The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-10-21

financial condition and prospects Of the
State is peculiarly appropriate and impor-
tant at the present time.
Some of the facts of this subject are as
follows. The debt of the State up to July
LIST, 1871, was
Principal. us, 263
Interest l6,033302
Tota................ ............ ss4s, sl25s5
OF the above debt there has been funded
up to the present date, $2l 100000.
All the rest will be funded. 1t is an
amiable halucination of the Treasurer that
large quantity Of bonds have been lost
by accidents of food and field. 1t is PEE
cularity of | 0 UPS that they inevitably re-
turn to plague their inventors.
Full s33, 900, 600 Gwo-thrds of $40, 000,
O00) will be funded And we shall no more
be able to escape the annual interest due
upon that two-thirds, to wit, 81 $4,000,
(Which, in round numbers, may be put at
s2,000,0 00,) than we shall be able to escape
death.
The auditor estimates the annual ex-
penses of the State government at 81 ,232,-
GOO; but it is safer to put it at 81 ,250,000.
The value of property as assessed in
the State in 1870 is as follows:
Real estate........ 500
Personal property S9,3S76o0
NEUTRALITY-SUSPICIOUS.. ,4l0966
The debt of the State compared with the
property Of the State is one dollar in every
seven and half. If we indulge the vain
hypothesis that West Virginia viii pay her
third of the debt, then the residue falling
upon old Virginia will be one dollar in every
ten Of our property.
Virginia has lost since 1860, as follows
Value of states. ...a245, 5l4 600
Depreciation of land~..,". ll,Go2, 1886
Do in personally ... ......-... 39,S0777o
Total loss .......'.............,.s 299,S4,7o
Virginia's loss since 1860 in these three
items is one-sixth of the national debt
The funding act provides that two-thirls
of the State debt principal and interest, shall
be funded or bonded in new bonds, and
that Virginia shall give her own certificates
of indebtedness for the other third, to
become debt of her own in the contln-
gency that West Virginia should not assume
that portion or any part Of it. The chances
are at least two TO one that the whole debt
will have to be shouldered by Virginia.
The new State bonds given for the fund
ed debt have coupons or certificates at
tached to them, for the interest falling due
each six months. These are intended to
be cut off as they approach the day when
PAYABLE, and such cutoff certificates Tor
coupons) are made a preferred charge upon
taxation, and have to be paid before any
other debt due from the State. They are
receivable from the holders in payment of
taxes and are likely to circulate as cur
rency-a deprecated currency-in the
community. This effect Of the Funding
Bill was designed as an important part Of
the Funding scheme.
The Governor in his Financial Message of
sth of March, 1870, said:
"As coupon bonds are always several per
cent. higher in the market than registered, all
the new bonds should be coupon bonds and the
coupons at and after maturity I aooud make re-
cetpable for ali debts and demands Of every Kind
and character due the State, and would de-
clare not only in the law, but upon the
face of the coupon, so that it might be known
and understood by all. You would thus in the
most acceptable manner possible, manifest your
intentions and good faith, by giving to the State
creditor the highest marketable security in your
power and by providing for the prompt pay
ment of the interest thereon; for, with this form
of coupon ofinterest certificate ecerg succeeding
Legislature tooutd be compelled to prooide the ne
cessdry means for paying He-f1'terest on the pub
Tic debt, or stop the uoheeis Of government
In the spirit of this message the Funding
Act was passed. It bound the State to
the coupon holder by a contract that no
succeeding Legislature" can impair. No
repeal of the Funding Act can destroy this
contract. No refusal of the Legislature to
levy adequate taxes can affect the right of
the coupon holder to pay his coupon for
any State tax that is collected. The SUI
preme Court of the United States, in the
case of Woodruff rs. Trapnall, has decided
that such legislative contract binds the
State and all succeeding Legislatures.
Upon this Funding Act and its hard pro-