Many discussions with the creditors were held, but the people had the idea that much of the debt was fraudulent and they consequently voted down proposals which they thought too liberal to the creditors.

The question temporarily split the Democratic party, but after much discussion a long act was passed in 1883 which finally settled the matter.
A part of the debt, with interest, was funded at 76 to 80 cents on the dollar.

The major part was funded at 50 cents on the dollar with interest thereafter at three per cent.
The financial difficulties of Virginia excited more interest than did those of any other commonwealth, for this State had the largest pre-war debt.

Its $33,000,000 with accrued interest had amounted to about $45,000,000 in 1870.

In 1871 the question of settlement was taken up; one-third of the debt was assigned to West Virginia, and the remainder was funded into new bonds bearing interest at five and six per cent.