The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-06-28

it, and in lieu of it, determined to submit prop
osition to the creditors, which, it was hoped
would lead to a more prompt and satisfactory ad
justment.
forty five millions OF dollars In the formation
OF the State OF West Virginia. the old State %
Virginia was deprived Of about one-third Of he
territory one third OF her population, and one
third OF her taxable values. Assuming ether o.
apportionment, it was considered by the Legisla
ture, that the fair share OF the old debt, which
dS that Virginia snoald o
the remaining two4thirds. In other words 1t was
thought Just that West Virginia should assume
fifteen millions OF the debt, aud Virginia the re
naming thirty millions.
Following out this idea. the Legislature passed
a solemn act. by which it proposed to the credit,
both States. and accept new bonds OF the State OF
Virginia payable in "a years for two-thirds OF the
original debt; and certificate for the other third
the proposition. That il West Virginia should, at
tn sp pay tx thing t to a Ts On oa
faithfully account for and pay it over to the cred
itors.
the creditors, the Legislature pledged the faith
of the State for the punctual payment OF the in
terest on the new bonds sepi- annually, and by
tared COUPONS for interest on these bonds should
be receivable in payment OF all taxes and dues to
the Commonwealth
osition was tainted with Reputation and Others
affirm, that the State OF Virginia, notwithstand-
ing the acceptance Of the prop0sittion and the
share of the debt due from West Virginia.
Both of these assumptions are idle decisions
any part Of the debt, for which she was equitably
responsible. She simply submitted proposition
to her creditors which they were at perfect iber-
ty. todccept or decline, as they might think best.
II they declined, there was an end Of the matter.
II they accepted, 1t became compact between
them; a new bargain which annulled the old obi
cations, and substituted new ones for it.
The joint obligation OF the two States arose out
Of the old bonds issued before the war; and when
the holders Of these bonds Voluntarily 1i
them. by which Virginia bound herself to pay
two-thirds OF the original debt and give certif-
due from West Virginia. the old bonds, were an
nulled, and thereafter had no validity.
p The case may be illustrated by a familiar exam
pie: Suppose A. and B. are partners in business !;
A. owning two-thirds, and B. one-third. The
firm owes debt Of three thousand dollars to G.,
which is evidenced by note OF the partnership
dissolution takes place, and A. takes wo-thirdS
Of the assets, and B. the remaining third A.,
however, retaining the partnership books. 1t is
obvious, that, notwithstanding the dissolution,
both partners are responsible to c. for the whole
his for The share Of the
to him the fact that B. was in possession Of one
third OF the partnership assets, and was, there
fore, the party who was in equity bound to pay
he should surrender the old note and take, in
lieu of it, note from A. for his twothirds OF
the debt, and AS certificate that BIS third was
still due and unsatisfed. and G. should accept the
proposition, would any sensible man suppose
that the original note, which had been surren-
dered and cancelled, was still in force. and that
an action could be brought on 1t? Or, would any
person suppose that c. could still proceed against
A. for B. IS share, notwithstanding the surrender
of the old obligation, and the substitution of
new agreement between A. and G.?
I think, therefore, that may dismiss these idle
assertions as calculated to deceive none but the
most ignorant.
now return to the narrative OF events con-
nected with the funding bill.
After the law embodying the propositions
above recited has been promulged, 1t became q
grave question with the bondholders, whether
they would accept or reject the terms offered. On
this matter there was much diversity of opinion.
Some. promptly accepted and surrendered their
old bonds, and received new bonds and certif-
Gates. Others hesitated, whila guardians execur
tors, and trustees, who held bonds in fduciary
capacities were unwilling to take the RESPONSE
bflity Of funding until they could get the author
[ty OF the courts to do 30.
The general result. however, was, that 237.
Dis Of the old debt was funded, with taxable re-
ceivable coupons.
The Auditor of Public Accounts, in his report
Of 1876. page a. states the debt as follows:
a k,,,skI,