The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-08-09
THE PUBLIC DEBT.
LETTER OF MAJOR JOHN W. DANIEL.

LETTER OF MAJOR JOHN w. DANIEL.
LYNCHBURG, July 80, 1877.
M. Glennan, Esq, Editor and Proprietor Of
Norfolk VirQinian
My Dear Sir,-While never disgusting my
opinions respecting the public debt, have
into notice, in anticipation of the course
which the party to which belong might
deem wise to pursue, and whose interests
should be made subservient to all personal
ends; and still think it would be better to
leave the solution of the matter to the Legis-
lature, to which department the levy and
disbursement OF the revenues belong in all
forms of government but that of absolute
monarchy. have also thought that sound
policy should exclude the debt from being
made party issue, for the reason that the
Conservative party contains the mass of
property-holders, who bear the chief burdens
of taxation, and it would be misfortune to
divorce the power that lays the taxes from
those who pay them. Premature agitation
Of the question has this tendency.
Worthy and able gentlemen have differed
from these views, aud in Difference to them,
and lest my silence be misconceived, now
define my position as follows:
I'd. respect the decisions of the courts.
Sd. I uphold the sanctity of contracts.
4th. Much confusion of thought has arisen
from regarding our debt as homogeneous
whole; and the term 'adjustment'' has been
interpreted in some localities to mean one
thing, in other localities another. The status
OF the debt being first determined, l think
that little difference of opinion can exist
amongst fair-minded men as to its treat
ment, or as to the scope. policy, and limita-
ton Of adjustment.
9TH. The debt is Invisible into three por-
tions, each standing on different basis.
The first portion is The third of the original
debt contracted by ouE State before its parti-
ton; and it has been declared by Virginia
| to be the just and equitable share which
West Virginia should assume. Its holders
have acquiesced i'll this disposition of it. 1t
calls for no adjustment at our hands, but
should be left severely alone.
| 9th. The second portion consists of some
nine millions of registered bonds, with &C.
cumulated interest, excluded from the ope.
| ration OF the funding act by its repeal. This
portion has not been adjusted. 1t should be.
| think it would be injudicious to extend to
these bonds the terms of the funding act, as
it might lock the wheels of government. But
overtures of settlement with the State have
been made by the holders. They should be
met In spirit OF comfy, and other terms
mutually honorable and advantageous fixed
upon and adopted.
| 9TH. The third portion embraces twenty
millions OF bonds with six-per-cent. Interest
coupons attached, made by law receivable
for taxes. They were issued under the fund
| ing act of 1871 to the holders of thirty mil
| lions of old bonds, who yielded them up, de-
hsrlC a. t,nsn aloi,,
| ing the terms Of compromise and re- adjust
ment which Virginia herself offered.
l opposed and voted against the funding
act. l did not think that State in Virgin
| las condition should tie her hands and lock
up her revenues by irrepealable legislation.
But the act passed, and the matter immedi-
ately assumed new relations.
| A subsequent Legislature, of which was
not member, repealed it with view to a
different adjustment with the holders oil
these bonds. The Supreme Court of APP.
peals of Virginia. following series of deci.
sions of the Federal Supreme Court, declared
| the repeating statute unconstitutional and
void as to the bonds already funded; and the
terms already accepted by their holders te
be unalterable save by their consent. Be.
sides, be it remembered that the State has
acquiesced in the adjudication, the Legisla.
ture recognized its binding force, and the
people at large have availed themselves of il
by using the medium Of coupons-cheapel
than lnoney-to pay their taxes.
Sth. Now, after all that has been, or car
be said on the subject, it lies in a nutshell
thus
Qstl The third of the debt assigned te
West Virginia needs no adjustment.
(2d.) The unfunded portion all agree can
and should be adjusted.
3d. The third or funded portion all mus
concede has been adjusted, and cannot be
re-adjusted without the creditors assent.