The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-03-30
THE VIRGINIA STATE DEBT.
Governor KEN. er's Message to th,
General Assembly.

NeheIhl Assembly.
RICHMOND, Va, March 27.-Goyernol
hemper today cent 0 mesSaee 10 M
General Assembly In relation 70 the State
debt. The first half OF the message a A
review Of the past financial history Of The
state, together with It's present revenues
and resources. The Governor says the
real situation Is not understood abroad,
and has been greatly misrepresented, II
a lair investigation causes surprise, Il will
not be on account Of what the State has
Jailed to do, but what she has, In the face
Of unprecedented difficulties, accomplish
ed. Notwithstanding any errors Of the
past resulting from haste, transient eX-
element, or public distress, q iull inyestI.
cation is bound TO satisfy the world OF
VirginiA's willingness and purpose to
perform all her obligations to the utmost
o. her ability. In regard to the act Of
march ~, 1871 known as the Funding act,
ne says: However unwise or precipltate
its enactment, 1t were idle now 10 question
its validity, 1t was the act Of competent
authority. Under It the bonds Of the State
have been executed and delivered, and we
cannot go behind them. To the extent
to which It's provisions have been executed
1t Is undoubtedly binding contract be-
tween debtor and creditor, and It Ia inca
paoIe OF being modified without tho con-
currence OF the contracting parties New
eftheless our outnost resources are Insult
ticient for the prompt and complete fulfill
ment OF all It's terms, and to that extent
It's obligations are impossible oil perfor-
nance at this time. He expresses the
opinion that were tho recommendations
OF his inaugural message carried into effect
much would beacComplished toward rails.
ing the credit Of the State, and meeting
the immediate demands Of the Treasury, |
Tho State credit is PROSTATE, and until II |
Is established on sound basis capital
will surely shun the State. The relief, he
says, lies In the restoration OF confidence |
b.tween the State:and It's creditors and such
q settlement ofthe public Indebtedness as
will restore respect Tor our good faith.
1t Is certainly in our power, II we now
enact a just and efficient system OF taxa.
ton, and prudently husband our resour.
ces, TO pay hGnceforward four per cent.
per annum on the entire debt intended to
DO assumed by the funding act. It Is be-
lteved that an understanding can BIO had
with the creditors by which we uight
guarantee with certainty the regular and
punctual payment in semi. annual install.
ments, and at convenient places, OF two.
thirds Of the accruing 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 account, as
soon as our steadily increasing resources
shall permit. 1t 10 believed that q fair
and deliberate conference between the
State and her creditors will result substan.
TALLY In the settlement now proposed-a
settlement providing for the payment oil
such reduced interest for the time being
IS may correspond with our reduced
means, and Tor such greater interest here.
after as will steadily increase with our in.
creaSing population and resources, so that
The whole debt as heretofore assumed, to.
5ether with the full interest as now agreed,
will be discharged ultimately, and Just as
laickly as the best ability of the State
will permit. II would bind US to do now
what we are able TO do, and it would
postpone so much Of our undertakings as {
We are unable TO perform. To do less on
)ur part is reputation. To do more Is {
o plunge the Commonwealth into the
abyss Of bankruptcy.
The Governor recommends the ap.
continent Of Two Commissioners on be-
lalf Of the State, representing it best ,
financial skill and experience, to be
charged with the REIMBURSEMENT OF the
public Indebtedness by conference with
Iuch agents as may be deputed by the
creditors to meet them. He further says {
t is not improbable that an additional ar. {
'angement might be made for further Sc
curing the debt and relieving ourselves, in
view Of the well settled principles Of pub.
lie law. 1t is demonstrably true that the
United States, by interposing between US
and our creditors, and dividing and de-
strOying the original entity Of the com.
became liable for at least so
much Of her debt as is due to nonresident
creditors. When the present financial
panic shall pass away it may be reasona.
bly, expected that the common govern
nent, which received wealth and power
rom tho munifiCence OF Virginia In the
past, will at the least aid Us with the mea.
gre Justice Of loan oil It's bonds or credit,
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