Virginia, but lost by 12,000 votes (out of 211,000 cast) to William E. Cameron, the candidate of a coalition of Republicans and Readjusters. During one state senate debate, Daniel had orated it "were better to burn the schools" ... " than sustain them on money taken by force" from bondholders. Since public schools were a key innovation of the Virginia Constitution of 1869 (although Thomas Jefferson had proposed them a century earlier), Readjusters portrayed Daniel as putting the interests of bondholders (few of whom lived in Virginia) above all others. Although Daniel had easily won re-election to the state senate in 1879, the Readjusters swept to victory in those state elections. State revenues remained insufficient to pay both bondholders and ordinary but minimal state government activities, and many school construction debts had not been paid for years. After the 1882 election, the Virginia's Conservative Party reorganized as the state's Democratic party, guided by railroad tycoon and future U.S. Senator John S. Barbour (although his cousin James Barbour favored some readjustment). On June 28, 1883, Daniel delivered the three-hour long keynote oration in the dedication of a statute of Confederate General Robert E. Lee at Washington and Lee University, which was republished by many newspapers, including outside the state. In the 1883 Virginia statewide election year, race and cronyism within the Readjuster and Republican ranks became major issues. Although Daniel was not running for office directly that year, he and Mahone were the leading candidates for the U.S. Senate seat that the General Assembly would soon select. Daniel summarized the Democratic platform, "I am a Democrat because I am a white man and a Virginian." Democrats won control of the General Assembly, which was then allowed to reapportion legislative districts pursuant to the completed 1880 census. Daniel successfully defended the partisan redistricting in the Supreme Court of Appeals over Republican challenge. He also benefited because Democrats nominated him as the 6th Congressional district (as he had long sought), after popular incumbent John Randolph Tucker was moved to the 10th Congressional district (which he also won). During his federal service as discussed below, Daniel was a delegate to the Virginia Constitutional Convention of 1901. He had advocated such a convention since 1895, and was elected as Campbell County's representative without opposition. At that convention (in Richmond from June 12, 1901 until June 26, 1902), Daniel served on the suffrage committee and advocated