The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-01-25
COUNTY SUBSCRIPTIONS TO RAIL-
ROAD ENTERPRIsEs.

Ii the action of the Houseof Delegates
on bill authorizing vote to be taken in
~ ~. Augusta county on the question of SUBJ
IS scrption by that county Of "not less than
100000 to the Valley railroad, and
100000 to the Shenandoah Valley rail-
road" is to be taken as an indication Of a
general policy in regard to similar sub
scrp6ous, the subject is Of such vast nay,
vital Importance, that it deserves the full
est examination and closest scrutiny by
people OF all classes before they sanction
by their ballots the result Of the rol-call.
Every vote cast "for the subscription" is,
In fact, vote to contract permanent
debt--a debt which can only be evaded
by chicanery or dlshonor, or cancelled by
exacting grinding taxation from the people
to meet interest and principal. When
bonds issued to any company, receive the
imprimatar of the, county, by attaching
the public seal, the faith OF the county is
pledged for their punctusl payment
according to the contract expressed on
their face. 1t is grant of public credit,
guaranteed by the pledge of public proper
ty, and although the letter of section Is. ar
ticle 10 of the constitution, may not directly
forbid such grant and guarantee, the spirit,
as Interpreted by the discussion on this
section IN the convention, clearly does
"The State shall not be party to or be-
come interested in any work of internal
Improvement, nor engage in carrying on
any such work, otherwise than in the ex-
penditure Of grants to the State of land or
other property" is the language of the
section; and why was 1t interpolated, 50
to speak, IN the present constitution, for It
is a new feature, and was introduced for a
purpose The reason is plain. The con-
vention, When they came to deal with tax
alton and finance, found Virginia loaded
down with mass of debt, incurred in
aid Of speculative undertakings, and hav-
ing entered their solemn, carefully consid- |
cred protest against reputation, deter
m ined to make that protest effective by |
prohibiting further grants of public credit
in direction which had proved SO over.
whelminsly disastrous. Section IA of ar
ticle 10 is equally restrictive in the same |
objection "The State shall not subscribe
to or become interested in the stock of any
company, association or corporation :" and
yet much and plausible argument is used
to establish principle one hundred and
one times more dangerous, that each of
the parts may do for itself what is per-
emptoriy forbidden to the whole.
This is avoiding ScylIa to meet more
dire disaster in Chary bdis, il is allowing the
agents to run their credit when their princi-
pal has stretched his to the Verge OF bank
ruptcy, and his suspended paper is the
football of the stock exchanges of the
world. Any person conversant with
monetary operations is well aware that
the valae of public securities is graded
generally - first, corporate (thriving cities
or towns) second, State, and third county
or township. The creditor of corporate .
city or towo, finds valuable property upon
which be can levy to press his claim IN /,
settlement the creditor of State looks
to public pride. and tho power Of leeis-
lature to impose and collect taxes but !
the public creditor of county finds !
courthouse and Jail, in an isolated place,
possessing no marketable value or appro-
priateness for general purposes" and
here's an end" except interminable law
'uits, in defending which every owner of '
property in the county is backed by every {
'ther like owner, under the 6rst law of "
preservation We may be O
old--ln fact, We are told-that these sub
cribing counties will have value rec eiyed =
or their bonds, BY providing they shall be L
AIKEN at par by the company for whose !,
enefit the bonds are issued.
We reply they are worth TO the company nc
hat they are worth in the market no " "
lore, no less; and ii they are worthless in ba
10 market, they are equally worthless in
le pocket of a citizen of the county issu-
g them. 1t would be just as reasonable L.
assume, that a contractor who paid off
s iaoorers, on any section, with counter
it currency, made that county richer, by no. no.
e pockets of her people being crammed tn
18th irredeemable paper. The value Of a /
e bond, in the hands of person who Il
lis ties or rails to the read, or contracts d
r excavation or embankment, Is what it IT
Ill bring him in cash or supplies, for tho =
yment or subsistence of bis laborers ION
d if he relies, for meeting his engage Eor
ants, upon tho only tangible thing about Of,
8 bond, six. or even twelve per cent. in ITsai
est on its full value, he will find him peri
without money, credit or redress, and Err
bonds must finally be forced upon the
Irket, where it would have been much IL
ter for him had they gone at first
e subject is as wide in its character as il Eve
important Ia its bearings, and under a
Of nnhtin 1utu 1AN