Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-04-03
THE RUTLAND HERALD.
FRIDAY, MARCH 27, 1878.
assumption of state Debts

Assumption of state Debts
The Legislature of Virginia, at its
session Wednesday, passed a bill, look
inc to the assumption by the federal
government of the debts of the several
states. This question has been public
lv discussed in the South for several
months. and has now assumed form and
shame bv the resolution of the Virginia
LEGISLATURE. and will have to be met by
the people of the United States 1t is
matter that involves more than may be,
lt first, thought of 1t is not by any
means a new question. The Democratic
marty. in their national convention in
1910. resolved that the constitution did
not confer authority ON the general gov
crnment. directly or indirectly, to as
sume the debts of the several States,
contracted for local internal improve
ments or other State purposes NOR
would such assumption be just Or eXpe-
dent" The same declaration was sub
sequently adopted, by the same party,
at subsequent conventions. A hasty
examination of all the national party
platforms, adopted since 1910, fails to
disclose that the Whig, Republican or
Liberal Republican party ever took ac-
ton thereon. The matter, however,
was freely discussed in the past, and the
resolutions of the Democratic national
convention indicate that it had assumed
something of Importance. The particu-
lar plan now proposed by the Virginia
Legislature is not a matter of much inn
portQnce, but the question whether
State debts shall be assumed by the fed
eral government is one of vital import
10 every person, be he taxpayer or not
1t involves something more than mere
question of ''justice and eXpediency, as
those terms are ordinarily used. We do
not propose, at this time, to enter upon
a general discussion of this matter Of
assumption State debts. 1t is sufficient
for us to say that we are utterly opposed
thereto. in theory and in practice, and
to indicate, without enlarging thereon,
some Of the reasons that naturally sug
gcst themselves in opposition to such
policy. We need not refer TO the con-
stitutional argument. That is ques-
tion by itself. 1t may be constitutional
or unconstitutional SO far as the views
that we intend to suggest are concernrd.
that question is not involved. We may,
hereafter have occasion TO investigate
the constitutional question and express
our convictions thereon. We look at
ii, now, entirely as matter of eNpedl-
ency and policy An act was passed by
Congress in 1886, providing that the SUR
plus funds in the treasury of the United
States, in excess Of five millions OF dol
lars, should, at the end of every year,
be divided among the several States.
This was not matter of party policy.
although the Democratic national con
yentions have, before and since, repeat
edly declared against the policy, eXpe-
diency and consttutionality of the meas
tire. This estate deposit act, as 1t is
NdlltAls was IiioNNNA AAiIOAl7h N'bAi3 NH7Af
receiving the vote of majority of the
members Of both parties, and was APP
proved by the President, Andrew Jack
son. 1t is not necessary to inquire or
state the exact amount of the fund so
distributed among the several States. A
reasonable and proximata idea of the
amount can be obtained when we say
that the town of Rutland has over six
teen thousand dollars of the fund, it be-
ing apportioned to the several towns in
this State according to the population,
for school purposes. This fund was not
distributed as a gift, but as loan with
out interest. The United States can, at
any time, recall it. Would she not, if
the policy of assuming State debts should
be adopted, recall it? There certainly
would be an effort to that end. Are we
in favor of such recall, or do we wish to
place ourselves in position where there
will be a probability or possibility of
such recall? Again. Returns from
twenty-six States of the Union show
that, in 1870, their Indebtedness, for
which they had issued bonds, was $177,-
:941, ,731, with an additional unfunded
Indebtedness, cf $4,000, ,995. This in
debtedness. under the proposed policy,
would be assumed by the United States
at once. This is not all. In all, or near
ly all, of these States, there are town,
city and county debts which the States
have the right to assume, and, under
such a policy, would, without doubt,
speedily assume. All of these debts, in
these twenty-six States, amount to $685..
S03, 1877, ranging from less than quar-
ter of million of dollars in Oregon, tC
one hundred and sixty millions in New
York Are we prepared to assume ant
pay our pro rata proportion OF thi'
enormous Indebtedness? We profess
all political parties alike-to favor thu
reduction of the national debt, the re
sumption of specie payment, the lessen
ing OF taxation and the general raising
OF financial burdens from the people
The speedy accomplishment of each ant
all of these projects affords an unan
swerable argument against the Virgins
proposition.
CONNECTICUT. The "liberal republi
can" cOrrespOndent of the New Yorl