The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-07-14
] I,esser srsn Colosel VI. ". Nssman.

: $500. r,.,,,, s,oIor, 81 w. w. Newman.
I ~ rvannysr. ON the Pubiae.Debf
| The following letter explains Itself
HANOVER, Va, July II, 1871.
.Yoha Z. Grubbs, ESQ: go :. !.
0g naor sir,-Yotlr favor Of yesterday mas
| fust reached me, and reply at once. cas
We; ,ye nav the whole debt? To do so would
,,ecass;tnte mn increase In our present rate
~ tayes OF about fifty per cent, Tor IL
would he folly for us to attempt paying the
interest on the whole debt without such
| increase.
The funding bill was based upon inflated
and erroneous estimates Of the assets OF the
State. and ever since its passage there has
been steady shrinkage in Che taxable val
ues of our State, and as the General Gov
eminent has determined on return to
specie, whether ready or not, on given
day, and is contracting the currency In OF
der to effect this purpose, may we not look
for further depreciation in all OF our tax
able values?
Then, looking at the question from. 9
practical business point, what do we ma
The rate OF taxes, fifty cents on the one
hundred dollars valuation, which II was
claimed would meet the requirements OF
the funding bill, falls short OF it nearly three
quarters OF million OF dollars every year.
! As orr taxable values are still depreciatlng,
ne the General Government is still extract
inc its millions in the shape OF internal
misunderstanding since the war Sixty
millions OF doilars-from our people, and
as we wish to guard against another esti-
mate ruinous to our credit, we should at
once increase taxes fifty per cent, or we
should ask for readiustment.
The question should be met at once. and
met in terms too plain to be misunderstood
by our people or our creditors.
I am clearly Of the opinion that our peo-
pie, in their impoverished condition, cannot
bear any increase in the rate OF taxes. The
Court Of Appeals have decided that the
funding bill stands as q contract, by which
we are bound, and il we call convention
and rearrange said court, and they reverse
their first decision. the bondholder has but
to appeal to the Supreme Court, and who
for q moment doubts that they would de-
eide that it was a contract, and repeal OF
it would make us liable to that clause OF the
Federal Constitution which prohibits any
State from passing any law impairing the
obligation OF contracts? Then, is there no
way by which a reimbursement can be had?
A late writer Of distinction says, touch.
inc this subject, he would invite the
bondhoders; that he would urge and
demand that they meet us for rcadjust-
ment of the debt; but we saw this plan
tried by our Legislature, and we had the
modification Of witnessing its signal fail
ure: and who doubts that such would be
the case again unless the Legislature be
giuen poaver over the bonds? My plan is to
convene sovereign convention, amend the
Constitution so as to give the Legislature
power to tax said bonds in such manner as
to equalize them in value, as contemplated
when they were first issued, and power to
tax them to such an extent as would, when
added to our present rate OF taxes on other
property, discharge the notwithstanding
liabilities Of our State government and
| 1radualty reduce the principal Of the
Whole debt. I am well assured that
this plan will not conflict with the
Constitution OF the United States, for we
have full power over taxation, and the sub
iects of taxation, so long as we do not con-
fict with the Federal Government in col
! Letting taxes: and in this we do not. We
may not have power to repeal the funding
bill, but by this plan we bring it under
control; and when our Constitution Is
amended as above indicated, who doubts
that the bondholders will meet us for u re-
adjustment? Indeed, I think sovereign
convention may not be required, for II our
| Legislature soon to be elected is chosen
with reference to this subject they might
pass, and refer to the people for ratification
or rejection, the amendment above indi-
Gated, and the necessity for convention
be obyiated. Pass and submit this amend
ment to the people for their adoption or
| rejection, and.at the same time invite the
bondholders to meet us at a given time, and
4l,ot fhayr
will come to make the best terms they can,
| for they Will then see that this scheme will
relieve us from their iron grasp and place
them at our mercy. l hope there will be
elected Legislature with reference to this
question, and q Governor who will CO.
operate with the Legislature in thus break
ing the chains by which we are bound, and
who, when the scheme becomes q success,
will arrange for the State as an honest and
upright man would arrange when he takes
the benefit of the homestead law-make an
honest and accurate exhibit, practice econo-
my in every department OF our Govern
ment, and pay every dollar we can without
an increase in the present rate OF taxation.
Our State and National Governments have
both made ample provision for the relief OF
an individual who is in debt beyond his
ability to pay, and person after awaiting
hlmSelI OF the PROVISION illus maue 10 STU
respected, and sometimes honored. II it is
right in one individual, why not in ten, a
hundred, or a million, il you please. -
Let us not forget in the amendment to
our Constitution to give our Legislature
power to treat West Virginia certificates in
such way as that they will never come
back to trouble us or our children. There
may be some who would say tax all bonds
to death, but to such would say remem-
Der the disgrace which follows the man
who, when be goes into bankruptcy, holds
back part OF his property beyond what is
exempt by law, instead Of making a full
surrender of all bis effects.
I am sure none OF our people would
bring such disgrace upon our State as to re.
fuse to pay what we can pay without in.
creasing our taxes. Let us place our State
on the true ground, and then take no step
backward; and though our debt will be
placed in manageable shape, and greatly
reduced, yet even then the remainder Of the
debt will be worth really more than the
whole is now for it will be made available
as well as manageable, and the interest
would be no longer regarded hopeless
on what we then undertake, as is now the
case, for we would only undertake what we