The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-02-13
MIR. tENEALE,S AMENDMENT.

Yesterday, after Mr.. Critz had explained
his substitute bill for the further funding Of
the State debt, and his motion to substi-
tute was lost, several amendments were
proposed to the original bill reported by the
majority Of the joint special committee,
which were variously disposed of in one
way or another. Mr.. Deneale, of Rock
ingham county, then spoke at length in
favor of the majority bill, offering an
amendment to the second section, which he
pressed upon the consideration of the
House with great force of argument, and
apparently with much effect. His propo-
sition relates to the payment of interest on
the bonds issued under the law of last
session, providing, in brief, that the
interest thus paid shall be three per cent.
for the first seventeen years the bonds have
to run, and six per cent. for the remaining
seventeen years. The ground which he
took in support Of this proposition was
that, by the terms of the funding bill Of
1871, at least one-third of the amount of
the sbonds issued Hereunder consisted of
accrued interest on the old bonds, which
could not be legally claimed as part of
the principal of the new, and which should
not have been so funded and that the rate
of interest proposed by him, while it would
materially tighten the weight of taxation for
the first seventeen years, would, in fact, at
the end of thirty-four years, realize to the
bondholders, with the principal and inter-
est then paid, precisely what they would
have been legally entitled to receive, had
the same remained unpaid up TO that time.
That is, three per cent. on the whole sum
for one half the time, and six per cent. for
the balance of the time, would be just
equal to six per cent. on two-thirds for the
whole time. This would be according to
the creditors of the State exactly what their
legal rights would entitle them to secure,
were they then for the first time to present
their claims for liquidation at the Treasu-
rer's Office; only, under his proposed
amendment to the majority bill, they would
receive the interest in semi-annual INSTALL
ments of three per cent. for the first halt OF
the time the bonds had to run, and six per
cent, in like installments, for the balance
of the time. A-
Mr.. Deneaie alluded to the financial con-
dition of the State, with its sources OF
wealth exhausted; its industry crippled;
its prosperity paralyzed ; its trade languish-
ing its commerce snatched away by other
hands; its very soil scourged and blasted
by war; and regarded it as one far more
calamitous to the people than that which
left them almost penniless at the close
of the Revolutionary war. Then Vir-
gnia paid off a portion of her
State debt, scaled down to rate
as low as one dollar on thousand.
The Federal government paid nothing
on its chief debt-its outstanding millions
in paper money-but it did do this The
debt of the old Confederation was funded
during the first term of Washington's adj
ministration, with precisely such a condi-
ton as to interest as was proposed in the
amendment which he offered. One-third
of the amount was payable without in.
terest, and two-thirds at six per cent,
making the rate on the whole four pei
cent. This rate was deemed good enough
for Washington's administration, and
brought no dishonor upon the country at
that time. Virginia is not in condition to
do better now. She is vastly more Grip
Piled than the original thirteen were at thai
time, and it was the duty of her creditors
to see, feel, and recognize the fact.
Mr.. Deneale was confident that if the in
terest on the public debt was thus rated
and distributed, the State would be able to
meet every dollar of her liabilities as they
matured. He was not in favor OF any adj
justnent that the State could not squarely
meet in this way. Its present embarrass-
ments could be bridged over by this amend
ment; the creditors could be treasured /;