Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-09-10
The Hondholders' Fund,(
The following sisssilsr, signed BY

The following siSsssisr, signed by
prominent >ppssfiies in London, has been
addressed to the London Council OF
Foreign Bondholders, with the object
of stimulating that body IN its efforts
To obtain satisfaction for claims of bond
holders against the State of Virginia.
So says the New York Daily CONNER
ciar Bulletin Of day before yesterday,
from which paper we take it. We quote
the circular:
.a.ntlemen.-we, the undersigned Viz.
utnian bond holders. while fully recognizing
and aplfeciating the efforts OF the virginia
Committee in conducting TO successful IS
sue The long and difficult litigation ior .ne
establjsh ment OF the rights Of taxpayers
in the Use Of tax receivable coupons de-
sire respectfully 10 express our opinion tnat'
An view of ~ tire unexpected resistance on
The part OF the State 10 the mandates OF
The Supreme Court: 10 the unscrupu'ous
mietatemepts made by the government
oflicials and the press IN order 10 deceive
and intirnidste tax payers and tS) the pre-
waiting difficulties In obtaining coupons IN
Virgins IL ~ necessary, In anticipation OF
the taxes falling due on the LIST OF De-
cember next, 10 take Immediate steps
for giving practical effect 70 the protec-
lion which has been accorded 10 tne oonu-
holders by the courts, TO the end that TAX
payeTs throughout the stale may De ~ IN
strpcted In their rights and remedies under
The law and, N necessary, anoroeu Iesal
protection: (2) enlightened as 10 toe True
history and circumstances OF the debt ques-
lion, and (S) furnished with ready access 10
coupous. especially In the rural districts.
For these purposes we are prepareu, IL ne
cessary. 10 subscribe a further assessment
and we recommend that meeting OF the
Vjrglnlan bondholders be sum monei fortn-
with, In order that the present SITUATION
and the iced for energetic ana orgauizeo
action therein may be set fUftn. ana tlat
pnblic EXPRESSION may be given OF tue
bondholders' determination never TO sur
render their rights 10 Illegal INTIMIDATION.
but OF their willingness 10 entertain . iair
compromise. based on the ability OF the
Stale TO discharge its obligations
II would seem that the Winchester
Times was right when it said that the
fund the bondholders had contributed
to the promotion Of their cause in Vir-
ginis had given out. If they have pom
dered the information given them by
the Second Auditor Of Virginia, and
published in the London Financial
Ne,cs Of August oath, they will not be
apt to subscribe very largely this time !;
for that document shows them, first,
that they have as yet made no progress
whatever towards q settlement; and,
secondly, that they recognize that the
power of resistance by ordinary legis-
lation is by no means exhausted and,
thirdly, that the convention to amend
the Virginia Constitution which will be
called in lSs8-to meet in 1S89-will
have the bondholders completely in
their power.
aTheir willingness to entertain fair
compromise based on the ability Of the
State to discharge its obligations +" is an
expression that has been heard before.
1t is certainly letting down from the
high ground they have stood on until
lately, and is either sign Of fear or
trap; most probably trap; for, as il
has been interpreted here by theil
agents, it means the retention of a tax
receivable coupon and the present CON
tract to be held IN terrorem over The
head of Virginia.
As to the Estates ability to dis
charge its obligations" the State her
self is the sole judge Of that, and sh,
has stated that ability to be the term
of the RIDDLEBERGER settlement
From those terms she will not recede
towards those terms the bondholderi
are sdvsncing--slowly and reluctantly
but still advancing. This shows it
The market value Of a $1,000 conso
bond with coupons due July, 1885, AM
subsequent attached is, say Sc. Tn
value Of same funded into new 3's, nov
selling ct GO, is s36.57-difi,ereuc
sl9.43. This difference is less than
was six months ago, and is gradual
getung less anu iess'
The threat elsewhere made that th
bondboldsrs will put their coupons o
the market at very low rates has n
terror for the State. Their fundabl
value is 26a, and all the State will hav
to do will be TO purchase them whe
they get as low as that; to purchase
We mean, all that do not belong to tn
bonds which are now tabooed
the Second Auditors Office. e., th
bonds from which coupons have beenc'
and forced on the Treasury through Il
courts in payment OF taxes.