The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-02-22
A Political BoInbshen.

Governor Walker, OF Virginia, is genius.
He has sent message to the Legislature Of
that State, which has fallen like bombshell
in the camp OF the politicians. The Governor
cu,s the Gordian knot OF our State finances.
He boldly proposes that the Federal Gov
ernment shall pay the debts OF all the States,
and that the measure shall be accompanied
with an amendment OF the Federal Consti-
tuition prohibiting the States from contract.
ing any debts "except such as may be
"iound necessary to the legitimate and ei-
elective execution Of their governmental
s.fuuctions, or as may be required by sudden
"and great emergencies"
The Governor says that his propositions
may be opposed because of the great Unequal
lly in the amounts of the debts Of the several
States and the consequent unequal d'stribu-
ton of the benefits and burdens which might
flow from their adoption. But this difference,
he contends, Is more apparent than real, and
especially If the present market value OF State
securities be taken as the basis of computation;
and further, while some of The States owe large
debts aud others comparatively little or moth
ing, yet when the amount which each State
contributes to the Federal revenues, and the
great Impetus which relief from large por-
lcu of the State taxation would give to
commerce, manufactures and production
of all '.inds, everywhere throughout the
country, are taken into consideration,
it will be found that this objection
dwindes to little Importance; and these
considerations, to some extent, apply
10 another and more potent objection
which may be raised, viz, the Increase of
The national debt, which The assumption of
the State debt would canse, and the dele
lerlous effect upon our national credit
which might be thereby produced. The Gov
| ernor next submits a detailed statement OF
| The total Indebtedness of all the States,
| which, II assumed by the Federal Govern
ment, would increase the national debt three
| hundred millions If dollars, If taken at par,
| but il taken at the market value 1t would be
much less. This sum at five per cent. inter.
est, would annually require fifteen millions 10
pay the accruing interest, and to this
extent, and no more, would the bur-
dens of the Federal treasury be ln-
creased. The Governor claims that this COM
paratively small sum would cause no embar-
rsssment, nor necessltate any Increase OF fed
eral taxation, as the present revenues of The
general government are sufficient to meet all
current expenses, including the Interest on
the public debt, and leave balance of nearly
one hundred millions to pay the principal of
the national debt, and that COO before maiu-
rity. The adoption of these propositions, In
stead of injurinc, will enhance our national
| credit by the withdrawal of all State securl-
Ties from the markets of the world, leaving
the national bonds the sole American secu-
| rity known. 1t would check the growing
danger of reputation, and pace the ma
tional debt upon 80 secure basis that
10 o few years it might be funded into bonds
bearing no higher rate of interest than
The debt Of England, reducing the interest