Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-03-12
TO WORRY THE STATES.

We learn from the New York Sun that
through the insertion OF a clause in a
conference report on a bill amending the
law providing for the reimbursement
OF the States for equipping troops for the
Spanish war Congress has granted au-
thority to the Treasury Department that
has been asked 10 vain for years. Little
was said about It in submitting the re-
port. and il is doubtful if the purporr Of
the amendment was understood when it
was agreed TO I'm both houses"
Under the act of 1870. as we are inform
ed by the Sun, from which we quote, the
Secretary Of the Treasury was directed,
whenever any money became due from
the Federal Government to those States
whose bonds had defaulted, to withhold
it and apply it to the payment of the
principal and interest of such bonds.
Under this law. when Virginia and other
States with similar bonds outstanding
applied for reimbursement for expenses
on account Of the Spanish war, Controller
Traceweu refused payment. a storm of
protest went up from all the States in
this list, and a bill was passed by the
House providing that these expenses
should be paid, Notwithstanding any "un-
settled accounts, claims, or indebtedness
OF the United States against such States,
and without prejudice to such unsettled
accounts" This was amended by the SEN
ate, and when the disagreements between
the two houses went into conference
Senator Warren suggested as a compro-
mise the following proyiso, which was
agreed to:
Provided that when such unsettled ac-
count is caused by "a default in payment
of the principal or interest on any bonds or
stock issued or guaranteed by any State
the ownership of which is vested in the
| United States. the Secretary Of the Trea-
sury be, and he is hereby authorized and
directed 10 institute any act or proceed
ing which he may consider advisable
against such State, or its representatives.
TO secure the payment Of the principal
and interest of said bonds or stocks
This was adopted by the two houses in
tho closing hours Of the session, and be-
came a law.
While the United States Government I'M
doubtodly owns large amount of the
bonds held by the old State of Virginia,
it is equally true that Virginia has I'M
questionable offsets, on account OF adj
vances made during the war of 1872 and
for the erection of the Federal buildings
at Washington. 1t is our belief that the
two sums Will Offset one another If, in
deed correct settlement does not leave
the Unite States debtor to us.
We have little doubt that the power
conferred ~ Congress upon the Secretary
Of the Treasury will be exercised by that
officer against Virginia and all the other
| so-called defaulting States-lf he can
find a way to do 1t. But we know of no
way in which he can bring i suit against
Virginia. or any other State And II he
could bring suit. and could get jrdg-
ment. how would he get that judgment
enforced?
We are curious TO know what plan the
United States authorities have in mind
TO bring us 10 a settlement. They must
have some project in view, II il be a
fact that the authority conferred upon
the Secretary o! the Treasury by this
Congress has been sought in vain by
other secretaries from several other con-
crosses. We are curious TO know, too,
what figure, II any. West Virginia will
cut in this scheme.