Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-11-28
That Definite Proposition.

We have heretofore objected TO the recent
offer OF the foreign bondholders, that 1t was
q mere shadow Of proposition. We can
not bring that objection against 1t now.
Mr.. royal and Mr.. COOPER have. with a
candor that Is creditable 10 them, made
known In plain language the terms upon
which q new settlement can be effected.
We are glad that we need no longer fight
shadows. The people OF Virginia will have
no excuse hereafter for saying that they do
not know the bopdbolders' ultimotum. Let
us analyze the new offer AZ explained by
the agents Of the bondholders.
First, as TO the rate Of interest, we re-
peat what we said yesterdsy-thst we re-
gard il a. q good sign that the bondholders
are willing to reduce the rate OF interest to
3 per cent. This rate Is as high as the
wealthy United States Government pays on
any bonds issued during late years, and as
much as our people are either able or will
ing to pay. Let us, therefore, consider 1t
ms settled that the rate OF interest is no
longer to obstruct the way to new settle
ment, and proceed to consider the only re-
naming question namely, As 10 the amount
OF principal to be paid. Mr.. ROYAL says
as to this question;
"They outline the theory upon which
they are willing 10 settle, aud ii is easy for
any one 10 see that when II IL reduced to
dollars and cents II would be something
like 3 per cent. upon the principal OF all
bonds bearing taX-receiyable coupons aud
upon The funded overdue coupons, and
about 3 per cent. upon all the rest OF the
debt scaled down TO the Riddeberger
scale"
OF course that is proposing in other
words that the entire amount OF the princi-
pal OF the State debt, or More than thirty
millions Of dollars, shall be paid. We
gave the figures the other day showing that
TO sgree to that proposition would be to
promise to pay more than thirty millions OF
dollars Of principal, and we added the
statement that the Second Auditor estimates
the amount at over thirty-fge millions OF
dollars.
So, then, the offer as a whole il a prOpo-
sition on the part OF the bondholders to ac-
cept Q per cent. as the rate OF interest pro.
vided Virginia will pay (let us say, in order
TO be definite) twenty-five millions OF dol
lars-more than ten dollars out OF every
hundred dollars worth Of property In the
Commonwealth.
But, we repeat, 1t has the merit OF being
not an ambiguous but definite PROPOSE.
ton. We have at least starting point.
Mr.. COOPER Is, II possible, still better au-
thoritv on this subject than Mr.. ROYAL,
or, perhaps, we should say that they speak
with equal authority. He is an outspoken
JOHN Bull, aud In the letter which we
published for bin yesterday makes known
in plain words, quoting as authority men,
Der Of the Virginia Committee OF Foreign
Bondboldcrs in London, that before the
bondh olders will formulate any compro.
mise" the people OF Virginia must "for-
mally" abandon the RIDDIEBgRGsR settle.
ment! They must renounce It in due
fern .-"formally," says he. So that ac-
cording to Mr.. CoOPER and the other Eng
fish gentleman spoken Of, we were entirely
in the right when We claimed, az we had
done again and again before Mr.. ROYALS
last letter was written. that no definite pro-
position had been submitted TO the proper
authorities, nor TO anybody else in Vir-
GINA. 1t is really amusing TO find Mr.
COOPER characterizing the attitude Of the
bondholders, "a his London friend repre-
sents that attitude, one Of concilistion
and compromised Pray, what would be
tbrcatsi
The sum Of the whole matter is as fol-
lows:
/. Mr.. RoYALL consents that the rate of
interest shall be per cent.
.. Mr.. royal claims that the entire
principal OF the. debt, amounting, as we
hsve given our authority for stating. IL at
least TWENTY-FIVE millions Of dollars, must
be paid at maturity. The interest, at 3 per
cent, would exceed million OF dollars =
year.
8. Mr.. COOPER and his London friend
assure us that before the bondholdcrs Will
consent to "formulate Mr.. ROYALS or
any other proposition and offer II to Nir-
ginia, she must abandon the RIDDLEBsRGER
settlement. We quote what his London
friend says:
cit is not OF the slightest use for the
bondbolders 10 formulate any compromise
until the state has formally abandoned the
Riddleberger settlement. We have made
the first advance 10 disclosing our willing.
ness to consent TO compromise based upon
principle which we have defined, and We
must secure the adoption OF this principle
as basis for settlement 10y the State before
We consent to discuss details"
These be plain words. MIR. COOPER him
sell says:
"Thc offer OF settlement now made b.
the creditors IL a boaa,fde one, and the
are prepared 10 act up to II II II is met b.
the state In the spirit In which 1t 10 prof
fered; but u their proposals are subjected /
instrumentation and put aside with con
TEMPT, cannot say how long the bond
holders will continue In their present stti
tudc OF Cancellation and compromise"
The people will make their own com
menis.