Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-11-30
Another pebt-payer Speaks.

The author Of the following communica-
tion makes good points:
First. That the people have voted every
time they have voted on the question at
all for paying as little Of the debt as posi-.
bic.
Second. That the rate Of taxation must be
increased II the state rs TO receive million
Of dollars OF coupons every year, to say
nothing OF the four millions Of coupons
that will have accumulated by the LIST OF
January next five weeks hence.
Third. That the price OF coupons would
30 advance that there would be no profit In
using them II the State should order her
officers TO receive them for taxes.
Fourth. That IL the Taxpayer may pay
his taxes IN coupons worth only 80 per cent
OF theiI iace-yalue, the same taxpayer, or,
more likely other taxpayers. may conclude
after awhile to pay only so per cent. OF the
bonds. by the way, 1t Is not fair to charge
"Dcbt.Payer" with threatening repudia-
ton because he warns the bondholders that
there Is danger ahead. Like the Dispatch,
he simply tells the bondholders-what he
cannot but believe is true-that majority
O, the voters would rather vote for repu-
dlation than for paying thirty.fiye millions
Of principal.
Fifth. That il the bondholders really
believed that they had the State In their
power and could compel her to redeem
their coupons al par, they would not sell
these coupons at half their face value, nor
send forth agents 10 peddle them out a
hall price.
The following is Debt.Payer's" CON-
mnnication
10 the Editor of the Dispatch:
The bOndholders and their agents, a. well
as some Of our newspapers, seem to be
blessed with short memories. They seem
to have forgotten the history Of our debt
legislation, and fail 10 remember that from
the date Of the passage Of the funding bill
every successive effort TO secure a settle
ment has resulted iI diminishing the
amount of prncipsl or interest, or both, 10
be paid TO the creditors. What, then, can
they expect TO accomplish by re6pening
this vexed question, or what ground have
they for the assumption that public senti.
ment has undergone a change and now
fayors n more liberal settlement with the ere
ditors than that offered by the Riddeberger
actt Have they forgotten that whenever
an opportunity has been given the people
10 pass upon plans OF settlement the ma
iority has always been found n favor that
which provided for the smallest amount OF
principal and the lowest rate OF interest
The people have always adhered to the
financial maxim laid down by President
Lincoln in one Of his messages, that "it is
easier TO pay a small debt than 1t Is 10 pay
a large one" and are not likely 10 depart
from it; and so long as not more than one
tenth OF the taxpayers OF the state can
possibly pay their taxes in coupons 1t Is not
probable that any great popular demonstra-
ton will be made in behalf OF this method |
OF payment.
The appeal which they are now making |
is TO the cupidty OF the taX.payeT-to his |
sef-interest-but they studiously avoid adj |
yerting to The fact that should the policy |
they advocate be generally adopted the |
rate Of taxation must be doubled for some |
years, at least, to meet the current expenses |
of the Government and provide for the out |
standing and maturing coupons, while the |
price Of coupons would perhaps advance to |
%, the price at which they formerly sold. |
Viewed from this standpoint, II is short |
sighted policy which would lead the tax |
payer to repudiate half his taxes this year |
for the privilege Of paying double taxes
next year and the year after.
But has it never occurred to these gen.
tlemen that this appeal to self-intereSt Is |
dangerous one! II taxpayer may repu-
date one hall the tax which he owes the |
State by paying In coupons at fifty cents in |
the dollar. because there is no law TO pre- |
vent it, may he not with equal facility re-
pudiate the payment OF the bonds when
they become due, for the same reason!
The lesson Of reputation which they are
now teaching may prove to be SO we'll
learned as TO return some day "to plague
the inventors" and this bantam OF repudia-
ton which they have Matched when grown
vigorous and strong may come home 10
roost in their own barn.yard.
That the policy OF the State ia success, |
il supported by the people, is conclusiyely
shown by the active canvass now being
made by the agents Of the bondholders to
induce the taxpayers to use coupons, for
not outstanding the signal victories which
they claim 10 have won in the courts. we
see them peddling their coupons In every
part Of the State, offering TO sell them to
taxpayers for half or less than half their
face value, when, il they feel the confidence
which they profess to feel in their ability TO
enforce payment, the best investment they
can make is TO hold them until they accom-
plish their purpose.
These appeals show conclusiyely that the
people are masters OF the situation and that
the bOndhCl1ers are powerless TO enforce
their demands II the people will sustain the
Government in carrying out the policy
which they have approved at the polls, and
which has been repeatedly affirmed by their
representatives in convention and in the
General Assembly. DEBT.PAYER.