New-York tribune., 1879-09-16
TIRGLNIA.

cias,ed ~ contingent Tie assets OF The stare lh
1899 were reported at S35,357,OOO, about five
scyenths of which were unproductiVe. IN 1871
accoriine to a statement of Governor Walker, the
dobt amounted to $40. .s72,77S. Tie funding act Of
1871 provided that two-,hirls of The indebtedness,
excepting about -, 100000 IA sterling bonds
might hc funded in new per cont bonds and that
non-nterost bearing certificates might lee given for
the o. her one-tlird. Ihis oue-tnird was supposed
TO represent the share OF the old debt which west
Virginia ousht to pay, and paymen, OF interest ON
this was refused until tie account between the t"o
States conld lc adjusted. The coupons of the nc"
funded dsbt were made receivable foT taxes cue the
State.
In January. 1874 the state Auditor reported ihe
Stale deb, az $4,000 SOS. OF which 81 i,''',uo'
vas fuudabic. Inc amount on which the state
agreed 90 pass interest was T}l,3@}.ouo' Tie yearN
/ interest c,,sr,. amounting 90 ~ 500 40 50
months interest fell dae Jauuary l, lo52. bur- none
wa. p except eu some ,iclial funds. rhou-h tIe
amount Of money IN the Treasury was 92o1o.0o'
The Legislature passed hiii pending lhe opera
irons ol tie iludug act, but 20 was met v.tl ia"
/ Governors veto. In Muca, lo12. tie L'e..!iidl.
PASSED lav proAibitiug tie r,c'lpt Il TIE We.
Virginia Gers .h-ltcs part of iAe deposits oi .if-
aace coinprl.-. The pIoai4h' OF thi, l"t declared
4 that Virginia 0as not rcspnu b.e for, and w"A-c
moi pay. any part Oi The one-inird declared o. Dr
due by West Virginia on account oi tEe o.d ac"i 4
law was PASSED repeating the contract by winch the
coupons q tlc new fgnaed bonds were made iecri'-
able l1r taxes.
In 1872. tac S.ate Auditor reported that 'hc
ama,.lt ot o.cy ia Tie Treasury October o. ti.at
wear va. ~ .09~ 900. A part Cd. the Interest oae
ha3 been 9lil hut tnr arrcar.cos stll amounted -
E7Olouo. Ia, arrraragcs % interest steadily con-
t,aa... O., ac.uuiili.e. aut a.lountcd January !,
1870. .touc.,ly =. GDp,or1. NO effort appears %
have been made t. pay more sham tvo-.niids ol te
interest as f>l acc. In March, le'i. Governor
NcInpcr ,e't 81 message To thc Legislature ia which
/ be ,xprr.s. tie opinion tlat 1ne Funding Aci
nilt be carried out II the creditors would agree io
accept per cent crest ia cash. ana STATE eeri'-
cafes uayablr when the state should become able,
for thc other = per cent.
As lime na, seq, arraara-cs cf mtere5. Accumulated
s.ii more rapGly. IN June. 10. the pcr cen.
ia.ln.nts 81 interest for July. i>7t, audJauualy.
1873. wer, sill unpaid. strong sentiment n iavor
Of arorsor feaGinsunon, of the debt began 6" snow
.t~alL Al rhe end OF thc year i,5'. according io
Governor kruper. the amount ol overdue interest
under tle llndmg law alone was Sl.siO,ooO. Tins
h.d accn.nula. ed iu four years. "A tie same tine
4 Governor E.-aner wrote: Virginia VII pay her
/ debit. and p.r it ia iull, as soon as she Is able
becansc what is iight as well as what is eXpe-
diert renders the least tan ct repud'nilon in her
action impossible" Ia 1877, ace clrdiug 10 Cover
1 moi, K.niper's message of Dee moor ., th" arreaF-
ages of interest amounted II Si1 5000 The 6en-
eral Assembly 10 which this lnessag, was read WIS
considered 20 be composed oi Il majority Of iofci-
bic rclaiustsr,7 or rcpudiators. Governor kempcr
had -aiL IN ms message two years before that 'he
..l.asf faint of ropudiaiion in the acton oi NI
,in;a WAS impossible" IL this message he said ::
There is not and there never has been any orean-
ized party of repudiation in Virginia" lie eX-
! pressed .he opinion:
The grea, rody oi tosc Who resist he execution OF
the Fnniin- a.. ni'S no '"'1 90 'e 's ~, "
/ oi tlr dthI iLu'r "i' sc" 9" li' tsl'"'.' 't'
b hei-ve that Is IN n1tu." ot act 81 -air SUI
th toilnorvrih Nv taking rom the control OF MS
revenues and stripping il oi IL hsi p0wrrs ut self
| alternating n advance mort.asiug TO cfctio.s for
= period OF rhftyour years large proportion of the
49, 49,, and n,,vrrs Tne'oi',,1scr. of
The mn are He'd and irrated By the wiihes ANA
arles with which letters te iraGitioi ho'rty "t local
sell government Is eject l. 10 wound The nuneut
! OF STATE pride
TheCovcrnor warned the LEGISLATURE that if they
! allowed their hostility to tine funding act to keep
Them from making every reasonable effort 10 meet
the inst demands Of creditors If they fail 10 pro
vide al the means properly available for that prr-
nose if they refuse to remedy The ACKNOWLEDGED de-
fects of the present system then tLeir inac
ton viii be taken for rcpudaton, and all the
because il will be negative indirect and insidi-
ous."
The good counsel Of Governor Kcmpor was fruit
| less at that session. for nothing done toward
fulfilling the obligation with the states creditors
His successor. Governor Holiday, in special mes
sage - the legislature March Z 1s7s sand that he
could ind no excuse for denial IF the debt that
the obligation for the contract was unas sailed ald
unassailable and that the and ts results bad
uothn, to do with and could not affect those obli-
rations. This was evidently intended as a reply to
those rcuudiators who, like Governor Vance in
North Carolina aud others elsewhere, hal tried to
intifv rcpudaton because OF the loss of slave prop
crty
Governor Holiday reminded tic Legislature that
inability TO nay is an excuse that does not affect the
obligation OF a contract. and then continued:
We are -hut up then. 20 The conclusion that are
bound morally ana legally To pay thu debt H. hardly
state sovereignty 10 establish some legal technical
ty The debt Is on us IL is plain, Practical aHsir II
Is duy pay adjust H. Ike plain. practical me,
| N a business way.
He recommended that the claims Of all creditors
be recognized, putting them on the same footing
as they were when the debts were contracted for
consideration which belongs equally to all and the
benefits of which the Commonwealth Is now enjoy
| ing. aud without which 1T would be little better
than a wilderness Then find means TO pay the in
terest, aud in due time the principal, in the only
way 1t can be done. by taxation" The sturdy hon
esty Of the Governor no like response from the
| Legislature. Only a week later the Senate. By
| vote of twenty TO five. passed "readiustmeDt"
BILL which provided that the creditors of the State
might surrender" their six cent bonds, and re
| ceiye in lieu thereof new bonds bearing per
ceut for eighteen years and per cent for thirty
two years III his message Of October 4, 1878, Gov