The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1885-05-21

ClitVu totdlGS supreme NOuib HWY
added to it some comments on that decis-
ion Very truly yours.
WILLIAM MALONE.
STATEMENT.
AT Hse beginning of the yeaI 1861 the
pnblic debt Of Virginia WAS S. 500, IL, so.
the admission Of West Virginia as u State
in the Union the Indebtedness Of the for
mer State Of Virginia is ascertained to
have been:
And arrearases ofinierest... 595i,7l6.tS
r,,a, 900 ooz 900 ~
Otal....-............7.,. .. S39, wa, 9ZS.OO
LEGISLATION ON THE DEBT.
The Legislature which came into power
with The readmssion of Virginia into the
Union was controlled by what was then
called the Conservative. and now the Dem
ocratic party On the 30th of March, 1871
it passed ;n act by which the debt of the
undivided State of Virginia. was. without
account. assumed to be $545, 71S, 1923.
1t arbitrarily assumed tWo-thirds OF that
sum to be the share owed by that portion
of the old State which is now the State OF
Virginia, and that the remaining one
third was owed by that portion comprising
the new State of West Virginia. Under
the provisions Of this funding act (167l)
the payment of any interest on any then
existing bond of the former State of Viz
ginia was precluded, ald the creditor only
admitted to claim interest upon the new
bonds authorized by that act. which were
to be given in exchange for the old in the
ratio of two for three with a certificate of
claim against West Virginia for the re-
manning one-third
Here was an open act of reputation, by
the Democratic party of the State, of all
interests on outstanding bonds, and the
creditors sole remedy was to accept two
new bonds in lieu of three old ones. The
bonds to be issued under this act were to
bear 6 per cent. interest. the coupons for
which were declared to be receivable for
taxes debts, and demands due the State. ,
About thirty millions of the bonds of the
former State had been hurriedly refunded
under this act of 1871 by the issue Of about
twenty millions OF the new bonds. when q
new Legislature, also Democratic, repealed
so much of the act as made the coupons
of the new bonds receivable for taxes.
This left some ten millions of the assumed
share OF the debt of the former State in
statu quo-unadjuste and prescribed,
fundable, however, rs the others had been,
three for two-but in bonds the interest
on which could only be paid after the
twenty millions bearing taX-receivable
coupons had been satisfied, and then only
at the pleasure Of the State.
Here was a second act of reputation, and
one involving cruel and distressing dis
elimination between creditors having
equal claims, and all the work of the Dem
Ocratic party.
1rfbiu sco,,. a..;Clof,t,a c,,l,con,,a,, 1xr
passed an act multiplying the reeeivability
for taxes of the coupons which had been
issued and made tax-receivable by law.
This was done by forbidding collectors OF
revenue from receiving for taxes anything
but gold. silver, or United States notes.
Here was third and more direct attempt
by the Democratic party at reputation.
Following this legislation the taX-re-
ceivability of the coupons by law made so
receivable was tested in the courts, and
the constitutjonality OF that feature was
affirmed, and the act multiplying it was de-
clared unconstitutional
DEMOCRATIC FAILURE TO PROVIDE NE
CEssARY REV ENUE TO MEET OBLIGA-
TIONs TO CREDITORS.
The revenues of the State, under q rate
of taxation felt everywhere to be oppres-
sve, amounted to 81, 430, 600. By consti-
tutional provision. made irrevocable by
the fundamental conditions Of the act of
Congress readmitting Virginia into the
Union one-fifth of that revenue derived
annually from certain sources, together
with the head tax and fines and escheats
lin this case amounting to $500 ,000l, is
dedicated to free schools. The cost OF ad-
ministering the State Government
amounted to over one million per annum.
Annual interest upon the prescribed por-
ton ten millions) Of the assumed debt of
the former State amounted to 5000 coo.
and that upon the taX-receivable self-ex-
ecuting coupon debt of twenty millions
amounted to 81 200 000
Thus it will be seen the self-styled debt
paping party were confronted with an ag-
gregate of liabilities as follows:
Expense of Governmental. -. 1,000G09
Interest,"" .......-......:.......... 1,40O,000
Total. Observation-Disclosures So, 500, GOO
With resources to meet the same amount
ing to but 81, 100000.
The taX-receivable coupon was ineXora-
bic and unavoidable. 1t seized the reve-
nues on their way to the Treasury aud
paid itself. The State Government had
to go on. These two sums-viz., the
$1.200 GOO, which never was allowed to
reach the Treasury, being absorbed on its
way there by the self-eXecuting coupons,
and the 81 900, 600 for current expenses of
the State Government, exhausted all the
net revenue save the beggarly sum of about
$500, 600. This left the prescribed cred
itor to wait and live upon the honorable
promises of the Democratic party, while
the system of public free schools went
rapidly to decay
If that party believed in the correctness
of the amount assumed by the Funding
act of 1871 to be the State debt and that
the honor and honesty Of the State We're
bound to the full and proper discharge of
tile liability it imposed. rectitude of pur-
pose and high sense OF duty left no al.
Tentative but an increase of the rate of
taxation. They had the power. They
were in absolute authority in and over
every department of the State. city, and
county governments. Yet from that time
to the end of their domination rs q party,
in 1879, they ailedto move in the only direc-
ton which could render possible an honest
compliance with the debt-paying senti-
ment they would have the world believe
they were contending and intending to en-
force namely, in the direction OF an IN
crease of taxes. On the contrary, While
posing as debt-payers, they were constantly
planning and scheming for some new
measure for refunding the share of the
debt of the old State which they had recog-
niZed by the act Of 1871. They were al
ways ready to enter upon fresh promises
and ever failing to make amy effort to com,
ply with the engagements imposed by any.
Under this condition of things a state
of unrest had come to pervade the masses
of the people. Aggravated by u period OF
hard times, their burdens oppressed hope
and paralyzed energies the opportunity
for educating their children was rapidly
passing away the asylums were closed tt
the admission of afflicted people. and had
to look to the indulgence and charity OF
surrounding communities for maintenance
on the limited scale of accommodation tC
which they had been reduced the pro
scribed creditor must sacrifice his long
neglected securities, OF perish upon the
sentiment Of debt-paying promises the
preferred creditor. by the expensive aiG
and instrumentality of the broker, was
getting us much for his taN-receivablt
coupons as competition and demand per
nitted intercepting here and there. Us
opportunity was presented. tile revenues
of the Stale. The credit OF the Common
wealth had been DESTROYED the school fun(
had now been diverted to the extent of
million and u half revenue enough wa,
nd ~