The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-12-07
The State Debt.

The Legislature OIL virginia has " ~"
,,ast before il: the consideration OF the ques.
t;on Of what shall be done about the Stale
debt. 1t is question upon which statesmen
NAV DISPLAY their wisdom, and young ana
rising philosophers may indulge IN mental
rcc;eations highly advantageous.
They have three systems to CONSIDER Que
existing and two that are proposed. Inc
los, syo come with the kind considerations
~ the Governor to accredit them to the
legislators.
1st. There is the act for funding IN
bonds with coupons payable In taxes at
tached to them. This, it is alleged, was
passed, with questionable motives, under the
force Of corrupt appliances. We were not
in favor Of it, and acknowledge no response
bility 10 regard to 1t. We will not plead to
any attacks upon it. Sufficient for the pres
ept is the fact that it was matured, and that
it has since been pronounced constitutions
BIZ the highest tribunal in the State. There
fore the Obligations to submit to It are as
high as law can make them.
L
the mode of paying interest by receiving the
coupons for taxes has been and is strong.
Yet we imagine that if the resources of the
Treasury were equal to the payment Of the
interest on the public debt there ,could be no
complaint.
The funding act sets apart third OF the
public debt for West Virginia, and requires
Virginia to pay the interest on only two.
thirds of tine debit. E., four per cent. per
annum on ;qe whole. But as it is asserted
Virginia cannot pay This four per cent, and
her Treasury is flooded with coupons which
are not available for the meeting OF current
expenses of Government, the act has not
been fulfilled, and relief from its onerous
tff. cts is demanded This is the "situation''
With regard 10 the funding-act s. stem. Then
there is
ID. The bondbolders' proposition, which
calls for four per cent. per annum on the
public debt aud the funding in four per
cent. bonds Of the unpaid two per cent. in.
terest per annum that may have accrued at
the end of ten gears; and
Sd. We have Mr.. MAckIsSoS's proposition,
on behalf of the English bondholders, for
-.recapiiaizing" the State debt in bonds bear.
ipg interest at four per cent. per annum for
twenty years, payable in gold, with accom-
panying provisions of q stringent nature
requiring the faithful payment of the four
per cent. per annum.
Now, then, it appears that all three re-
quire the four cent. per dnnum. The legls-
lators must choose between them; but it
must be remembered that in any action they
may take Oh the subject they must keep in
view the fact that the funding act is law,
and no measure can be made generally sue
ccSsful that does not contain as an element
an easement of the claims Of those who are
sheltered by the funding act.
Mr.. MACklNNoH's plan has the advantage OF
diminishing the interest on the debt from six
90 four per cent; but it is liable 10 the OBJ
lection urged against the funding act, that it
ties the hands of the State, and under the
form Of contract coDpeIs performance on
the part Of the State.
Between these plans the Legislature will
have to decide, unless it be Fortunate enough
to devise 4 new and better one than either of
them. and, furthermore, be so happy as to
meet the concurrence Of the very business
like gentlemen who are known under the
respectable title Of bondholders.
Nothirg would please US better, nothing
would be so beneficial and happy for the
State as to see the debt being paid and all
the public obligations regularly met. If the
present Legislature provides the ways and
means to do this it will be entitled to fameas
one of the Wisest and most patriotic that
ever met.