The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-27


ly ate compliance with all her undertaking
j. it would result in public bankruptcy, al
t. would prove alike disastrous to debtor al
to creditor. While it is still my opinion tina
,r if the recommendations of my inaugur
e message be carried into effect by the legi
i lature, much will be accomplished toward
= raising the credit of the state and meetin
l. immediate demands upon the treasury
S yet it is obvious that the desired measure
e for retrenchng expenses and increasin
i revenue cannot be made fully effectual ex
n cept by thoroughly changing the constitr
$ ton, and years will be required for max
t ing needful changes of organic law an
giving them effect by appropriate legsla
, ton.
In the meantime and until sucl
: changes can be made to work GU
desired results, we cannot affor,
to resign ourselves to the policy o
lnaction. The state credit is PROSTATE
the best bonds of Virginia rate lower il
: the stock exchange of London than thos,
OF Egypt, Turkey and Peru, and our credi
ranks in the grade of such countries al
Mexico and San Domingo. No grossel
fallacy can be conceived than the ont
which claims that commonwealth car
flourish while its credit is in state o.
prostration or dishonor. The revival Of
production, the vitalzng of our dead
resources, depends upon capital yet to be
introduced into the state and the restora-
ton of public credit is the necessary con-
dition precedent to its introduction. Capt.
tai will surely shun the state until its credit
is established on a sound basis. The
capital is yet to be brought here which will
develop our exhaustless mining and
manufacturing resources. and such develop
ment is necessary to revive our langush-
ing agriculture by giving a new
value to the products of the soil and
creating new demands for the fruits
of labor. The genial soil and climate
of Virginia, and her unsurpassed min
ing, manufacturing and commercial
resources, are now attracting widespread
attention. The best evidences exist that
| great influx of immigration and capital may
| be expected as soon as the integrity and
stability of our government shall be de-
monstrated beyond question. Action tend
ing to impair the public credit or to depre-
ciate any class of our obligations the APP
pllcatlon Of surplus means to any purpose
other than the payment of the interest due
creditors: especially the use Of such sur
plus in the purchase of our own deprecated
paper, would infiict lasting and grievous
wrong and loss upon our own people. IF
even partial reputation were practicable,
it would subject the state to pecuniary
losses very far exceeding the amount Of
the public debt.
Our real relief lies in the restoration of
confidence and a good understanding be-
I'M hn pfo IN Il hoo,
settlement of the public Indebtedness as
will restore respect for our good faith, as
will command the assent of creditors and
secure to them the regular and punctual
payment of the utmost interest we are now
able to pay-only postponing such part of
our undertakings as our poverty renders
impossible of performance for the present.
lt is certainly in our power, if we now ell
act just and efficient system of taxation,
and prudenty husband our resources, to
pay, hencetorward, four per centum per
annum on the entire debt intended to be
assumed by the funding act. 1t is believed
that an understanding can be had with
creditors by which we might guarantee with
certainty the regular and punctual payment,
in semi-annual nstalments and at conve-
nient places, of two-thirds of the accruing
interest for the present-giving proper GER
tificates for the deferred interest and pro-
vlding for the payment of full interest, to-
gether with the arrearages on interest ac-
count, as soon as our steadily increasing
resources shall permit.
Creditors asserting to this adjustment
would be paid two-thirds of their tax-payng
coupons punctually at maturity !; they
would be restrained by express stipulation
as well as interest from resorting to the
circnitous and expensive process of paying
their coupons into the hands of the tax-col.
lector, and .sufficiency of revenues in
money for the support of the government |
would becertanly and permanently assured
to us.
In such adjustment it ought to be
stipulated that all our outstanding obi |
cations, included in the numerous and |
confused classes and grades before |
enumerated, should be made first |
class debts OF uniform terms and charac-
ter. They are all equally just, and |
it is not reputable that we should favor any |
of them with special advantages or make |
any distinctions between them. Many of |
the least favored creditors are our own |
needy and worthy citizens, who have al |
ways been indulgent and liberal in their
dealings with the government.
1t will be easy to secure the proposed |
payments upon interest, and to invest the |
new arrangement with absolute confidence
and certainty, by the passage Of law,
emhodying in it our stipulations with credi-
tors, which would set apart specified and
permanent taxes, to be dedicated to the |
public debt, and to be applied regularly !
and directly by the proper officers of the
state in the payment of the interest as it |
shall fall due. Such a law would be self
executing it could neither be suspended |
nor intertered with without the concurrence
of the contracting parties it would obviate
the necessity for further legislation in the
premises, and it would forever extricate
our finances from existing agitation and
uncertainty.
1t is believed that fair and deliberate
conference between the state and her cred
itors will result substantially in the settle
ment now proposed; settlement pro-
viding For the payment of such reduced
interest, for the time being, as may CORE
spond with our reduced means, and for
such greater interest hereafter as will
steadily increase with our increasing pop
ulation and resources; SO that the whole
debt as heretofore assumed, together with
the full interest as now agreed will be dis
charged ultimately and just as quickly as
the best ability of the state will permit.
r. would hind re 70 do ,,oxr ,phot ,,,o oro