Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-03-11
COMMUNICATED.

turc now in session in Richmond
1t was wcknown at the last election that
the Funding bill, passed March 3Oth 1871,
placed the principal OF the debt due by East
aud West Virginia ut forty eight millions Of
dollars The creditors Of the State OF Virginia.
holding her bonds. were permitted to fund
them and the interest on them accrued to lit
Of July, 1871, by deducting one third OF their
principal. and one third Of the interest accrued
TO that date, aud by taking new bonds. regis
tered or coupon, for lwo-thrJs of the old bonds
and the accrued interest aided. payable thirty
four years after their date This one third de-
Quoted was to be settled according TO the adj
jnStmcnt between East and West Virginia Of
the amount Of the entire debt. that each one of
these States would. in Justice. be bound to pay.
This one third deducted, left two thirds, or
thirty two millions of dollars of debt as the
basis of the Funding ILL., The bill then pro-
vi'icd for the surrender and cancellation of the
old bonds aud the issuing Of new ones for two
tn irlS oil the principal Of the above: added To
two thirds OF the interest on the same accrued
to st July. 1871, nearly all Of which new
bonds We're 10 bear SIX per CT Interest payable
semi annually, on the lst days ot January and
July III each year.
The bonds were to be payable to the bearer
or to order and the coupons 10 bearer, and the
latter were declared receivable ut ard after
maturity for all taxes debts. dues and demands
due the State. The State gained by this fund
ing indulge for thirly-tour years, with the
privilege Of paying her Indebtedness in full at
any tirue after the expiration OF ten years. She
gained. moreover, virtual surrender VI one
third of the pccuuiary demands upon her. She
undertook however, to pay interest on several
millions Of accrued interest which had been ad
/ / H., bu
corpus OF the new bonds Issued under this bill.
! Now the popular sentiment somewhat re-
VOTED at this payment of compound interest,
and also at the receivabi!ity of these coupons
for taxes AID dues to the State. and the result
was u ua urlty of this Legislature was elected
in opposition to the Funding bill, and took
their seats pledged TO repeal or amend 1t.
They were partly instructed that the people
could not pay a higher rate Of taxation than
that already imposed, and if the coupons were
generally received in discharge of the indebt-
edness to the State there would not be a suf-
fcicnt amount Of funds in the treasury to car
ry on the government
With these ideas prevailing to very great
extent throughout the State. the Legislature
assembled They aScersaincd the amount OF
money in the treasury to pay the Interest on
the public debt and to delray the necessary
!
t. be 81 SO. 257 The interest on the public
delft due 1T January aud lst of July. 1872,
would amount to : l. $40. 900 This Is ca!culat-
ing it at six per ct. per anuum upon the thirty
two millions OF debt
The amount Necessary to carry on the gov
crlmcnt and meet its legitimate expenses TOR
the year was ascerla ned to be 5 100, 900. Had
the Legislature paid the six per cent. interest
on the st of January, 1872, amounting to
>, 1850, uOO and paid the legitimate expenses OF
the government uni is other reserves had been
rcaz d. there would have been in the treasury
on the LIST of July, 1872, ouly $3.50, 251 10
meet the >cml annual Interest OF $96O,UUO due
then. and to carry OH the government till l>t
Of .Janua,y, 1879, which would have caused a
deficit OF &l43 743. Had the semi-anrual in
tere>t Of 1860 900 due l$t Of January, 1872,
been promptly paid when due, the remainder
in the treasury, unsupported by subsequently
received rcvculcs) would not have been suf-
fcicnt to carry on the government for the year
1872. by about $3.50. 743. 1t will thus be seen
that the six per ct. interest could not have
been paid and the government kept in existence
without increased taxation. Then again this
occurs in di>bursng the revenue collected IN
ISL when I'LL the resources OF the 5 ate We're
realized in money. Now comes the enquiry. If
large portion of the revenue for 1872 be re-
ccived in coupons and the people are unable to
submit to increased rates of taxation, how can
the government be carried on and the interest
on the public debt paid? The government
must OF necessity exist, else all that is valuable
to US is lost. The Legislature should have been
prompt in paying to the extent Of the State 3
aiiry the interest on the public debt due the
first Of last january. \ payment then Of all
the money the treasury could spare for that
purpose would have kept the credit Of the State
ulISllilied and pure The State had borrowed
money: contracted these debts Tor it; had used
that borrowed capital III constructing Internal
improvements within her bousiS, and Is now
ENJOYING the benefits derived from these i'm
rruvemcnts This Legislature should have
promptly met the interest on that debt as far as
the State was able to meet it. The creditors
had been liberal with us We had only paid 8
per CT interest on the debt in ali since the close
of the war in 1868. The highest rate of interest
paid in any one year during that time was four
per CT During some OF the other years two
per Ct was paid; some years no interest at all.
Still no charge of reputation was made. 1t WAS
left for the majority in this Legislature to en-
tail upon US the suspicion OF attempting this
damnng intamy. There are some members of
that body who would ruin by taxation the ag-
ricnltlrlI aud other industries of the country TO
carry out to the letter the provisions OF the
Fuliug bill. There are others equally Solicitous
for the fair name of our good old Common
wealth, who are anxious to pay every cent the
State is able to pay upon her Indebtedness, but
are not willing to increase the present rate of
taxation There are others, am sorry to say,
who would not pay a cent Of interest on the
State debt, and who only lack the power and
opportunity to repudate it all. The three
classes are visible in the Legislature. Now which
is right? The best minds in the Legislature
think the State unable to pay six per ct. inter-
est, and as the best they can do propose to pay
four per Ct For this some of them especially
the able chairman of the Senate Finance Com-
mttee) are charged with tavoring reputation
For urging the prompt payment Of every cent
the State is able to pay upon the public debt
I have been charged with disappearing the
people of this county. I don't believe re-
pudlatonist lives among US. DO believe that
the action OF the able members from this coun-
ty and Senatorial district in voting to pay as far