Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-01-03
Is this right. IS it lust.

eign State should deal with those who, trusting
implicitly in her honor. have furnished the means
with which to construct her railroads aud ca
mis aud develop hel resources?
Why should not all our creditors be placed
upon the same equal basis?
What justihcalonI, palliatlon or excuse can
be offered for this unjust discrimination against
one portion Of our creditors? know OF none
aud have heard OF none [ am aware that 1t
has been assumed by some. that to pay the an
nuaI interest, If the whole debt We're funded,
would necc>statc an Increased rate OF taxation,
but this Is mere assumption not sustained BY
the facts.
have already laid before you my views
upon this subject, and further reflection entire
Is satisfies me that if they are sanctioned by
prompt action on your part, the fears OF iucreas-
ed taxation will be efcctualy diSsipated.
not only do not favor increased taxation,
but | am an earnest advocate Of measures
which will sensibly relieve the people from the
heavy load of county. township, district, road.
and municipal taxation their real burthen.
! Why not strike at the root of the evil, and
| limit. by appropriate legislation, this local
taxation. rather than brug untold evils upon
! the Commonwealth by tanperlng with her
credit? But, it Is said that the further execu-
ton Of the funding act ought to be stayed, be-
! cause that act is unjust. But to whom? Ger
! tanv not to the State, for beyond question, a
| more favorable settlement was never made by
Il State with her creditors than that provided
| for Us bv this law Let Us consider this sub
. iccl briefly.
vt the beginning of the war the State owed
bonded debt OF over SCI 900. 900. During
the war interest vas paid upon portion Of
| this debt and remained unpaid upon the
balance.
Alter the war the Legislature which conven-
| ed in 1866. by an act. passed March I'd OF that
wear, authorized the funding OF all the unpaid
| interest matured and maturing to January LIST,
! 1867. in new bonds of like character: and bear
ing the saline rate OF interest as the Old bonds.
| Under this act between six and seven mil
lions was funded On the list OF March, 1867.
the General Assembly authorized the payment
! OF per ceutum Of interest upon the entire
amount Of tire public debt, except the bonds
issued under the act OF 1850.
These several acts recognized and confirmed
the binding obligation of the whole debt upon
| Erginia. notwithstanding the fact that during
the war the State OF West Virginia had been
organized. sevcring from her Jurisdiction near
is one third Of her original territory. and near
~ one third Of her population upon the tunda.
mental obligation that the new State should
ASSUME and pay her just proportion OF the pub
lie debt. contracted prior to her separation.
The LEGALITY of tn legislation OF the General
Assembly of 1866 aud 1867 has never been
called in question. But if any doubts upon
this subject were ever entertained, they were
tinaliy and fully solved by the adoption, in
1862 b. an almost unanimous vote OF the
people Of our present constitution, which not
vnly validated all the legislation subsequent to
the war. but distinctly and uoeuulvocally re-
cggun.d the public debt, and the unquestloncd
liability Of the State Tor the whole amount Of
! it! both principal aud Interest.
This brief statement OF the action Of the
State upon this subject must, without the AID
of public law Which Is in perfect harmony With
It, silence all discussion as to the liability OF the
State tnr this debt. That liability is absolute
aud uniouDtcd, and no objection eau be raised
to the funding lct. because 1t recognizes this
incontcStablc fact
The first Legislature which convened under
our present constitution having failed to make
ing the vast Importance of maintaining. un-
sui,iel.slnc honor of the State and the Sanctity
of eur public obligations, and. conscious that
further delay would inevitably result in great
and perhaps irreparable injury, both to our
public and private credit, after mature acliber
alton. adopted what is popularity Known as the
Funding Bill
After rccitng the uudUubted fact that the
State is unGucstionably liable for two-thirds Of
the debt. this act authorizes the funding Of
twothirds Of the amount, both principal and
interest of all outstanding obligations of the
State in new bonds, dated the lst day OF July,
1871. bearing the same rate OF interest as the
original bonds. payable semi annually, and the
principal payable in 81 years from date. upon
the condition however. that the original bonds
be surrendered and no claim made upon us for
the balance due upon them, except IN accor
dance with Scuh settlement as shall hereafter be
had with West Virginia.
Can the execution of this act work any in
Justice to the State? VIII not all the advan-
tages accrue to her? Does she not thereby OBJ
tain an extension of time upon the principal OF
the debt. and is she not released from all pres
ent liability for onc-third of it? It's true that
the interest which we have heretofore failed to
pay, is added to the principal and funded in
like manuer. but Is there anything wrong or
unjust to the State in that? Is not the pay
ment of interest as much part of the obliga-
ton, and as solemn and binding, as the payment
of the principal? The failure to pay the one
is no less and no greater dishonor than failure
to pay the other. We were unable to pay
either and the extension Of the time of pay
mcnt of sums already due, for period of thir-
ty-four years, is an advantage of great impor-
lance to the State. The act authorizes the
issue of either registered or coupon bonds at
the option of the owner and the coupons Of
the latter, at an after maturity. are legal ten
der for all taxes and debts due the State. If
we intend to meet our obligations at maturity
and to pay the interest on our debt when it
falls due, what objection can be urged to these
coupons? They neither increase nor decrease
our liability, and instead of impairing..will rath
er conduce to the support and maintenance of
the public credit. j have thus briefly reviewed
the principle and more important features of
the funding act. for the sole purpose of ascer
tanning whether it contained any provisions
which could by any fair and reasonable con
struction be adjudged unjust or which could
operate to the injury of the State.
| confess my inability to discoyerany, but. on
the contrary, | am more than ever satisfied
that it is not only just to the State and her
creditors but is one of the wiSest acts of egis-