Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1894-05-15
The State Debt.


The Baltim ore undertaking, which
Col. Chew, Porterfied and others in
this State agreed to assist was en-
tirelY different from the Wall street
scheme now on foot.
WHY VIRGINIA ACTED.
At the request of a New York
broker, the Virginia Senate passed u
resolution with two objects: viz. TO
pool the certifi Gates, and to sue West
Virginia. A part Of this PROPOSE.
ton was subsequently defeated in the
House, hut resolution was passed,
appointing Commissioners, and the
parties who promoted it expect TO
make some deal with our next legis-
lature. 1t Was believed in Richmond
that, if the resolution passed, n vast
profit would he made by settling our
debt, and that a Wall street Syndi-
cate would furnish large sum to
carry the scheme through. It is
known to me that the Virginia legis-
laturc acted, not at the instance of
creditors, but at the instance only of
party who seeks to manage this
business. The members of the Vir-
ginia legislature, who are Commits
sioners, will receive their pay either
from Syndicate, or will be depen-
dent for their profit on the success
of their undertaking. The resolu-
ton, stripped of words, is simply
proposition to lend the name of Yir-
GINA to persons proposing to act as
agents for the creditors of West Yir-
ginia. 1t is piece of legislation
without precedent in this Country.
WEST VIRGINIA NOT ACCOUNTABLE TO
vIRGINIA.
The Supreme Court has decided,
Virginia, VS.. West Virginia, 10th.
Wallace, that the ordinance of the
Virginia Convention of 1861, provid-
ing for the formation of West Vir-
ginia, is binding on the present
State of Virginia. This Ordinance
requires, our proportion of the com
mon debt to be ascertained by stat
ing an account: West Virginia is to
be charged with State expenditures
within her limits, and with her share
of the expenses of State government,
and credited with the taxes collected
in her counties. Members of the
convention have informed me that
the committee of the convention es-
timated that this account would fix
on this State one-sIxth of the old
debt; but my researches satisfied
me that the amount is less than one
sixth.
The presence of Virginia is not
needed to state this account. 1t may
be stated by either State without CON
sulting the other. 1t is evident that
Virginia still owes the balance after
deductiDg tie amount fixed on West
Virginia by this ordinance. What
ever West Virginia owes is due to
the creditors of the original State.
Virginia has 10 demand on this State
until she has paid more Than her own
proportion of the common debt: viz.
until she has paid 4 part of the
amount fixed on West Virginia by
the ordinance,
The recent Virginia legislature has
acted on the untenable theory, that
she can hold this State to account,
and that she may collect the proper
ton of the common debt due by
West Virginia TO the creditors of the
original State. II this theory were
correct, Virginia could maintain n
suit although she declared her pur-
pose TO keep all the money and not
pay the creditors anything.
The proposition of the Virginia
legislature is, that West Virginia may
not settle her own debt by negotiat-
ing with the persons entitled to re-
ceive the money, but shall account to
Commissioners appointed by Vir-
ginia, but paid by the creditors of
West Virginia.
THE OSE-THIRD THEORY.
The Commissioners are expressly
prohibited from negotiating Except
on the basis" that the proper pro-
portion for West Virginia is the one
third now represented by Certificates
calling for S21, 600, 900 in addition to
$50, 600, 900 accumulated interest.
In 1871 Virginia passed an Act
which assumed that her proportion
was only two-thirds and that West
Virginia owed the balance. and the
original bonds were called in by issu-
ing her new bonds and Certificates.
When it is officially ascertained that
West Virgiuia's proportion was less
than the one-third, tho original cred
itors may claim that Virginia mis-
represented the facts about West
Virgimia's proportion. If West Vir-
einia's proportion is only onc-sixth,
Virginia STILL owes the difference be-
tween one-third and one-sixth, and if
this difference is to he repudiated,
the odium belongs to Virginia. I'M
der these circumstances, it was nat
ural for Virginia to prohibit ncgotia-
tions unless West Virginia agreed to
negotiate on the one-third basis.
WEST vIRGINIA's PROPER PosITIoN.
1t is obvious our Legislature should
not do anything which can be con-
structed into an admission that West
Nirginia's proportion is one-third.
But the resolution is so worded that
we accept the basis if we consent to
meet the Commissioners. To refuse
the basis and then meet the Commits
sioners. would he rs absurd as for
the legislature To meet any other
half dozen Virginia gentlemen who
volunteered to invite n conference
which could bind no one. These