Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-05-12
INTERESTING FIGURES FROM
sE,NApOR DAVIS SPEECH.

INTERESTING FIGURES FROM
SENATOR DAVIS SPEECH
The speech Of Senator DAVIS in the
u. 8. Senate on the 81 instant, has done
as much TO place old Virginia right up
on the matter Of her debt as 1t has 10
relieve the misconceptions in regard 10
West virginia's share OF that debt
Senator DAVIS dissipates the popular
delusion about the inability oil the OLD
State to pay her debt, on the one hand'
and her dlsinclination to do so on the
other hand, by facts and figures which
are very interesting and very conciu'
siye.
He surprises the public, for instance
with the statement and the proof that
Virginia is not only able to pay, but has
actually been paying a larger per cent.
of interest on her funded debt since
1872 than the United States government
has been paying on its debt. In sup
port OF this statement he presents the
following facts and figures:
There is an impression in the country
and perhaps here that Virginia has PAID
very little or none of her interest. That
is a great mistake. | have shown that
the interest bearing debt Of the United
States government had increased during
that time. Now | have q statement
commencing in 1928 which shows
that Virginia each year OF the time
named has paid an average OF nearly A
per cent. on her entire debt. repeat
il, Virginia, with all her distress and
her enormous debt, il 1t may be so
termed, paid, commencing with 1928
up to last year, an average upon her en-:
tire debt, estimated at SSO,UOO,OOO, oil
4 80 per cent. interest. so that q person
owning a Virginia bond which cost him
fifty cents in the market would have
gotten il he received his full interest
double g per cent, and every creditor
has received except on some bonds
which are scattering and have not
been funded 439 per cent, which IS
more interest than a Government bond
can bring to-day and more interest than
a Government bond has brought for
some time back, and more than 1t is
necessary for the government to Pay.
So taking what are known as the III 4O
bonds of Virginia, to-day selling In the
market for fifty cents, the holder OF that
bond gets the whole amount OF his in
terest, which is per cent. on the lace
value, being all that his bond calls for,
and al the rate it is selling it would be
equal to 6 per cent. Take again what
are known in Virginia as the consols,
and Of which there are Sl4, OOO, 600 which
bring & per cent interest, and the hold
ers of this Sl4,000,000 OF bonds from
1872 '73 to the present day have got
every cent OF their interest. Virginia
does not owe one dollar OF interest on
those Sl4, ,0O0of bonds, and the bonds
are selling for eighty cents in the mar
ket TO day. A person owning what Is
known as a 10 10 consol OF Virginia
gets nearly double the interest that he
would from a government bond to-day
when you take the price ofthe two bonds
into consideration.
How is il with the peelersr The peel
ers, understand, are that part OF the
deb. not yet funded. They are selling
to- day at about thirty-eight cents on the
dollar. II the holder Of that bond got
his full interest he would get nearly II
per cent. on the market value. So you
will see that though Virginia bonds are
deprecated in the market and govern
ment bonds are high in proportion be.
cause all the people are sustaining the
credit of the Government at 81, and
glad to get 3 per cent interest, and you
could probably borrow at 3, there is a
party IN Virginia who brings in ques'
ton the Justice Of the Virginia debt,
which throws discredit upon it OF course,
and that bond, though paying more in
terest than Government bond, is sell
ing perhaps at an average OF fifty cents
on the dollar. Let me present in detail
the table to which have Just referred.
statement OF the estimated debt. the annual in.
toreSt, aud rate of interest paid By the State OF
Virginia from 1872 10 1885, also rate OF interest
paid on United States and Virginia bonds.