The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-10-02


that'the United States per cents were sole
at l02 or two per cent above par. In ths
same Report find that the Bro ers Bill Vir
ginia four per cents sell for less than so cents
In the dollar OF their par value. Four pei
centum on. $40, 399, 224.74 will give $Sl5, $685.
9S as the annual interest which the State oil
Virginia ought to have been requested to pay
by her, creditors at the date OF the Funding
Bill. Bonds running for 40 or 80 years at
this rate ofinterest for an aggregate princi-
pal debt OF $40, 1893, 224.74 would have been
settlement OF the State debt extremely lib
eral to the creditor. At that date the newly
organized State Of Virginia ought not to
I have been held for more. Her great, losses
Of property, the demolition Of her Govern.
ment which had contracted and continued
opay the debt-the new civil condition OF one
large portion OF her citizens-tlle changed
4 political power and relations of all her citi-
zens; he,noFel relation of the inaugurated
Government to its reorganized society, all
4 these circumstances afforded great claim
for some abatement of the debt claimed
4 againstthe demolished Government Of Vir-
ginia..s o,s a Tx .sr,-s,.T.
il Viii 4 urge portion OF her taxable values
fdesspoys her dividend paying stocks lost,
she we'll might claim a deduction of at least
third Of its amount, from the portion of
the old State debt demanded from her. To
preserve the full capital OF her portion Of the
debt and abate only one third Of the rate Of
interest would certainly have been gener-
GUS proposal from her new government.
Yet the funding law of 1871, as far as it was
executed before its repeal, had already given
to the creditors, in payment OF part only of
their demands, per centutn bonds for
| $40. 27S, 73S. 06. This was just sl20, .6S
! less than the whole amount she truly owed
all her creditors combined, for the amount
presented for funding, $40, l39, 365.04 esti-
mated as the one.third due by w. Va, was
substracted. But an amount almost equiva-
lent (s1O, lO4, 427,67) on account of the war
and reconstruction interest, which, as have
already explained, had been sufficiently dis
charged, was added to the sum accepted for
funding. Thus the amount actually funded
in new tax receivable 6 per cent coupon
bonds, under the act OF March, 1871, was
nearly equal to the whole amount OF the
debt then justly due by the reconstructed
State OF Virginia. And yet some nine nail
| lions were left still unfunded. The Pierpont
government, deriving its comical existence
and authority in this State from an order of
the President of the United States and its
equally comical dissolution from similar
order, had issued bonds for the unpaid and
undue war interest. These bonds for a.,
AZ, 489 .O3 of principal, with 81 1863, 24454 Of
accrued interest, entered as part of the sum
Of which two thirds was funded In the new
consol debt Of 1871. The interest which we
have been actually mourning each year on
| the part funded, under the act OF 1871. has
| been $500, 900 per annum more than we
| ought to have paid on the whole of our LA
| blity for the anti-war debt. Not content
| with this, the new Brokers' Bill' adds
more than $l2,000,000 to the capital OF the
tax receivable coupon bonds, and gives an
interest of 3per cent. for 10 years, 4 per
cent. for 20 years, and per cent. for 10
! years, or an average Of 4 per cent. for the
whole period, Sixty per cent. is thus added
to what is the. just principal of our public
| debt, and an average OF some $500, 600 per an
| mum for forty years above what is just, is
| required to be paid as interest. The people
of Virginia are expected to acquiesce in this
proceeding. Nay, to applaud IT, and to pro.
| SC, ibe those of her public men who oppose
it. Where is the old manly Virginian spirit?
The legislature that enacted this Brokers
Bil'' plainly exceeded its rightful power
over the property Of the people. There can
be no right obligation upon the people OF
Virginia to endure misery in order to meet
the exactlons OF this uni just law. The last
| legislature was elected under express limita-
tiOns and instructions to readjust the public
debt, only at such rate OF interest as would
be within the capacity OF tl,erevenues de-
rived from the present rate OF taxation.
This rate of taxation will enable the State to
pay for interest account about $780, 900. Al
Ter the re-assessment OF lands, In 1880, this
amount mast be materially reduced. O I will
not now trouble you with a recital Of facts.
derived from official sources, on which i
| base this statement; they will be found
| stated in the speech delivered by me in the
| House of Delegates, last session, and soon
afterward printed ia the Richmond Wing.
| Tho creditors accept the new bonds with
| full notice OF the limited powers Of the legis.
lative agents of the people with whom they,
have dealt Repeatedly, during the last SEES.
sion of the General Assembly, this limitation
OF their power was admitredand recorded.
The preamble of the Bocock- Fowler Bill (re-
pealed by the Brokers Bill, and thereby
brought directly to the notice Of those who
claim under the brokers Bill') declares.
explicitly the limited authority OF che legis-
lative agents OF the people in this regard.
/ That preamble declares that 1.-THE present
General Assembly was elected with especial
| reference to a REIMBURSEMENT OF the public
debt of the State, so that the interest may
| be punctually paid alike on all classes of it,
qoithoalt an increase of the rate or aggregate
of taxation, SO that said readjustment may
1 be satisfactory aud final, and public agita-
ton Of the subject may cease, and the Gen
eral Assembly, recognizing its duty first to
preserve and ensure the con tinued existence
Of the State including the public free school
system, is willing and anxious to restore the
former equality of !, all the public creditors
by distributing ratabiy among them the en-
tire excess of the public revenues, derived
from the present rate Of taxation. after the
most economical iadministration Of the State
government consistent with the efficiency OF
the public service" This bill passed the
House of Delegates with only thirteen dis.
senting votes, aud the Senate with only five
dissenting votes, and was approved by the
Governor. It was therefore a conclusive
and authoritative declaration OF the limited
power Of the government over this subject.
The .sBarbour Hill" had previously passed
with a similar declaration OF tie limited
who voted against the ''Bocock-F Fowler Bill''
a majority, believe, had voted for the bar
bour Bin,'' so that in acknowledgment OF
limited power there was concurrence OF
expression by nearly all the members OF the
General Assembly who voted on those bills.
No law, therefore, whose execution will re-
ouire or attempt to compel an increase OF
both the rate and aggregate OF taxation
. could be legitimately enacted by repre-
sentative body so expressly limited as was
the last General Assembly; certainly nc. such
act, in direct violation Of the delegated au.
thority, can impose obligations in honor and
good morals upon a people whose limited
/ grant OF power has thus been fragrantly
abused. To pass law with such effect
. must be conceded to be reputation of the
obligations of the legislature to obey the ad.
j mitted and declared will of its constituent
sovereign. The moral and political authori-
ty to pass law with such effect was 'sultrs
vires." Those who accept bonds executed
under the provisions of the McCulloch Bill
must do 40 with full knowledge that the
General Assembly which authorized the tssu
of those bonds was exercising clearly
! limited authority. and must see, at thei
| peril, that this limited authority is not ex-
ceeded. II the interest on these bonds car
! be paid without increase of the rate or ag
gregate Of taxation. this authority has no
been exceeded, and however OBJECTIONABLE
in other respects, the law will be obligatory
But il any increase is required the Who'll,
: scheme totters to its fall. Drawing it
! power from reputation of the most honor
. able obligations, it will be impotent in call
+ ing for protection from the results OF its owl
> violation of faith.