The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-10-20
Il, s..,.as COMO a t],e stoeks were of lit

t,e yalue..bnt many were OF great value.
Now, / nut it to the candor OF all honest
and intelligent men OF the Commonwealth
If It can be said that the funding bill OF
1871 WAC NOT q GOOD business settlement OF
the public debt
The state agreed to pay in thirty-four
years S3O,50O,O00, but at the same time
She took property worth in State bonds
nearly s15.00O,OO0. But aboue all this, and
north more than all this, she had gotten.
and will ever retain, from the expenditure
OF the money of these creditors network
of grand lines of internal improvements,
permeatinp the whole State, which has en-
riched the country and built up your cities,
and which will continue to do so for all
time. Could your representative, with any
Justice or pretence OF fair dealing, deny to
our creditors from whom all these values
had come less than the funding bill did?
don't believe that ever before debtor who
was perfectly solvent got better or more
reasonable settlement than the State OF Vir-
ginia got by the terms OF the funding bill.
But this same Legislature which passed
this funding bill passed au act authorizing
the Board OF Public Works to sell the
States interest in certain internal improve
ments and certain real estate which were
then bringing no income, and to convert the
proceeds into State bonds for the ultimate
payment of the debt. The s275,000 in the
Fredericksburg road, the 100000 due by
the Richmond and Danville Railroad Com
pany, the 2,2O0,O0 Of stocks in the Chcsa-
peake and Ohio railroad, the debt OF "A, 00o,:
900 due by the Atlantic, Mississippi and
Ohio Railroad Company, and the real estate
in Richmond, would, had they been sold,
have realized in State bonds at least sS.O0O,-
900, and our debt would have been reduced
by that much. Now, most OF these assets
have become worthless. They were not
sold, because the neat Legislature, IN their
emnity to the funding bill, repealed the dcl
authorizing the sale. They saw that should
these assets realize what was generally
thought they would bring, and the proceeds
be applied to reduce the debt, 1t would
demonstrate the wise policy OF the funding
bill and the craftsmanship Of that measure
This they by no means desired to do.
The tax OF 50 cents on the 800 value OF
property and the other taxes then existing
would have been ample TO pay the expenses
OF the State government and all the interest
en- the debt US settled by the funding bill
But the General Assembly, desiring to put
in full operation our public-school system,
devoted and prescribed that one fifth OF the
taxes should 60 to the public free schools
I assert, then, without fear Of contradiction
from any unbiased, candid, and intelligent
man who has made himself familiar With
the subject, its history, and surroundings
that the funding bill Of 1871 was Just
fair, equitable, honest, and honorable adj
justment and settlement OF our public debt
a good settlement on the side OF the State
and had it and the accompanying acts been
carried out there would have been no trou-
6lc today on the subject, or at least trou
Bile that could be readily met. The feature
of the bill which gave the creditor the only
security we could give-that is, that Wher
his interest was due the State would, II she
could not pay it in money, take it for taxes
was no new or novel feature. The Unltec
States had issued over S7OO,O00,OOO OF notes
expressly receivable for all taxes except tan
OH imports; the State OF Virginia had be-
fore the war issued Treasury note; recelv
able for taxes; nearly all the towns II
the State and some Of the counties now eN
pressly agree with their creditors to receive
the amount OF interest as it fell due, II no.
paid, for taxes. Nearly all the large cite:
in the country have adopted this system
and it is generally regarded as eNpedlcn'
and wise.
So much for the funding bill. Its partia
repeal has, in my Judgment, had much tt
do with our present troubles. The anti
funders, or those who have been opposed
to that measure, have had charge OF the
State government and full control OF thu
same for the last five years, and all OF OIL
troubles have come in that time. However
the great question is not who is to blame
for this (for both parties have no doubt beer
patriotic in their action), but what shall VIZ
do no,o? what is the most practicable
what is best for the State and the people
and at the same time what is just to hel
creditors what the wiSest and most states
manship measure for our adoption! we
| all agree that some measure must be mad
and that ut an early day.
The Auditor OF Public accounts, in ;
statement lie is required by law to make
and publish every year land which is to be
| found appended to the acts OF Assembly o.
1S7G-'77), states that all OF our creditors &C
cepted the terms OF the funding bill except
creditors to the amount OF S9,252,3l0.5S
These latter creditors would not or did moi
| accept although they had Il full year il
which to agree), and hence they for the las
| five years have been left out in the cold, thu
State not having made provision to pay
them any interest. The State has taken II
for taxes all the interest due the creditor:
under the funding bill, and to that eXten
she has paid all the interest up to this time
on that part Of her debt. Our trouble
therefore, is with the creditors who did 70
accept, the interest on whose debt Is accu
mulating.
Maniicstly we should deal With this trou
bic. I don't in the least censure these ere
ditors. 1t is both reasonable and natura
that they should make great cutlery, ant
that they should move heaven and earth t.
get some OF their dues, and that they shoult
| look with some envy on those other credit
ors who, having surrendered one third
their debt, are graciousIy permitted to &c
some interest by the poor privilege OF sell
ing their interest as it falls due to our tax
payers. -, ,r-
and earnestly on the State to do something
for them. Clearly an adjustment or settle
mcnt-right in itself and acceptable tt
them-should be made. The fact that they
declined or hesitated to accept our forme
| offer is no reason why we should not dea
Justly with them. am sure some good plar
of settlement with these creditors can be hi
upon. WHY should we not adopt the plar
which has been tried and found to work wei
in several OF our sister States? No doubt i
would be perfectly acceptable to these credi
tors, and would not require any additional
taxation on property. l would offer these
creditors State bonds at 81 years for our share
Of their debts, bearing an interest Of 8 pc
| cent. for the first ten years-that is, Il PEI
cent. payable on 1st OF January and July il
each year; per cent. for the next ter
years, and 8 per cent. for the remaining
time. / know there are some objections tC
this plan; but can any plan be devised
which will not meet with opposition? Th