The Readjuster Party was a political faction formed in Virginia in the late 1870s during the turbulent period following the American Civil War. It was led by William Mahone, a former Confederate general who was president of several railroads. Mahone, a former Confederate general, was a controlling force in Virginia politics from around 1870 until 1883, when his party, the "Readjusters," lost control to the "Conservative Democrats."
A division among Virginia politicians occurred in the 1870's, when those who supported a reduction of Virginia's pre-war debt ("Readjusters") opposed those who felt Virginia should repay its entire debt plus interest ("Funders"). After his unsuccessful bid for governor in 1877, Mahone became the leader of the "Readjusters", forming a coalition of Democrats, Republicans, and African-Americans seeking a reduction in Virginia's prewar debt, and an appropriate allocation made to the former portion of the state which constituted the new State of West Virgina. For several decades thereafter, the two states disputed the new state's share of the Virginian government's debt. The issue was finally settled in 1915, when the United States Supreme Court ruled that West Virginia owed Virginia $12,393,929.50. The final installment of this sum was paid off in 1939.
Mahone’s Readjuster Party promised to "readjust" the state debt, repeal the poll tax and increase funding for schools and other public facilities. The Readjuster Party was successful in electing its candidate, William E. Cameron as governor, and he served from 1882-1886. Mahone served as a Senator in the U.S. Congress from 1881 to 1887. However, in Congress, he became primarily aligned with the Republican Party.
Mahone's control of Virginia politics lasted until 1883, when the Readjusters lost majority control in the state legislature, followed by the election of Fitzhugh Lee as governor in 1885.
