The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-12-19
The State Debt.

| We are indebted to the Second Auditor,
Gen. Rodgers, for COPY OF his report. from
which we extract the following statements,
conveying the necessary information as to
the State debt. 1t will be seen that the ag-
gregate, a. he presents it, fully snstains all
the estimates we have made through these
columns, and contradicts the assumptions OF
| those who have disputed these estimates and
endeavored to make the obligations of the
State less than they really are. The recent
address to the people of Virginia of $50
ciety'' formed in Richmond to enlighten
the people on this subject, and which we
published last week, does not find warrant
in these official figures for the statements
therein made, and invites revision Of the
assumptions so confidently and dogmatically
put forth in that paper.
The dues to the Literary and Sinking
Funds are as much part of the debt as any
other obligation. The Constitution requires
that they shall be met, and it implies as
much bad faith not to recognize these obli-
cations as it would to dispute any other
portion OF the debt. The public schools
are specifically comprehended in the
constitutional commands. The Sinking
Fund is vital feature in the debt ar
rangement, for it is only through that chan
mel that the debt can be paid, and to ignore
either OF these, is to disregard the injunc-
tons of the cardinal law Of the State.
This debt question must be dealt with
frankly. The magnitude of the obligations
and the difficulties suggested thereby, must
made to grapple with and overcome them.
1t will require courage Of the highest order
to do so, yet there is no safety or wise public
policy in evasion. The truth must and will
come out, and the sooner it does so and ie
recognized, the better it will be for the cred-
itors and the State.
The following are the statements Of the
Second Auditor, to which we invite til,
careful attention of our readers:
WHAT Is THE PUBLIC DEBT.
at the last session OF the General Assembly ION
tie I'd January 1878, the following resolution was
adopted by the House OF Delegates
Whereas different statements Of the outstand-
ing Indebtedness OF the Commonwealth OF Vir
ginia have been made, and some uncertainty as
the true amount thereof seems TO exist in this
body as well as IN the public mind:
Resolved, That the committee on finance be in
structed to make thorough investigation OF SAID
deLt showing its full and true amount on thu
first Instant; the different classes ino which 1t II
div ded; the amount thereof which is principal
and what amount is inter 1T accrued before thai
date, and that said committee report such stat,
nent OF said debt principal and interest. as ma
va rded as authoritative upon the subject
Under this resolution a subcommittee OF fv'
membe. OF the finarce committee was charged
with the performance oil the duties assigned then
and after the most thorough investigation the.
could make. they reported to the House the pre-
else amount OF the debt and interest," as stated by
in my last annual report,
will be pardoned, trust. for going back and
stating some former facts on this Subject.
The. General Assembly, by act OF March 26th.
1858. fixed the amount of the public debI on the
lst of January 1882 at gil. 81 $50. On the 3ot
APRIL. 1874 JOINT resolution was adopted in the
following words:
Resoleed by the General Assembly, that the Gov
of the commonwealth, together with tn
Treasurer, be authorized and required with thu
aid OF such experts as they may deem it necessa
ry to employ for that purpose, to examine and re
pc ri upon the condition and manag cement OF AT
fairs in the basement Of the capitol and tina, the,
be required to report to the next Genera. Assem-
bly, the result OF their Investigations with such
recommendations as they may deem proper
Under this resolut on, John 0. steger. Esq, a
distinguished lawyer OF the ,ity Of Richmond,
was alone appointed such expert, and IN Ma!
following proceeded to discharge the duties as
signed him. which occupied his time chiefly foi
thorough; and the result OF his investigation
made in very elaborate report to the next Gen
documents OF that session as document No.
MIR. Steger tells us in his report. that Gin max
ing this examination Tin the Second Auditors OF
fice) was instructed if practicable to ascertain
the state of the public debt.
He commenced with the debt ascertained by
the act referred to OF March Goth 1855 and traced
through changes
1871 the date which the debt was to be funded un-
der the act OF ,rch 3Oth 1871, and after critical
and exhaustive examination through all theSt
years. involving transactions exceeding one hun
dred million dollars. Mr.. Steger says the small
of the Auditor, and those made by me is cert Tin
ly very astonishing, when we consider the mate
rial upon which we mad to work and the difficul-
chat, while we used every possible exertion t.
make our statement accurate. and exhausted ev
cry means in our power to testiCS accuracy. still
rely with more confidence upon the accuracy OF
Auditors statement. than do upon the accuracy
re ports of the Second Auditor in respect to the
amount of the debt as true.
This may be held to be conclusive as to tn.
amount as.the debt and interest due LIST July, 1871
And now, in regard to the debt from that day t.
this, the beginning of the fiscal year. beg to
add. that since the adjournment of the last ses
sion, o the efficient clerks in this Office of l,
years experience, have devoted their whole time
when not engaged in current work. to careful
examination OF all the funding and Transferring
ing OF stocks in the office. comparing the regis
tiers and the funding and transfer books, and by
all possible means testing the accuracy Of the is
sue of stock. and is gratifying to say that only
few fractional errors have been found, and they
in favor of tie State.
l confidently conclude, therefore, that this re-
port does present truly the actual state and con-
dition of our public debt at this time.
Statement A shows the debt proper, exclusive
of bonds held by the Literary Fund and tn.
SinkingsFund to be-: .929, 367,S50 06
To wit: in Consol Bonds and those in
GLIDING certificates which may he
converted into such bonds with
coupons receivable for taxes
$2U,224,515 80
In sPeeler' or Second