The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-01-20

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withouta quorum, adjourned.
West yirginlu's Liability for - Por.
sion of the Anfc.WaT Debt or Vir.
Ginia.
Public attention has frequently been di.
rected TO the debt Of Virginia., and to the
question whether it would be fair and
equitable for this State to assume any por.
ton of that debt. In the discussions OF
this question which have taken place ccr-
tain important facts connected with the
subject seem to have been altogether over
looked.
The Convention which assembled in
Wheeling in June, 1861, to re0rganize the
government Of Virginia and for other pllr-
poses, and which must now be considered
the first legal Convention of Virginia held
since the Convention oil 1851. on the Goth
day OF August, 1861, passed an ordinance
providing for the formation Of new State
out OF portion OF the territory Of Fir-
rinia. The ninth section of this ordi-
nance provides that "the new State shall
take upon itself q just proportion OF the
nub'ic debt OF the Commonwealth OF Viz
gina prlor to the first day OF January, 1861,
to be ascertained by chargin" to it all State
expenditures within the limits thereof, and
a lust proportion OF the ordinary expenses
OF the State government since any part OF
the State debt was contracted, and deduct
ing therefrom the moneys paid into the
Treasury OF the Commonwealth from the
counties included within the said new State
during the same period.
The first Constitution of this State con-
tanned provision declaring that can cqui-
table proportion OF the public debt OF the
Commonwealth Of Virginia prior to the lst
day OF January, 1861, shall be assumed by
this State; and the Legislature shall ascer-
tain the same as soon as may be practicable,
and provide for the liquidation thereof by
sinking fund sufficient to pay the accru-
ing interest an6redeem the principal With
in thirty-four years.
Under Joint resolutions adopted by the LIE
gisaturc on the 18th and oath days OF Feb
ruary, 1871, the Governor appointed COM
missioners .'to treat with the authorities
of Virginia on the subject OF the proposed
adjustment OF the public debt OF that State
prior 10 the 1st day OF January, 1861"
These commissioners proceeded to Rich
mond, made known their mission to the
Governor OF Virginia, and proposed to
treat with commissioners whom he might
appoint. and their proposition was de-
clined upon the ground that the Governor
Of Virginia did not feel authorized 10 ap-
point commissioners. They, however, pro-
cceded. as stated in their report, to ascer-
tain upon fair, Just, and equitable princi-
pies, what proportion OF the public debt OF
Virginia should, in their opinion, be paid
by West Virginia." They adopted as "the
principal, if not the only basis OF adjust
ment OF the debt" the benefits confer
red" on the two States by the proceeds OF
the bonds which represented the debt. and
.snot territory and population" and they
arrived at the conclusion that the balance
due Virginia was S9J3,360.53.
The Senate Finance Committee. in their
reDort oil the 23d OF December, 1878, state
that the true rule Of settlement is that pre-
scrbcd by Virginia i,trScf in the 9th sec
ton OF the ordinance Of August 20, 1861,
which have already quoted. and that upon
q settlement according to this rule balance
will be asccrained in favor Of West Fir-
ginia OF $4,000. This sum is the excess
OF the payments into the treasury OF Viz
sinia by the counties now composing this
State since the first Virginia bonds were
the limits OF this State, and our proportion
OF the current expenses during the same
time.
The act of the Legislature OF Virginia OF
March 80, 1871. known as "Thc Funding
Bill proposed to the creditors OF Virginia
holding bonds issued prior TO the 1st day OF
January, 1861, that they should surrender
these bonds ana receive i'll lieu thereof for
each bond, or for the aggregate OF these
bonds. two obligations OF Nirgnia-ona a
bond for two thirds of the amount OF the
bond surrendered; the other certificate
OF Indebtedness for the remaining third,
signed by the Treasurer and Second ALI
ditor OF Virginia, payment OF which
was to be provided in accordance
with such settlement as should thereafter
be had between the States OF Virginia and
West Virginia. In response to this pro
posaI many bonds were surrendered and
new bonds and certificates were received
therefor. West Virginia was in no way a
party 10 this arrangement. II it were true,
as has been frequently asserted, that the
original bonds, issued before the creation OF
this State, are to be regarded rs the Joint
and several obligations OF both States, yet
when the creditors have voluntarily surren-
dered these bonds and accepted the obliga-
tons OF Virginia only, have they not re-
leased West Virginia from any legal obllga-
ton to them?
1t has been represented that the certi-
SnLGS are "a uuC
from West Virginia, and that they do not
bind Virginia. This is grave error. They
are, as Is shown on their face, the promises
OF Virginia.
1t Is rot probable that Virginia will urge
a settlement. Whenever an adjustment OF
liabilities is had, Virginia can be called
upon, under the terms OF her contract, to
settle with her creditors, and she cannot ex-
pect to recover from West Virginia sum
approximating one third OF her ante-war
debt.
The Governor OF Virginia-Governos
Kemper-in bis message OF October 8, 1871,
saws: !" Virginia can never become lab e
for any part OF West Virginia's third ex-
cent by virtue OF settlement hereafter to
be concluded between the two States. Clear
II and unquestionabiy, such settlement is
impossible to be had without the coopera-
ton and assent OF Virginia. II we even
become liable for any part OF the debt
thus RENTED to West Virginia. then 1t VIII
be no otherwise than by her own voluntary
net that Virginia will incur that liability
Until the coming OF the millennial era, y
NAV scarcely be supposed that 81, one \ STATE
will volunteer TO assume the burdens q an
other State.' .s.c.