Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15

uniunded bonds of the State. These
classes became popularity known rs con-
suls, peelers. and unfunded. On the INST
class the coupons continued TO mature
and absorb the revenue, while little OF
nothing was pad towards interest on sne
other classes, and tue debt became quite
unnanageable.
Meantime popular. feeling bad become
very high on the subject OF the State deDt.
Tie contiuued influx OF coupons into the
Treasury had diverted from the pubic
schools tine funds 10 which they we're con-
additionally entitled, TO sucn an extent
that their efficiency was well nigh de.
stroyed, and the very fabric Of government
seemed in peril.
IMPossrBrLrIr OF INCREASING TAXATION.
II was absolutely impossible in the stats
OF public sentiment TO increase taxation 10
meet demands eacruing as the dept then
stood--ths great depreciation OK taxable
values 40 the outcome Of the devastAtlons
OF war whereby, IN addition to the loss OK
one third OF her territory. her homes IN
ruin, real estate and personal property DE-
stroyed, and her population declmated-
II, indeed, o greater burden could have
been borne by the people at al. The IN
dividuals who favored such course were
confined principally to the towns aud
cities, and to few in the rural districts.
and were not sufficiently numerous or
organized to be dlgnifed by the name or
party" All parties desired some read
justment. Those who claimed the dis
tinctive appellation of readjustsrs were TOR
forcing an adjustment on the creditors,
whether acceptable TO them or not; while
the more moderate party only advocated
compromise, 10 which the creditors should
be partie. and give their assent.
At the session of l8I7-'75 measure OF re-
adjustment was passed by both houses OF
the Legislature, but was vetoed by the
Governor on constitutional grounds.
new scheme of refunding was adopted
by act OF March %, 1879 which II ~ be-
lIeyed would be acceptable 10. the great
body OF the creditors. and which was SUBJ
stantially as follows:
For purposes OF designation the out
! standing Indebtedness of the State was
divided into two classes. Class l. en-
braced ell taN-receivable coupon bonds
and registered bonds capable OF being
converted into tax-receivable coupon
bonds-Cr, in other words, all bonds issued
under the funding bill prior TO the repeal
| ing act of March 7. 1872. Class III. en-
braced ell boz DIS issued under the funding
bill subsequent 10 aud as modified by the
act of March 7, 1872 and also two thirds OF
| all bonds and accrued interest which had
| the proportion OF Glass III. refunded should
| never exceed IN amount one third OF the
whole amount refunded until eighteen
millions of Class |. should be retired. Sub
| ject to above limitation, bonds were au-
| ihorized TO be issued to such of the hold
ers of Glasses |. and III. as would exchange
| the bonds held by them for bonds to be
issued under the new scheme. The new
| bonds were to be of the tax-receivable
IA 10 inf n a1IN
| payable forty years after date, DULY
| |, 1872 with interest at pei
cent. tor ten years. per cent. FOL
| twenty years, and per cent. for ten years
| with the privilege TO the State OF redeem
| ing them after ten years from date. II
was provided that at least Ss,00O0Ol
| should be funded by January 1, 1850, and
| IS, 900 900 additional with each succeeding
period of six months. This measure wa:
| commonly referred 10 as the McCulloct
| bill" by It's advocates and as the brokers
| bill" by its opponents. Ii constituted the
principal issue at the election held in the
| fall OF 1879 for members OF the State Legis
lature, and its opponents trlcmphed at the
polls, a result which was due TO the fac
| that the people were Convinced that the
measure which had passed the Legislature
without any unanimity, but, on the con
| trafy, by a bare majority, imposed greater
burden Of annual interest than they were
able TO bear. BY the LIST OF January, 1880
the creditors had funded the Ss,OOO,00O a
required. but in the next ensuing 81
months instead of $4,000 they funded
I'D to January 7th S7Sl, 98l.Sl and not one
cent afterwards, which forfeited their con
tract.
| DIVERGENT VIEWS OF THE GOVERNOR AND LIZ
GIsLATURr.
For the two years beginning with 1Ss
the Governor of the State ana the Iegls
lature represented different views on tn
debt question, and consequently there wa
during that period no legislation or conse
ouence upon the subject Meantime tn
complications and troubles arising from
the use of coupons III payment OF take
grew worse and worse. and the sentimen
in favor Of readiusting the debt becam
well nigh overwhelming throughout tn
State.
The Readiuster party was triumphan
all along the line of the fall elections O
1881. securing the Governor as well as bot
| branches of the Legislature by large ma
jorities.
Early in 1882 The policy of forclble read
lustment OF the public debt was activel
entered upon. The first measure adopte
was one intended TO protect the treasury
and commonly called Coupon Killer Nc
l." approved January Ii. 1882. This &C
provided that when coupons should D
rendered 10 taI-collector he should re
ceive them only "for verlfcation." TIL
collector was then required to demand an
enforce the payment of the tax In money
The coupons he was required TO deliye
into court. and the tax-payer was thea au
thorized to institute proceedings. IN I'll
court to have the genuineness OF his cou
pons passed on by jury. Should the
be found genuine the treasurer was re
auired to receive them and to refund I
the taxpayer the money previously PAL
by him. By o subsequent act tue tar
PAYERS remedy by maDdamus to compe
the reception of his coupons was abolished
On the 10Th Of January, 1882, WAS passe
the act popularity known as "Coupon-hiile
No. 2" though il did not take effect unit
the lst OF December following. This pro
yided. in substance. that tax-collector
should receive nothing but money IN pay
ment of taxes; that should a col,ecto
take any steps" for the collection OF IN
taxes the party proceeded agains. nigh
nav the tax in money under protest, an
within thirty days. and not after, sue 70
officer: that should II be determined l
such suit that the taxes were Improper!
collected for dGy reason going 10 We merits,
the amount thereof should be refunded :
the tax. payer. anu uuhtit, al tcih''F
recourse 10 the Taxpayer save by such sui
was prohibited.
TIE RIDDLEBREGEa ACT.
Having adopted these measures designe
10 protect the Treasury and preserve tn
autonomy OF the State government. tn
Tegislature proceeded TO pass the &C
when bears the name OF the kiddleberge
bill. approved February IA, 1882. The pre-
amble of the act contained a long an
detailed statement, which was conn
IDENTITY submitted" as presenting a, col
rect account between the State and he
creditors. The result of this accoun
showed the whole indebtedness OF tn
State. from the standpoint OF the Legs
ia,ure. 10 be as of July /. 1882, S2l.03o,
S77. principal and interest.
The enacting part Of the bill. however
made the amount larger than this d
several millions. 1t 10 also claimed An
conceded By many that certain error
were made In the amounts assumed 10
outstanding agains. the State aud IN III
Application of interest payments. 80 tina
the amount really assumed by the Stat
under tho principles of the Rlddieberge
hill. conceding the correctness or the raj
of scaling fixed by il, was largely In exce'
of that apparent upon ITS face.
The funding under the McCulioca bi
had created another class or Obligation
against the State. popularity known as tel
forties; and the Riddlebereer bull set Tort
and classified the outstanding oollgatior
of the State under the following heads