Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-05-23
SATURDAY. MAY %. 1897
The State Debt.

We need not say that we do not concur
IN the opinions which Mr.. PBocToR ex-
presses in the following note. II is unpro-
iitable TO claim that the United States
Government ought to pay our debt because
that Government divided Virginia into two
States for if the United States Govern
ment has resting upon 1t any obligation to
pay our State debt then there can be no
doubt that in order TO pay it for. us the
same Government would have the right to
levy upon the people Of Virginia and West
Virginia whatever tax might be found ne
cessary to the end in view. But this OF
course is not what MIR. PBoCToR contem-
plates. His proposition is by no means
new. II has been made again and again.
1t is based upon the theory that the United
States courts have exhausted their power
and yet have failed TO compel Virginia to
receive the coupons of her bonds in pay
ment Of taxes. Our readers will bear us
witness that in season and out OF season
we for years combated all the arguments
which could be brought to bear in favor of
the right of the Federal courts under any
plea to compel Virginia to pay her debt,
and rejoiced when at last decision was
reached which promised TO free the Old
Dominion from outside or national con-
troll and leave her unshackled by Federal
tribunals Of any sort when she should
again attempt 10 come TO term
with her creditors. But our rejoicing
was based rather upon our hopes than
upon the ambiguous words in which the
United States Supreme Court had at diff
ferent times rendered decisions that SEEM
ed to us TO conflict with one another. To
know that Virginia was indeed under no
power superior to her own courts would be
to know fact well calculated to spread
contentment all over the old State. And
we do not for one moment deny that such
should be the fact of the case. We merely
fear unjustifa BILE proceedings in the Fed
eral courts. However, we are glad to
know that there Is a prospect of freeing
Virginia from her debt and setting her
upon her feet once more. And We again
warn the bondholders that rs there is a
tide in the affairs of men which taken at its
food leads on to fortune" so there is soon
TO be time when those bondholders must
improve their fortunes or else proceed as
heretofore ID tbs vain effort to obtain by
force more rnan Sn- people Of Virginia are
willing to give of their own volition. We
also notify our own people that 1t is time
this debt question were hidden out of sight.
1t has troubled us too long. Let us avail
ourselves of the earliest opportunity TO
settle il upon the terms contemplated in
the action of the last Legislature and in
the platforms we for years affirmed and re-
affirmed as containing our creed on this
subject.
We call Mr.. PRocroR's attention to the
wording of the joint resolution in relation to
the State debt approved March, 1890. That
resolution authorizes the States represent
tatives to entertain no proposal which de-
parts from tho RIDDLEBERGEB act except
that another plan may be provided for
sinking fund not less favorable to the
State than the present one, or a lower rate
of interest may be agreed upon or longer
period for the maturing of the principal.
These exceptions seem to US to be all that
the bondholders can reasonably ask at the
hands of Virginia. Bonds running for a
long time are more valuable, the risk being
equal, than bonds running for short time.
However, we will say no more on this sub
ject just now.
Mr.. PRoCIoRs note is subjoined
20 the Editor Of the Dispatch:
Sir,-The question Of the ante-bellum contract
of Old Virginia is not yet settled. Many of the
people-I among them-beleve thst.the United
States Government should pay the ante-bellum
debt Of old Virginia because the United States
Government annullod the contract by destroying
Old Virginia The funding bill of 1871 was en-
acted by fraud, which vitlates all subsequent
proceedings under It. The foreign bondholders
did not destroy Old Virginia, but they gave
moral aid ana comfort 20 IL, and would do it
again. Provided the United States Government
should no, pay the anto-bellum debt OF Old Vir-
ginia, let the bonds stand till the end OF time, as
State cannot be forced. The people are not in
a condition Of mind or purse 10 pay the ante
bellum debt Of Old Virginia. Under the late de-
cislon Of the Supreme Court of the United States
the people can ignore coupons and let the bonds
alone. This plan would sweep the voice Of the
people Of Virginia WILLIAM L. PROCTOR.
May Is, 1891.