The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1876-12-14

piled benefits to all classes; anil even ther
in point of density of population. the Stat
would rank behind many other communitlt
which produce and prosper more in less IL
vorcd parts Of the world.
The true way to remove these hlndrance
to onr progress--the way to arouse vigo
Gus and healthy public spirit and to stal
the Commonwealth on q new career OF dt
vc]opment-is by recognizing our credit
banish-thc distrust which locks up or drive
off capital and prosirates enterprise. "hii
we all, know the present depression result
from Accumulation CT causes, external an
internal, yet it is certain it will never b
rcmedied as long as the opprobrum OF q
override and unsettled debt shall be the sub
iect Of examinations and rcproaches betWec
the State and its creditors. AS nothing ca
so quickly revive the general business an
productive energies of the people. SO nothln,
| can give to the State so much ability to pa,
| full interest on the debt as measures reso
lutely providing the means for its payment
Procrastination serves but to deepen the eN
listing depression, to arrears OF interest ant
to lessen the ability to pay. TO begin pay
ing renew confidence, converts productive il
to unproductivc values, gives fresh impulse
/ to all enterprises, and so increases the abllt!
to continue paying. Ii the requirements 0
honor did-Eot override all other considera
tions in dealing with this subject, as they do
and if it were possible to escape the paymen
of any of our obligations, as it is not; the ex
pertinent OF repudating any, even the leas
| of them, would entail losses upon the peo
pie many times greater in amount than the
! entire debt itself. Unquestionably, il eXpe
| diency alone be consulted, the cheapest ant
easiest as well us the only way to get rid q
the debt is to pay it off.
But higher considerations than such rs cal
cuatc material and pecunary advantages
will control the action of Virginia upon thi,
question. 1t is enough that the preservation
of the unblemished honor of the government
and the people demands the speedest posi-
Bile redemption OF every obligation.
AMOUNT OF THE DEBT.
Much apprehension and misrepresentation
prevails as to the amount of the public debt
1t has been improperly magniied by count
ing rs part Of it the sum OF 1929, "A
| which, by the funding act, was set apart and
assigned for settlement with West Virginia,
and is known as '.West Virginia's third
That portion belongs to the debt proper Of
West Virginia, for which this State neither
acknowledges nor intends to assume any Ii
ability. Pursuant to the terms Of the fund
ing act, it is now part of the contract with
the holders of our new bonds that Virginia
is not to become liable for West Virginia s
third, except by virtue of such settlement as
may be consummated hereafter between the
two States. No such liability can ever arise
except in the impossible and inconceivable
contingency that Virginia will, at some frl-
ture time, voluntarily consent and assume to
pay the debt OF West Virginia. No instance
of the kind having occurred i'll the experience
Of the past, it is hardly to be reckoned that
one State will pay the debt of another State.
Another error in computing our indebted
ness is committed by treating the sinking
fund as q part of the debt proper. The
principal sum of this fund now amounts to
81, 9s6,771 80 and it is made up OF bonds
heretofore discharged and redeemed by the
government, upon which the State under
takes to pay, to II board of its own officers,
stated interest which is to be used by them
in further reducing the outstanding debt by
the purchase of other State bonds. Having
ceased to be the property of creditors and
passed into the ownership of the State, the
sinking fund bonds are made to represent q
debt due by the government to itself. The
fund is made up of so much debt paid of,
and it is-being increased by means Of the
further reduction of the outstanding debt, SO
that, in an important sense. the larger the
sinking fund the less the actual debt. Ger
tainly by q change of organic law, and as
many argue without it, the State can cXtin-
guish this nominal indebtedness simply by
destroying the bonds in its own possession
which represent it. While the true policy is
to maintain and increase the sinking fund
until it shall have fulfilled its design of alb
serbing bonds, yet it is inaccurate to class
these assets of the State as a part of its debt.
The literary fund, whichis sometimes mis-
taken for a part Of she State debt, is, in
many respects, analogous to the sinking fund.
1t consists of.certain assets belonging abso
lutely to the State, which have been set
apart and dedicated to the support OF public
free schools. So far from the principal sum
Of the literary fund constituting debt, it is
required to remain unimpaired and entire,
and its annual income, now amounting to
sS3, 907.64, is all that by the terms of its crea
ton can ever become payable thereon. IL is
in the nature of an annuity which the State
has voluntarily founded for its own benefit,
and it might be properly cassed rs an item
in the permanent annual expenses OF the
government. The same power which Great
ed and bestowed this fund can, at pleasure,
withdraw and cxtingush it. While this
will not be done, and the annuity will CON
tinue to be paid, it cannot, without Il perver-
sion OF terms, be coEfounded with the public
debt OR treated Us part Of it.
The following is an accurate statement OF
the entire debt proper ofthe Commonwealth:
The whole amount, as fixed
and determined pursuant