Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1842-12-06


provided to meet the interest annually pay the prne
pal when IL should fall due.
BY the foregoing means. debt, amounting about
seven millions six hundred and fifty thousand dollars
created OF which indy idua,s the State hold about
millions six hundred thousand dollars the Banks OF the
State about hundred and thousand dollars
350000 of which the temporary oan and the State and
State institutions about million four hundred thousand
dolarsn all about four million hundred and seventy
thousand dollars owned by the State and her citizens BY
citizens OF other States in the United States and the Dis
of Columbia, about hundred and ten thousand dol.
lars held and about million three hundred thousand
dollars, the balance of debt is owned by subjects of
Great Britain, France, Germany and Switzerland The
State OF bank and other stocks about Sl2 500 600
The internal improvement debt of the State during the
past fiscal year increased about three hundred fifty
thousand dollars, of which hundred and fifty thousand
dollars loaned the James River and Kanawha Com
pany, and hundred thousand dollars the balance,
paid by the Board of Public Works in compliance with
contracts previously entered into by that Board under the
direction of the Legislature.
Having stated the debt of the State and the
question naturally presents itself acquainted with the
facts how is it that State with nearly double
its liabilities independent of all taxes should be embarrass
cd in Its financial condition
The answer is plain one-hc interest upon the debt
OF the State certain 10 be called for when becomes
due, and must be paid-he funds held by the State land
which constitute her her Bank Stock yield
very little or revenue scarcely thing goes into the
Treasury from Them
Some of the States, is consequence, they aege of
their having been cheated refused pay the upon
money which alleged they borrowed. and Capitalists
seeing they could remedy enforce payment
holders of State Bonds forced them market and being
Sold whilst dsirst rested upon them they fell much below
their nominal value
Several of the Legislatures of the States have failed or
refused to tax the people the State
debt and all have shown the greatest reluctance do
Monod men this, and very nationally conclud that if
the Legislatures refuse lay provide
way for the payment of the interest of the State debt
Will he difficult ever To induce them the people
pay the principal
ann much inclined think that the Legislatures of the
different States have 10y the creation private Joint Stock
companies, and other OF private Incorporation con
buted more 10 the present of things all other
combined BY the incorporation of many of these
companies, opportunity has been afforded many base
and dishonest rob and cheat people 1t very
true that the FIRST projectors of these OF private
Incorporation have bcen together with all who had thing
10 do with them ruined. But il equally true that many
acts OF private incorporation have been obtained by indi
duas, that they might under the of law with the
greater facility perpetae the frauds upon the
munity BY the investment of money in these various
schemes of capital diverted from its e
climate channel, which has found its back
Confidence between and became shaken by these
frauds and when suspicion TO the debts of
the States the demand for money increased and under the
eecs OF the panic thus created States and individuals alike
failed Thousands of the active business men of the coun
try sunk under the times: the disappearance of each
only increased the gloom and the people began TO cry aloud
10 their respective governments for relief.
The government of the United States looked to by
many and the tables OF the two Houses of Congress
almost pressed down under the weight the petitions which
were heaped them. Congress took the subject up and
resolved on doing something's truly fortunate would it have
been If they had done nothing.
The result of their was the passage of Banknnt
Law, which has entirely Frustrated thing like conf
dence and credit There has been and there never
can be legislation devised by which individual debts
can be paid No Government has existed dishonest
enough the thrifty and industrious for the sole bene
INT OF the slohfu and lazy. Such law would be more
odous than an agraran law for by it, the deserving would
nave Al least their raiable share with ALL with
out entirely removing the incentive honest industry
whilst the law TO take from the industrious fair
product of his abour, would every indncoment 10
In he
his debts provide the do so, will surely be dis
appointed and in the end ruined. The Government can
not whilst only within the sphere for which all good
Governments are formed, do any thing benefit por.
hon OF the people, 10 the Inconvenience injury of the
other All good citizens entitled the protection of
the law class than another; and hence have
always looked upon all relief and tay Laws as wrong
What benefit can result 10 q community from a Stay Law
None Literally unless il be purchased the sacr
hce OF justice. Ii Stay Law be passed merely defer
the payment of debts, it do good; ON the contrary
think IT will be productive of HARM Ii the payment of
debts be deferred the will certainly be in
creased by interest, and probably also. hold that
there not than fifty engaged business
who can afford to pay six cent interest for money and
hence that the effect of such law would
be the ruin OF the debtor class.
Having briefly pointed out what conceive to be some
OF the causes OF present condition, you may and no
doubt do feel little curious VIVA, remedy recon-
mend improve the situation the State and people: and
confess that have with the greatest anxiety reflected on
that question Unacqunnted as am with either the sci
philosophy Of finance feel entirely unable do
plan by which public credit in be
cd. do offer it the public as an nfaibe panacea
for all the ills OF HE vain enough view
specific by which the present condition of Things be
changed and bettercd instani1neousy as magician
would change his toy of deceit Believing that the stua
ton Of the State and its citizens bettered until
confidence be restored md that il be done only by Civ.
ing TO the world practical evidence that the Legislature will
do all place the State the condition of one deter
mined to be honest have recommend your consde
ration, the policy and prop1ety of increasing the
the supply OF funds the Treasury be certain
and equal To the demands upon it, This will only require
very small increase lpon the present The receipts
into the Treasury from taxes six hundred and fifty
thousand dollars independent of dividends upon stocks
The regular dem1nds upon the Treasury for all purposes
during the present fiscal year, will not be than about
nine hundred and six thousand dollars exclusive Of the
of three hundred and sixty thousand dollars loan which
made under the authority Of law Of the last Logsa
tue, meet the demands upon the Treasury would sug
ges the prOprey of creating loan, for few years for the
Of four hundred thousand dollars, which will be sui
supply the present deficiency in the revenue The
the State has hitherto consisted of nxcs licenses.
militia fines &c, and dividends upon bank and other stocks
owned by the State The dividends upon stock are too I'M
certain he relied upon permanent Of revenue
by relying upon IL the temporary debt the State has been
created. During part Of the time that banks were in
suspended condition they to a certain extent tax
upon the Treasury The revenue of the State r receiy
bic in the Of the banks aud the interest on the debt of
the State ia payable it, Treasury in specie equya-
lent The difference between the value Of bank and
specie had - be borne by the people
In order l., pay of the debts Of the States, would re-
commend tnat the dividends be received from all stocks
be first appropriated - the payment Of the four hundred
thousand dollars which may bc borrowed supply the pre-.
deficiency the revenue and then apart sink.
ing fund, by which, without any greatly increased burden
upon the people the debt OF the STATE falls due,
be paid Off deem IL Of paramount importance
for the State show her determination fulfil all her
gagementsby doing So she will regain credit aud conf
dence, which will the benefit Of the people
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