The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-02-03
Senator Johnston's Reply to Malone

Senator Johnston's Reply to Malone.
Senator John W. Johnston, of Virginia, has
made public his reply to General Malone on
the subject OF Virginia debt and finances The
letter in full is as follows:
UNITED States SENATE CHAMBER,
January II, 1881.
The late address of the State Committee of
Readjusters in Virginia and the published in
terview of General Malone, its chairman, have
attracted attention; and while they do not
seem to have produced the effect hoped for,
they, nevertheless, invite reply. l propose
to put in an answer on behalf Of my State
vouch the record for all say And, before
going into details, it is proper that should
give sketch of events reaching back to the
formation of the Alexandria Constitution, as
it is called The State of West Virginia hav-
ing been formed, Francis Ell. Pierpoint, who
claimed to be Governor of Virginia; removed
his headquarters to Alexandria There Con-
vention was held for the nominal purpose of
adopting constitution tor Virginia, in which
but few counties were represented. This body
made what is known as the alexandria Con-
and when the surrender took place,
Pierpoint moved bag and baggage over to
Richmond took possession of the public build
ings, and proceeded to act as Governor over
all Virginia. When his reign was over, the
carpet-bag government of H. FL. Wells was
and it remained until it was su-
perceded by military rule. In 1867 an election
was held for delegates to form convention,
which body was largely Republican. 1t met
in Richmond in December, 1867, and formed
the constitution now in force in Virginia
altered much, however, by several amend
ments. The schedule accompanying it re-
quired that it should be submitted to vote
of the people, but this was not done till the
summer of 1869. The constitution was adopted
Except some DISTINGUISHING clauses which
were stricken OUT, and the first legislature
under it assembled in October, 1869. The
military, however, remained in control, and it
was not until January, 1870, that the State
was admitted to representation in Congress
ficers elected by the people, under constitu-
ton also ratined by them. From the surren-
der to 1870 the people had little to do except
to obey carpet-baggers and generals, and may
be truly said to have had no hand in their own
government.
1t is only since January, 1870 that the peo-
pie of the State can be held responsible for the
conduct of its affairs, and they must be judged
by what they have done since that time, and
by the circumstances troubles, difficulties and
When the war wss over, by some means or
other, the hope was engendered in the people
ofVirginia that there would be rush both of
capital and population to the stale: that lands
would be in demand and would readily sell at
high prices, and industries and business would
speedily revive. The currency was at its most
redundant period also, so that in Virginia it
was the era of inflated currencies and inflated
hopes likewise. But their expectations were
not realized. Congress contracted the curren-
cy and not much capital nor many settlers
reached our territory. 1t is true the carpet
Dagger was abroad there as well as elsewhere
in the South, but he was never anything but
a curse wherever he went. In addition to
these troubles, a stay law had been passed by
the Virginia Secession Convention, which pre-
vented the collection of debts, and which re-
manned in forcentill the year 1870. When it
was repealed, at last, it let loose vast flood of
debts, with a great accumulation Of interest,
were called upon the people allat once.
PROPERTY AND DEBT
There had not been time since the surren-
der to accumulate much personal property
horses cattle, sheep and hogs take time to
grow-and Sc, when the people were called upon
to pay their debts Sin many cases doubled by in
terest-thcy had nothing to do it with except
land, and there was great deal more of that
in the market than could be sold. There could
be but one result-much loss, much bankrupt
cy, much poverty. Nevertheless, when the
people Gid. in 1870, obtain control of their own
government, they addressed themselves brave
ly to the work of rebuilding the state. Not
only undivided property had been lost, but the
state assets had been either lost or wasted.
The separation of West Virginia produced a
difficult problem as to the state debt. The
constitution of West Virginia had this prov
so, viz: "An equitable proportion of the pub
lie debt OF the Commonwealth Of Virginia
prior to the first day Of January 1861, shall be
assumed by this state and the legislature shall
ascertain the same as soon as may be practicable
and provide for the liquidation thereofby asink-
ing fund sufficient to pay the accruing interest
and redeem the principal within thirty-four
years." The constitution of Virginia had this
clause, viz: 81 he General Assembly shall pro-
vide by law for adjusting with the state of
West Virginia the proportion of the public
debt of Virginia and West Virginia, and shall
provide that such sum as 81 Ill be received
from West Virginia shall be applied to the
payment of the public debt of the state.'"
The legislature of Virginia. desiring to exc
cute these provisions of both constitutions,
passed joint resolution rendering arbitration
to West Virginia. This failed, however,and an
actual settlement between the two states SEEM
ed difficult to obtain. The legislature of Vir-
ginia set aside with the consent of the credi
tors, as witnessed by the haste with which
they accepted the provisions of the Funding
bill of 1917 one-third of the debt of West
Virginia, declaring at the same time that Vir-
ginia was a trustee for the creditors, and
would pay them whatever sum West Virginia
paid her. What situation did the legislature
which met in October, 1869, under the new
constitution, find itself in?
In governments that have been in regular
operation for years, with all the machinery in
good order, with the records of the past from
year to year to guide them, it is easy enough
to estimate both receipts and expenditures.
Previous assessments Of property and previous
receipts into the treasury enable them to say
what can be reasonably expected in the way
of revenue. So the past expenditures furnish
also guide. But Virginia had none of these
things. She had been through four years OF
war and nearly six of reconstruction, much OF
her property was destroyed, and there was no
adequate standard by which to value what was
left The legislature had to conform the laws
of the State to the new order of things, and
nobody could saw how long this would require.