The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-07-17

necessary a temporary increase of taxation,
but it will not last longer than any increase
our own terms would have necessitated in.
side the ten-y year period. In the lap between
the new and the old bill there will be certain
arrearages that may call for temporary in
crease. The weld between the two systems
will be likely to leave bulge or swell which
we ought to get over pretty soon. The 4
per cent. period is little too far ahead of us
for any safe calculation, but even the per
cent. period will be no heavier than the pres
ent coupon interest on the consol debt, which
We are actually paying. The question will
then depend on the condition OF the State at
that time. With very moderate degree OF
recuperation, any increase, then, ought to
be unnecessary. The per cent. period is
thirty years off. Most Of us now old enough
to vote in this campaign will then be dead,
and our power or duty to look after the fu-
ture is one in which the question Of limita-
ton enters, as it does as to most of our res.
possibility for the past. Moreover, if the
credit Of the State should then be good, and
surely thirty years is enough for that exper-
iment, we can then easily borrow money at
four per cent. to pay off the 5 per cent.
bonds, as the Federal Government has re-
Gently done. Practically consider the bill
one at three and four per cent. It is not to
IL
demonstrate remote increase under this bill
improbable, such must even more 80 be the
case il we should repeal and 20 back to six
For then, even it we should repudiate the
peeler interest, the consol interest ON two
thirds of the debt alone would make for ten
years much heavier burden than the Nc
Culloch bill does.
The sponsors for the bill-those who voted
for it-have declared and detained that it
will not Increase taxation. If it does, then
they are to be held accountable for it.
1t is alleged by some OF our friends that
this bill destroys the school fund. This
charge is one which my calculation does not |
sustain. The bill provides that no funding
can be done under it that does not bring the
bonds in the proportion of two consols to |
one peeler. So that three bonds are the
least number that can be funded at any one
time. If only three bonds should be funded |
under the bill, it would increase the amount |
Of money available for free schools. Take
the case of three one-hundred-dolla bonds |
presented at one time. On two of them the
bondholder is now getting, by his tax-receiv-
able coupons, six per cent, or taoeloe dollars. |
The other peeler bond We pay no interest on,
simply because the holder cannot enforce ITS |
collection. But the $l2 on the other two we
are paying and must pay. AS soon as all |
three are funded under the McCulloch bill I
all three of them draw from US three per
cent. OF nane dollars, leaving three dollars to
60 TO the support OF free schools. 1t is as
clear as cloudless noon that every pair OF
bonds funded under this bill saves to free
schools about one-fourth Of the interest we
are now actually paying. 1t is equally as
clear that il we repeal and 90 back to six
per cent. the schools will remain closed un.
III we can devise and pass better bill. TO
'epeal now will keep the schools closed until
he administration Of new Governor shall
e secured who VIII favor repeal. When
hat shall be no one can accurately foretells 7