The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-12
The Debt of West virginia.

Dealers in low-priccd state securities arc
familiar with what are called West Virginia
certificates, hut the general public probably
know very little of them. The State of West
Virginia was created by act OF Congress in
the year 1863 out of that portion OF the old
State of Virginia which lies west of the
Allegheny mountains embracing about ono
third OF the area and population Of the old
state. Nothing was said in the act concern
ing the assumption by the now State OF any
portion Of the public debt of the old one
and to this day that subject has remained
in an unsettled condition. Tho present state
OF Virginia attempted to dispose OF IL in 1871
by charging West Virginia with onc-third of
the debt as it existed in 1863, assuming that
the division should he made I'm proportion to
the respective populations Of the two States.
In pursuance of this theory, Virginia issued,
for onc-third of her original debt, certiii-
Gates for various amounts which on their
face declare that they will bo provided for
in accordance with such settlement rs shall
hereafter bc had between the States of Vir-
ginia and West Virginia in regard to the
public debt of the State of Virginia existing
at the time of its ACKNOWLEDGMENT" The
total amount issued Of such certificates was
about SljOo0.O0O, and they are the West Nir-
giniu certificates we speak OF. The new
State has never recognized its liability for
them, nor taken steps for the payment either
of their principal or of the interest upon
il and they iluctuatc in the market between
five and ten cents on the dollar of their face
value.
Latterly the question has been agtatcd
in West Virginia whether IL would not be
wise TO make some arrangement for retiring
these securities, and thus putting an end to
the injury which, in their present condition,
they do to the credit Of that State. Although
IL Is true that the State has never recognized
them. still they are SO generally regarded
as equitable claims against IL, that its long
continued neglect to provide for them in any
way whatever, has almost the practical eff
feet Of Reputation, and would prevent the
State from borrowing fresh money il IT should
ever desire to do So The chief difficulty
In the way Is the fact that the certificates
represent, as we have said, one-thrd OF the
debt of old Virginia, whereas the expendi-
lures for which it was incurred wer, mostly
made, not within the limits OF West Virginia,
but within those Of Virginia proper The
Wheeling Sunday Leader puts the case thus:
THE legislative records ct Virginia show that her State
debt was created in s2l and that the hrst bonds were
issued ia is.. Up To is'l3. when West Virginia
founded. the dcht had amounted To the inens, sum,
after all deductions o s3l17~,s1 - II had cost Viz
GINA this amount Tor puhl, improvements aui tor doua.
ton. to various corporations ~ this entire sum dur
in tl. period OF forty wears the I,ul amount of
on, e. 10 29 ~ spent the territory composing
the present STATE OF West virginia Ant yet tn, state
asked To pay one third the money employed IN nm.
rroytmcnts IN Eastern Nrinia. which never benefited
Western Nrsinia to the extent OF dollar Aud during
this time what had Western Virginia don, toward paying