The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-12-07

open for aii classes or the people new ave-
nues TO relnuneratiYe employment. III orr
present population were quadrupled it
could be subsisted and employ "a, not only.
without ssraining our natural capacities, but
with increased abundance and with multi
piled benefits to all classes; and even then,
in point OF density OF population, the State
would rank behind many other, communities
which produce and prosper more in less
favored parts OF the world.
I The true way to remove these hindrances
to our pFogress--th way to arouse yigor-
Gus and healthy public spirit and to start
the Commonwealth on new career Of de-
velopment--is by re0rganizingour credit to
Danish the distrust which locks up or drives
Off capital and prossrates enterprise. While
we oil know the present depression results
from q combination OF causes, external and
internal, yet 1t Is certain it viii never be
remedied as long as the oppro brium Of on
overdue and unsettled debt shah be the
subject OF ordinations and, reproaches be.
tween the State and its cred itors. ,As l9thing
can so quickly revive the general business
and productive energies of the people, so
nothing can give to the State so much abili-
ty to pay full interest on the debt, dis mea-
sures rcsolutely providing the means for its
payment. REPRESENTATION serves hut to
deepen the existing depression, to swell the
arrears Of interest, and to lessen the ability
to pay. To begin paying renews confidence,
converts unproductiye into productive val
ucs, gives fresh impulse to all enterprises,
and so increases the ability to continue
paving. II the requirements Of honor did
not override all other considerations in
dealing with this subject, as they do; and
il it were possible to escape the payment OF
any of our obligations, as it is not; the ex-
pertinent Of repudiatlng any, even the least
OF them, would entail losses upon the people
many times greater in amount than the en-
tire debt itself. Unquestionably. il expo
diency alone be consulted. the cheapest and
easiest as we'll rs the only way to get rid Of
the debt is to pay it Oft.
But higher considerations than such as
calculate material and pecslniary advantages
will control the action OF Virginia upon this
question. 1t is enough that the preservation
Of the -unblcmished honor Of the govern
ment and the people demands the speediest
possible redemption Of every obligation.
THE AMOUNT OF THE DEBT. .
Much misrepresentation and misreprese n
tation prevail rs to the amount OF the public
debt. 1t has been improperly magnified by
counting as part of it the sum OF 15,239,-
81 i,
apart and assigned for settlement with West
| Virginia, and is known as "West Virginia's
third" That sum belongs to the debt pro-
per Of West Virginia, for which this State
neither acknowledges nor intends to assume
any liability. Pursuant to the terms OF the
| funding act, it is now part Of the contract
with the holders Of our new bonds that Viz
GINA is not to become liable for West Vir-
ginia's third, except by virtue OF such set
Element as may be consummated hereafter
between the two States. No such liability
can ever arise except in the impossible and
uncomfortable contingency that Virginia
will, at some future time, voluntarily con-
sent and assume to pay the debt OF West
Virginia. No instance OF the kind having
occurred in 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 4 part OF the debt proper. The
principal sum OF this fund now amounts to
&. $50. III. so, and it is made up Of bonds
heretofore discharged and redeemed by the
government, upon which the State under
| takes to paw, to board OF its own officers,
! stated interest, which is to be used by them
| in further reducing the outstanding debt by
tic purchase OF other State bonds. Having
ceased to he 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 mp 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.
Certainly by change OF organic law, and,
as many argue, without it, the State can
ex:inguish this nominal Indebtedness SIM
ply by destroying the bonds in ats own pos
session which represent it. While the true
policy is to maintain and increase the sink
ing fund until it shall have fulfilled its design
| OF absorbing all the outstanding bonds, yet
it is inaccurate to class these assets OF Tue
| State as part OF its debt. 5,
! The literary fund, which is sometimes
mistaken for a part Of the State debt, is in
many respects analogous to the sinking
fund. 1t consists OF certain assets belonging
absolutely 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 uuimpaired and entire.
and its annual income, now amounting to
SS3,907G4, is all that by the terms Of its
creation can ever become payable thereon.
It is in the nature OF an annuity which the
State has voluntarily founded for its own
benefit, and it might be properly classed as
J an item in the permanent annual expenses
OF the government. The same power which
created and bestowed this fund can at pleas
IRE withdraw and eXtinguish it. While this
will not be done, and the annuity will con-
tinue to be paid, it cannot, without q per,
version Of terms, be confounded with the
public debt or treated as a part Of it. =.
The following is an accurate statement OIL
the entire debt proper OF the Common
wealth .s-.. ,..r- ...a. a,v.. ~ -.
The whole amount, us fixed and ,f4 .y...ar
| determin ID pursuant TO the terms 900
Of the funding act was. ......... SSV,ffo,f4o ~
| or which this sum has since been '' N't'
discharged and retired by the ~ '..'
| operations Of the sinking fund o,os.oo
i oootfHo -
The remainder is the principal sum tt ~
/ OF The debt proper at TINS time s;"~i So
t aae si BEARING de debtViz IS
i The amount of interest In arrears
j being SO much non-interest-be Dear 80 ,os.. o .
/ ing debts. o,oAo,ooE y"
| Consequently the grand total of the
| public debt-both interest-eear-
| ing and non-interest-bearng-.hoo 800 100 20
is............-.... .,,..''''.s29,000,.0--
It must be borne in mind that among
other resources for the reduction OF the
debt the State retains large interests IN va
rioIls corporations, Of which some nave
certain and some contingent value, while
others are worthless. In the first class are
the amounts due by the Richmond and
Danyille Railroad Company on account OF
loan secured by mortgage, and by the
IL