Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1870-03-08
S9.739,092 IS

Which, aided to the Amount above stated
az comparatively vaueIcss, makes the enor
NOUS sum of 23l, 04l ,32G 30, or nearly the
amount OF the old State debt.
While it il true that the ravagts Of the war
contributed largely to this great loss, 1t Is also
true that the major part OIL it cannot be aScrlb'
ed to that cause. The real cause OF much Of
this loss dates further back than the War, and
may be- found in the unfortunate internal I'M
provement policy, which obtained in this State
prior to that date say unfortunate policy,
because 1t has resulted 10 lmmcns' loss 10 the
State, and because it is mabifesty and radl
cay wrong am not opposed to, tut rather
al sdvocatc OF, governmental aid to public I'M
provements 1t is to the manner IN which. not
TO the fact that all has been extended to rail-
road and other Improvement companies, that
] object In scanning over the list OF assets
held by the State, above set forth, 1t will be t
once observed that u every Instance OF original
loans secured BY mortgage, that asset IL OF a
higher market value than State bonds, while 10
every single instance, save one, (Rlchmond,
Fredericksburg and Potomac railroad COM
pany, the subscriptions to the common, and
even preferred stock, are not dividend paying,
and the market value OF which are lar below
that of state bonds Do not these iacts poLt
out the evil, and at the same tune suggest how
it might have been avoided. 1t was right Tor
the State to aid with its credit, the building
Of public roads, railways and canals and 1t was
also right that in doing so, she would have Sc.
cured herself against less. Nlahltestly the true
policy in all cases Of governmental att 10 pub
lie improvements should be by direct loans TO
the companies, secured by first lien upon the
franchise aud property of the companies, or by
the guaranty Of the first mortgage bonds ut the
compauics. Most of the old public debt 81
Virginia was contracted in aid Of public in.
proVements, aud if the policy here suggested
had been pursued, that debt would never have
reached its present magnitude; and l!5Welght,
whatever proportions it mi ght have ASSUMED,
would scarcely he te!t by our people. Instead OF
the high rate of taxation which must now and
for year. 10 come prevail, in order to promptly
meet the interest upon the State debt, nearly
ali of the interest would be paid by the public
improvement companies OF the State. II Is no
sufficient answer to this position 10 say that
this policy would have prevented the building
Of railways, roads aud canals. Grant that it
would have checked the undertaking OF some
improvements, it must be remembered that the
greatest losses tic State has sustained have
heen in IFS subscriptions to improvements that
have been either wholly abandoned, or are not,
and never can become, seii-sustaining. Ii is
doubtful ii there Is any public Improvement in
the State required, ~ which ought to have
been built, which could and would not have
been completed under the policy above sug-
gested.
But the State debr is not, in NY judgment.
the only evil resulting from the policy hereto
lore pursued in this State 10 regard to public
There is but one improve /
ment in the State wholly owned by her, viz : |
which she is interested she is either i |
partner or CO s,ockholder with private per
sons, and part0er, too, on unequal terms.
In some of our railway companies the |