The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-02-03

tHue0 10 M umOuut tAe''""- 49,
lions Of dollars. Being the oDlIpa'ions Oh =
state az large wealth, which never allowed
IFS fidelity to its promises 10 be qoss''o"eu
anyw here. the bonds found ready sale III
the markets OF tho country. UD'ii tue c'V'i
war the interest on them was regularly anu
promptly paid. Afterwards the payments
ceased. and until 1871. with the exception
Of a few small sums RENTED In coin during
the war to London for foreign boDdboiders,
or paid in Virginia In Confederate money,
and a small emoUnt paid in 1856 ana
1867, no part OF The interest or pripci-
pal was paid. During The war pof..
lion OF her territory was separated
from her, and by its people a new State,
named West Virginia, was formed, and ny
the Congress OF the United States was adj.
mitted into the Union. Nearly one third oil
her territory and people were thus taken
from her Jurisdiction But as The whole
State had created the Indebtedness for which
the bonds were issued, and participated III
The benefits obtained by the moneys raised,
il was but Just that portion OF the indebt-
edness should be assumed by that part when
was taken from her and made new State.
Writers on public law speak OF the principle
as we'll established that where state Is III
yided into two or more States, IN the adjust
ment OF liabilities between each DINER tne
debts OF the parent State should be ratably
lappoTtioped among them. On tins sublecI
Kent says "lf a State should be diVlded
| in respect TO territory, its rights ana oDli-
gallons are not impaired; and II they have
not been apporlioned by special agreement.
their rights are to be enjoyed and their oDll-
cations fulfilled by all The parts in COM
mon. v-(CommentaTies, 1t vol, 26.) And
Haleck, speaking OF a State divided into
two or more distinct and independent soy
preignties, SAYS: "In that case The obllga-
lions which have accrued to the whole be-
fore the division are, unless they have been
the subject Of q special agreement, ra'ably
binding upon the different parts. This
principles established by the concurrent
opinions OF teXt-wl tiers, the decisions OF
courts. aud the practice OF nations. "a In
ternatOnal Law, ch. 3, sec. ~
In conformity with the doctrine thus
stated by Halleck both Staie'-NIreinia and
West Virginia-have recognized IN tbelr
Constitutions their respective lablllty Tor
an equitable proportion OF the old debt OF
the State, aud have provided that measures
should be taken for its settlement. the
Constitution Of Virginia OF 1870 declared
that the General Assembly should "proVide
bv law for adjusting with the State OF west
Virginia the proportion OF the pubic deDt
OF Virginia proper 10 be borne by the STATES
Of Virginia and Wet Virginia." ard should
" provide that such sums as shall be received
from West Virginia shall be applied TO me
pavmcut OF the public debt Of the State
(Art. 10. sec. 10
The Constitution Of West Virginia, which
went INTO effect in 1868. declared that " an
equitable proportion Of the pu0lic debt OF
The Commonwealth Of Virginia prior to The
1t day Of January, 1861" should "be as
sumedr by the State. and that The Leslsla-
tune should "ascertain the same as soon a.
practicable, and provide for The liquidation
thereof by a sinking fund sufficient to pay
the accruIng interest and redeem the prln-
cipal within thirty-iOur years."-(Arl. :,
sec. s
But Notwithstanding these constitutional
requirements and various efforts made 10
adjust the liabilities OF West Virginia, no.
thing was accomplished up TO March 80,
1871, and il is stated by counsel that nothing
has been accomplished since. As might have
been expected, the position OF Virginia was
not Il pleasant One-belng charged win the
whole Indebtedness which accrued before
the formation out Of Der territory OF new
State, and entitled to, without being able to
obtain, a contribution from the new State OF
a part lit. corresponding prOpOrtionaiely TO
her extent and population. She, therefore,
undertook to effect a separate adjustment
with her creditors, and for that purpose on
the 30th of March, 1871, passed an act
known as the "fundIng act " OF the State.
1t is entitled "An act to provide for the
| funding and payment OF the public Febt.
| Its preamble reciled that in the ordinance
authorizing the organization OF the State oil
West Virginia it was provided that she
should take upon herself just proportion
OF The public debt Of the COmm0nN wealth Of
| Virginia prior to January |, 1861. and that
tins provision had not been fulfilled, al
though repeated and earnest efforts in that
behiIf had been made by Virginia; and
| then declared that "tO enable the State OF
West Virginia to settle her proportion oil
| said debt with the holders thereof" and to
prevent any complications or difficulties
which might be interposed 10 any other
manner OF settlement, and "f0r the pur-
pose OF promptly restoring the credit
| OF Virginia, by providing for the certain
and prompt payment OF the interest on nei
proportion Of said debt, as the same shall
become due" the Legislature enacted; that
| the owners OF the bonds, stocks. or interest
certificates Of the State with few eXccp
lions) might fund two thirds OF the same
and two thirds OF the interest due or TO be-
come due thereon up TO July !, 1871, III
per cent. coupon or registered bonds OF the
State, TO run thirty.fOur years; the bonds
to be made payable to order or bearer. and
the coupons 10 bearer. The act declared
that the coupons should be payable semi
annuity, and abe receivable at and aflel
maturity for all taxes, debs. dues, and de-
mlnds due the STATE" and that This should
be 20 expressed on their face. For the re-
naming one third OF the amount of the
| bonds thus funded, the act provided ina
certificates should be issued to the creditors
setting forth the amount OF the bonds no.
funded, with the interest thereon, ana ina
their payment would be provided flr IN
accordance with such settlement rs might
be subsequently had between the two
States; and that Virginia would hold the
bonds surrendered, so far as they were moi
| funded, in trust for the holder or his as
signees. The bonds OF the State, wi h toe
accumulated interest. then amounted tC
over forty millions Of dollars.
| Under this act large number 81 The
creditors OF the State holding bonds amount
| ing, including interest thereon, to abou
thirty millions Of dollars, surrendered then
and took new bonds for two thirds Of then
amount and certificates for the balance. y
contract was thus cOnsummated between
the State and the holders Of the new bonds
and all subsequent holders OF the coupons
from the obligation OF which she could not
without their consent, release herself b,
any subsequent legislation. she thus bount
herself, not only TO pay the bonds wber
they became due, but to receive the inter
est coupons from the bearer at and aftei
I their maturity IN their full amount. FOL