Debt In Virginia

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Virginia had a huge debt after the civil war, how to deal with the debt crisi in Virginia was up in the air, there were two groups the Funders who wanted the debt paid in full and the Readjusters who wanted the interest from the debt to be reduced as much as possible. By the end of the 1870s many African Americans supported the Readjusters and opposed the Funders. In Funders and democrats wanted to pay the debt in full in hopes that the north and foreign financiers would invest in Virginia and stimulate economic growth. Funders also argued that the states honor was at stake and repudiation of any part of the debt would bring financial ruin and economic recovery impossible. Funders and democrats initially tried to deal with the debt by cutting funding to schools, which caused massive issues for the students and teachers blacks and whites alike. They raised the taxes on farmers which hurt mostly white men who owned most of the land. The readjusters were a political group that formed in Virginia in the late 1870s during the turbulent period following the reconstruction era. Readjusters promised to break the power of wealth and established privilege.The Readjusters party was led by Harrison H. Riddleberger, an attorney, and William Mahone a former confederate general who was the…show more content…
the Funders reorganized themselves and passed the Riddleberger Act which tore white voters away from the Readjusters. Two days before the legislative election there was a riot in Danville, Virginia where several African Americans help positions of civic responsibility and this characterized Readjusters and Republicans as supporters of black domination. This allowed the democrats to take the readjusters ideas of economic progress and fairness and turned it into an issue about race. The Readjusters could have been successful and won the legislative election if it wasn't for this riot. This riot was the last straw to snap which completely ended the
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