Year: 1872

RICHMOND, VA, halCu =.


Governor Walker to-day vetoed the
act passed by the General Assembly
making gold and silver coin, United
States notes and notes Of the National
Banks only receivable for taxes. He
criticised the provision Of the act which
legislates National Bank notes 10 the
standard OF gold and clothes them
with all the attributes OF leGa tenders,
and then puts the question, has the
Legislature the power to repeal the
provision OF the Funding act OF March
ElS7l, so as TO affect the coupons already y
issued?


THIS ACr Is A COMPROMISE


with the creditors OF the. State upon
terms which stipulated that Virginia
should not he held responsible for one
third of the debt, except in accordance
with any settlement that might be here.
after made with West Virginia, and an
extension Of the time for the payment ot
the other two-thirds to thirty-four
years, with interest payable semi
annualy-the same "a the old bonds.
And as an evidence Of their good faith,
the State agreed that the interest on
the new bonds represented by coupons
should be receivable for taxes at and
after maturity, The acceptance OF
this proposition of the State by creditors
completed a contract the scope OF
whicn was commensurate with the
terms proposed.


THE RECEIvABILITY OF THE COUPONS
for taxes was only on those conditions,
ani added a material element TO the
value OF the bond, Tor it increased the
certainty OF the prompt payment OF the
interest at maturity, and constituted,
therefore an additional inducement for
the creditor TO accept the compromise
a. settlement proposed by the STATE.
By making the matured interest upon
her debt receivable for taxes the State
not only offered an additional guaran'
tee OF the prompt payment Thereof, but
she increased its value in the hands oi
the taxpayer to that OF gold or legal
tender notes, and remove It beyond the


UNCERTAIN FLUCrATIoHs


Of our currency While this did not
increase her liability in the slightest
degree. it did materially enhance
the value other securities, and tended
TO strengthen her credit; and because
it added to the value OF the contract il
constitutes a material portion thereof
and the Legislature has no more power
to repeal or nullify it than any other
part OF the obligation. The whole
proposition OF the State, a. embodied
in the second section OF the act o
March 1871, when accepted by the
creditor, constituted contract, every
provision and element Of which, though
varying in importance was, nevcrthe
lesa, in law, OF equal binding force am
validity, and the least important pro
vision can no more be impaired by the
Legislature than the greatest The
Governor then reminds the Legislature
that the constitutional inhibition agains,


TIE VIOLATION OF CONTRACTS


originated under circumstances not dis
similar TO those which now obtain in
this State, and says this construction
OF the Constitution has been maintain
ed by a long and unbrokeu line OF de,
cisions, applied to contracts both oi
States and individuals.


Alter the reading OF the message in
the House vote to lay it on the table
failed, and the law was promptly passed
over the veto by vote OF GS to 22.


In the Senate the message was tabled,
where it will probably remain to the
close OF the session. The only hope Of
settlement OF the debt question now
is that both houses may agree on the
pending proposition to pay four per
cent interest, in which event the Senate
will sustain the repeal OF the coupon
feature OF the funding bill.