The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1874-03-26
MESSAGE FROM THE GOVERN
OR TO THE LEGISLATURE.
COMMONWEALTH OF VIRGINIA,
GOVERNORS OFFICE,
RICHMOND, 9th March, 1874.
Gentlemen Of the Senate and House Of
Dele0Utes:

A>~'SJ $1,000
The financial condition of the State has
been inexperienced aud misrepressnted in
many quarters It is to be regretted that,
not only the ability, but the willingness Of
the State to carry present Indebtedness, has
been discussed, and the opinions and purpo.
ses of both the legislative and executive de-
partments have been subjected to injurious
misconstruction among some Of our credi-
tors. In transmitting to the General Assem-
bly, the accompanying memorial of the
counsel of foreign bondholders, take occa-
sion to note prevailing errors, aud to submit
some considerations bearing upoa the solu-
ton Of our financial difficulties
Public opinion is believed to have been
mislead partly by erroneous representations
Of our condition abroad, and partly by mis-
calculations and errors of the authorities Of
Virginia 10 the pasta The act Of the 30th
Of March, 1871, commonly known as tie
funding act, Internationally pledged the
State to the regular and punctual payment,
thenceforward. of full interest on the debt
which it provided to be newly funded iqsthe
name Of Virginia This action appears to
have been taken without due calculation Of
the diminished resources Of the State, aud
without needful inquiry into the question Of
her ability to bear at this time, the great
bnrthen assumed One of the consequent
ces is that, although the people are discon-
tented and suffering under existing taxa
ton, rendered very grevious to them by
their impoverished circumstances yet the reve-
cues Of the State have not enabled us to full
fill our new obligations. The practical opera
ton Of the funding act has proved equally
unsatisfactory to both debtor and creditor.
No question or doubt of the validity of the
act itself, and no impugnment Of the mo-
tives of its authors, is implied in the deca
ration that its passage was a surprise to our
own people; that it was precipitately enac-
ted without such previous communication
and understanding between the Common
wealth aud her creditors, such Discovers of
the situation, such disclosure Of the impover-
ished and almost ruined condition of the
State, as our own necessities, due respect
for the creditor class and established usage
ia like cases, imperatively demanded. The
result is that the new. bonds, designed to
pledge the State to the payment Of no more
than two-thirds of the original debt, main
tain no higher market value than that re-
peatedly reached and even exceeded, prior
10 the date of the funding act, by the
obligations which represented the whole
debt The result is, that while our own
people are more dissatisfied than ever, the
aom plants O. creditors are increased instead
Of being quoted. :.
Important principles of finance, as we'll
A the facts of the situation, seem to have
been lost sight Of in the passage of that act
The object Of paramount importance with
public creditors, in any adjustment Of in
debtedness such as ours, is to obtain perfect
security for the principal sum agreed upon.
and especially for the regular and psnctual
pavment of accruing interest, in the best