New-York tribune., 1885-02-23
TIE VIRGINIA DEBT QUESTION.
VIEWS OF THE EN- GLIsH BONDHOLDERs.

COURT DECISIONS.
frRoM AN Al CORRESPONDENT OF THE TRiBUNEI
RICHMOND. Feb. 21.-Tho anomalous ana
exciting state of things here growing out oI 'le i0
opening of the debt question by late eecIoo
OF the Circuit Court the United States has in no wise
abaeG This dccroe IL will he remembered, In substance
decides that the state officials shall receive, In aecor
ance withl he language printed on their iace'e coupons
belonging 10 23O00,0OO OF consol pouS IS"uo'
under the statutes of the state in 1s7l The promise OF
the state the of the coupons in question Is %
they shall be received in payment of all taxes dues ana
demands owing. to the Commonwealth" The oihcal
order which the Governor issued to the Auditor ana
Treasurer "A few days ago. the eve OF ms departure
for the New-Orleans Exposition, has ihtehSineu
tho feeling already existing over @ @
matter, as the action or the hAe'""''
has eon rise to the impression that conflict between
the state and Federal powers is sure to come III so'no
form or other distant day. The subject also has
striking political well financial aspect the "p"o
nal feature of the former being the hostile attitude as
sumed by the former Democratic debpayers lo"a" INC
Federal power i'll its effort TO enforce the payment Oh INC
debt Meanwhile the campaign for new Governor d
new Legislature and United states Senator ID pace o.
General Maheno assuming shape and both the contend
ing parties intently watching for the van'as'Sro"
o the fight in its relation to this absorbing topic Oh tc
state debt The position of both is In apparent r"A
hostility to the Federal Court. and even the Democratic
Chamber of Commerce OF Richmond has lately Joneo ID
taxes MANY Democrats hitherto known as dcbtpayers
are now converted into coupon Allcrs their excuse bes
that any resistance Rcadjuster legislation VIII ae
threw the State into political turmoil ANA restore 'He
supremacy OF Malone. At the same time tie pond
holders are entrenchng themselves behind the Federal
judiciary. About $lO,OOOOO0 OF the consol bonds,
whose counons are in controversy. held in London
and the English holders exhibiting Their usual pu-
dog tcnacy of no surrender. Their counsel, William L.
Royall formerly OF New-York is devotinS his whole
time to their He receives an annual salary TOT
the work and gives exclusive attention to their Interests
The views OF The English bondhoders are shown in the
repot given herew OF a conversation with Mr. Royal
today and ii will I've that their policy Is To Il" 10
fighting until the supreme Court OF the United States
has acted,
When asked to give brief history OF the bonds, Mr.
noyall said "Iu 1871 the state issued her new bonds
Tor two-hr of her old dcb. la consideration OF the
creditors releasing her from one -thi!d ana Iool ing 70
Virginia for that thlr. The consideration for MS
release that the interest coupons should h rcriy
able for taxes. The creditor thouei tls iae ms
the The transaction was hardly conNuninaid
before the Legislature neglected to pay interest ana
prohibited tic collectors from rr'ti'nt r''tu,a 10.
axcs This act was promptly a~sal.ci ad ne SuPfrne
Then General Malone came upon the field with
a proposition to organize hi, RcaGJusioG party
.ucccrdcd in clecting his Governor ana Legislature
This Legislature promptly passed an ael Whi3h was al
HG'o G 1t f''vga %as framed CGG"r on The PRINCIPLE .c
toned by the supreme Court o. 'hg MtN
IN which the court ha Gcct,d that thc Stale might "c
"" ".' IKE , nroyicd that no cou ous >od be-
rccei, for until jury had passed ui"n Aen and
iEs'. cl,l.iors .i,cd d. Great Britain. Ie-c formed
syndicate and retained IN 10 te'i lAc ,".t' @I i'-,
states. and II 81, reported IA 10 /. r. H. e. A"oi
against Gtccnhoi' I4e Court sustained ,iLr,
down fropo.iuou, which rad, H. de,s..a ..rri,c.y
act was an rlDo..aOie ouo and tlat any &C., which
forbade the collector, 90 receive coupons was '- i'
ID N.s.N .f.H
H 'I 10 & ~ ~, W. ,, l.t y.o,l,. ii, a,t vi!
nel tlat c,cco. would b, qa-,cr il he attempted
10 ro.af the ts aIt. coupons had been cadcr,I
The public wtnput Lyiur due attention 10 ti. t'.-",
ian oil with ID" !loa hat the -uueiac 'oDH Aaj
rlnc.o1eI Yll-uia- at,omi; 90 fepai Aercr.uo..
decided that IL the taxpayers "o-i iu-.t I ie ~ .e
should collect hrr revenue, II ".s no hni-hi' "h puma
NAT he should proceed about II iu her woy rather a
In his. but th.t he need not n'f' A'r c".'r' Hr'
revenue ali he ha to go wouIuc 40 tender Ae4 coupons
ior his aA and 'Ae would tag" De P"Wir, 20 e.ri
this idea aud carried them To- the -ul omc tpt where
aM".E to 1,d. Hand oftiir Cirit Co,rf Of tse tui,-
states tA- District, took Nc OF tie ,urrt of rc
& r o.' ,','S rr. ran, I,tin. OF co.ons
ages II thcy levied after tender of coupons have
been unwilling press these dec ions wlih their ,uI
force urOn the people Of Virginia because have sc"E
very clearly that had to bring them bl de-ie"7 1" Ini
appreciation of thcr effect. have been using them 30
tht way OF gentle pressure and rely upon thc sttr
TO force her the Supreme Court 10 taA' up and
decide the to-t During the winter ihr ~triDi r
to be upon her that the Board "i sink
nR Fund Commissioners felt constrained &" direct 10"
Attorney 20 move the Court to advance ana de-
eide my ca .e. He made the motion, which the Court
clsuted. fixing March lG - the day for Hf- lucit.'
Is there nuythlug serious n the threatened collision
between the State and United t tties officers ! Mg Royal
va asked.
Tie people Of the State" he replied, "hay" believed
that the decision O the supreme Court meant lp ottic
that repudlaug ucls Of the MuhOuc '1Haiur' are
valid and they have believed THAI Judge BUld- con-
SiructOn OF not what tlr supreme Court ltr
If his decision were pressed believe there would ue
serious trouble because The people 80 not believe tIa
what the supreme Court decided bhi II the SupIcAc
Court shall decide the now bcipr" II that judge
Bonds view OF tAc law correct believe the ouilIc
state would acuucscc in IL without uuruur when iEr
case Of Pir.ou against the Auditor, which his brought
on tn, threatened collision, wa, begun, was a-h"p -
take part in II, bat promptly pointed ont 10 Mr. Far
counsel that success ia i. sut WOud seriously lM
peril chance OF getting hing. pointed out
aim Just what ht. occurred, that a. Nou'd hipI-r the
prop!c into resistance and wOuid have the CH ct ol
banding them together to Ostrtcsr socially AL persons
usl coupons for TAX. Therefore rrf ri 10 nave any
thing DO wtgit, OF TO let my client become involved
III 10 IN any way. deeply regret Uidt Ii WIZ biou-h
ana ce that t Aa, done ihc Gauss n e creditors Wofc
harm than all the Of the Virginia Legislature coin