Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1872-01-16
Additional Thoughts on Financial Matters

Thoughts on Financial Matters.
In our last number we offered some words
of encouragement to our readers, and sought
to show that our old State was not reduced to
such desperate straits as the ''croakers' would
have us believe. We propose now to offer
some additional thoughts On the subject OF
finance.
The assessed value Of the real and persona
property of Virginia, is about three hundred
and sixty millions of dollars. The portion of
the debt of the present State, is about thirty
six millions OF dollars. In other words, the
present State of Virginia owes debt, equal to
about one-tenth of its property. And yet, our
wise law-givers, by their action, represent her
to the world as Bankrupt, and unable to pay
what she owesl What would be thought OF
an individual VINO. owning property worth one
hundred thousand dollars, and owing balance
of purchase money, of ten thousand dollars,
would seek to get rid of paying that debt on
the ground of inability? Would he be regard
ed as honest? Would he be tolerated IN the
society of gentlemen? Yet where is the dlf-
ference between the case of Virginia, and the
individual referred to? Virginia owns prop
erty worth ten times the amount that she owes,
and why should she repudiate obligations
which are just as binding on her, as the debts
of any individual are on him?
But we wish to present this debt-question In
another, and, indeed, its true aspect. 1t is
true that Virginia has been, to some extent
IMPOVERISHED by the war. And it is equally
true that it would bear hardly on her, IT she
were called on, at once, to pay up the prlncl-
pal of her debt. But such is not the fact
Her creditors make no such demand. On the
contrary, many of her creditors, whose debts
were actually due,-and others whose claims
were approaching maturity,-hy funding their
debts, under the act of the last Legislature,
have substantially said, we will take new bonds
for our overdue and nearly matured debts,
and give you thirty-four years longer time !
All we ask is the interest, according to con-
tract, semi-annually. We will not ask dol
lar of the principal until the year 1905.
What Virginia is called on for. is, therefore,
not the principal, but only the interest on
sum equal to only ten per cent. of the value OF
her property!
Is not this good bargain. on the part OF
the State? Suppose any individual, worth
500 OOO owed $4,000, add finding it incon-
venient to raise the money to pay it, were Of
fered, by his creditor, indulgence for thirty
four years, on the:condition that he would give
a new bond, including arrearages Of interest,
and thereafter pay the interest semi-annualiy
Would he not jump at such proposition
Would not all his neighbors pronounce him
fool if he did not Now, if such an arrange
ment would be wise and beneficial for an indi-
vidual, why would it not be equally advantageous
to the State, which is but an aggregate of in
dividuals?
The failure to pay the interest 90 the State
debt will do incalculable mischief, not only to
the public credit 1--WE say nothing Of the honor
and good name of the State, heretofore IN
sullied.-for we are now taking dollar and
cent view of the question:, but 1t will work
the most serious evils to the business interests
-four people. IF the State falsiGes its plighted
faith, what Virginian can be trusted2
IF men, chosen as the representatives and
guardians of the honor of the State, set at
naught her most solemn obligations, what Sc
curity have the hotel-keepers and tailors OF
Richmond, that the same persons will not re-
pudiate their board bills, or the price of the
coats on their backs? There is very faint
line between honesty in public and in private
matters. We must confess We could repose
but little trust Of any kind in a repudiator.
The Withholding of interest will produce
great distress among widows and orphans and
the benefciaries of trust MANIFESTATIONS and
parents, making provision for children and
chancery courts. having charge of trust funds,
have, heretofore, had the utmost confidence in
the integrity of Virginia, and have directed the
trust funds, under their control, to be invested
in Virginia bonds. IF We mistake not, the
U. s. have invested large amount of Indiana
trust funds in Virginia Bonds.
The interest on these bonds constitutes the
principal means of support Of these widows,
orphans, Indians, insane persons, and other
helpless objects of bounty. Is it not shame
to see men, calling themselves Virginians,
adopting measures tending to cheat these poor
dependent classes out of the little pittance pro-
vided for their maintenance? The Auditor re-
ports that there is more than six millions Of
registered bonds, held for the benefit Of these
classes, In Virginia How mnch more is held
for similar trust purposes, in coupons, cannot
be ascertained
There is another thought on this subject.
which has presented itself to our mind.
The Constitution provides
lst. That private property shall not be taken
for public uses, without just compensation.
2nd. It provides that all property shall be
taxed at a uniform rate.
Nov, we submit, whether the spirit, if not
the letter, of both these provisions, is not vIo-
lated by the action of the Legislature?
Is not the accrued interest of the bond holder
as much his property as his horse or his car
riage, 'or any thing that is his?" And does
not the Legislature, virtually, coniscate that
interest, for the public benefit, without making
any compensation?
Again, how can the Legislature reconsile
their action with the clause of the Constitution
which contemplates that the burthens Of the
shall be equally and alike distribu-
ted over the property of all citizens? A man
has ten thousand dollars in bonds and he pays
a tax of half Of one per cent. A widow lady,