Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-07-01
CAMPAIGN LOGIC.
yHE STATE Dssr AND THE RrPuBLI.
CAN CANDIDATES.
yhe Suggestions Of Merton, Bill" q CO.
Colonel Rutiin Presents Some striking
Facts and Figures.

Coionel kUFFlN PERFORMS puohc bot'iSe
IN writing for the people Of Virginia the
following communication. II Is verify OF
the peru.al OF oil good citizens, aud will
furnish capital 10 our Democratic orators du'
ring the current campaign. Hear him:
Norton. nifss & Go. on the state Debt.
10 the Editor Of ne Dispatch:
4 lately came across a small pamphlet
ENTITLED "public Debt Adjustment Com
PAW Tho osicnsibis object OF the COM
psny 4 stated 10 be "the settlement OF de-
fsulied corporate securities" IL is said 10 be
organized BY New York parties interested 10
Various detaulted State, city. and county
bonds, and IL Processes 10 be mainly Intend.
"a for the settlement OF southern obligations
of thai character. II assumes that certain
special requisites ere iudspensaolet to success.
Including personnel which "guarantees
perfect good faith and the best capacity" y
proposes % sct through "uust company"
which shall issue its negotiable receipt FOR
zach bond.
The mode 81 operation 81 this machine Is
not stated Ia the pamphlet That fnd In
Hnothcr PAGER. "1he plan suggested 10 The
southern States" Q0r The redemption OF
southern b0nd,) "by Morton, Bliss K Co.."
Published 10 the Washington Post OF June
en-. addressed 10 the state OF North Carolins,
and signed by a Mr.. Edward l.. Andrews.
That Is 10 say, by Mr.. Levi y. Morton, an
agent OF the bondboders, just selected as
the Republican, candidate for the yice-presi.
deocy, and his lawyer, Mr.. Andrews, who
ia, attained some upenyiable prominence OF
late by undertaking suits for bondholGers
against the southern States.
The plan thus disclosed IL that "the exe-
cuiiycs Of each defaulfing State appoint a
delegate 10 n3eef representative OF The bona.
holders: The President" ,of the United
States "t0 be requested 10 name an officer
81 the Fed, Tal Government who SHAH repre-
sent the large amount OF southern State
bonds held 10y the United States. These
pgeuis 10 meet In New York and 70 submit
their respective views OF equitable arrange
mcnt 20 board Of arbitration. consisting OF
three members, one 10 be chosen by toe
ngepts 81 the states and one by the agents on
the bondhoiders, the thifd to be selected by
fle other tvo.0 THIS board + 10 make
awards OF me tpGying debt OF
the states represented, which, ratified by
Tie proper authorities % the southern States,
shall be the basis Of funding the debts
- that the bondholders shall only negot-
nie for that part Of the debt which they
claim 10 be in default; holding TO what they
have already gained by compromise, aud aim
iag Il more by another compromise. be-
Love main object oi this /" plan" n 20 get
Virginia aue West Virginia 10 paw all that can
De got out Of them. and that they are to be
brought within raure Of 1t by a trust as
wild turkeys are enticed 10 a blind / think
% because all the other southern states have
settled their Indebtedness 10y Tepudiating be-
youd recovery at law such portion oil their
bonds as they have rot chosen 10 pay. The
reduction hiss been 20 per cent. average, or
from 1881 ,8O7, 1892 10 S7S, 500, 100, difference
oi more than S2l0.0OO,00G, which II were
folly h. attempt 20 recover; / also be-
love IL because the statement by TINS
company Of the depression OF south
crn credits and investments Is not
horne out by the wcll-known facts
as the case. and because the whole
stress % the pamphlet IL laid upon
NH.inia aud West NIrgnia's condition;
aad because at lessttwO previous Efforts, one
ln Iic winter % 1885 and Que IN the winter
al 1856, have been made TO get the Legisa-
iure. Of these Two STATES 10 settle their as
fuucd indebtedness 10y litigation IN the Su-
u,epe Court OF the United ctates-a plan
which failed 10 commend itself to the Legs
lipr7 ~ Nirginis. For this reason. as well
o. because my night and duty TO discuss this
question goes no further than Virginia, |
ftal condne my remarks to her interest In
tDis proposition.
