Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-10-11

vorable to the interests of religion by
showing that the separation between
church and State is complete.
VIRGINIA'S FINANCES.
Unlike most other Southern States,
Virginia's debt was contracted mainly
before the war, for the James River,
Kanawha and other canals, and various
railroads and turnpikes. Thus saddled
with debt already, the Old Dominion
offered little attractions to carpet-bag
cormorants, and, as a consequence, was
about the first Of the Southern galaxy
to escape their clutches. Owing to the
non-payment Of interest during the
war, and for some years after, the pres
ent outstanding debt of Virginia is
S45,718,l 1929, Of which Virginia &C
knowledges only two-thirds, or $780,
47S.74I49, the other one-t third, amount
ing to SIS, 239, 1904, being regarded as
the share of West Virginia, though the
latter has not, thus far, assumed 1t.
The Virginians say their western
neighbor took one-third of their pop
ulation and wealth, and must also take
the same proportion of the debt.
The funding act Of 1871, possessed
an unfortunate feature, which left the
State almost without revenues, and has
complicated the situation miserably.
The coupons Of the new series were
made '.self. collectable, that is, receIT-
able for taxes. Under this law frac-
ton over twenty millions Of the recog-
nizsd debt was funded, to pay interest
on which no legislative appropriation
isneeded, as the holders of the cou-
pons sell them to tax payers for about
ninety cents on the dollar. A subse-
quent law forbidding any thing but
specie or currency TO be received for
taxes. was declared unconstitutional by
the State Supreme Court. The fund
ING law was then repealed, shutting out
some ten million dollars in bonds
whose holders had been too tardy to
take advantage Of the law. Thus Vir-
ginia's debt Is at present divided into
two kinds: S2O,O0O,O0O, the interest on /
which is collectable by selling the cou-
pons TO taxpayers, and 100000 |
which depends on the action Of the |
Legislature. An attempt was made to I
compromise with the Former class, and 1
keep the coupons out Of circulation by /
paving four per cent. and giving non in
terest certificates for the unpaid two per
cent. 1t failed TO work, however, as
the holders Of the privileged coupons
preferred 80 cents cash from the tax
payer. The holders OF the 100000 |
of unfunded bonds find themselves IN a
very unpromising predieament. The
State tax of fifty cents on the 500 |
does not realize more than 2,250, 600,
while the interest on the whole
debt is over SI,S00,OOO and the
current expenses areSl, 100, 600, leaving
an annual deficit Of S6500O0. This is
lust about the interest due the unfortu-
mates. the interest on the funded debt
being practically paid through the pro-
cess Of taxation.
In pursuant of a joint resolution Of
the General Assembly, the Governor
and Treasurer are authorized to confer
with the creditors Of the State Cooking
to a further adjustment of the State
debt upon basis fair and equitable
alike to the State and its creditors, and
report the result of said conference to
the next General Assembly, with such
recommendations as they may deem
advisable" This conference has been
set for the 10th prox. 1t is not easy to
Imagine what can be done that would
reconcile all interests. The hold
ers of the privileged coupons
are not disposed to give them
up for any promises that depend on
the varying humors of successive Leg
islatures. On the other hand, it is diff
ficuit to see what can be done TO relieve
the holders of the old unfunded debt,
as it is stated that, after this year if
the coupons receivable for taxes con-
tinue afioat, there will not be enough
money coming into the Treasury TO
meet the current expenses of the State
Government and allow them to be paid
even 50 much as one or two per cent.
per annum. The one alternative Of adj
vancing State taxation above the pres
ent rate Of fifty cents, IS not likely to
be palateable to either the General |
Assembly or their constituents.