New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-06
THE DEBT OF VIRGINIA.
IMPERATIVE NECESSITY FOR ACTION BY
THE COMMISSION.
DANGER OF DELAY FOR POLITICAL PURPOSES
HONEST WISHES OF THE PEOPLE TO SETTLE
WITH THE CREDITORS OF THE STATE
-REPUBLICAN AND DEMOCRATIC
METHODS CONTRAsTED.
a o. d "a

az the present moment occupied with the recent secret
conference Of commission of our State bondholders,
and committee Of our Legislature, held I'm Richmond.
This meeting drew special attention by Of the
vast interests involved. the character Of the rcpresen
taves, and the unusual that the proceedings were
private The state Of Virginia has suffered much in
her interests and in the estimation OF the world,
and has often been placed in false position. and is
certainly drifting toward a determination that
may have an important bearing upon her dignity and
her destiny, that am warranted in assuming that
brief statement to the Virginia debt and the present
condition Of the effort at settlement may be Of general
interest.
The State debt OF Virginia was not "carpetbag'
debt. 1t was entirely created before the war under
1877 acts Of the General Assembly, running through
period Of nearly fifty years, for public buildings, or
works Of Internal improvement upon which works the
bonds became a first lien. In 1861 the debt was
S31 sO0,712. AS partial security for this, the Board
Of Public Works held In stocks and bonds, S34,203,
25s having then a cash value of ten millions Of dol
lars leaving actual debt Of twenty millions OF the
entire outstanding Issue, twothrls held In the
state Of Virginia, the balance in England. The bonds
had been sold In the markets of the world at higher
rate than the bonds Of the United states. Ten years
hter the available assets had been swept away; the
State had been torn asunder; the taxable values had
decreased from 1923 100000 to 1896 900 600 and
through interest accrued. the debt had meantime in
subject the burden had increased nearly 500 per cent
The people were without money or credit, and
compelled 10 meet the most difficult Of all govern
mental troubes-adiustment to the conditions Of new
civilization. The people faithfully met the
qulrement Of readmssion into the Nation They
built 5000 schoOlhOuse opened the doors % 100000
children who had never free school. and met
their creditors with a view 70 presumption and fund-
Ing Of the publc debt. In this presumption every
dollar Of principal ard interest recognized One
third set aside to be held in till the settle.
ment with West Virginia. and for the remainder. sum
greater than the principal Of 1861 in new per cent
bonds was given.
From the beginning there have been two theories
which, 50 far rs people can be divided upon such
question politically, may be stated the Repub.
can and the Democratic plans Of adjustment. The
former held that the General Government should be
called upon to assist in the settlement. The arGl-
ment lay In the fact that in the division Of The state
and the creation OF the state Of West Virginia the
General Government had not only DESTROYED the lien
Of creditor and derived great advantage In a military
bUb by Of the conditions Of the cessi0n
Of the Northwest Territory. had made itself peculiarly
liable In the resolution OF the House Of Delegates
Of Virginia Of the I'd Of January, 1871. by which
state appointed her delegates. Thomas Jefferson.
Samuel Hardy Arthur Lee and James Monroe. to make
in the presence Of Congress the most important grant
made for the accomplishment Of a political pur
pose. this cession Of the Northwest Territory il was
provided
That all the remaining property Of Virginia IN
cluded between the Atlantic ocean and the southwest
side Of the river Ohio and the Maryland Pennsylvania
and North Carolina boundaries shall be guaranteed to
the Commonwealth Of Virginia bv the said Nation
Virginia was on that day a slave State; but It's
grant made reservation. ahd in effect dedicated the
whole territory 10 freedom. II gave control Of the
great lakes and the Crea; rivers If the continent out
Of sale Of lands then conveyed, S1OOOOOOOO was
paid into the National Treasury. out Of the remain
ing lands the frceschoo systems Of five great states
have been largely sustained In the act Of division
the Constitution. which purchased at this
nous price, strained 10 the utmost. The pro
text Of the consent Of the people seriously
regarded OF possible 100000 voters. less than
$4,000 In both states went 10 the polls. The benefit
to the Nation Of the act that carried the picket line
from the banks Of the Ohio and the MononGahela to
the OF the lcghanics greater than the open
ing Of the Mississippi and it seemed reasonable that
Virginia IN her distress might ask that the National
Government should contribute the revenue Of a week
to assist her IN making honorable adjustment.
As one Of the commissioners Of West Virginia in
1870 I took this position. II had been previously
taken b7 Thaddeus stevens. Judge Bingham, Oliver
p. Morton. Salmon P. Chase and later was most
forciby stated by Mr.. Elaine in his Twenty Years
in Congress- senator Henderson, Presids INT Garfield,
David Davis. Z. b. Taylor and other prominent Re-
publcans have at different times asserted aSsented
10 this that it may be fairly stated to have re-
ceved Republican recognition.
The Democratic party, the other side has from
the first treated this suggestion with BY every
public declaration, beginning with the remarkable
message Of Walker his Legislature in 1862
and continuing 10 the last expression Of Governor Lee
there is distinct reputation Of any purpose on the
part Of Virginia y apply for receive any National
aid Whether it be through the Democratic fear Of
adverse political advantage, Of recognizing the
paternity Of Government, which to-day regrets
the fact that the Confederate army allowed t. ride
home on Grants horses, the assertion has been
stanty in this direction The party has also assumed
10 itself the absolute and solitary right 10 effect the
adjustment. Every act that has been passed bear
Ing upon the public debt every commission that has
been named. every resolution that has gone upon the
record Of the State every court embargo every
coupon killer" has originated in Democratic eau
Gus SO pronounced las this been, that in the ap-
pontment Of the present committee although the po
li:ical margin in the last Presidential election was
only oue.haf Of per cent Of the entire popular vote
not one Republican member, either Of the House or
senate was named. Unusual this proceeding may
SEEM there IS in IL especial reason for complaint
the result had been satisfactory, but the attempt
at adjustment has now continued with falling chances
Of success for twentyone years. II is esmaed that
each one Of these years has cost the state at least
100000 in her delayed development. More than a
hundred thousand Of the young men Of the state have
in this period sought new homes beyond her borders,
and our emigration has been steadily three times
immigration The English bOndhOlders have also quite
notably in this last cttempt az adjustment ecOgnZed
the cXcuslveness Of our state Democracy. When the
Legislature appointed committee upon which ap-
peared no name Of the minority, the bondholders
named a commission with no recognized Republican
names but including ex-Presdent Cleveland, ex-sec-
rotary Bayard and ex-MnisUer Phelps, the three
potential names perhaps, In our National Democracy.
They inferred, and, think, rightly, that under the
peculiar conditions Of the case an arbitration had
leen established that would insJre results. There
was no doubt, considering the loyalty Of Virginia
TO her Democratic traditions, that the verdict Of this
arbitration would be accepted; and at the same time
these men were peculiarly close To the English heart
The bonds have been deposited, the commission has
been authorized and decision that should end this
expensive delay has been Justly expected
riced ffHa f.cr hat hraaI