The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1889-08-08
The State Debt.
COL. H. c. PARSONS TELLS OF HIS INTERVIEW
WITH THE FOREIGN BONDHoLDERS.
NATURAL BRIDGE, July %, 1889.

COL. H. c. PARSONS TELLS OF HIS INTERVIEW
WITH THE FOREIGN BoNDHoLDERs.
NATURAL BRIDGE, July %, 1889
To the Editor Of The Dispatch
Upon my return from Europe | am told tina
the fact that went abroad at the invitation o
some OF the bondholders of Virginia has beer
the subject Of hostile newspaper comment.
AS the comments have not reached me | may
not answer them III detail. If any one has beer
led to suppose thar went abroad to treat will
the bondholders OF to appear as the representa-
\ tive Of any party or public official he has beer
/ misled.
| IL any one has feared that l have said any
4 thing to encourage or enlarge the demands O.
4 the bondholders against Virginia he has no oc
casion to fear
/ If any one has said that did anything to defer
a settlement Of Virginia's debt he has not Spoken
I the truth. went abroad as private either
! upon the invitation Of certain bondholders
/ While was there | met in friendly and infor
NAL way the holders of a majority of all the Sc
cul'ities held abroad. answered their questions
\ as | would have spoken at home, and as l now
briefly repeat,
4 AS to Firginia's ability and disposition to
make bettersettlenlent than under the present
offer, plainly said that was one of those who
opposed the plan, but the bondholders had sub
mtted the question to the voters OF Virginia
that it had been decided that the bonds must be
scaled to sixty cents, and the interest to one
halt The coupons made now receivable for taxes
that this decision had been confirmed by legisla-
ton and by all political conventions and that
IN America there was no appeal from a verdict
OF the people.
| also said that the very general opinion of the
people of Virginia was that not more than $7OO
O00 could be set aside for interest payments and
the charitable institutions be maintained.
was met by many suggestions. One was that
the process OF the courts would force the state
to make a larger provision; one that the clergy
could make an effective appeal to the conscience
of the people; aAd one (Which is generally enter
tained) that the state cannot afford to wait in
definitely under the heavy penalty that rests
upon defauting states.
Our conversation turned upon the chance OF
securing national aid. Upon this subject ans
wered that the claim was just one; that the
administration was not unfavorably disposed
and that congress would give a fair hearing if
the case could be presented by the state and the
bondholderS without any partisan appearance
or speculative lobbying. l said that essential to
this were two conditions. There must be truce
between state and federal authorities. In orde,,
to this suggested that the surplus revenues
about $430,000-be set aside for distribution
N>NN-SN45o
pay 2 per cent. upon the principal or X per
cent. upon principal and INTEREST," the balance of
the coupons to be kept alive for yment, if CON
SresS should aid, to be cancelled if no aid is Sc
cured; second, that the bonds should be deposit
ed III The control of committee having power
to settle. When asked if had any authority to
say tllaG the state would so appropriate their
surplus revenues, replied that [ had and could
have none but is was proposition that no ad-
miilistration could reject on the eve of general
election
There were serious objections and difficulties
III the Way OF Withdrawing the present plan OF
campaign" and in securing a deposit of the
bonds, but they may not prove insurmountable
was told that memorial had already been
sent to the president through the British minis
er. Ex-senator Henderson was in London At
ne close of the war Missouri was in even greater
d1scredit than Virginia, but he secured an ap-
preparation Of s., 100000 for militia expenses
TOOK 1t home, restored the Literary fund" and
the school fund, paid OFF every matured coupon,
and established such credit that Mssouri's3
per cents are above par and the debt of S27 Geo.
900 is reduced below $100O0,OO0
Bankers and bondholders had urged him to
study the situation here and in Europe in the
hope that he might find himself warranted In
undertaking to secure settlement He, how
were the withdrawal OF the tax-receivable cou-
pons and the deposit of bonds and until
this was effected no forward step could be tax
en-.
have heard it so much asserted that the
bcndhoiders were on the eve of accepting the
see0ie4ser5 tl1s.s I inquired
carefully OF their disposition do not remem-
Der one of the holders whom [ met who would
even discuss this matter The general estimate
Of the present holding seemed to be fully sixty
cents, which would require that our new SIS
should be as OF above par
know an offer made for a large block in
order to put the parties i'll position TO treat with
General Henderson far above the quoted price
may say that the bondholders aia not appear
like outlaws or talk like pubic enemies Al
most without exception they were friends of
Virginia who trusted her, ana men who. il this
matter could be settled. would be first i'll in
vestnents and upbuilding.
In addition to the $7,0D,GOG OF Riddlebergers
there are o-day outstanding and lnfunded of
principal sos and OF interest over $780,
600, in all nearly $&2,iA1,511 Upon these
bonds the accruing interest Increases our Gebt
at the rate of 81 100000 year S. 600 per day
The funding has long ago ceased. Tie appear
ance of conversion is only Kept up by the state
divertihg the interest money which belongs to
securities. AS if the s35, o00,0Gl Of recognized
debt was not appalling enongh the state holds
in trust $l5, 1880 of other bonds, which with
Interest amount to &30,0O0,000 and is taking no
step to collect under this trust. The cost of the
last ten years of default to the property holders
and the wage earners of the state has been in
calculable. Every man who must sell his farm
or seek employment contributes to the loss ac-
count. -Four hundred thousand persons born in
Virginia have moved to other states.
Every share of railroad and mining stock is
deprecated. Every project for development is
delayed.
The people already begin to talk gloomily of
Reputation.
There is not a people il She world more Just
than the people Of Virginia. The creditors are
wen disposed. There is an honorable escape-a
way OF settlement in which the citizen may not
add one dollar to his burden or the creditor to
surrender one dollar of his just demand. The.
nineteen years of failure need not be repeated
The time has come to Settle 3he public debt of
Virginia, and stffa debt settlementa-in which
the creditor has surrendered into practical re-
pudiation SlS,N10Oo of principal and &ls,0O0,0G0
of interest-oughb to bring relief but our UNI
funded debt to-day is greater than the entire
debt OF the two stases in 1861 and nothing goes
on but the accumulation Of interest
This questief, istoo glseatfor us who are pri-
waite citizans to handle.
Appeal for national aid ought to be made a
plankin the platform of each party and should
command the,united effort of all who desire the
restorati3n.ef the commonwealth
II. c. PARSONS.
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