The times. [volume] (Richmond, Va.) 1890-1903, 1891-07-05
THE STATE DEBT SETTLEMENT.
The Question Clearly Discussed From Every
Standpoint
THE REhDJUS1ER DOCTRINE AGAIN.
what Are the Principles OF the Riddlcbcrger
Bill and What II the Ability OF tho
State the Two Main Points.
fFnr The Times.l

| tnct questions; First. What are the princi-
pies of the Riddeberger bil' Second. What
| is the ability of the State?
In the popular mind the phrases Riddle
berger bill A" and the principles of the Riddle
| berger bill" and 1.-The Readjuster legislation F"
mean one and the same thing and signify the
| legislation of 1882, which was intended TO
carry into effect the propositions on which
that Legislature had been elected. Those
| propositions were that coupons should not
| be used to pay taxes and that the State did
not owe and would not pay the full face value
| of the bonds
THE EEADJUsTER DOCTRINE.
The Readjuster legislation must be read in
| the light of the circumstances which gave
| birth TO it. The Readlusters believed that the
| bonds (cOnsols ten-forties and pealers)
| called for q larger amount than the State
would owe on Il fair accounting. They DIS
| tinguish between the true debt and the bonds
| They claimed that by reason of compoundng
| interest and by reason OF irregularities IN
| funding, the bonds called for larger amount
| than was honestly due t. the creditors. Inc
| Readluster proposition was tnat the o'ate
| would pay all that she Justly owed, but would
| not pay more than she owed, and II was IN
| sisted that the bonds should be scaled down
until they represented only the true indebted
| ness.
To give effect TO this proposition it was de-
| cided that the indebtedness should be ascer-
| tanned not bv the face value of the bonds out
| standing, but by stating an equitable account
| between the State on the one side and the
creditors on the other side This account was
| to commence with the debt as it stood in Jan
| uary. 1861, and was to be brought down TO
July ]. 1882. The account was to be stated
according 70 the principles which court OF
equity would apply IN a similar case between
individuals; eliminating compound interest
and eliminating any increase which might
have been caused by Irregularities IN funding.
An account having been stated on these
principles. the Riddleberger bill was based
upon it; and the Readjuste declared that
while they would not depart from the prlnci-
pies of this account, yet they always stood
ready TO correct any mistakes IN 1t. but there
has never been any authorized action to YER
ify either Its figures or It's calculation.
DISSEMINATING THE BONDS.
The question. How much the State will
pay" differs entirely from any question which
can arise respecting an equitable distribution
between the cOnsOls. ten-fortles and pealers.
A rule 10 ascertain the amount Of q debt has
nothing TO do with any question as TO how
such amonnt should be distributed. But it is
evident that the amount to be distributed
must be determined before any one can intel
ligently discuss how it shall be distributed
The RATE OF SCALING.
The object Of the account was to ascertain
the true indebtedness OF the State the object
of scaling was TO abate the bonds in proper
ton to the difference between the true debt
and the amount called for by the face value
of the obligations. If the true debt was S25,-
000, 600 when the bonds called for $50 900 000
then they would be scaled one-half; but if
the true debt was $50 900 900. when the bonds
called for $50 600 600, then they would be
scaled only two-ffths. This illustration is
conclusive that, according 10 the principles Of
the Riddleberger bill the rate OF scaling de-
ponds on the difference between the true debt
and the face value of the bonds. and it is evil
dent that the rates of scaling must vary with
any change IN the amount to be divided.
ABILITY or THE STATE.
The question How much does the State
oweyn is one thing the question How much
can the State pay is another thing. he
principles OF the Riddleberger bill will enable
an accountant 10 answer the first question,
because 10 furnishes a rule by which 10 ascer-
tain the true debt but is evident that very
different rule IS required 10 measure the ability
of the State. The Riddleberger principle IL
TO scale the bonds down to the true debt.
This principle is entirely different from a
proposition 10 scale the bonds because the
true debt exceeds the present ability Of the
State The Riddleberger principle is to re-
until the State becomes richer
1t must be remembered in this connection
that the people are unanimous, that the
amount of Indebtedness shall be asceriained
10y the Riddleberger principles. This ques-
ton was fought out at the poles, and there is
no appeal from the popular verdict. Every
public man is pledged to execute that verdict.
and no one acquainted with the public pulse
desires 10 argue against It.
But in fixing an amount which is within
the ability Of the State we must recollect that
such amount must be also within the princi-
pies of the Riddleberger bill. Hence 1t may
BECOME necessary to demonstrate that the
amount which the State can pay is less than
the true debt ascertalned according TO the
Riddleberger principles. This question may
be considered presently. Il Is NO use 10 con-
slider itunti we are first agreed respecting the
ability Of the treasury.
THE SUBJECT MUST BE STUDIED.
II must be recollected that very few persons
profess 10 be accurately informed OF the
merits of the controversy between Virginia
and her creditors. which has lasted nearly
twenty-five years. and has caused so much
loss 10 both the bOndhoIders and TO the State.
A settlement involves an asceTtalnment OF
the amount Justly due and also ascertain
ment of the amount which the State can pay
without increasing taxation.
The proper ascertainment Of these amounts
REQUIRES II HltlsLihllE anu injurious
ton of statistics and careful calculation.
This character of work can best be per-
formed by small body Of impartial men, &C
customed to figures. who will give it uninter-
rnpted attention until it il finished. Our po-
litlcal system is based on the idea that after a
popular election has decided the principles TO
be applied. the details shall be worked out by
few men especially employed by the body Of
citizens to render the State tins service, and
who will give TO the subject the necessary
study and investigation.
1t cannot be doubted that If tho representa-
tiyes of Virginia and the representatives Of the
bondholders meet together with view 10
reaching the truth and justice of this matter.
then a settlement will be made which will
satisfy every reasonable and right-minded
man.
The effort should be to make such investi-
CATION as will enable those interested to ar
rive at the very right of this case All reason
able men will lie content with settlement
which is just. fair and equitable and If any
be so unreasonable Is 90 demand more than
they will receive from such settlement then.
az the bonds are deposited under power OF
attorney they must submit to Il result which
is accepted by the majority,
UNIVERSITY or TIRGINId.
The Proposed Presidency of that Institute.
Professor Thornton.