Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1890-01-15
GOV. Nv. MeKINNEY'S MESSAGE.
1t is in Reference to the Public Debt.

1t is in Reference to the Public Debt.
HE RECOMMENDS THE RIDDLEBERGER BILL
AS THE BASIS OF SETTLEMENT.
On Saturday last, Gov. Mckinney sent
to both houses of the General Assembly the
following message:-
To the General Assembly:
have the honor to transmit to you let
ter from Mr.. John Lubbock, chairman of
the Council and Committee of Foreign
Bondholders in London. bearing date De-
Governor of Virginia. The letter expresses
early opportunity to bring to the notice of
the Legislature the earnest desire of the
bondholders to put an end to the protracted
contest between them and the State, and
alleges that the points in dive gence upon
which the negotiations in 1887 failed are
not 80 great as to preclude hope that the
question at issue may be adjusted, Sc.
The communication expressed the desire
that in order to preclude the possibility of a
similar miscarriage to that of 1887, before
formal negotiations are re opened, pre-
liminary understanding shall bs arrived at
as to the general principles that should gov
ern such deliberations. 1t suggests that &C
credited representatives of the State to car
~ out and conclude matters at issue be sent
to London, but if it should not bs deemed
practicable to meet this suggestion. then
the Council and Committee of the Foreign
Bondholders would be prepared to send a
commission to Richmond, Va, with full
power to conclude an equitable compro-
MISE
Mr.. Lubbock assures US, in the meantime
of sincere desire on the part of the Coun-
Gil and committee to CO. operate in bring
ing about an early and equitable. adjust
ment, which may afford 8 permanent settle.
ment acceptable to all parties. He says
that we may with perfect confidence rely
that any agreement made by the State with
the Council and committee would be per
mauent settlement so far as the bondhold.
ers ana concerned.
/ deem it proper to say to the General
Assembly that would be greatly gratified
if the question of the public debt of Vir-
ginia could be settled in such a manner as
to satisfy all parties and retire it from the
courts, from the legislative halls and from
the politics of the State. From nv
knowledge of the financial condition of
the people of Virginia aud the action they
have heretofore taken upon this subject, it
is clear to me that we are not able to offer
to our bondholders more liberal settle
ment than that embodied in the settlement
any considerable departure from the provi
sions of that bill would be contrary to the
expressed will of the people and to the
pledges made to them by the party in pow
er.
I see no good reason why we should send
a commission to the city of London to con-
fer with the bondhnlders. We have offered
them under the Riddleberger bill terms as
liberal as the financial condition of the State
will ALLOW; that bill has been approved re-
peatedly by each political party in the State,
in it's conventions, and ratified by the peO-
pie at the polls.
The annual expenses of the State gov
erumeut are now larger than at the time of
the passage of that bill, having been made
so by the increased annual appropriations
to the lunatic asylums, rendered necessary
by the distressing increase of lunacy; by
the Increased criminal expenses, caused By
the unfortunate increase of crime; by the
adoption of 6 pension law to afford some
little relief to the disabled soldiers and to
the widows of those who lost their lives 10
the late war: by she appropriations to the
Female Normal School at Farmvie, the
Colored Normal School at Petersburg, the
free school in connection with William and
Mary College, aud the ,ldiers' Home sincs
then; and whilst our annual expenses have
increased our resources have diminished
materially. The decision of the Supreme
Court 10 regard to licenses required of sam
pie merchants cut off some $75, 900 annual
iy, and the sum derived from merchants
Licenses has largely diminished, the farming
interest having been depressed for several
years, consequently diminishing the volume
of business done by the merchants by which
their licenses are regulated. We are not,
therefore, in as faYorable condition now
as then 10 Offer more liberal terms to our
credi. ors, and if all she bondholders were to
accept iss provisions it would necessitate an
Increase 10 the rate of taxation. unless as
sessmeats this year show a considerable ill.,
crease in the value of taxable property, or
unless We find new subjects of taxation.
I would advise that We stand by the Rid
dleberger bill and amendments. But if
the bondholders propose different terms not
materially increasing the principal OR in
terest asaertained by that bill, that it would
be we'll To reqaire, ai g. Indispensable coo
dition of considering any such proposition,
that it should embrace bona fde tender of
so large proportion of the consol aud ten
forty bonds as to guarantee a settlement of
the whole debt if it should be accepted.
beg leave to submit the letter herewith
to the General Assembly for such action as
its wisdom and discretion may dictate.
P. W. MCKINNEY. Governor.
The message was laid on the table and
ordered to be printed.
The substance of the letter from Mr. Lub-
beck is embodied in the above message.