Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1871-09-28
For The Shenandoah Heragt.I
Our .fublie and Private Debts

NC 0lC VI tuV -'PiniOu, iuO uCAt
General Assembly Of Virginia should
carry out the purpose ofthe last General
Assembly in adopting the prepared
amendment to the constitution, abolishing
the twelve per cent. interest law, and
that law should then be passed fixing.
the legal raie of interes at sic per cent.
per Qnuum.
Our observations of the work ing Of
this law have induced US to conclude,
first, that our present high rate ofinter-
est draws from the capital employed in
the regular and permanent business of
our people. and adds TO that employed
in the mere speculative interest, the
farmer, merchant, mechanic aud other
persons engaged in such employment,
and who are the bone and sinepo of our
country. are not only pressed for money.
which thor creditors intend to lend at
twelve per cent. or use in shaving paper
at higher rate, instead of leaving it in
their hands at six per cent, but they can
rarely obtain loan of money at such
rate of in terest as will justify them in
charging their business, and thus add
to the producing interest If the State.
Second, it is an acknow lodged fact, that
the prosperity of our people Is greatly
retarded because of the unsettled condi-
ton of the debts due by them, if lands
and other property would bring fair
price, this Indebtedness could be much
more READILY liquidatcd and settled,
many debtors are willing to pay their
just debts. If only reasonable price could
be obtained for land and other property y,
but no ore will purchase at the pl respect
of profit of six per cent per annum.
when money ccmmandS twice that
amount.
Second the next question claiming
cur attention is the Funding Bill, passed
by cur last Legislature 1t has rarely
mole replete with Injustice than this one.
rhe main features ofthe bill are known
to be, that two thirds of the State Debt,
one third being left out as The proportion
proper, to pc bourn by West Virginia,
amour ting S33 ,666, 66G Ohe entire debt
being about $50, eco, GOO is to be Or
has been funded in coupon bonds, BEAR
ing six per cent interest, payable semi
annually Oh and after July 1872, and a
provision super-added tia: on a, d after 8
so tax of TWO per cent per arnum on all
the real. personal and mixed prop rty ofthe
State shs i.ke imposed to provide sinking
fund fer the payment OF tie debt. We are
now pay !ns iI7o per cent, at most three,
on Ills oe I, and our tax is only one
ha L o lra per cent, Of course the taxes
must be about one per cent, or double the
present amount, next year in order 80
meet the interest, if our taxes are great
burden nov, how can we meet double
the amount next year? and have six times
| the amount In. ear-r saara n nrnv ida for
the sinking fund We have always land
will continue opposed to Reputation,
! The credit and honor of the state is too
dear to be tarnished, butwe are unable
to conceive the slightest reason why a
poverty stricken people, just emerged
from an unfortunate war, aud By which
thew lost at least one-half of their prop
ertg, and ability to ray, should be bur-
6ened with compound interest, making
the actual per cent paid upon the prin-
cipaI OF the state debt about nine, as out
little interest had been paid upon it for
about ten years.
But we decl' re ourselves opposed to re-
pudiation. and now announce ourselves
the friend of the credit oe the State, and
yet declare our firm conviction, that un :
less the taxes, imposed by the Funding
Bill, are materially dimin ished, rcpuda-
ton of the entire debt will undoubtedly
follow, because when taxes adequate to
meet its demands are imposed on the
people, the burden " i'll appear SO enor>
nous, that the ircry for relief can not then
be hushed by offers Of compromise, hence
We bid the bond holder TO beware how be
opposes the just demand of the people for
all equitable settlement CT the debt. We
now proceed at once to propose substi-
tute for the Funding BIZ Unite every
creditor Of the State 10 fund two thirds Of
bis debts 10 perpetual md inrtdfemaJle
C0nds, bearing interest at three per cent,
and make provision at once to pay that
interest, bnt firmly decline to provide for
the payment of either principal Or interest
on bonds not funded IN pursuance with
the act. Make another effort to effect fair
settlement with w. Va, and if it fails
of success, ascertain by some honorable
plan her proper proportion of The public
debt, provision for the payment Of which
was made III tina ordinance by which she
dismembered Virginia, and then refer
our creditors osher for that part of their
debts. then sell, as soon as expedient to
do o, the States interest in her public
improvements, and apply the proceeds to
the debt.
Examine the following figures, based
Oh the above propositions
Debt of Virginia and West Vir-
ginia, $4,000, 900
Deduct W. V''s. proportion, 16, 1873 1888
State Debt 33.666, 667
Deduct value of States interest
in Improvements. 10000, 900
Actual State Debt 23,666, 667
Three per cent interest on
actual State Debt $4,000
This calculation selves the problem II
reduces the taxes even below the
present rate. and hence bushes the cry "a
bout reputation. and Now it ouly re.
maips to show, that il Is practicable. and
just. Ana first, it is practicable, because
the State cannot be eo.l geiied to pay her
debts, and therefore nay reduce them.
Secoad i S just b. Cause nearly all of tie
the gfe-t Lolders Of saese bonds pur