The times. [volume] (Richmond, Va.) 1890-1903, 1891-06-16
gUGINIA'S DEFAULTED DEBT.
Ths Recent Conference With The State
Debt Commission.
/ SUBJECT OF GENERAL INTEREST.
xrh.t the Alcott Committee Say About IT.
The Opinions OF Number NEW
York FinAnciers and Others.


.erls 70 paw her deiaulted Dohueu ue"''
comething Ike "a. 600 600 Of this debt Is held
i, Ibis country and about S9,OOO,OOO IN Great
p-,.ain. II has hurt tho States credit, be-
..,,.o fnanciers on both sides Of the Atlantic
have been wary Of enterprises sheltered 10y
.he Old Dominion. The Englishmen have
leen especially savage, and all visiting South
.-,ers ~ London have been greeted with an
c,rncements that until the debt Is met VIZ
r.uia need not expect ND Tor us hhahclai anu
trsustr.al enterprises
'-rre Southerners decided over year ago 20
,-.' e. work and see If the State couldn't be
r.-e.sel with the situation. bondholdeTs
INV, toe was organized, consisting OF Fred
o-..t p Olcott. president OF the central
Tr,st Company. William j.. BuI express
dent 4 the stock Exchange Henry bUdSe. ol
T.'r4rtcn d Co: Charles ID. Dlckey, Dr.. OF
Is-.,tn brothers. Captain Hugh &. Garden
a~5 Iohn GIN. the latter Of Baltimore.
g., advisory board was appointed,
o.,,,risinr Grover Cleveland, Edward
= Phelps. Thomas :. Bayard: President
GEORGE = Coo 81 the American tx
rbor~e National Bank. and President George
- 'Iy,n;ons Of the Chemical Bank. The de-
p0Sitones of the creditors are nc CeH'i"i
Ernst Company. Brown Shipley Co., Lon
ion. tie Mercantile Trust and Deposit Com
oo~v M Baltimore. and the Planters National
81 ~ Richmond. G.. s. tihs was made
serrefarv Of the b0ndholders committee ana
be was sent 20 England 10 negotiate ior the
'-s,,os-f nf the bonds held by the foreigners
Ile returned several weeks ago, having secured
f1r the committee control of So per cent. OF
the defaulted bonds. The committee has the
mower Of attorney % dispose of the bonds on
tle best terms possible. But these terms must
lc arranged with "a committee appointed 10y
the Virginia Legislature on March .. 1880.
This commission consists Of Governor Nc
Kinney. IieutenRnt-Governor j. Hoge Tyler,
Speaker Il. IA. Cardwell. senators Berry and
WNham. and Delegates Dabney and Tyler.
The commission was instructed that no pro
uosal shall be entertained which Is not sup
ported by deposit III cash of not less than
o. 900 900 in such depository as sad commits
con may designate 10 insure the faithful per
f0rrlance of the proposal If accepted and Tatl-
fed as hereinafter set FORTH
The committee, headed by Mr. Olcott,
issued circular announcing that they were
ready 20 deposit the $1,000. 600. and that their
rl'u was TO deposit their bonds and receive IN
return new bonds 10 bear such rate 81 lu-
t,rest and 10 have such exemptions, and 20 be
a. such character as the representatives, Of
Virginia and the committee consider best cal
fuated TO give them the standing they viii
deserve iu the money markets of tie world
This WAS accepted by the advisory board
CAPTAIN Garden Mr.. Bull and others Of the
Olcot' committee went 20 Richmond and had
conferences with the States commission. All
the sessions were secret. Colonel Garden and
Bis friends have just returned
IL seems that at the conferences It was set
forth by the Virginia commission that hun
daLce %. the lmmedlat adjustment Of the
debt IS the necessity of q special session OF the
Virginia Legislature TO pass upon any plan
agreed upon Governor Mcklnnevs col
leagues said 1t would be unwlse 10 call an ex-
ira session just at this time on the ground
that large number Of the members are farm
ers who cannot leave their crops But 1t has
not been finally settled whether or not an
extra session shall be called. The New York
committee believe that something should be
done and done quickly.
M Samuel Spencer. of Drexel. Morgan "
Co. one OF the most influential SOutherners
In Wall street, said that the settlement Of the
debt would be beneficial 70 Virginia and TO
the south IN general.
General Sam. Thomas said that the plan
submitted 20 the Virginia Commission was
the best plan that could be devised for the
State Its adoption" General Thomas con
tinued, and the settlement of the debt would
restore Nirglnia's credit and replace her in the
position she should occupy inhnancial circles.
Z would be very good also for the rest OF tie
South, rs 1t would help 10 remove from the
minds Of capitalists the fear OF reputation.
The South should be on a parity Of credit
with the Northern States
Colonel Calvin Stewart Brce of the Rich
m0nd Terminal said The plan of the Oh
colt committee or any plan that would settle
the debt question fairly would be OF ines
Unable benefit 20 Virginia and TO the South.
Virginia unfortunately. has 10 now suffer for
the results of the rule of the politicians who
so long made her affairs the plaything Of their
selfish ends and her financial and political
credit must remain clouded until the debt IS
wiped out"
Colonel John c. Calhoun said. while in
London the last year | found that the un-
settled Virginia debt was a bar TO every
effort 10 promote the investment Of English
capital in Southern enterprises Its payment
would enable Southern financial projects TO
get backing in England and remove this
Standing bugbear 20 our friends on the other
side who are otherwise willing to help as III
the development of our growing industries. /
have had many conferences witt Captain
Garden. % whose zeal the present aspect IT
tie question IS mainly due l fully approve
o. The plan Of settlement the committee pro
poses and ! believe it 10 be the most prac-
teal Yet offered, and grestly TO the interest II
the State"
Senator Butler, Of South Carolina, coincided
with Colonel Calhoun thatlt would be greatly
g. the benefit Of the whole South 10 have the
debt paid
llr Marion J. Verdery said: The payment
would undoubtedly be healthful IN removing
q cause of previous contention IN the state.
j would be beneficial 10 the whole South IN
restoring % political and financial favor one
SECTION where this cause of dissatisfaction
must remain while the Virginia debt Is I'M
settled. ANY terms OF settlement ought 70 be
acceptable to the public that are satisfactory
10 those immediately concerned IL the mat
ter-tAe State and her creditors"
NrW j. McCorkle said of the plan After
mature examination think IL the best method
lor t-e restoration of the financial standing al
me ud Dominion. It's adoption would pro
mote The political resources and develop the
III iu- rial resources Of the state m way yet
Unknown there. IL would show TO the Test of
the .ufA that If AZ any time auch entangle-
ID MS Should again arise there - solution
ol-ef IAN the reputation OF an honest An@u-
ca. Obligation"
Mr henry Clews said: a settlement would
felouad not only 70 the credit of Virginia. but
would also have a good influence upon other
oO1tleIu States that are under the blue RUIN
Reputation cloud Nirgluias good action
Won tend 10 bring the rest 10 their senses
. 'oi John A. McAnerney, presideht OF the
Seventh National Bank and eX-pfesident OF
tle Richmond and Danville, sand that he
Knew from personal experience the diihculues
tle Conservative people Of Virginia had IA
dealing with the debt question. / lie
schemes Of unsayory politicians said the
colonel. forced upon them conditions that
,ney must adopt or give up the very socia'
lie OF the State itself These conditions are
now happily passed. and Virginia can 10
longer suiler the gfiorua of Reputation 10 rest