The teacher told us a story to illustrate that honesty is/was a noble virtue.

[Kharkhun]

Which one is more natural and why?

1. The teacher told us a story to illustrate that honesty is a noble virtue.
2. The teacher told us a story to illustrate that honesty was a noble virtue.

 

[5jj]

Both are possible.

You might find this article useful, particularly the sections on backshifting.: Indirect (Reported) Speech

 

[MikeNewYork]

It was and is a noble virtue. The present tense would be better.

 

[5jj]

It was and is a noble virtue.

That is a matter of opinion. If you think that honesty is a noble virtue, then 'is' is better. If you don't, then 'was' is better'.

 

[MikeNewYork]

I guess I agree with that. But most people I know consider it to be a noble virtue.

 

[5jj]

Most people I know don't. I can think of several positive things I can say about honesty, but not that it is a 'noble virtue'. In fact, I would not use that expression of anything I can think of today. I might use it if I were writing about 14th and 15th century literature.

 

[Raymott]

Most people I know don't.

I'd prefer backshifting no matter what I believed. Really 5jj, I'm quite cynical generally, but I can't see why honesty is not a noble virtue.
Does honesty lack nobility or virtuousness? Or both? Is there nothing noble or virtuous these days?
I think that helping learners with their English for no earthly gain is both noble and virtuous in most cases.

 

[5jj]

I'd prefer backshifting no matter what I believed.

My advice to learners is always to backshift.It is almost always correct, whereas not backshifting can be wrong.

Really 5jj, I'm quite cynical generally, but I can't see why honesty is not a noble virtue.

It's just that I would not use the words 'noble virtue' of any quality in the 21st century. They have a Victorian or ecclesiastical ring to me. I accept that this is a personal opinion, but it explains why I would backshift in the original sentence. I would not in "The teacher told us a story to illustrate that honesty is a good quality'.

Is there nothing noble or virtuous these days?

Rarely, in my language, and certainly not a quality that I take for granted.

I think that helping learners with their English for no earthly gain is both noble and virtuous in most cases.

I think it's an admirable thing to do, but I wouldn't use your words.

 

[Raymott]

I think it's an admirable thing to do, but I wouldn't use your words.

Well, they weren't my words. They were words of another, but words which I would not disagree with.