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

that our taxable values were $743U00, 0O
Startling as it may appear, these values WEI
soon ascertained to be but 1886, 1885,, 433, an
this upon an assessment of realty which, CON
pared with that of the other States, as ascel
tanned by the Federal Government exceede
the average of AZ per cent, and was IS pc
cent. higher than the assess ments of like proE
erty in the great States of New York an
Pennsylvania. This bill, beginning where tina
of 1866-67 left of, capitalized all interest whic
had ACQUIRED in the interval, including interes
upon that TN part already compounded) whic
had been previously capitalized, and it under
took to fix q principal debt of 81, O00, 900, o
which two-thirds, or $4,000, 900, was arbitra
rily taken to be the part of this State and tn
remainder deferred and certifcated to settle
ment with West Virginia. This bill gave u
the seif-executing, tax-receivable coupons, ant
provided that these should go with all the cou
pom bonds in which the $30,000000 Of so
recognized debt might be funded No soone
was the full magnitude of this debt disclosed
and the character of its coupons understood
than public opinion pronounced decidedly
against it, not only as beyond our capacity ,bn
as unjust in its exactions and degrading il in t
terms. Some OF our most prominent and ex.
perienced men led the cry of disappr0val leg
islators who had voted for the measure changed
their attitude toward it on fuller information
and at the next election General Assembly
was chosen SO overwhelmingly against the bill
that it was promptly repealed as to its tax
receivable coupon feature. And here let it be
observed that the people of Virginia were not
derelict in proclaiming their hostility to this bill
1t is seen that at once the real obligors IN
our public indebtedness-the voters and tax
payers OF the CommOnwealth-with prompt
ness that knew no delay and with an emphasis
that oavp M uncertain Snun6 doolo rod tho;r
fixed and absolute intention to reject this mea-
sure and gave ample and timely notice to all
concerned that they would not ratify bargain
about which they had not been consulted and
in which their agents had acted without due
authority. If this caveat, SO filed, has been
wantonly disregarded, it is not the fault OF the
sovereign obligors who have so fully disavow-
ed the act which sought to bind them without
their knowledge or consent. But in the mean
time and notwithstanding such notice the
creditors had eagerly availed themselves of the
inviting advantage of the bill, and about $50
100000 had been funded under It betoIe the
SO, 600 of the $50 100000 of the so-recog.
nized debt, being still fundable, but without
ax-coupons was either so funded or so
treated by the State-that
portion so funded being known as the peeler,
and the remainder as the unfunded debt. The
$40, 900 900 funded before the act of repeal is
known as the consol debt. And here note that
the Funding Bill of 1871, with all it's preten-
sions to assuming and paying the whole debt
OF Virginia. began the Funder record by repu-
dating one-third of what the so.called "debt-
payers" estimated as the just principal of that
debt; and that, while these "debtpayers" ex-
press righteous horror of forcible readjust
ment and of any settlement not consented to
by the creditor, they failed to ask this consent
in their initial measure, and therein plainly
denounced upon all our bondhOlders, who
should not agree to surrender So for So as pro-
vided in the bill, the severe penalty of entire
to draw any interest from the State
upon their claims. In short, the creditors
were told In this Funding Bill of 1871, which
is SO often proclaimed rs the palladium of that
Virginia honor and honesty, which would
loudly condemn the employment of force
against the creditors, nor make any provision
for settlement without their consent, that if
they did not acccde to its terms and fund
hereunder they and their claims should not
be recognizedi 1t is well to recall this when
sll the air around US is vocal with the proud
OF these so-called "dcbtpayers'
against forcible readjustment, as we thus find
that even In their first STEP as well as in their
last, they did not hesitate to invoke force
against the creditor in behalf of a scheme
favored by themselves. And just here in con-
nection with this second unauthorized effort
IF q Virginia Legislature to assume and pros
vide for the payment of public debt for this
State, recur for moment to the Legislature
Of 1866-67 which, having no warrant for ex-
silence save that afforded by the Alexandria
government had no warrant TO touch any al
eyed debt attaching in any way TO this Com
except as directed by the Alexan-
lria Constitution. What did that instrument
provide in this matter? The 9th Section of
Article ". declares: THE General Assembly
shall provide by law for adjusting with the
State Of West Virginia the proportion of the
public debt of Virginia, proper to be borne by
he States of Virginia and of West Virginia
and may authorize, in conjunc-
ion with the State of West Virginia, the sale
IF all lands and property of every description,
all stocks and other interests owned
md held by the State of Virginia in banks,
works of internal improvement and other
State of West Virginia; and no ordinance
passed by the Convention which assembled at
W heellng on the 18th day of June, 1861, ad-
ustiug the public debt between Virginia and
West Virginia, shall he binding upon this
State"
That covers the whole immediate authority
over the subject vested in the General AS
'embly of 1866-67, and it had no power to as
sumo anything as to the debt or provide any
thing with respect to it, or even to adjust the
relative proportions of the debt between the
TWO States, except as specially empowered and
instructed in the section quoted No matter
for how much the State might be liable in law
Or equity, the Alexandria Constitution only
the Legislature Of 1866-67 to ascer-
tain what was proper to be borne" by Vir-
riniQ and y,rQccribo 10 ynndo in xvhs hot
should be done-namcly, not by any separate
action, but in conjunction with West Vir-
ginia." That was the charter of that Legis-
lature as to the debt, and, whatever resulting
powers might have followed the adjustment
certainly it was not in order to
do anything until that initial step was taken
and, as that was not taken, it is sure that the
action attempted in assuming and providing
Tor any portion of the debt was premature and
if not unconstitutional, mil and
void,
In like manner the Legislature which passed
the Funding Bill of 1871, acting under new
which specifically and carefully
limited the legislative discretion as to the debt
Of undivided Virginia, largely exceeded its
powers when it sought to fix that debt at $45,-
100000, therein capitalizing $15,000,000 of
simple and compound interest which had
accrued during the period of war and recon-
and attempting to apportion the
shares which should be borne respectively
by Virginia and West Virginia. That debt
under the Constitution of 1869, as under that
of Alexandria, was to await an adjustment
with West Virginia, as both these instruments,
in accordance with common sense and COM
mon right, acknowledged that this State had
no authority of her own independent motion
TO fix either the total of the debt or the part
which is to be borne by either. Section 10 of
Article x. of the Constitution of 1869, pre-
scribes: The General Assembly shall provide
by law for adjusting with the State of West
Virginia the proportion of the public debt of
Virginia proper TO be borne by Virginia and
West Virginia, and shall provide that such
sum as shall be received from West Virginia
shall be applied to the payments of the public
debt of the State"
And thus it appears that the first attempted
and funding of the alleged debt by
the Legislature of 1866-67, and also in the sec
ond attempt at assumption and funding by the
Legislature of 1901, both bodies not only
acted without the instruction of their constitu-
encies, and without constitutional warrant,
but in disregard of that essential adjustment
directed by both instruments to be made
with West Virginia, without which, either
done. or attempted in vain. all further or
other proceedings were unauthorized and nu-
gatory.
Under the joint operation of these two mea-
sures (the Funding Bill of 1871 and the repeal
ing act of 1879 although there was 81 ,816, 900
in the State Treasury when the first of these