Sentinel of the valley. [volume] (Woodstock, Va) 1841-1848, 1842-12-08

gresseI adequate to meet the interest on
the loans and, as soon as completed,
would yield income enough to pay both
principal and interest. The smaller por-
ton of the party insisted that the reve-
nue. to be derived from the works in an
unfinished condition was too uncertain to
be relied upon to meet the interest upon
the loans, and that the taxes ought to be
| increased to at least the probable de-
mands upon the treasury. Thesesnargu-
ments, unfortunately, proved insufficient
to convince. and loan after loan was
made without any provision being made
/ to meet the interest annually. or to pay
the principal when it should fall due.
BY the foregoing means, debt amour
ting to about seven millions six hundred
and fifty thourand dollars was created,o
which individuals in the state hold about
two millions six hundred thousand doll
lars. the banks of the state about seven
hundred and seventh thousand dollars.
three hundred and Fifty thousand of
which is the temporary loan, and the
state and state institutions about one
million four hundred thousand dollars; in
all about four million seven hundred and
{seventy thousand dollars is owned by the
state and her citizens. By citizens of
other states in the United States and Dis
trct OF Columbia, about six hundred ten
thousand dollars it held. and about two
millions three hundred thousand dollars,
I the balance of our debt, is owned by cit
liens of Great Britain, France, Germany
and Switzerland. The state own. of
bank aud other stocks about twelve mil
lions FIVE hundred thousand dollars
The internal Improvement debt Of the
state during the past fiscal year was in
creased about three hundred and Fifty
| thousand dollars, of which two hundred
and fifty thousand dollars was loaned to
the 5alnes River and Kanawha company.
and one hundred thousand dollars, the
balance. was paid by the board OF public
works in compliance with contracts pre-
viousIy entered into by that board nuder
the direction of the Legislature.
Having stated the debt of the state and
its resources, the question naturally pre-
sents itself to one unacqualnted with the
| sacts---how is it. that state, with resour
ces nearly double its liabilities, indepen-
dent of all taxes, should be embarrassed
in its financial condition !
The answer is plain one. The inter-
est upon the debt of the state is certain
to be called for when it becomes due, and
must be paid I'he funds held by the
state, land which constitutes her resour-
ces) except her bank stock, yield very
little or no revenue. scarcel y any thing
goes into the treasury from them.
Some of the states, in consequence, as
they allege, of their having been cheated,
refuse to pay the interest on money
'whiehitis alleged they borrowed aud
capitalists, seeing that they could resort
to no remedy to enforce payment. be-
came suspicious of the credit OF the
states. Many holders Of stale bonds for
ced them into market; and being sold
whilst distrust rested upon them, they
fell much below theis nominal value.
Several Of the legislatures of the states
have failed or refused to tax the people
to pay the interest Of their state debt ;
and all have shown the greatest reluct-
ance to do So. Monied men see this and
very nationally conclude. that if the leg
islatures refuse to lay taxes Or provide in
some other way for the payment of the
interest of the state debt, it will, be diff
cult ever to induce them even to tax the
people to pay the principal, ri
4 am much inclined to think, that the
legislatures of the states have, by the Gre
lation of private joint stock companies &
4 other acts Of private Incorporation, con
tribated more to the present state Of
things than all other causes combined
By the incorporation of many Of these
companies, an opportunity has been aRor
to many base and dishonest men to, rot
and cheat our people. 1T is very true
that some Of the frst projectors OF some
Of these acts of private Incorporation have
been, together with all who had any
thing to do with them, ruined. But It X
equally true that many acts Of private in
!. corporation have been obtained by indi
viduals, that they might, under the sane
ton of law, with the greater facility perpe
trate the grosset frauds upon the commu
nifty. BY the investment of money ii
these various schemes. vast amount. o
capital was diverted from its Legitimate
channel, which has not yet found its way
. back Confidence between man and mar
became shaken by these frauds, sane
when suspicion was aroused to the debt
of the states, the demand for money in
creased: and under the effects OF the pa
| mic thus created, states and individuals
, alike failed. Thousands OF the ACTIVE
business men in the country sunk unde
f. the times: the disappearance of each on
only increased the gloom, and the peo
pie began TO cry aloud to their respec
, tive governments for relief.
The government of the United States
was looked to by many, and the tables 0
the two houses of congress were almos
f pressed down under the weight OF the pc
titions which were heaped on them.
) Congress took the subject up. and re
i solved on doing something-truly iortu