Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-12-24
The Debt settlement.
IFor The Dispach'

The proposal submitted by the Olcott
Committee for acceptance by the bond
holders Is based on five distinct PROPOSE
tons:
+ public bond rests on the confidence
reposed in the honor g Cd faith, and JUS
tice of sovereign State.
This is the doctrine promulgated by
Daniel Webster in his letter to Barring
Brothers dated October 10, 1889. This
has always been. prominently, the doc
tine of Virginia, and the Olcott plan brings
US back to 1T.
2. The bonds outstanding coll for more
than the State honestly owes. Therefore,
the indebtedness Of Virginia should be
ascertained, not by the amount Of her
outstanding bonds. but by stating an
equitable account which will eliminate all
compound interest and double funding.
This is the proposition on which the
Readjusters carried the election IN 1881
and on which proposition our people are
now unanimous.
3. Such an equitable account. if now
stated. would find due to the creditors an
| amount larger than the amount on which
| the State is at present able 20 pay even
| per cent. interest Therefore, the real
question is not what amount is honest
| and Justly due, but what amount can be
set aside to pay interest without lncrea-
sing taxation and without Gripping the
Treasury.
The committee have based their under
| taking on the belief that Virginia, when
approached in the right spirit, and placed
| on her honor as sovereign state, VIII DO
| the best she can toward paying whatever
she honestly and fairly owes.
4. The bonds and coupons being deposi-
| ted under power of attorney, and beng
| represented by court, the state Will deal
| with its creditors collectively and as a
unit The bonds and coupons will be I'M
| mediately surrendered as soon as Virginia
| determines the amount OF new bonds TO be
| issued in exchange for them. Hence there
| is no danger of any miscarriage OF suc1
| settlement as may be arrived at, and IL VIII
| be prompt, complete, and final.
| 5. A fixed amount Of new bonds Will bt
| issued 10 the committee IN lump IN eA
| change for the deposited debt, and tine
| General Assembly will not be troubled &c
apportion the new bonds between the sew
eral classes of creditors.
| This wise provision cannot fail to com
| mend itselfto the bQd-fde holders OF bonds
although II may not be satisfactory 20 per
| sons who expected to speculate while set
Element was in process OF being carried
ont. 1t seems absurd for the creditors &
! quarrel among themselves about a dlylslol
before they know how much there VIII b'
TO distribute. A wise man will not Quarre
over the way to cook hare before 1t i
caught.
Again. Virginia has done all she can b.
properly called on 20 do when she issues
Jumped amount Of new bonds. IL woul'
be unreasonable TO ask her TO settle dis
putes between individual creditors II
which she has no interest and which cal
be best settled by the creditors anon
themselves. A State lacks the machiner.
TO settle such disputes. A political body
like the Legislature, Is unsuited to deed
| questions which require calm, careful
elaborate, .and impartial consideration
Hence the Olcott Committee has wisel
adjourned all discussion about Distributing
the new bonds until settlement with tn
State has been made and until they are il
hand. This greatly simplifies the situation
and the question 10 come before the Gene
raj Assembly is thus narrowed to the singl
} inquiry as to how much the State can ai
) ford to apply in part payment of Tn
amount which. although fairly due, tx
ceeds its ability.
The power of attorney. or agreement
under which more than five sixths of tn
debt held by public Is already deposited
requires the proposal to be published 70
sixty days for the creditors to accept II
An Advisory Board, composed OF sue
I sensible and experienced men as Grove
| Cleveland. Thomas +. Bayard, T.. j. Phelp.
George q. Williams, and George $. Coe
have unanimously recommended its &C
ceptance, and we think the bOndholder
cannot do better than act upon the advic
| thus given 70 them.