The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-01-20

liabilities OF the two States because One-thlrd
Of the territory comprised in this State at the
creation of the debt went to the formation of
West Virginia, and because it is an established
doctrine in public debts, with exceptions aris-
ing only from the nature or necessity of par
ticular cases or from positive stlpulations, that
they follow the land, and that the just rate
of interest upon them are the products of the
land. The principal on this basis once de-
termined brought them to the consideration
of the question of interest, and guided only by
the utmost reliable surplus, after maintaining
the government and schools. to be derived
from a rate of taxation, admitted to be the !
highest that can be borne, it was seen, as
have demonstrated to be three per cent. The |
creditor takes the obligation of the sovereign, |
subject to the exigencies of public policy as |
though nominated in the bonds.
The Riddleberger Bill on this basis and I
upon these principles, proceeds by legal meth |
DDS to enforce equity between the State and
the creditor, and between all classes OF the
creditors. 1t makes the principal in round
figures twenty millions, interest three per
cent both payable in currency. 1t refuses
to violate the express terms of the Consti-
tulion of the State by exempting this class OF
property from the common burden. 1t rests
the whole obligation upon the good faith OF
the people, the highest pledge sovereign
State can offer and ought to give. Had
this bill, passed by the Legislature been
approved by the Governor, it was to nave
been submitted to the people for ratification, SO
that it should lack no sanction to give it valid
ity and finality. But the Governor vetoed the
measure and it fell temporarily. Yet embod-
les, as the Readjuster believe, the will and
wishes of our people as to the debt, and the
only practical scheme of REIMBURSEMENT Which
deals eqllitably with all the creditors, rescues
them from the clutch of the brokers and IN
sures the integrity of the oblgation-the regu-
| lar payment of interest-the proper value OF
| the security and the hearty recognition OF the
obgor. 1T is to the property OF the citizen
and not to the demand of the creditor OF the
State that the original faith of society is
| pledged. The claim of the citizen IS prior IN
| time, paramount in title, superior in equity.
| So believing. the Readjusters stand firmly by
the Riddleberger bill, and expect to make 1t
the successful solution ofthis vexed question
In fixing the principal debt of Virginia at
$40 $751; it is obvious that about $13 ,60OO0O
| of the principal which the McCulloch bill
sought to tasten upon us has been eliminated;
| but it is equally obvions that no such prncl-
pal as 1913 25S 600 can be justly claimed against
| this State How, then, is that enormous
amount (greater than the whole debt OF undi-
vided Virgnia) m lde up? By capitalizing SIM
pie and compound interest which accrued du-
| ring the period OF war and reconstruction. We
mode of accumulation against US, but we per-
emptorily reject the whole claim for any inter-
| est at all for the period indicated. We might
rest our right to do this simply upon the plea
of necessity-the public exigency; that war
and the quasi condition of war under military
rule actually deprived us of all ability to meet
the interest thai our present circumstances
imperatively demand the abatement. Besides,
| we made tender within our ability. The greater
portion of our interest was payable in Rich-
mond, and we offered to pay that in Virginia
| Treasury notes always at premium over
| Confederate money! but they were refused,
although our soldiers were paid OH in such, or
inferior money, and impressed supplies for the
army and government were paid foF IN the
same funds. The interest on that portion OF
the debt held abroad was also rendered in to-
bacco and cotton to the British and Austrian
Consuls at Richmond, but, on consultation
with their Ministers at Washington, it was
declined, lest it might be consider ed offensive
by the Federal Government although the
British Government had recognized the bel
ligerent rights of the COnfederacy.
| shall not attempt to cite in detail the legal
authorities and precedents with regard to the
suspension and abatement OF interest during
war, although the principle was asserted and
maintained in Virginia and other States as TO
interest during our Revolutionary War on
claims held against citizens OF the States.
Thomas Jefferson, Judge Pendleton of Virgin
ia and others might be quoted with respect to
the matter; and if the interest did not run
against the private party, because he could not
make profit during war with which to pay 1t
! andewas prevented by the condition OF war
from reaching his creditor TO pay him, even
had he been realizing an income sufficient for
| that purpose, q fortiori it did not run against
| Virginia, a State of the Union at war with
other States and the Federal Government, be-
, leaguered and blockaded both by land and sea,
and desolated throughout her borders by fire
and sword, especially when she made tender
of payment to the best of her ability, and was
refused Equity, at least, if not law, must sus-
tain her claim to be relieved of this exaction
| under all the circumstances; and when 1t Is
seen and admitted that it is positively beyond
her ability, the matter is concluded. Hereto
! fore having a net revenue averaging only
So. 430,0 900 annually, the recent re-assessment
of real property in Virginia las commanded to
be done every FIVE years by the Constitution)
has resulted in a decrease of valuations OF not
less than 30 per cent, and we cannot for the
| future safely count upon net yearly income
greater than 50 100000. To put our annual
expenses of government at 100000 is figure
only possible through the strietest economy
and without any allowance for extraordinary
contingencies that may arise at any mament.
The constitutional apportionment to the free
schools will require $500, 000a year-varying in
accordance with the receipts from the poll tax
(which were larger when its payment was not
required to exercise the right of suttrage.) We
thus have S. 900 of current liability for ex
penses of government and schools that must
be met and this Leaves only 500, 900 to the 81
loo, 600 of the net annual revenue to be applied
to the debt This will pay per cent. on $780,
100000 and leave surplus OF 100000, but We
nave at once pressing floating debt of 81 552,-
900 to extinguish, and if we should apply the
whole surplus to this end it would take us 25
years to extinguish it. OF this ss,552, 900 of
floating debt, $685. 900 is in tax receivable cou-
pons, past due, that may be used to intercept
| and practically decrease our revenues With
our credit re-established there can be no diff
Guilty in bridging over this immediate demand.
But our affairs will improve, no doubt, yet as
our resources may expand, SO will our needs
grow. Already we need new Capitol and
various other public buildings. Our asylums
are inadequate, and many of our insane, white
and colored, are confined in County Jails.
And we must not let hope in the future mis-
lead US in this grave matter, We are much
worse off to-day, financially, than we were in
1871, when we passed the Funding Bill The
assessment Just completed of our real estate is
10 stand for five years, and within that period
at any rate we can count safely only a reve
nue. OF s2,1OO,0OO net foF all purposes
TAXES CANNOT BE INCREASED.
Even the Bourbon Funder so-called "Debt-
payers" have admitted that by word aad
Iced. Nothing is more evident than that their
duty Immediately on the passage ofthe Fund
! ing Bill was to levy a tax sufficient to meet its
requirements, if they honestly meant that
measure as settlement. Then and every day
since, if their professions of "debt-paying"
were not empty boasts, their first and only
duty in this regard was to raise the rate Of
taxation to the necessary height. But this
/ haV declined