The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-05
RICHMOND, March 1, 1872

RICHMOND. March l, 1871
IL is not an uncommon thing now TO hear the
present members OF the Legislature spoken OF on
the street as the veriest pack or imDeces ever as
sembled together In a iaw making conclave. They
have tempered with the debt ana the states credit
until the loss and injury to Virginia morally and
peculiarly beyond conception. majority OF the
body OF political demag0gues, secured their
election on the popular hobby OF Oppressive taxa
tion" which found It's echo In Virginia from the
States further South where the people were plum
dered by carpetbag spectators and Wall
street STOCKHOLDERS. But of this Virginia
not rghtruly complain. Her history since
the close or the war has been
one Of good government, internal peace and quiet
ness and comparative prosperity, when the con.
diton OF North Carolina, South Carolina, Georgia,
Florida, Louisiana Texas ana Arkansas Is consid.
cred. With the exception Of the brief term when
Wells was Governor of the state, by military
appointment, Virginia has had her own govern
ment. her own Legislature, and mostly her
local officials, ana during the period the state
was under q radical administration the military
commander OF District No. nObly sustained the
CREDIT DOMINION.
portion OF the interest due the creditors OF the
State has been regularly paid since the close OF the
war; according to the ability OF the people
to meet It, and 1t was not until the
present Legislature met that there was any
stigma upon the credit and integrity OF Virginia. 1t
Is more than useless to say the people are
able to bear the taxation imposed by the Fun ding
bill Of March, 1871; for the taxes OF that year.
amounting to 1900 900. cheerully paid
treasury where remalns) for the purposes Of
defraying the current expenses OF the government
and paying the interest due the debt the LIST of
January and LIST OF July Of the present year. The
making the coupons receivable for taxes-cOuld
have been repealed at the opening Of the session.
taxes In gold or silver coin, United States treasury
notes or notes OF the national banks substituted
Its stead. and the bonds and secures OF the
state would not have been materially al
| feced. But almost the first act OF the
Legislature was to attack the Funding Dill in all
their reckless course carried with 1t to pass
luton refusing to make an appropriation
| TO MEET THE INTEREST ON THE
railing due on January 1872, besides prohibiting
the Collectors ana County Treasurers from receiving
state The result OF this action, as the public u
fully aware was most damaging to the credit OF the
| State II retrenchment ana reform were needed,
there was no craftsmanship destroying the states
credit In the first attempt 10 secure either III the
Under the Oppressive taxaton' called Tor by the
present constitution, In The shape or school taxes,
9%, and ~ a ans lastly
do not hesitate to reterae the general opinion here
that these resolutions OF The Legislature were as
OF Its constituents as they were to the holders OF the
bonds of the State. The effect almost magical;
financial distrust At once became manifest;
| REPUTATION SEIZED HOLD OF THE PUBLIC
! mind, ana the bonds or the State fell fifteen per
Is there present the slightest prospect Of an ad-
vance TO their former standing In the market and
posted in four OF the Richmond banks at four per
cent per annum, where II is used for purposes Of
ers at probably treble that rate OF interest for
short PERIODS Nearlv three months have expired
| since the Legislature assembled, and during that
period the subject OF the State finances has been
discussed from day TO day and from week to week,
repeal of the Coupon feature Of the FUNDING bill,
and 1t IS now certain that the Governor Will veto
as maj the sheu m
able for taxes Since that. however. the following
b as already briefly stated IN the HERALD by tele'
| graph has been ordered to engrOssment by the
| Senate and ls now the pending proposition IN both
Houses as final disposition OF the whole subject
| THE PUBLIC DEBT
Be enacted the General Assembly, That for the year
g. a TIC Sss, @
the funding payment Of the public debt there shall be
PEI OF
securities representing have not changed under
TN e sna a. q.
ss s Of o the
the time required subject to the warrant Of the
Auditor may certify to be necessary to the interest
When the interest shall be demanded in paymeu. of
which issued and become due under the
laws In force such shall be taken in and
ceed by the Auditor and for the amount remaining unpaid
the Second Auditor shall give TO the party
the said certificate stating the
amount 80 due and unpaid.
| g. This act shall be IN force from its passage.
With this Legislature there Is no telling "what q
day may bring forth, and before this letter Is Pc
| rused by the readers OF the HERALD the aspect OF
the whole matter may be changed. In any eventit
| Is claimed by the best legal authorities that both
the act making coin and United states bank notes
receivable only for taxes, ana the proposed act
quoted above, are unconstitutional, and VIII 80 be
declared by the courts. II the Governors antici.
pated veto does not efectuay dispose OF them.
The Finance Committee OF both houses, with COM
mendabe consistency, nave hit upon
NEW AND INGENIOUS SUBJECT or TAXATION,
which, II adopted, Will be as effective In excluding
capital from seeking investment IN the state as IL
the novel action OF the Legislature on the debt The
new plan proposes a stamp tax on commercial
paper and q tax on the interest or mortgage bonds
issued BY railroad companies and 0tner corpora
tons, the companies 10 deduct the amount OF the
tax where they pay the interest to the bondholders
IL Is claimed by the advocates or this scheme that
bears the merit OF forcing capitalists without the
state to contribute materially TO It's revenues. The
consolidated debt of the Virginia railroads alone
would amount TO $50, 000, 900, tax upon the IN :
terest OF which would be no incOnsiderate source or
revenue. II II said to be further In contemplation
| of the committee to create stamp tax on the in
Ierest on he State debt. This Is all TO be done for
the relief OF the agricultural classes but IL Is
| than probable that such o scheme will depreclate
the value OF land. and thus prove an oppression
stead OF q relief.