Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-07-25
The State Debt Colonel Parsons
VISIT to England.

Inc Otdtc DeDl OplpIAc4 L "a SVA'S .
Visit TO England.
The public will read with interest the
following letter givingan account OF Colo
mel II. c. PARsoSs's recent visit to England
aud Of what ne learned there. We make
no comment:
NATURAL BRIDGE, July %, 1883.
To ne Eiaor Of he Dispatch:
Upon my return from Europe ] am told
| that the fact that / went abroad at the IN
vitation Of some Of the bondhoiders OF
! Virginia has been the subject OF hostile
newspaper comment.
As the comments have not reached me l
NAV not answer them in detail II any one
has been led 10 suppose that went abroad
TO treat with the bOndholdcrs or TO appear
as the representative of any party or pubic
official he has been misled.
II any one has feared that ! have sara
ANYTHING to encourage OF enlarge the de
mands of the bOndholders against virginia
| he has no occasion 10 fear.
If any one has said that | did anything
10 defer "A settlement of Virginia's debt ne
has not spoken the truth. went abroad
as n private citizen upon the invitation OF
certain bondholders. While | was there 1
met in friendly and informal way the
| holders Of a majority OF all the securities
as | would have spoken at nome, ana as
now briefly repeat.
Asto Virginia's ability and disposition to
make a better settlement than under the
present offer, plainly said that l was one
of those who opposed the plan, but thc
bondholders had submitted the question
to the voters of Virginia; that 1t had peeh
decided that the bonds must be scaled 70
| sixty cents. and the interest 20 one hall the
coupons made now receivable Tor taxes
| that this decision had been confirmed 10y
legislation and by all political conventions,
and that in America there was no appeal
from a verdict of the people.
/ also said that the general OPINION OF
| the people of Virginia was that not more
than 800 900 could be set aside for IN
| terest payments and the charitable lusll-
| tutions be maintained.
was met by many suggestions. one was
| that the process of the courts would force
the State 10 make a larger provision; one
that the clergy could make an effective
appeal to the conscience OF the people;
and one (Which is generally entertainer
that the State cannot AFFORD TO wait m
definitely under the heavy penalty that
rests upon defaultlng States.
Our conversation turned upon the chance
of securing national aid. Upon this sub
ect | answered that the claim was Just
one: that the Administration was not I'M
favorably disposed, and that Congress
would give a fair hearing II the case could
be presented by the State and the bond
holders without any partisan appearance
or speculative lobbying. | said that essen
tial to this were two conditions. There
must be truce between the State
and the bOndhOlde-S, a cessation OF
the conflict between State and Fed
eral authorities. In order 10 tins
suggested that the surplus revenues
about $40. 0O0-be set aside for distribution
among the bondholders pro rata. This
would nav 2per cent. upon the principal,
or h per cent. upon principal and mite
rest. the balance of the coupons 10 be kept
alive for payment, if Congress should ad,
10 be cancelled if no aid Is secured: Sc
cond. that the bonds should be depositedin
the control of q committee having powertO
settle. When asked if had any authority
10 say that the State would so appropriate
thor surplus revenues, rephed ihat lhad
and could have none, but II was a PROPOSE
ton that no administration could reject on
the eve of a general election.
There were serious objections and diff
culties in the way of withdrawing the pres
ent "plan of campaign" and IN securing
deposit of the bonds, but they may not
prove insurmountable. / was told That "A
memorial had already been sent to the Pre-
sident through the British Minister. tx
!
close of the war Missouri was in even
greater discredit than Virginia, but he Sc
cured an appropriation of 81 1000. 600 for
militia expenses" took II home, restored
the literary fund.- and the school fund,
paid off every matured coupon, and estab-
lished such a credit that AlissOurTs per
cents are above par and the debt OF 81
DOL, 900 is reduced below Sl0,0O0,OOO
Bankers and bOndhOlders had urged HIM
TO study the situation here and III Europe
in the hope that he might find himself war
ranted IN undertaking 10 secure settle
ment. He, however, agreed with me that
essential conditions were the withdrawal
of the tax-receivable coupons and the de
post of bonds, aud until this was elected
no forward step could be taken.
have heard it so much asserted that the
bondholders were on the eve of accepting
the settlement proposed 10y the State that
inquired carefully Of their disposition.
| do not remember one of the holders
whom | met who would even discuss tins
matter. The general estimate of the pres
ent holding seemed 10 be fully sixty cents,
which would require that our new IS
should be at or above par.
know an offer was made for large
block in order to put the parties IN posi-
ton to treat with General Henderson far
above the quoted price. | may say that
the bondhoders did not appear like " out
laws" or talk like public enemies. Almost
without exception they were friends OF
Virginia who trusted her. and men who, II
this matter could be settled, would be 1rst
in new investments and upbuldlng.
In addition TO the 81 ,OOO,O 600 OF Riddle
bergers there are to-day outstanding and
unfunded OF principal So, $50 Cos aud of
interest over - 900 900, IN all nearly S3Z,-
OO0. OO0 Upon these bonds the accrulng
interest increases our debt at the rate OF
81 200, 900 a year or $4,000 per day. The
funding has long ago ceased. The appear
ance of conversion Is only kept up by the
State divertlng the interest money which
belongs 10 its bOndhOlders and buying It's
own deprecated securities. As II the $50
OOO. 900 Of recognized debt was not APP
palling enough, the State holds in trust
Sl5. 900 600 of other bonds, which with IN
terest amount TO $50, 000, 600, and Is taking
no step 10 collect under tins trust. The
cost OF the last ten years of default to the
property holders and the wage-earners OF
the State has been incalculable. Every
man who must sell his farm or seek en-
plovment contributes to the loss account.
Four hundred thousand persons born IN
Virginia have moved 10 other States.
Every share of railroad and mining stock
is deprecated. Every project tor de-
yelopment IS delayed.
The people already begin to talk gloomily
Of reputation.
There is not people in the world more
just than the people of Virginia. The
creditors are well disposed. There is an
honorable escape-a way OF settlement III
which the citizen may not add one dollar
to his burden or the creditor surrender one
dollar Of his Just demand. The nineteen
years Of failure need not berepeated. The
time has come 10 settle the public debt OF
Virginia, and the debt settlement in
which the creditor has surrendered into
practical reputation SlS,OOO,000 of princi-
pal and Sls,OO0,G0O of interest-ought 70
bring relief, but our ,0.fS,ied debt to-day
is greater than the entire debt of the two
States in 1860. and nothing goes on but tho
accumulation of interest.
This question IS too great for us who are
private citizens TO handle.
Appeal for national aid ought to be made
plank in the platform Of each party. and
should command the united effort of all
who desire the restoration of the Common
wealth. III. q. PARSONS.
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