The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1874-10-29
Virginia Finances The Coming Conference
of Creditors.

I In accordance WlUIl u F0SOiQLioIl VI Tic ' III
ginia Legislature, Gov. Kemper and Hon. r
M. T. Hunter, treasurer Of the State, have invi
ted conference of the creditors of Virginia, te
be held in the capitol at Richmond, on the 10th
of November. The object of the conference
is to ascertain what is to be done in reference
to the States indebtedness. A correspondent
of the New York Tribune, writing from Rich
mond, says:
Virginia's debt, unlike most of the other
Southern States, was Contracted before the war,
for the construction Of the James River and
kas.nawha and other canals and various rail
rOads and turnpikes. Interest was regularly
paid until the collapse of the confederacy. The
default has been owing to various causes, OF
which may be mentioned: First, the destruc-
ton of large portion Of the States basis OF
credit by emancipation and other results OF the
war; second. the division of the State and the
creation Of West Virginia cut OF one-third OF
the territory of Virginia, and the inability Of
the two States to agree upon the proportion Of
debt each should assume third, mismanage-
ment of the States assets, which, if properly
used might have been made to reduce the prin-
cpal so as to have rendered it practicable to
pay the interest; fourth, the passing OF the
''fundiug bill, the compromising OF long over
due interest. and the issuing OF bonds having
self-collectable coupons attached; fifth, the
depreciation of the value of lands, by success
sion of bad crops, and the absence of buyers,
while thousands OF acres We're being forced in
to market by judgments of the courts on pri-
vate Indebtedness contracted anterior to seces-
sion sixth, the reduction OF the State assess
ments ip part consequent upon the decrease Of
the value of lands, and in part consequent up
on every county desiring to bear us little us
possible of the public burden.
Ryy fhn lost tatay ant do uToS cho
that the debt of Virginia, assumed to be due by
her, was $50, 47S, TAI. The portion not asslm-
ed to be due by her, but assigned to West Vir-
ginia for payment as her just proportion, was
$3.50, 37O But the two-thirds old Virginia
confesses she owes is what gives her people the
main trouble
CONDITION OF THE DEBT.
OF this $50, AIS, 741 40, $2o,37s, 73o OF was
founded under the act Of March 80 1871, popu-
1arly known as the funding bill, - and is in
coupon bonds, with coupons receivable for
taxes'' attached, Or in registered bonds eonyer
tible into such coupon bonds. When it wss
found that these 'scouponss' would come into
the treasury to the exclusion of currency and
leave hardly enough of the latter to pay the Of
fcers Of the Government, the General Assem-
bly, directed that nothing but ''gold, silver or
currency should be received for taxes. but The
Supreme Court declared that that act was I'M
LII teiANt oiAS
bonds funded into ''consols'' up to that date
were thereby put upon sure foundation, while
those bondholders who had not funded were
prevented from doing so by the repeal OF the
funding bili.'' So Virginia's recognized debt
is in two classes. Two-thir(fs OF it needs no ap-
preparation from the General Assembly to pay
its interest. The coupons its bonds bear, when
natlwed, are saleabe anywhere at from s. to
80 cents in the dollar, and are bound to be re
ceived for all taxes, debts, dues and other de-
mands due the commonwealth OF Virginia. The
other third is in peelers, (bonds issued under
the amended funding billy and in bonds issued
under the act Of Assembly, passed prior to the
18th of April, 1861.
The coupons receivable for taxes could be
kept out Of circulation if six per cent. interest
could be paid 10 do that $l,Sl0,540 70 per
anhum would be required. One year, When
there was all accumulation in the treasury six
per cent. was paid, and no coupons We're circel-
lated thereafter four per cent. was paid,
and non-interest bearing certificates
given for the unpaid two per cent. But the
holders of consols would net come to the treas
ury aud get that pittanoe; they sold their cou-
pons for IS and 80, and taxpayers bought them
and paid them to the treasurers. and the treas
urers, instead Of coming to the capitol with the
amount Of their taxes in greenbacks, often
times laid before the auditor OF public accounts
say three-fourths in coupons and one-foqrth in
greenbacks.
THE TAXES:
The rate of State taxation is now, and has
been for several years, so cents on the $500 as
sessed value of real and personal estate. That,
hard as Northern people find It to believe, is all
the people cannow bear, and an annual levy
will generally result something like this:
Tax on white males Isl per head sl54457 90
6 colored males 81 per head $1,000 90
. property 392, 423 70
6 Income 80, $40 SO
6 real property 1922, 424 45
6 license 321 .036 81
Total $3,26S, $50 Is
Deductions are to be made for taxes levied
that can never be collected; for instance, a