Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-01-20
The Debt Controversy.

The Debt Controversy.
In his annual message to the Legislature Of
West Virginia, Governor Jacob says, in rela-
ton to the settlement of the relative portions
of the public debt of Virginia
'"The separation of West Virginia from Fir-
ginia has raised grave and delicate questions
public debt of Virginia existing prior to the
separation Upon the organization Of the
State of West Virginia the following provision
was inserted in the Constitution
"An equitable proportion of the public debt
of the Commonwealth Of Virginia prior to the
first day Of January 10 the year one thousand
eight hundred and sixty-one shall be assumed
by this State and the Legislature shall asccr-
tain the same as soon as may be practicable.
and provide for the liquidation thereof by
sinking fund sufficient to pay the accrung in
tcrest and redeem the principal within thirty
four years.
The Governor reviews the action taken by
both States in reference to the matter, and
quotes the language of Governor W alkcr, ask
ING why West Virginia refuses to submit to
arbitration Governor jacob then says
'Iu grave questions of this kind examinations
and determinations 10 not tend to produce
satisfactory solution As Governor Walker
declined to appoint commissioners on behalf OF
Virginia no course was left the commissioners
Of this State, except by independent action: to
procure thc data from which to ascertain what
is the Equitable proportion Of the public
debt of Virginia which West Virginia ought
to assume The report OF the commissioners hap
PLY spares the necessity on my part OF dis
cussion otthe issues involved in this matter
"The funded debt Of Virginia on the list day
OF January, 1861 was S3l IFS, SCI 81 aficl all
deductions All OF said debt was expended
within the present State Of Virginia with the
exception Of $2,Gj6,330.S9. The report will
show that this debt represented money bor-
rowed and expended i'll improving the State
by canals railroads, ,u-npikes. plankrOads, and
bridges
;'All these expenditures conferred local
aud special benefit where expended, not only
by the outlay OF the money IN creating mar
kct and stimulating enterprise and trade, but
in otherwise developing the resources ofpartIc-
ular localities to an extent equal to the gene
raj benefit to the State at large. 1t may be
assumed then that the public works for which
the debt was created are worth what they cost
Virginia. by selling, donating, and diSposng OF
these works as her own property without con-
sulting West Virginia, must be taken TO have
accepted them on that basis
''When the tables accompanying the report
are consulted they will show an expenditure oi
over thirty millions in Virginia. and about two
and a half millions in West Virginia. The
commissioners then come TO the conclusion
that 'the benefit conferred, and not the terri.
tory and population, should be the principal II
not the only basis Of an adjustment OF the
debt To give at length the arguments AID
duccd to sustain this position would make this
paper too long to do less than this would be
an act OF injustice to the commissioners. and
greatly weaken the force Of their arguments.
The interest Of the peoplesin this.qnestion
will cause the report to be widely read and
there is less necessity therefore for a ull dis
eussion on nly part. II an reputable propor-
ton" of the public debt of Virginia is the liuIit
of the liability Of West Virginia, it is difficult
to see how she can be under obligations TO pay
for improvements that do not confer any bene-
fit unon her. Taking the foregoing basis Tor
guidance. the commissioners report that West
Virginia proportion of the debt is something
less than one million of dollars.
'This balance is reached by charging West
Virginia with the amount Of expenditure for
purposes within her limits, and credtinv her
with her interest in the public buildings and
other assets named; also with her share in the
literary fund and surplus fund. These calcu-
lations have reference to the date OF Januaryl
1861. 1t will demand your serious consldera-
ton whether you will now proceed to assume
what you may conceive to be the Reputable
proportion" Of the public debt of Virginia prior
to January l, 1861, or whether you will. i'll the
light Of past events, await turt her action on
the part Of Virginia.