The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-11-28

mDnd papers daily quotations for West
Virginia bonds, that is bonds bearing the
name West Virginias." They are not
able To understand how it comes that a
security Of that name should be on the
market, seeing that the State so far as
known To them has never incurred any
debt on her own account since her id
mission into the Union, and never as.
sumed any portion Of the debt of the Old
State. The explanation OF the apparent
anomaly is as follows:
Several months ago an act was passed
at Richmond known as the Funding Bill
BY this act the State Of Virginia agreed
TO take up all her old bonds and outstand.
ing interest thereon and consolidate them
into new bonds which should represent
two,tbirds of the principal and accrued
interest OF the old bonds, provided her
creditors would leave the remaining one.
third Of principal and interest in allegiance
to await her settlement with West Viz
giuia,
In March, 1865, she had passed q pre-
viOus Funding measure by which all the
interest that had lapsed during the war
and up to January Of that year was taken
up and funded into interest bearing bonds,
but on these bonds the State had failed to
pay the interest, finding herself unable to
pay more than four per cent oil interest on
the old bonds.
The recently passed Funding bill Is in
tended TO bring up oil arrears Of interest
to July list, 1871, and in addition to fund
also the principal Of the debt into new
six per cent bonds, each new bond repre-
senting two.thirds of the principal and
interest Of an old bond. On the first Of
July last the debt Of the State was up
wards Of forty-seven millions Of dollars.
Two.thirds Of this sum amount 10 thirty.
one millions and a traction. This amount
the State of Virginia assumes TO be
her rightful proportion Of the whole
debt, and accordingly she has entered into
an Independent arrangement TO issue
her bonds Tor this proportion. She isnow
issuing said bonds and making them pay
able thirty four years after date. AS fast
as an old bond comes in she issues one Of
these new ones for twO.thirds Of its prin-
cipal and interest, and for the suspended
or deferred one.third she issues certif'
cate which states on It's face that payment
thereon awaits a settlement with West
Virginia.
1t Is these deferred certificates that
are quoted in the markets as West
Virginia bonds. Not that they are
issued by the authority or consent Of
West Virginia, nor that she is in any way
bound for their payment or protection,
but simply that they represent Virginia's
es pnrte assignment to her oil one.third Of
her debt.
1t Is not necessary 10 discuss whether
1t was good or bad policy on the part Of
Virginia to take the step that she has
taken, and especially TO issue these certlf-
Gates as representative Of our portion Of
her debt, since her act in so doing effects
only herself and her creditors and in no
way compromises either the rights or the
proposition for settlement made by West
Virginia. That proposition was and is to
settle up TO the first Of January, 1861, and
not TO the first OF July, 1871, or to any
other date. AT the first date the debt oil Vir.
ginia did not exceed thirty.two millions Of
dollars, while at the second II was not less
than lOrty.seven millions. Quito an im.
portant difference.
It is possible, and this Is the important
feature of the transaction, that this new
arrangement Of Virginia with her cred
itors may postpone indefinitely the
day Of settlement with this State.
No one need be surprised IL such
should be the case. Practically the
arrangement amounts 10 her to about the
same thing Us settlement with West Vir.
GINA on the basis Of one.thlrd Of the debt
for the latter as It stood up to July last.
Whatever may be thought Of the states.
manshlp Of such piece Of business, the
compromising Of the interest OF such q
huge debt under the circumstances, does
not matter now. The deed Is done and
so far as Virginia is concerned IL beyond
recall. The point for our observation Is
this, that being now in Tor two.thirds of the
debt on her own separate responsibility
she Is not likely TO make matters worse
for herself by accepting anything ad.
dltional by reason Of a settlement with
us. AS matters stand she can only be
held for twO.thirds Of the debt. The pay.
ment Of the other One.third Is wholly
contingent on settlement with West
Virginia. No settlement no payment, Is
the way the adjustment will work. Why
then should she settle at q discount from
this arrangement? All accruing interest
on the deferred third she of course holds
to be at our expense. And meanwhile,
pending settlement with us, her assets,
the property belonging 10 tho two States,
will not grow any worse but on the con.
trary may become more valuable. II she
can pay the interest on the amount assrln.
ed aud finally more than reimburse
herself by the enhanced value of these
assets she has in street parlance "prctty
good thing Of It"
In conclusion, the question naturally
arises as to what West Virginia will or
ought 10 do under this changed condition
oil things This, Messfs. Editors, is ques.
ton Upon which / shall not here specu.
late. 1t is sufficient TO answer that what
Virginia has done or may do imposes on
us no new obligations nor takes from lis
any former rights, and therefore creates no