The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-03-08
THE STATE DEBT.
The Natter Of the Debt Of Virginia and
West Virginia.

many millions Of dollars into your Estate"
and in negotiations now undertaken, l
find this skeleton everywhere.
The danger OF position that may bring
uncomfortable burdens Ia not to be lightly
considered; and prudent men have hesi'
tated, and will hesitate, before they put
large values subject to such contingencies,
have no purpose here to make an argu'
msnt, in fact the time for argument IL
past. Facts that are unquestioned are to
my purpose; and wish only to call atten'
ton to these facts, and the results to which
they may lead.
The two States have stoutly asserted
their position, Vir. lnia, that the bond
was not broken, and that the burden must
rest according to the ability to pay. West
Virginia, that the proceeds Of the debt
had been unfairly placed; and that the
section that received the principle benefit
OF the loans must pay the principle part.
Nothing has been agreed to; but, in the
meantime, important events have occurred
In the adjustment with her creditors, Vir'
ginia, as o trustee, took possession oil ten
millions OF bonds, and will probably take
five millions more. These she undertakes
to collect from West Virginia.
As long as Virginia remains in default,
nothing will be expected; but, before
many months, In some way the principal
part OF her debt will be adjusted. What
then will be the position Of West Virgil
mia? She claims now that she owes little
or nothing, and that she has nothing to
fear; and with folded hands waits the YER.
dict. On the other side, Virginia and the
creditors assert that she, West Virginia, Is
held for this whole fifteen millions, with
it's rapidly acCruing interest. Without
predicting the result, 1t would be well to
notice certain facts:
First-That West Virginia, and not East
Virginia, is responsible for the division o !
the State.
second-That the creditors have never
formally consented to this division or re-.
leased any claim.
Third-ThAt the Congress Of the United
States, In its high and remarkable pro-
Cedure, assumed heavy responsibility.
Fourth-That West Virginia was not
revolving province, and did not become a
sovereign power,
Fiith-That West Virginia will not hesi-
tate at the proper time to enforce settle
ment. There Is deep sense OF wrong
among this people that will find express
sion. II may be polite for the bond
holders to agree to hold Virginia harmless
In the result, but the State had no sinister
purpose when she received these bonds,
and accepted this trust,
Sixth-That the low tone oil public sen.
timent Is not continuing. The period
when bankruptcy was common among
men, and default sas common with States
Is passing away. III q few years, perhaps
In q few months, the last OF the defaulted
States will have completed its adjustment,
and the old scorn, that was turned against
Mississippi, may be TUNED against the one
that then stands alone.
II does not seem to me that this Ia a
proper time for West Virginians to shut
their eyes. l do not assume TO know
where the remedy is, but II Ia certain that
the bondholders will somewhere seek re-.
dress. win Virginia appear as the holder
In trust OF these unCanCeled bonds In the
Supreme Court, and ask that West Vir-
glnia be brought TO an ACCOUNT II 80,
will that court require the creditor to
show where the proceeds OF bond,
authorized by the vote Of every county
from the Atlantic to the Ohio river, signed
by the Executive and sealed with the
great seal Of the whole State, were ap.
plied2 whether 1t built q canal or a turn
pike, or bought a dredge.boat or an eques-
tFian statue2 or, will II say that on the
day oil the division he had Q right that no
act OF his had destroyed and no act OF the
Government could impair, and that GER
tain proportion Of that right lay against
the taxable values Of one.third oil that
Slater
II II 80 decides, what then is the posi-.
ton Of West virginia. Will this claim
have tire attention Of the Nation2 Will
the high assumption Of Congress In de.
Claring the State divided be questioned?
Can q Nation that holds its honor 80 dear
afford 10 be silent when II Is charged that,
under It's act, State has escaped a
solemn obligation, and creditors have sui.
effort West Virginia is waiting, while a
claim Is hanging over her the interest
upon which alone is $1,000 per day-a
claim so large that, II II Is ever asserted, II
will crush oil her industries. know how
easy II is to delude a people with false
hopes, and how difficult 1t Is 10 direct
them 10 hard duties. know how natural
II Ia Tor men In political life to shrink from
assuming responsibilities, and how much
more ready community Ia 10 believe that
they do mol Olre than that they must pay ;
but 1t seems TO me that the time has come
when responsibilities must be assumed,
and some effort must be made TO protect
the State.
The difficulties Of the situation, even II
an effort be made, are serious. In some
way, however, West Virginia ought 10 &c.
cure an advantage, through the control Of
the certificates; and put herself 10 the
place OF the creditors. The entire issue Of
$40, 000, 900 had q market value two years
ago Of 5000, 900, to-day II has a market val.
ne Of $l,500,000. II these certificates had
been purchased Of the low price, or could
be purchased at the present rate, or at a
price somewhat In excess, she could prob.
ably float a FIVE per cent loan and carry
the burden easily. But the difficulty lies
10 the fact that any movement towards
this purchase must be public, and would
put the State at q disadvantage Ia The bar.
gain. Flow can this difficulty be met
Permit me to suggest this: That the Leg.
islature appoints commission TO consist
Of the Governor, two members OF the
House and two Of the Senate, and i've
other men OF the highest character from
different sections oil the State, v ith author.
ity 10 receive propositions and report
them for the action Of the Legislature
that they report al the adjourned session
unless they should receive proposition
80 favorable that Il would warrant a
special session, In which event The Lepis.
latute should be convened. II is possible
and ! think probable that out OF this there
would come q proposition that would en-.
able West Virginia either 10 make a state.
ment that would not burden her people or
TO thoroughly protect herself. Some Of
the certificate holders would instantly In.
crease their demands, but | think the
atge proportion, including the English
holders, would OF an early day make a