The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-02-01

no 10 render al, increase of the rate OF taxa
ton upon property nv sraa.ton ~
the Virginia debt, Mr.. ALLEN deprecated
calling Gentlemen who invested their mo-
new in Virginia bonds bloated Don't nolders.
They had as much right to invest IN w
ei,ia bonds as in land. And ne knew Inas
The proceeds OF the bonds wentto lnternai
improvements for be.begeft OF the people.
But TO demonstrate the entire truth Oh the
declaration In the preamble Dir. ALLEN COM
pared-frst, the population OF sTginla 10
1860 and 1870, where there was 1aiiing 10. oH
of 100000, including the loss OF Vest VT.
piria. and thereby many OF the very pest
9eople we had second, the falling offin per-
sonaI property amounting to nearly Two
thirds: third, the falling Oft In the value OF
real estate-a difference OF 22O,000,0uo.
The value OF the slaves lost by The war " was
Mt least S245, 600. There was amer
ence OF $50, 600, 900 in the States interest IN
works OF internal improvements ana tue
railroads now, instead OF being run IN tue
interest. of the people OF Virginia, are, as
result OF the war, in the hands OF receivers
appointed by the Federal courts
Mr.. ALLEN also showed what had Deen
the losses Of the State in the matter OF banks
and in other ways, and the necessity COM
pelIing the erection OF the asylum 1or Tue
eolored people, and necessitating far greater
CONCENTRATIONS to save the very institutions
of learning from falling into the hands OF
the receivers.
The speaker then briefly but graphic
ally pictured the desolate condition OF II
ginia as she was LEI by the war.
Mr.. ALLEN said the Legislature that
came here in 1865, as il possessed by.some
strange iniatuation, recognized the entire
debt issued in the name of Virginia-every
cent of it. 1t was most unwise legislation.
They passed the first funding bill. Then
the long night OF reconstruction came on,
and lasted for three years. What man then
thought OF business? Even in the valley,
where their local affairs were safe from peril,
the people, looking in sympathy to Eastern
Virginia, quit their work and labored not to
make money, bet to secure republican
form Of government for Virginia.
At time when none of these debt ques-
tons were discussed, Il Legislature, lnclu-
ding many excellent men. came down here
and passed the last funding bill. Mr.. ALLEN
conceded that the gentlemen who voted
| for that bill were conscientious and honest;
| he did not assail their motives, but gave
them credit for the same purity OF purpose
| he now claimed for himself and associates.
| But under the specious prctence OF settinS
apart third of tine debt to West Virginia
| they piled in to the funding bill war anu
reconstruction interest, and piled interest III
upon interest, and compelled people to sur
render their old bonds whetherth they wished
-, fsfcf ontN ~ %.
adjustment, as the Legislature OF 1S66'-6I
passed the first funding bill. They essayed
| to provide for the payment OF the inter-
est on the whole debt. That was
| lust as sacred and irrepealable contract
as the contract under the last funding bill,
| though the bonds did not have the taX-re-
ceiyable coupons attached. But gentlemen
will say that the funding bill OF 1871 was op-
tional; that parties were not compelled to
fund. But look at the bill itself! 1t pro-
yded that after the passage Of that act no
interest should be paid, except in accord
ance with the act itself, and the act itself
permitted payment Of interest only on the
new bonds. Now, wasn't that forcible re-
adjustment? Yes; for they had the credi-
tors in their power; the bonds they had had
no coupons receivable for taxes, and they
must fund or get no interest.
| And now you say that this funding bill is
a holy thing, and you say clay not impiouS
hands upon it." Having coupons attached
| makes it holy. and you can't touch them
without violating the obligation of 4 con-
tract!
This bill, MI. ALLEN asserted, was passed
upon false estimate OF revenue. When it
passed there were S1,S00,000 in tue Tres
ury. Not quite seven years have passed.
| The debt then assumed was within frac-
ton of what it was before the war. Now
what is the condition Of affairs 1t is a
terrible condition to be brought face to face
with. To-day the Treasury is bankrupt;
the Auditor is running through the streets
begging short loans to pay the members.
The debt due to others than the State is
swollen from S30,000,000 to S34,000,000.
The school fund is bankrupt; the schools
have been robbed to pay the public credi-
tor. The asylums are in arrears as to
their appropriations-money needed for
everything, and none at the States COM
mand.
And yet you tell me reimbursement is not
necessary. The defcienc; annually on the
debt proper is $S75,000, with nothing being
paid en- the literary fund or on the sinking
fund. Altogether the deficiency is $780,
600 annually. Reputation is working out
ITSELF 1t will certainly come unless we do
something to stop it.
Now, what shall we do?
There are two courses that may be pur-
sued. One is to raise taxes as high as may
be necessary, no matter what the distresses
of the people. The deficiency on the debt
proper IS SS7j,000. If the liquor tax pro-
duces what is claimed for it by the Auditor
the deficiency would still be about 1915, 700.
That additional revenue, at least, would be
required. Then there is nearly 100000
of interest in arrears. What are you go
ing to do with it II? Are you going to re-
adjust it? If you are, then you stand with
me. If you are going to pay it without re-
adjustment, then you must increase your
taxes-somcthing like 80 OF % cents on the
500. What are you going to do ? Mr.. AL
LEN again asked II you are not for in
creased taxation, come forward and tell us
what is your scheme. Are you going to
tender to the creditor a four percent. bond
with a coupon attached, when he has 4 six
percent. bond with a coupon attached in
his pocket? Unless some such a bill as this
here proposed is passed reimbursement will
amount 10 nothing. 1t is farce.
Mr.. ALLEN maintained that the bill under
consideration is right, proper. and lawful
and was proceeding to present its points.
and to comment upon their purpose, and to
discuss their constitutionality, when Mr..
FOWLER OF Washington about . o'clock)