The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-11-28
Gen. J. H. Williams Plan for Adjusting
the State Debt.
WINCHESTER, VA. Nov. 1a, |

|
have hurriedly reduced to writing, some view
on the subject of the public debt of Virginia an
place them as requested at your disposal, hopin
| they may prove of some value.
| THE PRESENT SITUATION
| To-day Virginia, with an empty treasury is su
fering all the ills incident to the reputation {
beng repudiating State. Her creditors, en-,
mics and rivals industriously charge her, whe1
ever interest or feeling prompts, with the reput
iation of her just obligations; they declare he
ability to pay full interest on her debt chare
the failure to pay to an unwillingness, and CLAIM
that our taxes are light and our means ample.
Not few of our own people give countenane
| to this clamor and these charges, and to-day W
stand before the world charged with one of tn
gravest of national crimes, viz: Reputation.
| This charge we must meet and answer; GU
plea as the lawyers say is in confession and avoit
| ance. 1t is true we do not and have not paid GU
| interest according to the letter of the contrac
| That we are regulators, in other than in nam
we most emphatically deny. There are man,
| good and sufficient reasons and answers still GU
defense is not heard, in fact is not made befor
the world, and We are to-day enduring all the fea1
full consequences, isave the consciousness
guilt, that attach to so grave an accusation
Our people, no people can afford to make ligh
OF such charge. National honor rises aboy
personal honor as the life OF the nation outlast
that of the individual; neither can submit t.
such reflections both must be indicated,
will not do for us to drift along. trusting to tn
fullness of time to vindicate us. REPUTATION
when full and complete, often fails to overtak
the SANDER. To meet the situation and silenc
the accusation is the duty Of the hour
HOW CAN THIS BE DONE?
There are creditors of the State with preferre,
and unpreferred debts some who get interest
some who get none. The preferred creditors ID,
virtue of their tax receivable coupons) hold il
round numbers s20OO0,OOO OF principal debt. A
class equally meritorious, with no security, hold
$10,OO0OO0 of principal debt, and more than 81,
OOO,OOc OF over due interest. We owe to the chill
dren OF the State. represented through the Liter
airy Fund, of principal something over 81 ,OO0, 600
We leave out OF view the Sinking Fund" the
settlement with West Virginia ''to be hereafter
made, the large arrearage to the school fund land
unpaid appropriations.
For the present, ignoring the past, we have, I'M
less some change be effected, interest to provide
for, year by year, on $31,OO0.OO0 at per cent
Under the provisions of the Funding BILL" the
holders OF s2O,OOOOOo of this debt pay themselves,
or rather they collect their own interest. With
an annual revenue of some So, 900, nothing is
left for the creditor who has no such self-execut-
ing contract
The expenses of the Government, when eco
nomicaly rum, and the schools absorb the bal
ance OF revenue left after the coupons are taken
up, and we are annually in arrear some $700,OO0
Various plans and schemes have been resorted to
supplement- the revenue new subjects of taxa
ton have been sought for and spoken of. new
methods OF taxation have been resorted to, but
all have proved abortive. There is no way to pay
full interest, to defray the expenses of govern
ment and fulfil the requir ments of the 'constitu-
ton" as to schools, but by
AN INCREASE OF TAXEsj.
The increase necessary is at least twenty-five
cents on the hundred dollars of property, so say
our best informed men. Against this increase,
nyincrease, the mass Of our people stand solemn
ly and repeatedly pledged. The Conservative
party by its last deliverance, in the shape of the
platform adopted in the Gubernatorial Conven-
ton Ill August. 1877 stands committed against it.
The present Legislature, with almost entire
unanlmlty, have declared against it; the Barbour
Bill VETOED by the Governor) promo unces against
it. The Bocock-Fowier Bill as found in the ses-
sion acts of 1878 page $50, declares against it in
these emphatic words: Whereas, this General
Assembly has expressed the belief that the pres
ent rate of taxation is as high as can be borne
without destroying or at least greatly impairing
tne industrial interests and recuperative power
OF the State" This is the preamble, but on its
are based its enactments. Here
then, two departments of the Government, the
in passing, and the Governor in ap-
proving, are committed against an increase In
fact, no respectable number of voters at any time
nave favored an increase, and no cam idate for
Office, so far as known, whatever may have been
his real sentiments, has openly advocated an in
crease Of taxes. The most advanced position has
been with an 'f necessary" while for years it has
been notorious that the revenue was falling short
yearly some six or eight hundred thousand dol
lars under these circumstances and in view of
the facts. the only remedy is
ADJUSTMENT.
Can it be done and how Is adjustment practi-
cable and consistent with the honor of the State
We answer yes, and with no little difidence sub
NIT our plan. Its success depends upon unity OF
action, for without it, there is no hope We stop
for the moment to call attention to the fact that
we have been divided and distracted in council,
The discussions of the question have been bitter
in the extreme, whilst the difference an last
analysis, has been seeming rather than real-the
stand point, making the chief difference.
The so-called debt payer denounces the adjust |
II as repudiator; this naturally provokes a |
larsh reply; the courts come in for a share of
;ensure in the discussion of their decisions on |
he vexed question, and in the mean while every
interest langushes, the treasury is empty, credit
sone and there to be no leader for the peo-
Die. whilst the creditor in sullen silence views |
he question of adjustment, and our dissensions. |
THE PLAN.
Refund the principal of the debt, viz $1,000,
90. Issue bonds to run fifty years, aoith tao re-
etc0ote coupons, aoen and des ired, the bonds to
De exempt from taxation, and to bear interest at
50 per cent or one cent per day on the $780, But
he law providing for this refunding to take effect
md be operative only after the people at general
lection shahare app rored or sanctioned it, pro-
tide for it, by constitutional provision. The
auction Of the people to the settlement is the
ardinal feature OF the plan
The sinking fund" and all arrearages to be left
0 the future for settlement In an article like
his it is almost impossible to go into elaborate
etalls, but we present some OF the
ADVANTAGES OF THE PLAN
LIST. All the creditors for the future are put on
n equal footing; creditors who have received
title orno interest d. Peeler bondholders) will
eceive interest along with the present coupon
ondholder.
I'd. The rate of interest will be more than q2er
ent on the present market palue of the coupon bond
no more man per cent on that Of the Peeler bond
nd on fair value is about the average rate on
ublic debts.
Sd. The sanction given these bonds, by the vote
the people, by their approval at once gives
lem fixed market value, puts an end to the dis
lssion of the debt question, that now is wide
oread through the State, and that becomes IN
'nsified In each canvass. and that occupies more
ian half of the time OF each session of the Leg
ature all which have most materially affected
he market value Of the present bonds. With
lis new bonds there need be no anxiety; the
eople give it, and they close the discussion.
18th. The rate OF interest is within the means of
lie State, and is almost as much, as the coupon
ondholder now receives, when you consider tina
sells his coupon in tn market to the tax payer
rough the agency of the broker, and as taxes
e chiefly payable LIST of December, the January
I'D July coupons are not sold before November,
Id there is thus an average delay of several
onths in each year in realizing the interest;
hist the Peeler bondholders get nothing.
5th The securityis the same as is now held by
e coupon bondholder, and in case of default the
'upons can be sold, as now.
9Th. Few Of the present folders of the bonds
ere the original holders. The bonds do not as a
sneral rule, stand them over one half their face
llue, and they can we'll afford to make the ex-