The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-02-18
THE DEBTS OF THE STATES.
SPECIAL MESSAGE OF GOVERNOR
WALKER.
EXECUTIVE CHAMBERS

RICHMOND, FEBRUARY ~, 1000
Gentlemen of the Senate and House Of Dele
gates:
The unsettled condition Of our own state
finances and the want Of certain statisticai
information deferred me from laying before
rn,, in nv last annual message some sug-
POSITIONS upon a subject of tho highesl8n
nortauce to the whole country. and especially
to the people Of Virginia. And while The
causes for that delay have not been entirely
removed, vet the magnitude OF the ques-
tons involved and the growing necessity for
their early solution render longer postpone
mcnt of their consideration both unwise and
impo!itic.
The present condition Of the country and
OF public sentiment justiieS the opinion that
the oppor,une moment has arrived when the
real merits Of The subject to which I refer
may be clndidiy and impartially discussed,
aud wise and patriotic conclusions reached.
This subject embodies two propositions,
distinct In character, but harmonious in the
results sought to he obtained. They are !:
First. The assumption and payment by the
United States Government Of all the present
LEGAL Indebtedness Of the several States; and
second. to prevent the recurrence OF neces-
sity for similar action hereafter-the solemn
agreement by and between the States TO alb.
stain from contracting any debts in the fu-
tllre except such as may be found necessary
to the Legitimate and effective execution OF
their governmental functions, or as may DC
required by sudden aud great emergencies.
The former Of these propositions must be
accomplished by m act Of Congress, while
the latter can be achieved only through an
amendment to the Federal Constitution,
which will require the concurrence of three
fourtiIs OF all the States. [ am aware that
grave objections may be urged to both Of
these propositions, but the immense adgan-
tages which would accrue from their adop-
ton appear to me to far outweigh them III
Importance. They may be opposed because
of the great inequality in the amount Of the
debts OF the several States and the conse-
qucnt unequal distribution Of benefits aud
buatkcns which might flow from their adop-
tiou. But this difference is more apparent
than real, especially if the present market
value of State securities lie taken rs the ba-
sis of computation. And further, while
some Of the States owe large debts, and Others
comparatively little or nothing, yet when
the amount which each State contributes to
the Federal revenue e. ard the great impetus
which relief from Il large proportion of State
taxation would give to commerce, manufac-
lures, and production Of all kinds and every
where hroughout the country, are taken into
consideration it will be found that this Oh
jcclion dwind!es to little Importance. And
these considerations, to some extent, apply to
another and more potent objection which
may be raiscd-vz., the increase Of the ma
tional debt which the assumption of The State
deb would cause, and the delcterious effect
upon our national credit which might he
thereby produced.
Let us examine this objection carefully,
and ascertain il it has any substantial foun,
datDn. The debts Of the several States
reckoned at par at tue beginning of the pre-
sent year, aud the amount of the sinking
fund or assets available tor the reduction OF
the principal, as ascertaincd from their Ex-
ecutive or chief financial officers, were as
follows:
rye omit the sinking fund and assets,
amounting to s52,I3G, 1881, and the contin-
gent liabilities, estimated al So, 5Ct', lG3'3l.-
Fn,TouG