Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1877-09-18

TUESDAY, SEPTEMBER Is, 1877.
Facts that should not be lost sight Of.

Facts that should not be lost sight Of
The "repudiators" are clamorous
about the increase of the public debt by
the accumulation of interest, but not
one of these has ever called attention to
the reductions which have been made OF
the principal.
By reference to the report OF the Sec
ond Auditor for 1878, it will be found
that the principal of the debt on 3Oth
September, 1878, was $50, 47s, 14e. By
report of same officer for 1875, it will
be seen that the debto 3Oth September,
1875, was $29, 5l4, 426, showing a reduc-
ton of principalin two years of 1868, 72O.
This is not bad exhibits reduction
of the principal of the debt, in two
wears, of nearly a million of dollars!
Since 1875 the principal of the debt
has been reduced to 500, 4S9, 1925, and if
the last Legislature had performed the
solemn duty imposed on it by the Con-
stitution, it would have been reduced a
million more.
The reduction above referred to was
effected mainly by the sinking fund.
The onstitution-Article x, section
S-provides that "the General Assem-
bly, shall provide by law sinking
fund, to be applied solely to the pay
ment and extinguishment of the prin-
cipal of the State debt, which sinking
fund shall be continued until the extin-
guishment of such State debt"
Under this provision of the Constitu-
ton, sinking fund has been provided,
which amounts to about four million
and half of dollars. This sinking
fund is invested in Virginia State bonds,
bearing interest at the rate of six per
cent.
This interest constitutes the main rev.
enue of the sinking fund, and the Con-
stitution expressly sets it apart for ''the
payment and extinguishment of the
principal of the public debt"
During the years 1873 4 and 1915, the
Legislature, as they were bound by
their official oaths to do, provided for
the payment of the interest on the sink
ing fund; and with that interest nearly
million of dollars of the principal of
the debt was bought up.
The annual interest on the sinking
fund amounts to about $270,000 per an
mum.
AS the original State bonds, which
have not been funded as "consols" or
''peelers," are quoted at $50 for bond
of 500, if this interest had been provid-
ed for it would have enabled the COM
missioners of the sinking fund to buy
annually 100000 of these bonds, OF
$1,sOO,OOO in the two years. Setting
apart one-third of this amount $500, 900,
for w. Va. ultimately to settle, we would
have had 81, 100000 to transfer to oul
credit account and our outstanding deb
would have been reduced to little ovel
$28,OOO,O00. We would also have had
100000 of West Virginia certificates tx
add to the two millions which we al
ready hold, to be used as an offset te
any possible claim which West Virgin
ia may hereafter assert against Virgins
in consequence of Virginia's giving to
the Atlantic, Mississippi & Ohio Rail
road six and half millions OF dollars o.
stocks and debts, which belonged joint
ly to Virginia and West Virginia.
This would have been an admirable
arrangement for Virginia, and would
have effectually guarded her against
any danger arising from the fact thai
she allowed herself to be "bamboozled'
out of six and half millions of bonds
and stocks, of which she really owned
but two-thirds.
Another good result would have fol
lowed. When the sinking fund buys
in bonds, they are not cancelled, bui
added to the sinking fund, and consti
tute part of it. The sinking fund
therefore, by the addition of this 81, 200,.
900 would have been increased from foul
and half millions to five millions seven
hundred thousand dollars, and the an
nual interest would have raised to $342,
900, which, at present rates, would buy
in nearly million of dollars of the
debt the following year, and add 100000
to the revenue of the sinking fund.
No one can deny that there is an i'm
perative duty imposed on the Legisla-
ture to provide for payment of the in
terest on the sinking fund. But the
last Legislature shamefully, and in con-
tempt of their official oaths, refused to
do it. The obligation to provide for the
payment of the interest on the sinking
fund is quite as strong as to provide fol
the interest on the literary fund. Both
obligations are imposed by the same
Constitution and almost in the same
terms. Yet the Legislature provided
for one and refused to provide for the
other.
Let the people now require every can
didate to pledge himself to discharge
this Constitutional duty of providing fol
the payment of interest on the sinking
fund, and the principal of the debt will
be soon extinguished.
THE w R.-The kilograms on last
Monday were rather prematureln thelI
statements. The Russians have not yet
taken Plevna. The results Of the past
weeks fighting in Turkey are decided
ly against the Russians. 1t is stated,
however, that the Turks. have lost 10, 900
in attempting to recapture the Grivica
redoubts-The Berlin Gazette denies
that Germany influenced Servia and
Roumania to participate in the Russo
Turkish war-Vice-Adm Cana
ris, the Greek premier, died of apo
plexy--The Grecian foreign minis.
ter says that Greece does not intend to
declare war against Turkey.
THE HEALTH OF THE POPE.-A pri-
vate letter from distinguished source
recently received in Washington, from