
: fence in the conviction that such assur
/ ances would be violated without hesitation
. Or scruple by the General Assembly o
q Virginia at any time. The civil war O
the United States found Virginia with {
> considerable debt, incurred for the purpose
e OF constructing roads, bridges, canals, ano
Q other material developments of the re
+ sources of the State. In 1871, and again
: in 1879, the Legislature passed acts which
were>meant to relieve the State of mucl
Of the hIlrden of its indebtedness. IheSi