Though 10 is essy 10 answer every point
md. by Mr.. Bliss through Mr.. Al
crews. il Is not necessary; for both
Virginia and West Virginia have an-
uounced definite conclusions on this mat
ter, IN which they clam TO exercise exclu-
slyc Jurisdiction. Bat 1t may not be am'ss,
DID decent respect for the opinions OF man.
tind. 10 explain, A. briefly "a may be, the
attitude Of Virginia on this question.
I'D The bondbolders are spoken OF as Gin
rocent investors" Tue first debt bill was
ghc act Of March 30, 1871. Time and again
# has been proved that the passage OF that
AT was obtained by bribery. That Tact,
chxrged at the time In debate by such mem.
lsrs as Hon. John W. Daniel, one OF
virginia. senators, and now universally adj
1littcd. caused the repeal OF the act on March
e. -
Toe srcument against that was that 1t was
decided by the highest court OF Virginia that
Notwithstanding the fraud the act was con-
tract and irrepealable by subsequent Legis.
ls,ure. The an, yer 10 that as the state could
-ro.cci her citizens against fraud, Jorti0rI
fhe could protect herself; and that the de-
cree 81 the court was void Is In dCr0gatlon
AZ the indefea-ible nights of coordinate
branch of the Government. One logical re-
suit is thar "innOcent investors " IN securi'
ties frauluently obtained must seek redress
from The perpetrators OF the fraud. Inc
same argument applies to the ten'iortY act OF
March ~, 1879.
Az "The equities OF the bondholders"
which are referred to by Mr.. Andrews re-
quire that they should first do equity, and
surrender all that they Wrongfully obtained.
This would strike out OF their bonds all war,
reconslructon, aud compound interest, and
reduce their claim 10 81. Sjl ,339.GS-a state
ment which shows the iiberaliiy OF the com.
promise established by the Rddloberger bill
in It's agreement to pay S930iS,S23, or
elGl0T, is332 more than the equities OF the
bondholdcrs eutitlc them TO claim--an agree
nicnt by which the State still stands.
DIscREDlTs HIMSELF.
n, MIR. Andrews discredlts himself when
he says the South "persists Ia defying the
mandates OF the Constitution" aud when
lie twns MS with disregard OF pub
lie contracts" The only case OF dis
regard Of public contracts for which
the state OF Virginia was bound IS the
rrpudiaii0n 81 debt contracted in aid OF
the war and that was done under duress OF
cur conquerOrs. The South has never de-
ned the mandates OF the Constitution. though
she North set the most outrageous examples
Of that KIND more than once I'm the war.
And in this debt business the supreme
Cour. OF the United States. not only by
entertaining suits against officers OF
State for executing a States mandates,
Nhi ny tihuhhk luil>ui'aph V'Ni
States contracts. aud by claiming as they
do Tex pqrie Ayer., Scott, aud McCabe)
that the judicial power OF the United States
iaterprets and applies for itself the extent
aud limits OF the authority OF the Constitu-
ton, has repeatedly " debed the mandates OF
the Constitution" That businessmen OF
the North, hke Mr.. Morton, lack the capaci-
Is 70 understand this, and the candor 10 adj
init their ignorance, should surprise no one
who rChccts that Plutus, the tutelar deity
Of New York, Is not renowned as a lawgiyer
OF a mOraIst
a. Mr.. Andrews argument TO show the
propue,Y Of our paying more tbsn cur
present limit because We are supposed 10 be
trn rciOrmers fails 10 impress Us, because
we do not think that the tariff Is the "key-
note Of national property" So far from
tirG reduction being our "detined fiscal
policy" we have no defined fiscal policy az
aN. with us In Virginia everything is SUBJ
OfdiHaled "a the preservation OF orr ciyili'
zaDOn against Repubiic4n attempts to de.