The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-12-13
yTAUNTON, VIRGINIA. DECEMBER 10, 1877.

Inc principal sum OF the SINKING ittHu
now amounting to So, l25,27l.9O, is ar
aggregation OF bonds, formerly held by pup
lie creditors. which have been paid Off
taken in. and deposited as property OF the
State, and as SO much extinguished debt. il
its own Golfers. Instead of being a part o.
the existing debt, the sinking fund repre-
sent nothing but so much debt as has ceased
to exist. 1t can only be increased by fur
Their reductions of the outstanding debt
so that the larger the sinking fund the les.
the State actually owes. It. is no require
ment of the Constitution, but the voluntary
act of the Legislature, which has given tc
this fund its present onerous amount, COM
position aud character, and which has orig
mated the policy of semi-annually ilverting
from the treasury great sums, equal to in
terest on the sinking fund, to be expended
i'm purchasing and retiring or sinking otller
bonds of the State. Experience proves that
this mode of maintaining SO large a sinking
fund is an excessive burthen upon the treas
ury, especially during 4 period of depres-
sion like the present; and it is question for
serious consideration whether it is not wis
est to cancel and destroy the bonds which
compose the fund, as the law-making power
has unqucstionably the authority to do. No
provision OF the Constitution and no obliga-
ton of plishted faith stands in the waysof
such disposition of the sinking fund bonds.
The present fund is too large to be carried
according to the design of its founders,
without injustice to other interests and in
jury to the creditors themselves. Remain
ing in its present dormant condition, it
serves only 70 beget error and confusion in
respect to the real liabilities of the State.
The literary fund, so far from constituting
any part of the debt, is a capital sum COM
posed of assets belonging absolutely to the
State. the apnua! income of which, now
amounting to sS3, 907.64. is dedicated to the
interest of education. The principal Of the
fund can never become demandable or pay
able, for blythe terms Of the foundation it is
required to remain intact forever. It is in
the nature of a perpetual annuity founded
by the State for its own benefit. The annu-
al interest on the literary fund goes to the
support Of the public schools by virtue of
the same mandate Of the Constitution which
devo.es one-fifth Of the property tax to the
same object; and tie paymen from both
sources are annual charges upon the trcasu-
ry Of the same character, and ought equally
to be classed as current expenditures on ac-
count of education. But however the litera-
ry fund be treated it cannot be regarded as
any part of che outst anding debt, for il by a
change of organic law the fund itself were
extinguished or covered into the treasury.
the rights of 40 bondholder would thereby
be impaired or affected.
THE PROPOSED EFFORTS TO NULLIFY THE
FUNDING BILL.
In several messages have endeayored to
enforce the opinion that, however unwise
n IF
bill, yet the contract embodied in it and eX.
ecutcd IN pursuance of it is inviolable and
irrepealable; that it is the bounden duty of
all to stand to the decision Of the highest
State court affirming its validity, and that
any further agitation for the purpose of in
validating it is a wrong to the good name of
Virginia and an injury to every interest Of
the people.
Holding these views, it is appropriate and
just, and it is due to the truth OF history,
that should vindicate the motives Of those
who act upon opposing opinions. There is
not, and there never has been, any organ
lied party of reputation in Virginia. Ex-
cepting All almost inappreciably small class
OF thinkers presently to be- mentioned the
great body of those who resist the execution
of the funding bill have no idea OF resisting
the payment of the debt. That bill has
been the fruitful source Of discord, and but
for its existence no sentiment unfriendlv to
the creditors and no popular agitation n
the subject of the debt could have arisen.
Those who seek to invalidate the bill believe
that II is in the nature Of an act of State sui
eide; that it impairs the dignity and the SOW
ereignty of the Commonwealth by taking
from it the control of its revenues and strip
ping it Of its just powers Of self-preserva-
that re Of foxy. vol
pons, alternating in advance and mortgaging
to creditors for period of thirty-four years
large proportion of the taxes, deprives the
government OF essential governmental func-
tions and powers; that its enactment was
not merely surprise but an imposition
upon the people; that exaggerated estimates
OF our taxable values. afterwards seconded
by undue influences, procured and prccipi-
tated its passage; and that for these and
minor reasons the bill ought to be judicia!ly
or otherwise annu!led and avoided. The
opposers Of the bill are CALLED and irritated
by the withes and manacles with which it
felters the traditional liberty of local self
government. Its effect is to wound the sem
timent of State pride and to engender re-
sentiments and animosities which, though
often supposed to be directed against the
holders Of the debt. are really aimed at the
funding bill itself. Many who were first TO
revolt against the compulsion of the bill
would be first in honorable and voluntary
efforts to pay off the debt if the compnlsion
were removed. But let it be understood,
on the part of those WHO seek to overthrow
the funding bill, that if they fall short in
any reasonable effort to meet the just de-
the means properly available for that pur-
lt,xy f,,nft fo Hv no oaL
lodged defects OF the present revenue sys.
tenn, then their inactlOn will be taken for
reputation, and all the worse because it
will be negative, indirect, and insidious.
He argues that any effort to nullify the
funding bill would prove both dangerous
and impracticable, and says:
Nor can it be better imagined that any de-
vice or subterfuge, however ingenious, de-
signed to obstruct particular provision Of
the funding bill, could be regarded with less
disfavor by the judicial mind than an open
and direct violation of the contract it con
tains. Any measure, of whatever kind, in
tended to impair the receivability Of the
coupons would be regarded as impairing the
obligation of the contract, and would be mel
with the condemnation Of the courts all the
more decsively on account OF its indirec
tion.n
u Il
He concludes this subject as follows:
1 have heretofore deemed it due to tn.
truth OF history to place on record recital
of Virginia S claims upon the equity of the
United States adding then what l now re
peat-that the best way to get help from
others is first to help ourselves; and tina
the cheapest and easiest, as well as the only
means Of getting rid of the debt, is to pay j
off.
REIMBURSEMENT.
lie rehearses the details OF the effort
made to compromise the debt in ASA ant
states the result as follows:
After elaboration that body agreed by
unanimous vote to the exact substance o
the plan had proposed-that is to say,
consented to postpone one. third of the in
terest on the debt for ten years. The &C
ton Of the conference was transmitted t.
the General Assembly with the earnest re
commentator that it should be carried int
effect by appropriate legislation. But tina
recommendation, unfortunately, failed, an
the debt agitation has since gone on wit
Increasing injury to the State.
Gov. Kemper's conclusion after long al
gument on the subject Of readiustment,
that the only way to relieve The State is
meet all demands. promptly. When that