Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-03-16
THURSDAY.........M MARCH 10, 1879.
THE STATES IN "DEFAuLT.,

Though many Of our exchanges have
made mention Of the passage by Con-
gress Of law authorizing the Secretary
of the Treasury to take such action or
procedure, as he may deem wise 10 secure
the settlement of the debts due the Cen
eral Government by the Southern States.
we have as yet seen no explanation Of the
'modus operandi' he will probably adopt.
From the fact that such power has been
asked for before. and not granted, and
from the further fact that the law in
question was put through i'm the confusion
OF the closing hours of Congress, and as
an amendment TO an appropriation bill,
we may presume that the Washington
officials have thought out some sort OF
scheme. But what it is We cannot guess.
We do not know how the United States
can sue sovereign State. IT may be
that the Secretary means to approach
each "defauting" State Icy petition TO its
Legislature. 1t Is even possible that he
may propose arbitration. Against the
adoption by him of such a course there
could not be the objection there would be
10 a suit.
If the government account be correct.
Virginia owes the United States far moro
than any other Southern state does.
Many OF our bonds were bought i'm the
lfties by the government for its Indian
Trust fund; but some years ago. we Ne
leve, Congress rein bursed the ln0an
fund and took possession Of its assets.
We have always been taught TO believe
that upon a just and fair settlement with
the Federal Government the balance
would be upon our side. as our State
claims that the United States owe her
large sums on account of money paid du-
ring the war OF 1872. and also for adj
vanccs made to build the Federal build
tngs at Washington.
Our recollection is that some Of these
claims have been repeatedly admitted,
ana that one House actually passed
bill reimbursng us TO some extent, but
that the bill failed in the Senate. But
whether under the supposiuuous law of
the case we could assert the whole Of
our claim Is a matter as To which there
seems to be some uncertainty. The whole
sum may be, and doubtless is. honestly
and Justly due US. but whether a court,
or arbtrators, would award us the full
amount claimed is another matter.
Ana then there's the question as TO
West Virginia's share in whatever We
might receive from or have to pay TO the
General Government.
We have seen an intimation in one or
moro newspapers that certain influential
West Virginians induced Congress TO pass
the law in question. But If this report
be true. we venture TO say those West
Vifgnians will not come forward and ac-
knowledge their handiwork. In West
Virginia the two great political parties
are somewhat evenly divided in strength,
and no ambitious politician ON either side
cares 20 be mixed up" with the debt
question. And it is the practice OF each
Legislature TO pass resolutions declaring
that that State owes nothing on account
OF Vlrginia's ante-belum debt.
Al the last meeting of our General As
sembly there was a proposition made
that Virginia herself should bring suit
against West Virginia for a settlement of
accounts. The holders Of West Virginia
deferred" certificates agreed TO bear the
expenses OF tho litigation and give bon I
10 save this State harmless, no matter
what judgment might be rendered 1t was
argSed that in bringing her creditors TO
a compromise, Virginia had promised
them TO do all she could TO secure set
Element with West Virginia 1t was al o
shown that our literary fund was a con-
siderable holder OF the deferred" certl-
foaies: but the General Assembly reject
eli the scheme. It, however, consented TO
appoint commissioners to treat with West
Virginia. but the commissioners could
make no substantial progress
All these things are recalled now whom
we wonder what the Secretary % ihc
Treasury will do In the exercise OF the
power Congress has vested in him. Re
his the authority he wished; now what
WI he do with e? WEI he attempt to
buidoze the defaulting Southern States.
or will he try TO coax US into an amicable
settlement? or, will he pigeon-hole The
whole question. 10y referring IL from one
law officer 10 another?
j, he wishes an example OF how not 20
do thing. We refer him 10 the admins
rduci s dealings in the ease OF Capt4la
~ NJ. Carter, the army engineer officer
who two years ago was convicted Of con-
spiraey 10 rob the government. True,