The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-11
vIRGIMAs FINANCIAL TROUBLES.
The Funding Bill and the Reason Of Its
UnpOpularity.


RICHMOND, Va, Jan. 9, 1879.
TO THE EDITOR OF THE HERALD
~ the recent action Of the Legislature OF Virginia
upon the question of her public debt deeply con.
Germs very large portion OF the financial world
We think 1t will DO interesting very large por-
ton OF the HERALD's numerous readers both In
this country and in England, to be correctly In.
formed as TO the present status Of the question, az
well a. to the feelings and purpose OF the people OF
that State upon It's 1nal disposition.
the act known as the "Funding bill.n upon which
the recent action OF the Legislature predicated
was passed by the last Legislature, without ever
having been discussed before the people, and Its
thrce leading features may be briefly stated as
follows
Hirst-The creditors of the State are Invited to
come forward and exchange their old bonds for new
ones q e6 cents In the doartnat Is, twothirds OF
their CLAIM, with the accumulated interest OF some
ten years added-and the remaining one third Is
left unsettled until Virginia and West Virginia shan
have the whole debt adjusted between them.
Seoond-The first two instalnents Of interest are
made payable out of the Treasury on January and
7hird-The coupons attached to said new bonds
are made recoverable IN taxes or other dues to the
This 'Funding BILL" and especially the three
features here enumerated, extremely dstasteful
to the people Of the State Tor the following among
Flrst-BeCause they think the bill was passed by
anS OanSers ana y peoa
lators, AZ scheme to raise the market value of
Virginia bonds and thus make 1t mattet Of a
Stcond-Thoy maintain that the debt Of the State
having been originally created 1y the whole
her property in slaves 1t therefore should fall
equitaby upon Doth OF the states as provided ior
division OF me DEBT should be made between the
two States before old Virginia should obigate her.
THsra~Tne people contend that the bill Is odlous
coupons o. lar less than par value, while the poor
or non bonanoders who compose the great 3ooy OF
the people, wl Dc compelled TO pay their state dues
For these and other reasons which the people Of
Virginia consider substantial. they regard the
s'Funding. billn to have been entirely premature
In gin passage and unjust and oppressive in Its
operations, and from the almost unanimous
action Of the present Legislature before Christmas
10 the Senate tor repeal well the free express
sion Of the puDllc sentiment both before and since,
Of the people Of the State are utterly opposed 10
that Dill. and that the present Legislature
Ds 70 y
should Governor Walker veto the PHI OF repeal, and
i n9 M e the Over M y W
adhere to its position, and that Of the Attorney
General and md refuse to enforce any part Of the
80 much Tor the action Of the Legislature thus for
Now. as to the sentiments and Ultimate intentions
and the reasons upon which they are founded.
Before the war I'm Is6OJ the taxable wealth OF the
state wAtinn Its present territorial limits was as
Assessed value OF lands 1894 14s 470
Slave property. 2S6, 1913, 500
Since me war the SSa her,
aOnal property has been as follows the assessment
on negroes having been entirely abolished
Value OF lands. .s27e. 11e 900
personal property $685. 48
the total loss OF taxable properly since 1896 in adj
ditlon 70 the violent surrenderlng Of than one
these figures do not present the whole state of the
case. or its worst features; for the lands as.
gnco then at least fifty or seventy-nve per cent SO
that they are now not worth IN the market or to
three OF Jour years after the war closed there was
and the assessed value put upon them by their
owner. was much higher than met with the exten.
demand for their lands has almost entirely ceased,
the means OF their cultivation and Improvement
nave ieace e.. ams
strength OF the SOIL itself mas suffered from the want
total value Of Ss
lands in 1879 does not exceed one hun
a4sbe value Of the whole property Of the State cam
not be justly placed at more than $780, 600 000 These
state to bear any more burden Of taxation in their
present embarrassed and OppI essed Condition; and
time to S july
ments OF interest It would leave considerable de.
@ Il ns
the debt Or interest under the provisions Of the
doupe people are TOO poo. this me to
pay their private Indebtedness much less meet the
taxa.ion wnicn federal state, city and county gov.
Yae people q xIginIs 'nsrsi9Is can truly assert
nv Tho
NOT intend tina. either the creditors q the the
to Or e o oS
cations to deal Justly with the public debt Tney
arbitration shall decide rests properly them alter
the same time thes claim the right, and have the
moral courage 70 exercise II, to have an opinion
dscharging their duties to their creditors and they
do not intend, either by the force OF intimidation or
to assume position and an obiIgalon which they
consider y Impossible for them to meet at this
properly appreciate this position Of Virginia. and
shall seek to force her people into surrender Of
q s a na ss "a 1p
following remarkable chain Of facts which, In their
own estimation at least Il not in the opinion OF the
Of Virginia in even q less strict adjustment Of the
state debt than she intends to adopt. namely =
the people through the natural and legitimate re-
suits OF the war; the state was also dispossessed OF
more than 0ne-third OF her territory and or two
hundred and fifty mlil0ns Of slave property. 1t is
historical ana undisputed fact that this
property both IN territory and slaves was Ruaran-
teed 70 their owners BY the express language OF the
federal constitution and by the laws and consttu.
ton OF the State, and that upon the faith OF that
property was based at least twothirds Of the public
debt and credit Of the state. In utter and violent
disregard Of these constitutions as t,nn and laws
federal governments deprived Virginia OF those
ready and ample means OF paying her debt and
n n nj ira