The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-09-30


the weakness of a cause than the attempt
on the part of its advocates to divert atten-
ton from the issues joined to irrelevant
matters. Peter Funk stands in the dock
accused by John Smith with stealing his
watch. The proof is clear that Funk took
the watch. Funk's counsel is silent as to
the understanding, but expends volumes
Of legal learning, and makes himself hoarse
with vociferating denunciations against
Smiths relations, whom he accuses of steal
ing horses in Louisiana and Texas.
What would the court say to such de-
Tense? Would not judge and jury accept
it as the last resort of a desperate cause,
presuming upon public ignorance and stu
pidity in the jury box and on the bench :?
Yet this is precisely the manner in which
the Conservative press meets the indict-
ments Of the Funding law, which the peo-
pie in their grand inquest have drawn up,
and which is now on trial at the bar of pub
lie opinion.
In their behalf, and not as partisans, we
charged that the funding law was fraud,
taking from the people their hard earned
money under the empty pretence of saving
the credit Of the State, but in reality to
give fictitious value to Virginia securities
in the hands of stock-gamblers, who had
bought at low prices, and are engineering
for a rise. We have proved this by show
ing the inadequacy of its provisions to save
the State, and by showing that it already
either deceives the people, or practically
repudiates one-third of the debt, which il. has
no right to except from the common treat
ment.
BY showing still again that the bonds
have declined in the British market since
April steadily, with very slight oscillations,
nearly six per cent.
To this evidence we may add the deter
mined opposition of the English bond
holders to the bill. Removed from all
speculative influences, these honest bond
holders were willing to give up the back
interest, in consideration of the great losses
of the State, but they opposed bill so
clearly drawn in the interest of stock gam
blers.
We charged further, that the Treasurer
had been accumulating large sum of
money, in advance Of the current needs of
the State, taking it from the country peo-
Pile, who sorely need every dollar in their
business, and concentrating it at Richmond.
Here it is loaned to few wealthy banks,
at the low rate of four per cent, which
banks loan it out to the people at the high
rates now prevailing. The country people,
from whom the money has been taken, are
compelled to sell property at sacrifice, or
borrow at twelve to fifteen per cent, to
meet their taxes.
We have shown how this accumulation
has been accomplished, to-wit: by carry
ing over the surplus of 1870, and the past
six months Of 1871, during which no
money has been paid on account of in
terest. The Treasurer funded the interest
for 1870, and also for the first six months
Of 1871, paying it as Micawber did his
pressing ucDlS, Win I'LL L " y, anu lllen
felicitating himself upon the settlement.
All this time a surplus has been accumu-
lating in anticipation of the funding interest,
which we have no doubt will be promptly
paid, and possibly the July interest of
~. But what then ? Where is the
money TO come from when this surplus is
exhausted?
We have shown that the present rate
leaves deficiency of at least one million of
dollars, giving every doubtful source of in
como the best possible showing for the
Treasurer. Either the current expenses of
the State will not be paid, or the interest
on its bonds will not be forthcoming. In
either case the credit Of the State stands
impeached before the world.
Under the funding law, we must have
three millions of dollars to meet the annual
requirements Of the State government.
The present rate of taxation will only |
yield about one half that amount. Now it |
is clear, we must either collect more mo-
ney, or cut down expenditures. What do |
you propose, gentlemen? Don't tell us