Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1877-08-08
Major Daniel en- the State Debt,
LYNCHBURG, Ju

levy anu uiSUuiStiutDt Oi tHe reeves
macs belong, in all forms of govern
ment but that of absolute monarchy.
| have also thought that sound policy
should exclude the deb. from beng
made a 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, and in de-
ference to them, and lest my silence
be misconceived, | now define my posi-
ion as follows
LIST. l am opposed TO Reputation.
I'd. respect the decisions OF the
courts,
Sd. I uphold The sanctity Of con-
tracts.
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 among fair-minded men as
to its treatment, or as the scope, policy,
and limitation Of adjustment.
9Th. The debt is Invisible into three
portions, each standing on different
basis. The first portion is the third
OF the original debt, contracted by
our State before its partition; and it
has been declared by Virginia to be
the Just and equitable share which
West Virginia should assume. Its
holders have acquiesced in this dispo-
sition of it. 1t calls for no adjusts
ment at our hands, but should be left
severely alone.
9th. The second portion consists of
some nine millions of registered
bonds, with accumulated interest,
excluded hom operation of the fund
ing act by its repeal. This portion
mas not been adjusted. 1t should be.
l think it would be injudicious to ex
tend to these bonds the terms of the
funding act, as it might lock the
wheels Of government. But over
lures Of settlement with the State
have been made by the holders.
They should be met in a spirit Of
comfy, and other terms mutually hon
orable and advantageous fixed upon
and adopted.
7th. 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 funding act Of
1871 to the holders of thirty millions
of old bonds, who yielded them up
deducting one,third os their claim and
accepting the terms Of compromise
and re-adjustnent which Virginia her
self offered.
opposed and voted against the
funding act. l did not think that a
State Of Virgina's condition should
tic her hands and lock up her revenues
by irrepealable legislation. But the
act passed, aud the matter Immediate
ly assumed new relations. A subse-
quent Legislature, of which l was not
a member. repealed it with a view to
a different adjustment with the hol-
ders Of these bonds. The Supreme
Court of Appeals of Virginia, follow
ing a series OF decisions of the Fed
eral Supreme Court, declared the re-
pealing status unconstitutional and
void as to the bonds already funded
and the terms already accepted by
their holders to be unaiterable save
by their consent. Besides, be it res
membered, that the Stale has acquies-
ced in the adjudication, the Leglsla-
ture recognized its binding force, and
the people at large have awaited them
selves Of it by using the medium Of
coupons-cheaper than money-to
pay their taxes.
Sth. Now, after all that has been,
or can be said on the subject, it lies 10
nutshell, thus:
(st.) The third of the debt assign
ed to West Virginia needs no ADJUST
ment.
(2dl The uutunded portion all agree
can and should be adjusted.
(3d.) The third OF funded portion
all must concede has been adjusted,
and cannot be re>adjusted without the
creditors assent. 4
None deny this plain honest truth :;
and the few who hint the contrary are
silent when reminded that even if new
judges were put on our Supreme
Court or were the State constitution
amended SO SIS to evade its former de-
cision, the constitution Of the United
States would still remain infexible, and
the Federal Supreme Court would
sternly enforce it.
9th, l draw the line respecting ad>
justment precisely where the Federal
and State constitutions alike draw it.
They forbid the State Legislature to
pass ''any law impairi1g the obliga-
ton Of contracts" Federal and State
Supreme Courts have alike decided
that the engagement: of State to re.
ceige its securities for taxes is soon
tract" which cannot be impaired much
less annulled.
10th. Any honorable adjustment
that does not violate the constitution
and our oaths to support it would have
my hearty cooperation. 1t is the
part Of financial wisdom to seek it, and
the business interests Of the State re-
qure speedy settlement Of this vexed
issue.
1lth But an effort to exercise ar
bitrary power to attain result which
the constitutions of our State and
country solemnly and imperatively
depounce, I need scarcely say to an in
telligent, minded, and law abid-
ing people, would plunge the Com
monwealth into vortex of expensive,
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