The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-09-27
DEBT, TAXATION, AND BANKRUPTCY

DEBT, TAXATION, AND BANKRUPTCY.
We in Virginia were, at the close Of the
war, in debt to degree unknown in any
other State probably, and we learned the
truth of the statement made by John Ran
dolph, that no desperately indebted people
anywhere could bear a regular, sober gov
ernment. There were, in 1868, two hun
bred and fifty thousand unsatisfied judg-
if the entire real and personal property of
the State had then been put up at auction,
it would not have sold for enough to pay
the Indebtedness of the State and people.
Since that time there has been no dmi-
mutton, but steady increase of the amount
of Indebtedness. 1t is true that about five
thousand persons have applied for dis
charge from their indebtness in bank
ruptcy, but not few Of those who were
thus relieved of their debts, have again
failed in business, and, in some instances,
have for the second and third time, applied
to that court for relief. There are now
considerable number of cases in which dis
charges have not been obtained, simply
because the debtor was so poor as to be
unable to procure thirty dollars necessary
to paw costs before discharge could be
granted but still the accumulation Of UNI
paid interest is greater than the whole
amount of debts cancelled either by pay
ments or by discharge in bankruptcy.
The crops raised, with the exception of
tobacco, have been, in these last ten years
Of distress, either consumed by the produ-
Ger, or sold for the payment of taxes, or
the purchase -of such necessaries as were
not grown on the farm, and there has not
been, in one case out ola hundred, single
dollar of ready money accumulated,- over
and above actual expenses, by the farmers
of Virginia, during the last four years, nor
is there likely to be any better condition of
things for the year to come.
After the war and prior to the election of
Governor Walker, the administration Of the
affairs Of the State was the most economi-
cal ever known in the State, but on the
coming in of the present authorities unusu-
ally extravagant and mercenary enterprises
were undertaken. The current expenses
of the State were more than doubled, State
bonds were first deprecated and cheapened
to enable the friends Of the administration
to purchase them in large amounts at low
prices, and the funding bill was then passed
SO that the friends Of the Governor might
realize large profits from the sales of the
same bonds. The provision of that law,
making the interest on funded bonds re-
ceivable for taxes, requires not only an in
crease in the rate Of taxation, but will leave
deficiency of at least million of dollars.
This is true picture of our condition.
1t is a solemn truth that our property is
now mortgaged for more than its worth.
Our money is squandered by reckless
and partizan administration before it is col
lected.
Our debts are increasing, while our pro-
perty is diminishing, and the farmer cult
Yates the soil, knowing that what he raises
will be absorbed by the tax-gatherer, or
sold by the sheriff.
Under such condition Of affairs it not
only becomes. wise, but absolutely neces-
sary that some provision for relief shall be
made. 1t is dishonorable in State to re-
pudiate the whole or any part of its just
debts, but it is..neither unwise nor dishonor-
able for people crushed to the very earth
with an intolerable burthen Of taxation, to
postpone the payment of part of their
debts temporarily, and until the people
hayeobtained some relief from their present
distress. Not dollar OF interest coupons