Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1877-12-12

account of balances, due from one
pocket of the treasury to another,
because they constitute no part of the
public debt. / now proceed to state
and explain them.
FUNDS WHICH ARE SOMETIMES Err
RONEoUSLY CHASED AS PART OF THE
| DEBT.
/ do not propose to repeat the eX-
positions of the sinking and literary
funds, contained in my former messages
to which reference is respectfully in-
vited. 1t is enough for the present to
show that these funds constitute no
part of the State debt.
The principal sum ofthe sinking fund,
now amounting to So, l25, 27l.90, is an
aggregation Of bonds, formerly held by
public creditors, which have been paid
off, taken in, and deposited as property
OF the State. and as so much eXtinguish-
ed debt, in its owa Golfers. Instead of
being part of the existing debt, the
sinking fluid represents nothing but so
much debt as has ceased to exist. 1t
can only be increased by further reduc-
tons Of the outstanding debt; so that
the larger the sinking fund the less the
State actually owes. 1t is no require
ment ofthe Constitution, but the volun-
tary act Of the Legislature, which has
given to this fund its present onerous
amount, composition, and character,
and which has originated the policy OF
semi-annually diyertlng from the treasu-
/ To int ,n
sinking fund. to be expended in p1rch-
asing and retiring or sinking other
bonds Of the State. Experience proves
that this mode Of main tanning so large
o sinking fund is an excessive burthen
upon the treasury, especially dering a
period Of depression like the present =;
and it is question for serious consid-
Grafton whether it is not wisest to can
Gel and destroy the bonds which COM
pose the fund, as the law-making power
has unquestionable authority to do. No
provision Of the Constitution and no
obligation Of plighted faith stands in the
way of such, a disposition Of the sink
ng-flnd bonds. BY the Constitution of
1851, specified portion Of the annual
revenues was set apart, to be invested
in a prescribed mode, for maintaining a
permanent sinking fund. BY the pre-
sent Constitution no such requirements
| are imposed upon the government, but
both the character and amount of the
means to be contributed, and the meth
DDS to be employed for the maintenance
of the sinking fund, are left to unlimited
legislative discretion. 1t is submitted
that if the present sinking-fund bonds
be destroyed, and ifprovision be made
for setting apart annually hereafter such
specific sum as the treasury can rea-
| soaably afford, to be invested IN obliga-
! tions of the State or the United States,
all the requirements Of the Constitution
upon this subject will be completely
satisfied. The present fund is too large
to be carried, according to the design of
Its founders without injustice to other
interests and injury to the creditors
themselves. Remaining in its present
dormant condition. it serves only to
| beget error and confusion in respect to
the real liabilities Of the State.
The literary fund. SO far from consti
tuting any part of the debt, is a capital
| sum composed Of assets belonging alb
| solutely to the State, the annual income
of which, now amounting to s83, T07 IS,
is dedicated to the interests Of educa-
ton. The principal OF the fund can
never become demandable or payable,
for by the terms Of its foundation it is
required TO remain intact forever. It is
in the nature Of perpetual annuity
founded by the State for its own benefit.
The annual interest on the literary fund
goes to the support Of che public schools
| by virtue Of the same mandate Of the
Constitution which deyotes one fifth of
the property-tax to the same object; and
the payments from both sources are
annual charges upon the treasury Of the
same character, and ought equally to
| be classed as current expenditures on
account Of education. But however the
literary fund be treated it cannot be re-
garded as any part Of the outstanding
debt, for if by change of organic law
the fund ltselfwere extingulshed or COW
cred into the treasury, the rights Of no
bondhelder would thereby be impaired
I or affected.
1t is not to be supposed that either
creditors. Or others will hereafter seek to
renew the idea. long since exploded,
that Virginia will ever become liable
for the debt Of West Virginia or any
part it. Assuming that at the close
of the war the two Virginias were joint
ly and severally bound for the whole of
the original debt, nevertheless, by the
| express terms Of the funding-bill con-
tract, as acceded to by the creditors,
Virginia can never become liable for any
part of West Virginia's third except by
virtue Of settlement hereafter to be
concluded between the two States.
Clearly and unquestionably such a set
Element is impossible to be had without
the cooperation and assent Of Virginia.
Ii we ever become liable for any part
of the debt thus RENTED to West Vir-
glnia, then it will be no otherwise than
by her own voluntary act that Virginia
will incur that liability. Until the com
ing of the millennial era it can scarcely
be supposed that one State will Yolun-
tctf 10 assume the burthens of another
State. Out of,one full third Of this State,
torn from its body, was created West
Virginia. OF the debt previously con-
lracted by the undivided State one third
at the date Of its dismemberment fairly
devolved on West Virginia. Equitably
and justly one third of the debt was set
apart and assigned to West Virginia,
and the creditors ratified the assign
ment. No principle of right or duty.
no obligation ofhonor, requires Virgin
ia to pay "West Virginia's third" or
any part Of it; and therefore such pay
ment will never be undertaken by Vir-
GINA, nor expected by any of the par
ties concerned.
THE PROPOSED EFFORTS TO NULLIFY
THE FUNDING BILE.
In several messages have endeayor-
ed to enforce the opinion that, however
unwise and unfortunate the passage of
the funding bill, yet the contract en-
bodied in it and executed in pursuance
Of it Is inviolablc and irrcnealable that
it is the bounden duty Of all to stand to
the decision of the highest State court
affirming its validity. and that any fur
ther agitation for the purpose OF invali-
dating it is wrong to the good name of