The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-06-28
NO. IA

property OF railroad companies. which will ado
, largely to the revenue. Heretofore railroad com
panIes nave been allowed to place their own esti
mate on the value of their property. and none O
them were assessed at more than $3.50 per mile
| the present law provides that the Board of Pub
lie Works shall make the assessment, and the pre-
sumption is that the valuation will be increased
at least three or four fold. srss
A law was also passed, which levieS tax OIL
Lne consumption OF ardent spirits. which 1t is be
lieved will add several hundred thousand to the
| revenue now derived from that source This law
imposes no additional tax on the dealers in liquo,
but simply requires that every dealer shall col
lect on each drink that he may sell, to be drunk
sell to be carried away, two and half cents,
which he is to account for and pay into the treas
ury. This tax is entirely voluntary No man need
pay it unless he chooses to do so. II he prefers TO
drink. he elects to pay the tax.
Other measures were adopted for the purpose
in detail. '''o
II the practical operation OF these laws fufs
| the expectations of their most judcious frie nds
the deficit in the Treasury will be reduced to a
mere triae.. which will soon be met by the steady
increase in the value of taxable personal property
And here desire especially to call the attention
OF the people to one very important fact which
seems 70 ndve 9een generally overlooked It is
entirely due to the public debt. II the expendi-
lures of the government had remained as they
were at the tim the Funding bill was passed the
present revenues of the State would have been
nearly, if not entirely, sufficient to pay the cur
rent expenses and interest on the entire debt Of
thirty millions. This can readily be proven. The
annual cost OF the government is, in round num-
DerS, one mllllon OF DOLLARS. The interest on
thirty millions of dollars at six per cent, is one
/ million eight hundred thousand dollars. The ag-
gregate OF the two is S2,80O,OOO The present rev
page A. to be $2.7OOOO0. The deficiency then would
be only 800, 900, which would be met by the saw
ing effected by the biennial sessions alone leaving
| out of view the additional revenue to be derived
l from the tax on the sale OF whisky and on rail
roads, &c.
ditor's report supplies the answer to this cues
| ton Gu prge 8. he informs US that in the year
| support OF the Free Schools s50s 024l4 ~
twill be seen that the Legislature which pledg
| ed the revenues of the Commonwealth to pay the
pledge diverted $5US 02444 of those revenues and
applied it to another and very different object
Nay more, the Legislature provided for heavy
| county Notwithstanding last year to $5l2 900
Ito be applied to the cost OF public schools. 1t
will thus be seen that the entire tax. State and
county, levied last year to pay the cost Of public
| schools, was one million and twenty thousand
dollars.
noring against the payment of the public debt
say nothing of this enormous expenditure, be-
cause they believe free schools to be popular.
have no fault to find with this expenditure. /
believe that 1T is the duty OF the state to educate
partiepators in the administration Of the govern
| amount Of education as will enable them to dis
charge their public duties intelligently.
But do maintain that the Legislature had no
moral right to divert the funds which had been
pledged to the creditors of the State, and apply
them to an entirely different purpose. Good
faith required that the pledge should be respect
ed, and when they undertook to Introduce the
free school system our Legislators should have
fairly and honestly met the responsibility by ex-
planning to the people the requirements OF the
Constitution that free schools should be estab-
lished, and asking them to bear the tax necessary
to sustain them: If they had done SO, the people
cause they were Intelligent enough to know that
they would get fair eq uivalent for every dollar
of tax in the free education OF their children.
1t will thus be seen that very large advance
has been made towards the establishment Of the
State credit. In confirmation Of this statement,
need only refer to the fact that "Consol bonds
which were selling in 1873 as low as $40, have now
risen to $73 and this has been accomplished with
out expressing anybody.
Yet, strange to say, Just now when we are be-
ginning as it were to see daylight, on the eve of
an election, some people, who. when the clouds
were darkest, remained entirely passive, have
suddenly awakened to the conviction that we are
on the eve Of bankruptcy and ruin. They do not
which they obliged to pay, goes to defray the
cost of educating their children, and thereby re-
schoo-master; but, on the contrary. seek to make
the impression on the popular mind that all the
bgTthen Of taxation is due to the public debt!
lished annually in the official reports Of the First
and Second Auditors and are, therefore, accessi-
the face of the facts, we find the most exagger-
ated statements given to the public in speeches
and through the press 1 was surprised to see in
some of our own papers, articles written by gem
tlemen OF considerable general intelligence, and
VINO, am sure, would not willingly seek to mis-
as to be absolutely ludicrous. For example, in
public meeting held in our county and in articles
Of the authors it was tbe current ex.
der se Of tine money ~ p m
You'd be necessary to lay tax OF FIVE PER CENT.
on the value OF lands and personal property
which would amount to confiscation!
