Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1880-12-04
WEST VIRGINI A CERTIFICATES

| The indications are that some
movement may be made this winter
both before the Virginia and West
Virginia legislatures, which will re-
new the agitation and discussion of
Virginia's settlement of her debt in
1871. We learn from the London
papers that meeting to that effect
was held there by persons interested
in the bonds and certificates. AS a
matter of information on the sub
ject we re-pubish most admirable
letter, written by Hon. E. Boyd
Faulkner, to the Wheeling Iatsli-
gencer, in 1879:
THE WEST VIRGINIA CERTIFICATES
"A NOTE OF EXPLANATION
FROM SENATOR FAULKNER.
Editors Intellisencer:
| have read your courteous and
respectful criticism upon my re-
marks made in the Senate yesterday,
upon the subject of what was at one
time very absurdly and ignorantly
quoted as "West Virginia Certif-
Gates" but which are now more
properly known on the stock board
as the Deferred Certificates of Vir-
ginia." You differ from my con-
struction of the legal effect of these
Ger tifcates, and think that they SIM
ply mean "that whatever Virginia
gets from West Virginia on settle
ment she will pay over to the holders
Of those certificates, and nothing
more" This, l think, has never
been the construction put upon
these evidences of debt by any of
the public men of Virginia. They
have, / think, uniformly conceded
that just to the extent that the as
certained indebtedness of West Vir-
ginia shall fall short of the amount
of those certificates lover fifteen mil
lions of dollars) will an immediate
liability result to Virginia to make
provision for the residue of said
debt. 1t was no purpose of Vir-
gini, in her Funding Act of 1871, to
repudiate any portion of her then
existing debt. She then funded"
two-thirds of her debt and left "un-
funded" with the consent of the
bondholders, one-third to await the
result of a settlement with West
Virginia. This is all that she then
asked of her creditors and that was
promptly accorded to her. And such,
it seems to me, is the only legal con-
struction that can be given to the
copy of the certificate published by
you. That paper recognizes an ex-
listing Indebtedness by Virginia; it
provides that the debt shall bear in
terest at the rate of six per centum
per annum; that the State of Vir-
ginia is to hold that proportion of
the surrendered bonds as part of
her unfunded debt in trust for the
holders of the certificates, and that
they are to De paid by whom? OF
course, by the obligor Virginia, in
accordance with such settlement as
shall thereafter be made between
the States of Virginia and West
Virginia. If upon such settlement
between the two States, West Vir-
ginia shall be found indebted to Vir-
ginia to the full amount of these
certificates she would expect to re-
ceive from us in some form the sum
necessary to discharge them. If, as
as our former Commissioner esti-
mated, that indebtedness be one
million of dollars, then Virginia
would have to account to her credi-
tors for the remaining fourteen mill
lions. If West Virginia was found
not indebted at all, the entire re-
manning unfunded debt would i'm
mediately fall back upon Virginia.
No other view, respectfully submit,
has ever been taken of this unfunded
portion of the debt of Virginia, and
any other view would impute to that
Commonwealth an undisguised re.
pudiation of one-third of her debt,
which has never before been charged
upon the Funding Act of 1871.
1t is true, and | regret to see it,
differing from the policy of 1871, the
spirit of forcible REIMBURSEMENT is
now strong and may yet be triumph
ant in Virginia; and yet with all
this disastrous influence now I'M
happily operating upon her public
councils, do not believe that you
could get one prominent member of
the Legislature of that State, to
give the certificates the repudiating
effect which your construction would
give to the Funding act Of 1871.
Very respectfully,
f.. BOYD FAULKNER.
January oath, 1879.