Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1877-07-10
THE STATE DEBT,
THE LEADING ISSUE IN THE
CAMPAIGN.
Gen. MahOnC's Opinion upon
Eho Same

49, '.''1 --- ~ N''rN' '''N- NH''' -
My DEAR SIR: am this moment
in receipt of your favor of the 3rd
inst.
AT the request Of many citizens, 4"
you ask my position on the "puhlc
debt" During the past few months
| have frequently been INTERCEPTED
upon that subject, by gentlemen in
various parts of Virginia, and to all
such enquiries have replied, in con-
versation and by letter, in terms SUBJ
stantially the same as [ now address
you.
Now that the dissolution of the Rad
ical party has Telea ed the people Of
Virginia from the control Of an urgent
apprehension, and they are free to
turn their attention to those questions
in which all citizens of the State have
common concern, there seems no
subject which demands more prompt
aud careful consideration than that Of
the public debt: and there is none as
to which my convictions are more set
tied and pronounced.
The Finding bill Of 1871 was a
grievOus mistake, and subsequent
events have only served to confirm the
distaste and apprehensious with which
| then regarded that measure. l
would not presume TO question the
motives of those who designed and
promoted that unfortunate scheme.
but it IL well to remember that the Us-
Inmates on which its provisions were
based have proven to be incorrect; that
honest men widely misCalCulated the
immediate assets af the State. and
that her resources of future revenue
were largely overdrawn. TO these
mistakes the unhealthy prosperity at
teudant upon the Sudden reaction, af-
ter a period of war, of all Industries,
largely contributed, and its delusile
promises were blindly relied on to ca =
ry debt, the annual demands Of
which We're out Of all proportion to
the real and reasonable capabilities Of
the people. The theory of this act
was that at the existing rate Of taxa
ton, (thCn as now 80 cents on the
hundred dollars .)the revenues would
be amply sufficient TO dcfray the cX-
penses of the government and 10
regularly meet the interest OH the debt
recognized by its provisions. But
what are the facts as viewed in the
light of to day?
The truth is, that the debt intended
to be assumed by the Fundig bill rs
thirty millions of dollars, amounts,
exclusive Of arrearages Of Interests, to
thirty-siX millions. The truth is that
since the Funding bill went into Ope-
ration, when there was in the Treasu-
ry II, 500 600 in cash, there remains Of
interest past due and unpaid, in round
numbers. -, 10000; while there now
exist valid and pressing claims against
thp fI'TnosI1rN o11oF11Hi inp tA fam l,t,r,-
bred thousand dollars more than the
cash on hand, while, in addition to
this, over four hundred thousand dol
lars OF the fund specifically set apart
by the COnsti utiOn for the maiute-
nance of the public schools, have been
used to float the government. aud this
sum remains as n charge against the
Treasury certainly equal I'm dignity to
any claim of the hOndhOldcrs. The
truth is that the actual debt, including
the accumulatiOns of interest, now ag-
grCgqtcs over Sill COG, 900, and that the
increase of the debt has been Mt the
average rate of SSGO,OO per annum
since the Funding bill took effect.
The truth is that. accepting the
Auditors estimate Of tOtaI revenues
as 50 zoe, 600, when the average reve-
nue. for the past six years has been on
~ 50 1885, 900, and accepting his esti-
mate Of 81 100000 for expenses of gov
eminent, and taking the appropriation
Of the schools at S4l3, O0O-tho Audi
tors ngures-theTe will be left 81 30
GOO to meet an interest account Of
-, 100 GOO. If the interest due on
account Of the sinking fund be dis
carded, the deficit will still amount to
$500, COO
In this state of the case, when the
debt instead of being paid, is annual
~ increased; when one class of the
public creditors receives only a per-
centage Of its dues, and another, equal
~ as deserving, IL dismissed without a
hrthing when the heart Of the peu-
pie is being surely crushed out by the
accumulation of burdens; when indus
try is paralyZed, trade prevented, set
Element retarded, values reduced in
this state of the case, is il not n self
evident proposition, that to continue
i'm the present path of inactiOn must
inevitably lead TO tho destruction of
the State, and to the loss 10y the eredi-
tors of all that they have invested in
the bonds of Virginia? The continual
piling up of debt for which no provi-
sion is made can only bring about that
lOlnlul tonciNSlol WHICH Ill EOOu
citizens are anxious to avert. Nir-
giuia is now in process Of reputation,
and have the solemn conviction that
something can and must be done to
place her obligations upon another
basis or ruin to the commonwealth,
and extinction of the security Of the
creditor will come and that ere long.
If the debt ia to remain I'm its present
shape. / see no probable way of eXtri-
cation from present difficulties. The
limit of revenue has been reached un-
der the present rate Of taxation and
though there are gentlemen who cry
aloud for the honor OF the State, and
who profess the desire to grant all that
the Funding bill allows to the public
creditors, there remain the pregnant
and indisputahle facts that the re-
sources of the state are unequal by
several hundred thousand dollars to
the support of the government and the
annual demands of the bOndholdeTs,
and that the only method Of augment
ing the revenues is To increase the per-
contagc of taxation. who favors that?
Not /, for one, aud am persuaded
that the people could not endure any
addition To the load already imposed