The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-02-18

The state Debt.

.rha ], legislature OF Virginia now ~ ses-i
! non was elected with tie general under.
standing thai IL would settle the matter q
che debt 81 the State 30 as 70 take Y out Of
the arena 81 vary politics and END g as y. =
subject 81 agifasiou at the annuai elections.
Tfare ysere phases Of difference In the opin-
ions oss many, hui an concurred In the idea
fhss The matter of the debt and Of providing
Tor lie payment was, II possible, 70 be =
settlement flnality -oi H. The dider-
ences OF OPINION were not few in num-
Der; but these were susceptible OF division
into TIVE parss. One favored settlement
mon the basis Of concurrence between
! the state and che public creditor, and the
other repud dated the idea OF consulting the
public creditor at all and declared itself IN
3 favor OF action independent Of the creditor !:
action that contemplated the . en- forced 2
acouiescence CD OF the creditor.
These two parties banded themselves soon
after the meeting Of the Legislature, and
time and discussion and party strategy
have brought them along to the present
condition, which appears to be aN dead
lock y between the two bodies composing
the Legislature. Those who oppose the
q forcibie y settlement. e., making law
without respecting the rights Of the credi.
Tor have passed Mr.. BARBoUR's bill in the
House, and those who propose to respect
the creditors rights and require his con-
c,srrence 10; any measure Of settlement, hav-
inc a majority in the State Senate, have
passed Mr.. BRooKE's bill. which has been dis
missed by a triumphant majority. So here
we are, the two parties Of adjusters. !" forci-
ble'' and .toptional," firmly standing upon
their different grounds.
The State OF Virginia has been most un-
fortunately situated since the war, and the
history OF her financial legislation is sadly
10 her disadvantage. In 1866. under the
restored government OF Virginia, the Legis-
lasure assumed the State debt, and in the
strongest manner avowed the obligation Of
Virginia to pay it. It assumed the debt,
amounting to So, 966, 39s.as, and the ac-
crued interest thereon OF 5000, 91S.49,
which was ordered to be funded and be-
came interest bearing on the Goth Of Feb
ruary, 1856, by vote OF rs ayes; noes,
TOpG anu was pdSSCtAs on JIG SdLhC daS
by the Senate-aYes, q; noes, none
Then was the period at which the debt OF
the State might have been compromised by
agreement between the State and creditor.
The creditor could then understand fully
the situation, and would have readily con-
Cured in any just and practical arrange
ment warranted by fair deduction from
the circumstances. But the true Virginian
spirit OF pride and independence and honor
was too lofty In the Legislature to descend
to the level of business arrangement, and
the whole obligation was taken up heroically.
In 1S66-'67 the Legislature passed Bill to
pay four per cent interest as the portion Vir-
ginia felt bound to pay until settlement
should be made with West Virginia. Atthe
same session preamble and resolutions
against Reputation, moved by Colonel
Thomas j. EVANS, Of this city, were passed
December Is, 1867 by the House. aoithout a
diutsion, and by the Senate 90 ayes to one
no. The resolutions were:
81. ReSolued, That this Legislature will
pass no such acts Of reputation r. e., such
as the preamble set forth as being appre-
hended by the public creditorl.
80. That such legislation would be no
less destructive OF our future prosperity
than OF our credit, our integrity, and our
honor
Without in this brief article going par
ticnlarly into the history Of the debt ques-
ton, we come at once to the funding act OF
1871. That in effect settled the debt at two
thirds to be paid by Virginia and one third
by West Virginia. There is now no ques-
tion at all raised contrary to this settlement.
The funding act provided for coupons OF
interest upon the bonds that were receiva-
BILE for debts due the Commonwealth.
Everybody knows what resistance was al
forwards made to this feature. 1t was as
sumed that the coupons would choke up the
Treasury and would deprive the State OF
means to meet the expenses OF government.
The act was repealed by the next
Legislature; but the Court OF APP
peals declared that it was constitu-
tional, and that the public officers were
bound to receive the coupons in payment
OF taxes, &C., sof all bonds issued prior to
the repeating act. And here we are now.
The coupons thus pronounced valid cannot
now be rejected by the public officer, while
those bonds issued after the repeal, being
deprived of the |" receivabIlIty" privilege,
have been accommodating interest and i'm
paired in value. These are the so-called
.speeIers.'' in round numbers S1o,0O0,0 900
in amount.
The . Forcible Resdjusters" are obstruct-
ed in their measures by the decision
which makes the funding act constitutional.
But the BARBOUR bill, if it becomes law,
will bring up the question of its constltu-
tionality ia new form, and we will in such
an event have to await new decision
with all the patience we can muster, while
the State is suffering in her commercial and
domestic interests and the bondholders de-
tanned in an uncertainty which cannot fail
to be hurtful to the value Of their property.
Bit we should remember that that property
being the credit Of Virginia. its injury is
the injury OF the welfare of Virginia in a
vital manner.
The history OF the finances Of Virginia
imposes most serious duty upon the State.
After such repeated pledges by Virginia,
and after a settlement by which she was
released from third Of her debt, her rea-
sons for demanding further reductions are
I very weak. They certainly afford no pre-
textsor the arrogant and imperative manner