Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1871-12-15

| am Informed, WITH the apNTuDailou VI Jul
| State creditors 10th at home and abroad,
and OF all aonest n'en everywhere, who IN
derstood and appreciate the subject Aside
from the complete viadication of the honor
of cur State and our people, which some af-
feet to sneer at but which in my Estimation
is of the most vital Importance, the benefits
in material point of view of restored conf
dence in the integrity of our people and our
government arising from the enactment OF
this law cannot be measured. Not only was
the credit of the State involved, but also
the credit of every county, municipality,
and public and private corporation, as we'll
as that of every citizen in the Common
wealth. --...--
The State Government is but the repre-.
sentative Of the will of the people, and must
be obedient to their behests. When, there
fore. it fails in its duty-When it Ignores or
repudiates its solemn obligations--the cause
thereof is traced to, and its effects visited
upon, the source or fountain-head OF power,
the people themselves. When the stream Is
foul its source is presumed to be impure
The destruction of the credit involves the
obliteration of private credit. but the mann
tenance Of public faith establishes private
confidence. The restoration of our state
credit, and along with it confidence in our
integrity as people, which the law has ans
will accomplish, will conduce more to the
prosperity Of our people and the development
of our State than any other cause or inhu-
ence which can be named. Capital, always
cautious and nervously sensitive, never
seeks Investment in the property Or securi-
ties Of a people who betray want of integ-
rity either in their public or private eapaci-
ty, and immigration never seeks a country
where obligations are not scrupulously res
pected, and where property rights are not
safe and secure With the restoration of
our State credit and the adoption of wise
and comprehensive plan for the encourage
ment of immigration, both population and
capital will flow into our State, constantly
increasing its taxable valuations, and con-
stantly decreasing the rate of taxation in a
corresponding degree. We have taken the
first step in the right direction for the &C.
complishment of this important object, but
its complete realization in a large measure
depends upon your wise and prudent ae.
ton.
The very full and able report of the First
Auditor, herewith submitted, contains, be-
sides the tabular statements exhibiting the
operations of his department during the last
fiscal year, many pertinent suggestions,
some Of which cordially endorse, and all
all which 1 commend to your careful peru
sal AS legal proposition, the interest on
the funded debt must unquestionably be
paid There is no escaping it if we would,
and I am confident there is no disposition to
avoid it if we could. To do this, however,
without increasing the rate and burthens of
taxation, economy in every branch Of the
Government must be rigidly enforced No
expense must be incurred except such as
shall be absolutely essential to the proper
administration Of the affairs of the State,
and the taxes imposed must be thoroughly
collected in all cases and under all circum-
stances. Taxation for State purposes is
lighter in Virginia than in nine-tenths of
the States, and it should be our earnest e.
fort, as it is our duty, to keep it as low as
possible, both on account Of the direct bene-
fit resulting to the people and because of the
inducement it offers to capital and immigra-
ton.
By the report of the Second Auditor,
herewith submitted, it will be seen that the
total debt Of the State on the LIST of July
last, fundable under the law above men
toned, was S47 900, S66.43, two-thirds of
which is $31, 1893, 91O96, which is the por-
ton assumed by this State, and on which
the annual interest would DO 81 1865, 45O 90,
an cOo0 TOR TX eon,; o,,,,oiI,-
Of the whole debt the amount funded on
the LIST instant was $26,6l0,691.S5, on
two-thirds of which-viz: ST, 740, 4G1. %
interest will be due and payable January
LIST, 1872 1t is safe to estimate that by
the LIST of January, 1872, $50, 1000, 900 Of
the old debt will be funded, and that conse-
quently $20,00O.OO0 will be the sum on
which interest will have to be paid at that
date, amounting to $600,O00 But the
debt is in reality not so large as the Audi
tor reports it, provided the proper deduc-
lions are made. There has been received
from the Richmond and Danville Railroad
Company S1,034, 914.22, aGd from the
Richmond and Petersburg Railroad Com
pany 1915, 400 in State bonds for the sale
of the State stocks in those companies in all
81, 610, 334.22, which must be applied to
the reduction of the State debt, and should
be deducted from the total liability of $47,-
900, S66.43, which would reduce that
amount to $45, 4S0, 542.21. And this sum
will be further reduced certainly to the
amount of $685. and probably more,
within sixty days, by the sale, under an adj
vertisement of the Board of Public Works
in pursuance of law, of bonds and stocks
owned by the State of the Richmond and
Danville, Richmond, Fredericksburg and
Potomac, and Washington and Ohio Rail-
road Companies, which will reduce the total
liability to $44, 724, 680.21; and it is
altogether probable that the second mort
gage bonds of $4,OOO,00O Of the Atlantic,
Mississippi and Ohio Railroad Compa-
ny held by the State and to be sold at the
same time will further reduce the total debt
to $40, 724, 6S0.21. By the sale of the
States interest in the Orange, Alexandria
and Manassas Railroad Company, that Com
pany having already accepted the law APP
proved March %, 1919 amounting with
interest and dividends claimed by the Board
of Public Works to be $1,573, PASTA, the
total debt will be reduced to 500, ISL ,421 AT
two-thirds of which sum is $26, 100. 1851.
But this sum is subject to further reduc.
tons by amounts realized and to be COL
lected on the claim against selden, Withers
& Go. and the sale of other property and
stocks held by the State. A very consid-
cradle amount of the debt will probably
never be presented for payment, for, consid-
ering the age and multiplicity of the forms
Of indebtedness issued by the State, and out
standing July LIST, 1871, some Of it must