The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-06-28
1929, 10000
1,997.415.so
s2o.ss7,ol5.so
9,252.3l0.58
l,428,245'25
4,986,77l.90
$35,9O4,343.53
s,415,Ol7.o5

Those who accented the provisions OF the fund
ing BILL and converted their bonds into .consols
with tax-receivable coupons. were NANNY those
who were most vigilant, who lived in the Unite
States, and were, therefore, the first to get nfor-
who did not accept,were foreigners, who lived in
remote countries, or hduc1arles, representing
widows. and orphans who had TO to await the h de-
creeS ofcOurt, before making the cnange III tne
form of their investments.
Within a year after the passage OF the Funding
VIRGINIA was converted into bonds, the coupons
on which were receivable in payment OF taxes
and to the Bet6 6 Inc
visions of the law and convert tnelr Donds into
s.consol bonds the LEGISLATURE re-assembed and
in hot haste passed bill, which purported to re-
neal and was intended to repeal the entire Fund
ing bill. But the creditors who had accepted the
provisions ofthe COMPLIED WIN aas Terms
new ones for two-thirds of their original amount,
commended that the tender OF terms by the State.
terms by the creditors, constituted contract be-
tween the parties, and that under the provisions
of the Constitution OF the United States it not
comnetent for the subsequent legislature Ito i'm
pair the obligation OF the contract
| Judicial PROCEEDINGS were instituted to decide
the question, and the Supreme Court OF Virginia
adiudged that in all cases in which the propostion
contained in. the Funding bill had been accepted
between the parties, which subsequent Legsla-
| ture could not annul, and, therefore, tnat tne
bonds which had been issued under the Fandlng
| hill with tax-receivable coupons attached, were
valid and legal obligations. But the Court fur
| ther and very PROF erly decided. that in cases
not been accepted by the creditors. there was no
| subsisting contract. 1t was mere offer, which was
revokable at any time before acceptance, ana ha
| Legislature to impair the obligation OF a con
tract that had already been entered INTO, it was
entirely legitimate for it decline to enter into any
| more contracts OF similar character.
| The effect OF the legislation on the subject has
t. gs5 Tie
| tors.-Al the obligations Of the State We're for
l money borrowed for public objects, and should
twenty millions Of debt. the holders of which can
lawfully collect their interest by presenting the
IN of tss
millions OF debt cannot collect dollar! Is this
i lust and right? Nay, is it consistent with those
H should govern the policy Of great State? :.
I have seen this injustice commented on. In
some quarters as Il the cfealtors were respon ea
stoned by the vacillating course OF the Legisla
ture and on it rests the responsibility II is mucl
to he regretted that any such invidious discrm1
nation should exist, and last winter when the as
ISOLATION OF bankers were seeking to effect fail
adjustment OF the Oh sas rof y
me that this discrimination between the dlffer
I emit classes Of creditors was an nnsurmountaDlt
obstacle in the path of adjustment. The question
now presents itself, whether fair dealing does
reuure thai all the creditors Of the State shall be
}, nIaced on the same footing.
facing thus reviewed the origin and history Of
, our debt-when, how and for what purposes |
: was created the vast advantages when II mas Sc
cmred to the people of the State advantages whic
i they are now enjoying and which are increasing
, every year; and having explained the history Q
W1G mas se what
az one of your representatives. have sought to d
in regard to it, during the last four sessions o
IN the Fall Of 1878, without any solicitation
: nv part, and, indeed, with me. was nominate,
: and elected to the House of Delegates. In con
: ~ersation with gentlemen from various parts 9
| the county, learned that had been elected wit
special reference to the financial sihcuitles OF tn
II the chairman OF the Committee OF Finance: Thi
deyoIyed on me the duty of looking closely int
the liabilities and resources of the State. The re
snit ,f the investigation was by means encoul
II aging it showed that the annual expenditure, II
Guiding current expenses OF me government, da
. horizon of the public debt at six per cent and tn
unfunded portion at per cent, exceeded the re
So1Iars In other words there was an annual dc
n felt in the treasury, which necessarily inVoiVe
an annual increase Of the public debt IN ne Iori
y The committee Immediately addressed itself
the duty Of diminishing this deficit, by reducin
: = the expenditures and increasing the revenues
Z, nj II was known to the committee. that in cons
% uuence Of the Ianguishing condition OF the agr
cultural interest. lands ana properly Goul1 NJ
u was made to lay additional taxes on those sui
q iects, But it was found that, under the exstln
= laws one half the merchants were paying no ia
nn Their business; and dealers in whisKey and t.
- bacco were paying license taxes entirely dspr
"a portioned to their large pronts. haliroaus, Z.
- nrass and TRANSFORMATION companies, c1rcuSes, an
70 theatrical companies were paying Inadequate ia
es on those and other subjects, which after pr
tracted debate was finally passed THIS = Pr, wi
Creased re the revenue OF the State to the extent
= three or four hundred thousand dollars ana a
" cOrdiug to the Auditors report OF 1876, nad Lnt
~ reduced the deficit from one million to SIX hu
dred and ten Thousand dollars At the 4; last Sc Sc
~ Of the two Houses was reduced from $720 each
# # $40 per annum. and the mileage was cut doy
Is one-haf This effected reduction IN the annu
~ cost Of the Legislature OF $50, O0o me House
~ DELEGATES also passed bill providing for redu
the nu% fasd o. in the
u put the Constitution imperatively requires tn
s suc b shall be passed at tie next sesse
1e and also that the sessions Thereafter saai pe
H. saving. as compared with the present cost OF
win be about sSct49 p ahon s
~ 900 no diminsh If still further. law was pass
o. u rroviding for fair assessment for taxation of