The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-02-14

RICHMOND, VA, February 13, 1873.
- tFor the Dispatch.l
Common Schools and the Sinking
Fund.
There are two provisions OF the Consti-
tuition which are equally Important to the
best interests OF the State, and equally man.
datory upon the General Assembly.
The tirstis contained in Article VIII, Sec
tion 3, and is in these words: "The Gene
raj Assembly shall provide by law, at its
first session under this Constitution, a uni
form system OF public free schools, and for
its gradual, equal, and full introduction into
all the counties OF the State by the year
1876, or as much earlier as practicable"
The other is found in Article K, section s,
and is in these words: 1.-The General AS
sembIy shall provide by law sinking fund,
to be applied solely to the payment and ex-
tinguishment OF the principal Of the State
debt, which sinking fund shall be continued
until the eXtinguishment OF such State
debt, and every law hereafter enacted by
the General Assembly creating debt, or
authorizing loan, shall provide sinking
fund for the payment OF the same"
It will be seen from reading these two
clauses that the Constitution uses precisely
the same language in imposing these duties
on the Legislature. In both it declares that
"the General Assembly shall provide by
law" &c. They therefore stand on the
same same ground. il one is binding, the other
is equally obligatory. II it be the sworn
duty of the Legislature to provide by law
uniform system OF public free schools, it
is under similar obligation to provide a
sinking fund, to be applied solely for the
payment and extinguishment OF the State
debt.
Every one recognizes the imperative
character OF the first of these obligations,
and it has been faithfully carried into effect
at cost of over a million OF dollars per
annum.
The inquiry then naturally arises, Why
has the General Assembly failed to carry
into effect the provision in regard to the
sinkingdund, which is enioined by SINH
lar mandate expressed in the same words
am aware that some persons will say
that the first has been carried into effect be.
cause it is popular, and the second has been
disregarded because it is unpopular. But
I am not disposed to attribute such un.
worthy motives to the members Of the Gen
raj Assembly. prefer to refer this palpa.
BILE failure of the General Assembly to ful.
fill one of its most solemn constitutions
duties to negligence rather than to wifu
violation Of their oaths of office.
Looking at it in this light, now desire
to call the attention Of the two houses tc
the necessity OF complying with the com
mands of the Constitution.
II it be said ga sinking fund has been
established" can only say that it is trihine
with the spirit and meaning Of the Consti
tuition to set up any such pretence. The
sinking fund. contemplated and required
by the Constitution, was living and pro
ductiye fund-an interest bearing fund
adapted to the fulflment Of the object fol
which it was directed to be established-viz.
the payment and eXtinguishment OF the
principal OF the State debt. How can the
present fund, on which no interest has beer
paid for three years, perform its office O
paying off the principal OF the State debt
The term &C sinEing tu7ad" necessarily i'm
plies that it shall be an interest-bearins
fund, and that the interest on that fund, as
it accrues, shall be applied to "si1k" the
principal Of the debt.
II this constitutional duty had been faith
fully performed the debt OF the State woulG
now have been much less than it's. During
the years 1874 and 1875 the interest on the
sinking fund was paid and applied to buy
ing up, in market overt, the outstanding
obligations OF the State, and within those
old State Of Virginia was reduced, in round
numbers, $685., 200. This was done by
buying up the unfunded debt Of the ole
State at about thirty cents in the dollar
When these bonds were funded, and one
third set apart for West Virginia, there wa:
a reduction OF the principal Of the debt o.
the present State of Virginia of over 5000,
| 600, and we had, in addition, over S3O0,00
Of West Virginia certificates to set OF
against any possible claim that West Vir
ginia may have against us for squanderins
over six millions Of the assets OF the ole
State by our improvident donation to tht
| Atlantic, Mississippi and Ohio Railroad
Company Of the stock and mortgages which
we held in and against the three railroad
companies which were consolidated int
the Atlantic, Mississippi and Ohio Railroad
Company. Under the provisions Of the eX
isting law this 100000 was transferred t.
the sinking fund.- thereby charging it
capacty to still farther reduce the princi
pal of the debt.
! While the bonds are at their present rat
OF depreciation every sum OF 100000 pai'
on account of interest on the sinking fun,
enables Us 70 buy in 100000 of the old un
funded obligations of the State, thereby re
ducing the principal OF the debt Of the pre-
sent State S6O,O0O-two thirds-and pro
yiding us with an additional set-otf agains
West Virginia of $30,000-one third.
Throwing out Of view entirely the sacred
mess Of the obligation OF the Constitution
and the oaths OF members to support tha
Constitution by obeying its mandates, an
looking at the subject in o mere dollar-ant
cent aspect, would it not have been wise t
adopt this line of policy? Nay, will it nc
be wise now to adopt it.? :.le ...1.
The sinking fund has q double operation
Tt. not only reduces annually the princip:
of the outstanding debt, but it increase
every year the capacity Of the State to max
farther reductions. Pursuing this polio
steadily for few years, the principal o! th
debt VIII be reduced to manageable propo
ltions. "a
Imperative constitutional duty and an el
sIIfghted sense of self-interest, therefore, col