Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1877-07-18


pons. 9,252,3l0.5
Held by Literary fund, 42S, 245.25
Held by Sinking fund. 4 86,77I.90
Principal, s35,904, 3,53
Interest Due and unpaid. 5.2S3, 6l0,29
Due school fund. Oh, 056.Q0
Total debt due July l
1877 $40, 100, 0O9.72
1t is true that the above statement
includes the bonds held by the sinking
fund and Literary fund amounting in
the aggregate to So, ,0l7.o5, but it
is Just as important that the interest
should be paid on these bonds as on
any other part of the debt. If it is ever
expected orintended that Virginia shall
be relieved from the burden ofthe heavy
load under which the state is now strug-
gling,i is of the first Importance that the
principles Of the sinking fund be sacred
" guarded. 1t is fund wisely pro-
vided for by the constitution for the ul-
innate extinguishment Of the debt; and
under no pretence ought there to Sc a
deviation from the plan until the object
for which the fund was created has been
accomplished. Inregard to the literary
fund it is also fund created by the con-
stitution the interest on which it is pro-
vided shall 90 to the support Of the free
schools. In making statement there
fore of the state debt it creates a false
impression to eliminate from it the
bonds held by these two funds 50 far as
the obligation to pay interest on them
is concerned. Such being the case the
aggregate interest on the state debt from
1871 to and including July lst. is ST.
sol. SSl.34. The total amount paid on
interest duriug this time is s7,2lS,27l.l5
leaving balance Of interest due, and
unprovided for on the lst day Of July,
1877, of IS, 2S3. 6l0.19, and in order to
pay the interest as above S94l. 056 Of
the school fund has been used in clear
violation Of the express provisions of the
constitution, which now added to the
interest due and unpaid makes Sc, 224, =
666.19 as the aggregate deficit during
six years or an increase gilmore than
y ,,,i11;o,, Of dollars yaorIv
Of the s5.2S3, 6l0.19 balance Of in
terest due and unprovlded for on the lst
OF July 1877, 81. 204,133.00 consist Of
outstanding over due coupons, from
which it will be seen that on the 500
237, 0l5.00 Of the debt funded in what
are termed consols or bonds having tax
receivable coupons attached. all Of the
interest has been paid except a sum
which amounts to about the interest for
one year on the amount so funded. The
past Cue interest On what is called the
registered debt and peeler debt amount,
ed thereon. the lst Of July 1877, to ST.
079,477.19. In other words there has
been paid since 1871 sum equal to
about five years interest in full on the
bonds having tax-receiyable coupons
attached. while en- the registered and
peeler bonds and the bonds held by the
sinking and literary funds, aggregat-
ing SIS, 667. 327.73 there has only been
paid a sum equal to about one, years
interest. The truth Of the matter is
that there has not been paid copper
of interest on the Registered and Peeler
bonds since 1875. The board consist
ing Of the Governor, lst Auditor, Treas
urer, End Auditor. The Secretary Of
the Commonwealth and Attorney Gen
eral then determined to pay 2 per cent
Of the July 1874 interest, payments to
begin on July 1st. 1875. Before the
payment was completed the treasury OF
the state became bankrupt and has
been bankrupt ever since. From the
foregoing statements it will be seen
that the State of Virginia is practically
repudiating large part Of her debt. She
is under as much obligation in morals,
if not legally, to provide for the pay
ment of interest on the registered and
peeler bonds as on the consols. BY her
not doing so while the last named
bonds sell for from 565 to SIS on the
market, the first bring not more than
| from S35 to $40. What Is the remedy
for this condition Of affairs? The first
is to place all the debt on the same foot
ing by funding in consols that portion
of it not so funded. the coupons re-
ceivable for taxes would in that event
amount annually to $2,154, 260. &C.
which, together with the school fund,
would about absorb all the revenues oil
the State-compelling, if Other subjects
o ftarction could not be made available,
an increase Of taxation on property to
raise a revenue Of about a million Of
dollars to pay the expenses Of the State
| Government. To do this would require
I8O cents at least on one hundred dollars
worth of property at the present assess
ed valuation.
| The second is to raise the taxes so as
to pay the interest on the whole debt in
full which would require the same rate
Of increase as the first. And in neither
of these plans is any way provided to
pay the Sc, 224, 666.l9 of past due inter-
est-and this will have to be provided
for. The 3rd remedy is to bring about
a REIMBURSEMENT of the public debt and
place it all on the same footing; to
bring the payment Of it within the
reach ofthe people of Virginia without
depressing them with burden Of tax
alton too heavy to be borne, and to
establish it on such a basis that all of
the bonds of the State will have the
I'll, s,,+1 IL,