The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-05-13
The Public Debt-Ouce More.
MAY 10. 1881

The Public Debt-Ouce More.
MAY 10, 1881.
10 the Richmond Dispatch:
The Wing of this morning replies to my
letter OF the 29'h ultimo, which pressure
on your columns prevented you from pub
fishing before last Sunday. am glad to find
the WhiQ can confess mistake in its figures,
and am amused at the laundering efforts 1t
nuts forth to recover ITSELF Ii claims that
while il made one blunder against the debt
il made another in its favor; and the latter
more than compensates for the former. |
will 10 O few words convince even the wing
Itself that, taking its own plan OF calcula-
tion-to wit, 10 credit or the two thirds OF
tue debt assumed by Virginia as her part
all OF the credits which were paid on the
entire debt after the commencement OF the
war-still it has greatly erred in lis figures.
The WhiQ estimates the debt at simple in
terest TO July /. 1871, leaving of the literary
and sinking funds, but taking off no credits
| for anything paid as interest or r. dempt,oD
before that date and after January l, 1861.
| 1t then deducts one third rs West Nirginia's
| part, and then proceeds to apply all the
credits TO which the undivided debt was en-
titled before July |. 1871, to the two thirds
assumed by Virginia as Of that date. OF
course such plan for ascertainiDg what we
are due on that two thirds is simply mon
strOus, and would make us repudiate our
own payments on one third OF the debt be-
fore July |, 1871, and force the holders OF
the other two thirds against their contract
with the State, and against all pretence Of
right as 10 them, TO allow IL a credit on their
bonds what was paid to the holders Of the
other third of the debt. This is readiust-
ment with vengeance.
But the Wing blunderS grossly in the de-
tails Of its monsIous method. lis first cre-
dit claimed on the two thirds OF the debt
assigned TO Virginia as Of July |, 1871, Is
81. III ,243.99, "interest paid from January
l, 1861, 20 January |, 1861" As this was
paid on the entire debt, only two thirds Of
it should have been credited on the two
thirds OF the debt to which 1t is applied.
This would be credit OF S3,140, S2932 in
stead OF the one given. But the wing has
adopted another principle OF calculation,
and takes the whole from our part OF the
debt, assumed by US as Of the 1st July, 1871.
Now the WING having once deducted the
entire interest paid during the war, after
wards deducts S5.0SS, ia 06-" four years
war interest on two thirds of the original
debt at six per Dt."-thus deducting the
above sum OF S3,140, 1882 twice. / called
attention TO this blunder in my previous
letter, but the Wig did not seem to COM
prehend IL. hope it will do 50 now.
The Wing next deducts the interest paid
on the whole debt under acts of 1867, thus
repudIating, as have shown, the very pay
ments made by the State, aud using what
was paid on the entire debt as credit on
the two thirds afterwards assumed by Wiz.
giDia.
The Whiq next deducts from Virginia's
two thirds of the debt as Of July /, 1871,
calculated as | have stated, the entire |
amount of the old bonds Of the State issued |
before July /, 1871, and exchanged for the |
stocks in public works held by Virginia, so |
far as the exchanges took place between |
January l, 1866. and July /, 1871. These |
amount to S3,7l0,249 81. Only two thirds
OF these bonds should have been deducted |
from the two thirds Of the debt, as the
bonds were acquired before the d.
vision OF the debt on July /, 1871. |
But these bonds, when acquired, be-
came part Of the sinking fund, and were
funded as such under the act OF 1871, and
the third set of to West Virginia was sold
and the money invested in other bonds
issued under the acts OF lS7l.'72, so that
these bonds enter largely into the amount
held by the sinking fund. SecOnd-AuditOr
Dyson, in his late report. shows that OF the
sinking fund DESTROYED by order OF the Le-
gislature, $1,000 22.0S was for the new
bonds issued under the act OF March 30.
1871, for Virginia's two thirds OF the bonds
so exchanged for stocks in the public works.
Now, the Wing, after crediting Virgina's
two thirds of the debt as OF 1st July, 1871,
with the whole amount OF these bonds so |
required by the sinking fund before July !,
1871, afterwards deducts as credit the |
whole amount OF the sinking fund destroy
ed last year, which includes not only the |
4, OH 1874. II OF the old sinking fund held |
prior TO the war and deducted from the es-
timated debt by the Wing in the beginning |
Of its calculation, but also includes the |
bonds acquired between 1st January, 1866, |
and LIST July, 1871, by the sinking fund, |
which the Wing had already once before de. |
Quoted, as we have seen.
The Wing admits its mistake in deduct |
ing the old sinking fund twice, but tries to !
recover from the error by crediting the debt |
with an additional amount OF 1,141. CSC 90
West Virginia's part Of the old bonds ac
CURED by the sinking fund. But this will |
not answer: First. because these old bonds |
were acquired before 1st July, 1871, and |
should have been credited on The entire |
debt, which was not divided between the |
two States before then; and, second, be-
cluse The Wing had previously deducted |
these entire old bonds from Virginia's Two |
thirds OF the debt.
The Wing differs entirely with all
OF stating the public debt hereto
fore put forth by IFS party. General Ma
hone in his Mozart-Ha speech declared |
that the balance due by the State as re.
ported by its officers, who followed the act |
Of March 80, 1871, was right. and that only |
the inability OF the State was an excuse for |
the States not settling 1t at the figures |
given by the then Second Auditor, General |
Rogers. and be fixed on an amount OF up
wards OF $50, ZOO, 900 as capital sum on |
which he would be willing TO pay per
cent.
The Riddeberger bill, adopted by the Re-
adtusters as platform. takes the figures Of |
General Rogers, and only proposes to de-
duet war and reconstruction interest, and |
interest on interest capitalized, thus re.
duciDg the capital OF the debt to about |
s2o, 100000. The Wig, the organ Of Gen.
eraI Malone aud OF it, party. now claims
that only about sl5,000,O0O. Truly faciiis
descensus dcernt CIvIs.