Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1881-07-19
"The Equities.''

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followers of Mahone's plan of "eliminat-
ing" many millions ofan honest obliga.
ton. Those euphomous and high sound
ing terms equities" and eliminate" are
the right and left bowers in the little
game of euchre. in which the Mahonites
are trying to euchre the people of the
State out of their. honor and honesty,
and the creditors out of their just dues.
The Debt-Payer of Richmond states
these equities" as follows and answers
them In way that cannot be refuted and
to the satisfaction of all honest and in
telligent minds -
zone is, that the State ought not to pay
the interest which accrued during the
war and the period of reconstruction;
another, that the capitalization of un-
paid interest was illegal still another,
that the funding act Of 1871 was passed
through the Legislature by bribery and
fraud.
First-When two nations are at war,
the people are under restraints which
they cannot resist absolute non-inter-
course between the people of belligerent
nations is enforced whenever war exists.
1t is the inability on the part of the citi-
zen to pay off his debt, or to pay the in
terest thereon during the period of war,
which excuses him from liability for in
terest. In this case the citizen does not
create or contribute to his disability, but
it is different with the State or Nation.
They, in their sovereign capacity, elect
to 60 to war, and they assume all the re-
sponsibilities incident thereto, and they
must discharge all of the obligations
which rested upon them before going
into war.
In recognition of this principle Rus
STA, during the Crimean war, RENTED
regularly theinterest on her bonds, held
in England, to London. In one case,
Virginia voluntarily sought to sever her
connection with the Union,s and put
herself voluntarily in armed resistance
to the general government At the close
of the war, reconstruction was a conse-
quence of that armed resistance, and
may be considered as one of those con-
sequences contemplated in the act Of Sc
cession, unless it became effectual.
Again-During the period of recon-
struction, large part of the expenses of
the administration of the State govern.
ment were paid out of the treasury of
the United States, and the revenues of
the State, raised under tax bills passed
by the representatives of the people prior
to that period, were accumulated and
turned over to the State government,
when reorganized. amounting to nearly
$2,OOO,O 900.
As to the capitalization of interest, we
remark that it maybe not have been
prudent financiering, but it was not
illegal it was in the purvieu of the pow
ers of the General Assembly it was
done by an almost unanimous vote of
one of the best representative bodies
which has convened in the State for
many years. At all events, the creditors
were In no wise response lie for it. Had
the State paid them their interest as it
became due, they would have been satis-
fed; its non-payment was equivalent
to forcing this much additional loan
from those creditors, and equity de-
manded that they should be paid inter-
est thereon.
If it were true, which diligent inquiry
failed to prove, that the funding act Of
1871 was procured through bribery and
fraud, that reflects discredit upon the
State through its representatives, who
were guilty Of the crime; but the credi-
tors were not responsible, and it is In
excusable to visit the consequence of the
crime upon them.
As an investment merely, made with
the view of advancing her material in
terests, Virginia can better afford to pay,
even at large sacrifice, her whole debt,
and even little more, than to repudi-
ate, readjust or eliminate any part of it.
Had half the effort been made to pay
that has been made to avoid payment,
this State would be year ahead of her
present state of prOgress and prOsperitv. ~