If such the fact, it would certainly be con.
fiscation But what is the truth in regard to this
of the Auditor in 1876, page A, that the assessed
value Lf the real estate in the Commonwealth is
IA ~ 1Nf ha pfU
s04. Adding these sums together. we ascertain
that the aggregate value OF the taxable real and
ting fractions, three hundred and seventeen mil
lions, seven hundred and ten thousand dollars
tax OF five per cent. on this amount would yield
eight hundred and eighty-fve thousand dollars
tax OF five PEI cent would therefore, independ-
emily of all other sources OF revenue pay Off the
whole State debt, principal and interest in two
years! Would it not be well for gentlemen who
volunteer to instruct the people on great ques-
lions of finance to be little more cautious in re-
gard to facts
Instead Of a tax of five per cent being necessary
to meet the engagements of the State, hazard
the assertion that tax OF tDo-ttirds of one per
cent in aid OF tie other sources OF revenue would
be sufficient The whole tax on land Is now. at
one-haf of one per cent, $l2l3782, and on perso-
nal property s374,77l. The aggregate of the two
cents the 800 to 66s CENTS the addition to the
revenue would be S52J 514 which as have already
shown after biennial sessions of the legislature
with q diminished number of members and re-
auced pay are introduced, will meet the entire
deficit: Nay, go further and affirm that II the
Constitution be SO amended as to secure capita
ton tax of two dollars instead of one dollar to be
applied to the support of free schools and the
| law, all our financial difficulties will be solved
without any increase of the tax real or personal
perceive from the newspapers, that there is
good deal of talH, especially among those who are
regarded as prospective candidates for the Legis-
public debt. do not know exactly what is meant
| by this language. am happy to see that those
who use it EN- phatically deny that 1T means re-
pudiation. do not question their sincerity but
must be pardoned for saying that. in my judg
between reputation Of a debt and determination
| not to pay it, 1t sounds to me very much like
K my friend Major Sutherlin's distinction between
| a horse race and trial Of speed between two
FLOODED horses.
l How is this adjustment to be effected? Is the
Il State to be the only party to do it? Are the
il creditors not to be consulted? II SO, venture
| to inform gentlemen that the Courts will present
| an insuperable barrier to such az adjustment
I They win remind gentlemen, as they did in the
case of the Funding bill. that there is clause in
4 the Constitution OF the United States which pro.
i vides that mo State can impair the obligation of
il a contract"
i But it may be said that they will reform the
I Court of Appeals, by appointing Judges OF their
L way of thinking, when the present Judges die or
resign. or when their present terms expire.
Il Waving any discussion OF the iniQuty OF q pro-
ceeding. which necessarily involves the idea that
the Legislature will substantially exercise the ju-
d1clai 81 aecaaing On thG
cial station mere puppets to register the behests
of the Legislature, must be permitted to remind
] all who cherish such notion that there yet re-
1 mains the Supreme Court OF the United States,
whose duty it is to uphold aud maintain the integ
rity of the Constitution ofthe United States, and
| which will unquestionably decide the question of
the invioliability Of contract, precisely as our
1 Court OF Appeals have done. 1t will hardly be
contended that the legislature Of Virginia can re-
form the Supreme Court of the United Statesl
| But it may be said the purpose of those who
mediate an equitable adjustment is to make 8
new contract with the creditors. This is certain
ly legitimate. But is it feasible? The holders of
| the twenty millions of Consol bonds now hold OBJ
| legations which are recognized as valid, and the
| interest on which is collectable by self-execu.
| holders of these bonds, which are perfectly Sc.
cure, will agree to accept, in lieu OF them, others
| of inferior value, either in amount, or security
for payment. What is to be done with these cred
itors :? They are beyond the reach of Legislative
| power. The only chance of doing anything is
| with the holders of the Peeler or non-funded
| bonds and all that can be done with them is to
| add another wrong to the injustice which has al
| ready been done to this class Of our creditors.
!, calm consideration OF the matter must. think,
satisfy every intelligent man that the project OF
an equitable adjustment y either with or with
out the consent OF the crpt.;ors. is altogether H.
lusory. The advocates III '',ldinstment'' should
recollect that Virginia HAS already nlde one ad.
. justment with her creditors and. wlLnin twelve
months after it was made, sought to repudiate it
| Should she now propose another, might she moi
be subjected to the humiliation of being tainted
with that violation of good faith Might not the
inquiry be made, what security can you offer fol
the fulflment OF your proposed new bargain
What assurance can you give that the next Gen
eral Assembly will not treat it as your predeces
fo fhaf r.