The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-28
VIRGINIA FINANCES.

Another Message from Governor
KemPer-ImpOssibilit of Properly
Fulfilling the Funding Act-Patience
ON the Part OF Creditors Necessary.
RICHMOND, Va, March 81 1874.
Governor Kemper to-day sent message to the
General Assembly in relation to the State debt.
The first half of the message is review OF the past
financial history Of the State, together with
its present revenues and resources. The Gov
ernor says the real situation is not understood
abroad and has been greatly misrepresented.
If lair investigation cause surprise it
Will not be on account OF what the
State has failed to do but what she has in face Of
unprecedented difficulties, accomplished Not
withstandlng any errors OF the past resulting from
haste transient excitement or public distress,
full investigation is bound to satisfy the world Of
Virginia's Willingness and purpose to perform all
her obligations to the utmost of her ability.
In regard to the act OF March 80, 1871, known as
the FUNDING act, ne says:-"However unwise or
preclptate Its enactment, it were idle now to
question lts validity. 1t was the act OF compe-
tent authority. Under 1t the bonds OF the State
cannot go behind them. To the extent to which
it's provisions have been executed it is I'M
doubleday binding contract between debtor and
creator, and 1t is incapable of being modified
without the concurrence OF the contracting
parties Nevertheless, our utmost resources are
insufficient Tor the prompt and complete fulflment
OF all It's terms, and to that extent Its obligations
are impossible OF performance at this time. He
tOns OF his inaugural message carried into effect
much would be accomplished towards raising the
credit of the State and meeting the immec late de-
mands OF the Treasury
"The State credit is PROSTATE, and until it is es.
the State. The relief" he says slies in the restora-
ton OF confidence between the state and its cred-
tors and such settlement Of the public indebted
ness as Will restore respect for good faith. 1t
Is certainly IN our power, II we now enact a just
and efficient system OF taxation aud prudently
husband our resources, to pay hencefOrward four
per cent per annum on the entire debt intended
to be assumed oy the Funding act. 1t Is believed
That an understanding can be had with the credi-
tors by which We might guarantee with certainty
the regular and punctual payment in semi
twothirds Of the accrung interest for the present
giving proper certificates for the deferred interest
and providing for the payment OF the full interest,
together with the arrearages on the interest &C
count as soon orr steadily increasing resources
Shall permit. 1t is believed that fair ana de-
creditors will result substantially in the settle.
ment now propOsed-a settlement providing for
time being as may correspond with our re-
duced means and for such greater interest
hereafter as VIII steadily increase with our in.
creaslng population and resources, so that the
whole debt as heretofore assumed, together with
the full interest AS now agreed, will be discharged
ultimately, and just quickly the best ability
OF the State Will permit. 1t would bind us to do
now what we are able to do, and it would post
pone so much OF our undertakings as we are I'M.
able to perform. To do less on our part repudi-
alton. TO do more is to plunge the commonwealth
into the ably ss OF bankruptcy"
two commissioners on behalf OF the State rep
resenting its best financial skill and experience,
to be charged with the readjus ment OF the public
Indebtedness by conference with such agents as
may be deputed by the creditors to meet them.
He further SIT Is not improbable that an ad
ditional arrangement might be made for further
securing the debt and relieving ourselves IN view
Of the well settled principles OF public law. 1t Is
demonstrably true that the United states, by in
terposng between us and our creditors, and
dividing and destroying the original entity
OF the commonwealth. became liable for
at least so much OF her deor as Is due
to nonresident creditors. When the present
financial panic Shall have passed away 1t may
be reasonably expected that the common govern
ment, which received wealth and power from the
munfcence OF Virginia In the past, Will, at the
least, aid US with the meagre justice OF loan of
It's bonds credit, to be used in securing and ex.
tlnguishlng the public debt"
AS germane to the general object OF the Message
the Governor transmits a communication from the
attorney OF Barring Bros co. asking the repay
ment OF the amount advanced by that house Tor
the state on account of interest on the debt which
sum Is not larger than the State can at once pay,
and constitutes debt OF honor which Is COM
mended to favorable action.