Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-08-03
PARSONS AND HENDERSON.
An Account of Their Proceedings from q
London Paper.

The following is from the London edition
of the New York HrraH of July 7th:
The latest attempt to restablish the finan-
cial credit of Virginia has failed. The
Herald published the fact several weeks
ago that General John b. Henderson, ex-
senator from Missouri, and now resident
of Washington, and Colonel Ii. c. Parsons,
of Natural Bridge, Va, had arrived in
London for the purpose of comforting with
the holders of Virginia bonds III London
and Amsterdam.
These gentlemen have met two commit
tees of bankers, representing the bond
holders, explained fully the condition Of
the debt, and the fact that reputation Is
popular in Virginia, and submitted their
proposition. They are still waiting for an
answer. In fact, they have gone back TO
America to wait. The truth Is that both
committees have virtually rejected the
offer. General Henderson says that he
thinks the trouble is that neither commit
tee can control sufficient bonds TO comply
with its terms.
THAT portion Of the Virginia debt, the
settlement of which we have been trying
to arrange said General Henderson.
amounts to S3l Gil ,15s. In this amount
is included only two thirds of the old
ante-war debt, with accumulated interest.
The other third it is claimed, should be
=
other Indebtedness in the shape of Rid
dleberger per cent. bonds TO the amount
of S7,77l, 2S1, OF which, however the State
sinking fund and departments own
S3.7l0.G COZ. Then the State Is placed under
obligations by what are called deferred
certificates These are in effect promises
to pay West Virginia's portion Of the debt
when that State turns over the money with
which 10 do it. These certificates, with
accumulated interest, amount TO S3l ,6U,-
891.
West Virginia claims that she is obliged
to pay only such part of the ante-war debt
as was represented by the cost of the i'm
prOvements made originally within her
boundaries. She contends that this - less
than 81 ,000000. Virginia's State officers
say the surplus revenue IS nearly 500, 600
annually, or about S465 900 overwhat Is re-
Quired to pay interest on the Riddle
berger bonds. But this surplus, If devoted
repayment OF interest on the suspended
debt, would suffice only topay less than one
half of per cent. on it. If an adjustment
could be made by which the suspended debt
could be funded into , per cent. security
then the whole debt, exclusive of West
Virginia's portion, would amount to about
S39, 1872, 600. The debt Is oppressive beyond
endurance, and it is the most supreme
fo0lishness 10 think that 1T will ever
be paid in full. There is q considerable
element in the State which is in favor of
paying all that is fair 1t is hoped that a
plan eau be adopted under which the debt
can be wiped out in fifty years. To do
that there would have TO be an annual con-
tribution of about $500 TO the sinking
fund, which with the amount necessary
for interest would require an addition TO
the present yearly taxation of not far from
$500, 900. II the debt question can be re-
moved from partisan politics andplaced on
the higher plains of morality and justice,
the public conscience will. | have no
doubt. bring about good result"
The first proposition which General
Henderson made was TO the Corporation
of Foreign Bondholders, of which the
Right Honorable L. p. Bouyerie IS chair
man. The terms were these The Corpo-
ration 10 deposit for five years. with some
banking house agreed upon, at least Sl0,-
900, 900 of Virginia bonds, on which inter
est has been suspended, with the interest
coupons; such bank TO issue TO the
Landowners negotiable certificates for the
same; Virginia bondholders' committee
of three to be selected-one chosen
by the bank. one by the corporation
of bondholders, and the third by the
United States Secretary of the Trea-
sury, such committee 10 have full power to
negotiate the final adjustment Of the debt.
The surplus revenue Of Virginia 10 be paid