Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-11-25
Let us Settle-If We Can.

Who is there in Virginia who would not
rejoice over a final settlement Of the State
debit Who Is there, in either party thai
has not pledged himself by vote or other
wise 10 regard the RIDDLEBERGER oher as
sucb final settlement: The people at home
and In State Convention the members OF
the Legislature at home and In the Capt.
tol-bave committed themselves to that
offer as their ultimatum.
Such being the case, IL would seem not
unreasonable TO expect the States creditors
either 10 accept that offer or TO make one on
their OVID part having such compromise
features 10 recommend II to public favor
as would afford 10 the prosecuted and
harassed people OF this Commonwealth not
merely an excuse but good reason for
laying aside the RIDDLEBERoER bill for
moment in order to ponder the new offer.
In other words. the public mind was
ready for the reception OF compromise
proposition from the bondboders, when il
was reported few weeks ago that they had
made such an offer.
And yet the Governor OF Virginia has re.
ceiyed no new offer OF any sort on this
subject. He is the only person to whom
such an offer could be made during the re-
cess OF the General Assembly. Therefore
no offer has been made to Virginia.
But there is another reason why 1t may
be said that no offer at all has been made to
.l.;a 4 Il fhat m sn.p1
new proposition there Is no amount OF
principal mentioned and no rate OF Interest
fixed. Now, 1t must be evident to every
businessman that the Commonwealth could
not possibly be expected to enter into
any such arrangement as the orc suggest
ed. The Legislature must appropriate
specifically so much money to pay interest
every year, as it will have to appropriate so
much money TO pay the principal when this
shall years hence become due. Now, does
any reasoning man expect Governor LEE
or the Legislature to agree to pay annually
as interest upon the State debt whatever
amount Of money may annually remain in
the treasury after paying the necessary ex-
penses Of government, when the inevitable
result Of such action would be TO pledge
the Commonwealth to pay at maturity the
entire principal OF thirty-odd millionsY
So you perceive at once that this alleged
offer is, II we take II at It's best nothing but
an offer TO accept 30 much interest annually
as the State can pay after deducting two
millions for her own expenses. II contains
not word as TO the principal! For Viz
ginia to accept this alleged offer to settle
the debt would be to place herself under
renewed obligations TO pay the entire
amount Of principal claimed by the bond
bolders. And yet there are good, honest
yirginians who have been led to believe
that the bondholders have proposed new
settlement! They have not proposed to
abate one dollar. of the principal.
This objection to the alleged offer is in
superable. IL deprives it altogether Of the
character OF an offer. Conceding that 1t Is
an offer at all, 1t does not touch the State
debt proper, but merely proposes to accept
an undetermined or indefinite amount OF
interest every year! That is all. The
whole crushing debt Is thus TO be bound
upon the back Of old Virginia, she flatter-
ing herself all the while that she has made
new settlement!
Can't you believe that you have taken nm
with this simulacium OF an oflers Can't
you realize that this shadow OF PROPOSE
ton Is all there Is In the alleged new offer?
Well, read for yourselves. Here Is the of
fer as stated In Mr.. ROYALS own words.
lie says:
"That proposition is thls
"That the State shall give TO the holders
OF her consol and McCulloch bonds new
bonds for the same amount OF principal;
that she shall give to the holders OF her
overdue coupon bonds an amount equal
10 the face value OF those overdue coupons,
which coupons will then be surrendered
TO her 10 be destroy ed"
He then tells how the States share OF the
revenue Is to be disposed OF, and adds:
"Tbat the balance shall be taken and an
estimate made OF bow much interest per
annum II will pay upon the new bonds 10
be issued in the place OF the consols, the
McCullochs, and the overdue coupons, and
that those new bonds be made 10 pay that
rate OF interest during the time that they
are outstanding.
"This will make Of new bonds to be
Issued
In place OF consols. ,232, 00O
In place Of M1Culloch's. ....... 7,400,O0O
In place OF overdue coupons
(about ............. 4,OOo,UO,
"Thcse new bonds are 10 have no tax.re-
astx Ia nm forf 4
years II desired by the State. and are TO be
Tedeemable at the pleasure Of the State.
"If the revenues OF the State increase
hereafter the creditors are to have no bene-
tit from that increase, but the State alone Il
10 receive that.
"As the state issues the new bonds tn
creditors will deposit their present bond
that bear tax.reeeiyable coupons In som'
Responsible trust company-like the Cen
trail Trust Company Of New York. Whel
. half.year's interest on the new bonds be-
comes due the State will pay that hall
years interest TO that trust company, whic
viii then cut OF hall year OF coupon
from the old bonds and surrender them I
the State"
There II Is. Not q single dollar OF IN
principal deducted. We showed the o,he
day that the entire principal would be owe
thirty millions OF dollars. The secon
Auditor says IL wlll be over thirty.fy
millions Of dollars. The scheme speak
for itself. But imagine, II you can, Den
oerstie member Of the Legislature seeking
reelection after voting for such scheme a
that. We venture 10 say that not one cal
be found who viii promise to vote for sucl
scheme after be has learned Its true fea
lures. Not one.
------~-----------