Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1878-09-27
Speaking on the Debt Question.

A CONNECTED STATEMENT OF THELEG1S
LATION ON THE FUNDING BILL-WHA1
THE DEFICIT IN THE STATE TREAsUR,
NEXT MONDAY Is EXPECTED TO BE.
&C., &C.. &C.
On Monday afternoon at O'Clock Hon
Henry G.. Allen, of Shenandoah, Speaker
of the House of Delegates, spoke at tn
Court House here, ON the subject of Re
adjustment. He opened to a thin crowd
which, however, improved as he progressed
but which at no time approached what il
called in Augusta large meeting. But
the lack was not with the speaker, for hi
gave more information about the legisla
ton on the public debt since the war thar
any one who has spoken on the subject
but it was with the people, who have been
wearied out with the discussion of the sub.
ject, and whom nothing but the most ami.
mated and personal conflicts on the hus.
tlngs can induce to take any interest in
public addresses. Mr.. Allen had the
merit of being q candidate for no
positions recommendation that few, if
any debaters here of late have brought
with them, and he has the additional merit
OF honestly entertaining every opinion he
expresses.
He went back to the beginning of the
State debt, showing that in 1910 it was
only $3,OO0,OO0. At this time the internal
improvement fever struck the State. and
she borrowed enough money on her bonds
so make the debt in 1861 amount to $33,
0,0O0. That debt. Mr.. Allen said, was
an honest debt, and the creditors gave
dollar for dollar for the bonds at their face
value. He was not ono OF those who
rallied at the holders of these bonds as
blOated bondhOlders. This debt was based
on $75S.OOO. 600 worth of property in the
State. To-day Virginia's property is as
sessed at only 1926 ,OOO, 900, and she has lost
by the separation of West Virginia four
hundred thousand population.
1t was under circumstances like these
that the Legislature met in Richmond in
1865, the message of Governor Peirpoint.
the Executive of thatday, stating the debt
to DO $50, OOO, 900 with an additional S.
900 900 accrued interest making, with what
was guaranteed for the James River and
Canal, total of al ,OOO, 900. In
March, 1855. the next legislature in which
were such men as Baldwin, Waddell.
Cabell. Joynes and others who deserved
;he name of statesmen, passed bill fund
ng the So, 100000 Of interest and promis-
ng to pay full interest on the whole s41.-
)O0,O 900. And to pay this full interest thew
passed tax bill of fourteen cents in the
sl0O which would only raise $500, 900. That
was the work of men the newspapers tell
Is were statesmen They hadn't yet real
zed the changed condition of affairs in
irginia. But their sight was clearer
when they came together again in 1867.
They had made a contract fortunately not
,elf executing like the receivable coupon
billy which they saw they could not carry
out and they forclbley leadjusted it. They
passed another law to pay only per cent.
On the debt. excluding those bonds given
Tor funded interest. and deferring any
further interest until a settlement with
West Virginia, and to pay this per cent.
they made levy Of 80 cents in the 500.
When Forcible Readjusters are talked of
the people should not forget Baldwin,
W addell and Cabell and the rest who
changed this contract after the creditors
had accepted it.
Things went on. During Reconstruct
ton days nobody thought of the debt or
the interest When they ended. the legis-
lature met in 1870 and in 1871 with Cover
nor's Walkers estimate of the value of
property in Virginia at $726, 100000 it
passed the Funding Bill. The whole debt
then, increased by the accrued interest
during Reconstruction was s45, 1000 900. of
which $15, 100000 was set aside for West
Virginia. leaving $50, 100000 assumed by
Virginia. OF this last the speaker con-
tended the State owed only a part. The
accrued interest was due only to bondhol-
hers at the North and in England, those
In Virginia having received theirs in the
DEPRECATED currency of the times, and he
held the former were not, in equity, enti-
tied to come forward to get theirs in gold.
After this action, James Marshall, of Win
chester. one Of those who sat in the legis-
lature OF '65, published letter urging the
Governor to reconvene the legislature to
repeal the law and predicting all the evils
that have come to pass, if it was not re-
pealed. The next legislature that met re-
pealed the receivable coupon feature of the
bill. but, the Court of Appeals held that
repeal imperative as to bonds already
funded.
Having given this succinct history of
the legislation regarding the state debt,
Mr.. Allen quoted Gov. Kemper to the eff
feet that the people were unable to bear
more taxation and said that Mr.. John M.
siiller, of Frederick, was sent by Gov.
Holiday, or by gentlemen who represented
him, to Rockingham, during the canvass
for Governor, to represent Mr.. Holiday g
opinion as opposed to any increase of taxa
tion. Only one man advocated increase of
taxation, and that was Marshall Hanger
(Applause). Mr.. Stuart, another of Au-
gusta's representatives, had opposed even
an increase of 10 cents in the 300 ZAP
plause). Mr.. Allen named other we'll
known Conservatives who opposed in
crease of taxation, and added that the
Conservative platform itself opposed it.
Men were not to be intimidated by the de-
nunciations of bankrupt stock brokers,
who had gone through bankruptcy often
and over, and he could not understand
how Virginia gentlemen could go and hob
mob with New Y ork and Baltimore brokers
and hear them abuse the State.