The republic., 1851-07-08

''''N'"NA al pIOVeIleht Scuool nave iePLeeeH'oH
I bankruptcy as an inevitable consequence of in
ternal improvement. They regard every shade
of decline in stocks as an indication Of that
monetary millennium when national debt shall
be no more, because Of the total extinction of
national credit. Theirs has been the poll
cy of the unhappy husband, who, alarmed at
the extravagant inclinatiOns of his spouse, pro-
claims her responsibility to the world, and
reforms her habits by destroying her reputation.
When, therefore, no pains have been taken to
counteract misapprehension abroad, or to en-
large the sphere of demand for her obligations,
we need experience no farther surprise that SO
| little is known of the stocks of Virginia, and
that they have been so little tie subjects of
speculation or Investment.
The change Of policy, however, adopted by
her Legislature, and now carried out by the
fiscal authorities, may be comprised as follows:
/. A system of banking, to be based on de-
posite of State stocks,
2. The payment Of interest at any commer-
cial point in the United States or Europe.
8. The issue of coupon bonds to facilitate the
collection of interest by nonresident stockhold-
ers, and to aid the State circulation.
We have given the reasons why the stocks
of Virginia are so little known in market and
the auspices under which they are now brought
forward. Stock dealers may now know the
amount of debt, value of investment, reliable
resources, and ultimate responsibility of the
State All this may be obtained in detail from
the lucid exposition of Governor FLOYD, and
the official documents which accompany it,
But succinct view of the subject, based
upon obvious rules of financial responsibility,
will show that the stocks of Virginia are equal
in value to any that can be offered in market
In estimating the solvency of State, OF of an
individual, it is scarcely safe to rely upon the
valuation of assets made by the party inter
ested, since they usually constitute the invest
ment Of the proceeds of the debt itself.
Let us, therefore, in estimating the response
biIity of Virginia, discard the investments as if
they were uncertain in value, and not to be re-
lied on, IN the event an enforced payment
renders their realization necessary.
Let us, moreover, discard distinction taken
by the domestic fnancier, between debtn
and " liahilities.o This distinction is un-
known amongst stockholders and capitalists.
To them ALI obligations are debt"
These principles, it will be admitted, offer
the severest test Of the responsibility of debtor
State
The value Of the taxable property of Virginia
is estimated by the Commissioner of Patents at
the sum of $3.50, 100000.
The absolute and incidental debt of Virginia
amounts to Sl8,37O 1856. This constitutes an
ad valorem obligation of % per cent. upon the
whole taxable values of Virginia, the interest
on which would require an annual ad valorem
tax of four mills per centum. If, then, the
whole outstanding debt of Virginia were with
out representative investment, it might be ex-
tinguished by single contribution of q per
centum upon her taxable values! Nor would this
require the sacrifice of her property. According
to the estimate Of accurate statesmen, the annual
income of Virginia. arising from the sales of her
products, is little short of her whole actual
debt. The results of single year of ordinary
prosperity would, therefore, discharge the OBJ
legation forever With such indisputable evil
dences of the solvency Of the State, it is appa-
rent that nothing except want of moral fidel-
ity could even render the public obligations of
! Virginia for moment doubtful OF the proba
biities of this the world can Judge as we'll as
ourselves. The people who encountered heavy
taxation by their own government rather
than pay trifing tribute to Great Britain,
mot 10 IN b,,- L.,
ton. State which has ever been prompt to
/ provide for the punctual discharge Of her annual
! interest-which has provided sinking fund
and has even invested recent surplus in the
redemption and extingushment of bonds which
she might have renewed by the usual fiscal de-
vices-which has without hesitation increased
the taxes whenever it has been necessary, is
not liable to imputalions of infdelity to her en-
gagements. The proceedings of the conven-
tion now in session will show the determine
ton to afford every constitutional assurance
that her credit will not be abused The Le-
| gislature will be required to increase the sink
ing fund.- and to provide for the payment of the
interest and the ultimate redemption of the
principal of every appropriation. In regard to
the adoption of this provision there is no doubt
Having subjected the responsibility of Vir-
ginia stocks to test which will be satisfactory
to the most suspicious, we add some observa-
tions to show their peculiar value.
Whilst we have deliberately excluded her
whole stock investment, we refer to official
statements to prove that she holds bank stocks
to the value of nearly six millions of dollars, and
that nearly tw millions Of her ostensible debt
is due from one department of the State to an
other. Besides this, she holds stocks in va
rious works completed or in progress amounting
to nearly twelve millions of dollars. The value
of the latter is variously estimated. Some state
ments show that the State in effect owes nothing;
Others adopting higher ratio of valuation, after
deducting the State debt from the State invest
ment, show positive surplus. The estimate
which we have offered is however, conclusive
of the solvency Of the State. The capitalist
will find that her fiscal affairs are honestly and
| Il