The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-09-11
Practical Views of the Debt Question.

| lance that no We'll wisher of the State can
DC entirely Indifferent to it. We would will
ingiy drop the subject. content with the ar
zuments time and again advanced to show
that the McCulloch bill is just within itself.
just to the creditors, just to the State, with
in The capacity of the present revenues to
meet, and comprising the practical and es-
sentia element of re-adiIs tment which
nine tcntbs of those arranged under that
policy, at first declared for 1t is a read
| justment mt asure-the fruits OF the labors
and arguments of the re-adjusters, and meets
the original demands Of those who first es-
poused the cause aud asserted the necessity
and right Of re adjustment. With the ex-
ception of the coupon feature, it embraces
nearly everything that was at first asked,
and this becomes mere abstraction under
the operation Of the bill-representing an
| IDEA We do not approve, but tolerated and
aeque seed ia because it is "a sentiment not
affecting the practical results under the cp-
erations of the bill. AS an original prepo-
sition we would not consent to its incorpOra-
ton into any State polity, but it lisa part-an
essential part of the law of 1871, and in con-
sideration of the concession OF practical
benz fits to The State by the creditor E, we are
willing, under the circumstances, to recog-
nize The security it implies, and which the
creditor demands as important in the estima-
ton of the market value of his evidences Of
| In, Il, 81
ton for an average per cent obligation,
and when he DO, S this, also stipulates that
the security Ia c possesses shall not be weak
| ened Practically i. addresses itself to eve
nv mans sense OF right, and substantially
propounds the question to him, whether, in
his private tIabsaetions. be wonld be salts
fled 18th less. Let each man apply the
though; to himself. and answer III" question
for himself.
The issue be fore the people should be SIM
pliied and not encnmbered and embarrassed
by the discussion of points which have no
practical bearing. The McCulloch bill for
INITIATES the debt upon just has is, and it is
therefore right to pay what is just It is
proposition from the creditor to surrender
one third Of his accruing interest, and one
half of his accrued interest. 1t is therefore
right we should not require him to weaken
his security. 1t brings the obligations and
expenses of the State within the comea SIS of
| the present revenues-the aggfe gate OF
which we have been paying for years, and
can pay hereafter. We the refore cannot put
| in the plea Of inability 1t settles vexa-
toss dissension and source OF agitation, re-
| stores credit aud contiJene', and lifts the
obstructed her progress and development.
Therefore both self-interest and patriotism
demand that we should accept the settle
ment.
| 1t is not our purpose, however, to discuss.
| at any length, the debt issue. Our object
| in adpeiting to the subject is to call atten-
| ton to some practical views OF the matter,
presented by a gentleman who is intimately
familiar with the whole subject. has given it
much thought, and speaks from vel! aseer-
tanned and.unqu astionable authority. He says
| in private letter:
| up to July l, 1879, bombs a.aouncing to
| five and half million dollars, fuRdable
value. had been deposited for conversion.
| and this amount has been augmented by de-
posts since made, and by bonds held by the
| twc corporations and their agents, until the
| aggregate is as Least 5000, 900. (These re-
suits could probably have been increased
had not the operlt ions ~ converting the
bonds been attended with SO much delay
This has been unavoidable perhaps, bat ITS
inevitable tendency is TO hinder progress.
Holders dislike 10 have their bonds tied up
where theyaEa t,ofa,a!afle forthree months
time.)
At the same line the +, suits exceed any
pledges that we have made, and cannot but
be satisfactory to the friends OF the measure.
which must by this time include every citi-
zen who has an intelligent conception OF the
trlie welfare of his State.
Let us look Ger movement at the nu-
merlcal gains of the operations thus far.
The S., SOC. 600 funded up 10 July LIST, was
made up about a. follows:
Principal OF ReelefS ana UHIunueu
Interest Ds overdus, sias ,ooc q Joper 'ep
nt.............-.s',-, t....... ooo'ooo W
s5,5OOOoo 90
In the first place, therefore, the ob]iga- i
lions of the State are reduced outright by |
$500, GOO, surrendered by the creditors.
Six months interest On S. 900, COO at per
cent. per annum equals. vi o Oo
On the same at per cent per annum.... $4,000 |
5000
Thus saving $4,000 interest for the six /
month ending July LIST, 1879, and for s,aesl |
six months during tie remainder OF the term
of forty years; and this saving would result
should the refunding now come to stands
still, which Of course it will not.
The magnitude of this gainis best appreciat-
ed, showing what it will amount to; seven
ty-fige thousand dollars semi annually. 70.
forty years Improved at 81 (Ghe average rate
which these bonds bsa1 ACCOUNT to 3,679.-
400.
1t is quite within the limits of safety 10
double these figures for LIST of January, 1880,
as follows
cancelled .sl0 900 900
Amounting at the end of the term to- 21,c59.s9D
Even if it should be assumed that the in I
,erest on Consols only should be taken into
,Ie account, and that if the Re-adjusters'
7ie ws pzeyail, no interest would be paid up
IN the Peeler bonds although this is not an
allowable assuBPsion), the gain is very con-
l. e.:
Interest on 1886 1857 Consols for sig
months at per cent per annqm.. A2pe 900 ,
interest on $40 900, 900 new 10-40s at 8 per &
cent. per &nnum l50, 0p0
10000 {
Dr. a seml-an1ual savf9g OF $4,000 in the S
mount which the State now pays i'm the (
way of tax-receivabe coupons. I
This leaves out of the account the indirect /
BENEFITS resulting from the settlement which u
will unquestionably be greater than those \
ust given, Though they canno: be exactly O
lated in numbers. Z
1t would seem that this statement should v
f Itself be sufficient and conclusive an &
wer to the arguments of the opponent of C.
ho funding sefpSaeM