Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1895-01-10
THE WEST VIRGINIA DEBT.
IT'S HISTORY.


The origin and history of the West
Virginia debt-if, indeed thing can be
said to have either when its very exist
ence is undetermined and has even been
vigorously denied-are easily compre-
hended and generally we'll known. For
a brief but sufficient recapitulation OF
them, cannot do better than to adopt
the statement Of the Supreme Court OF
the United States i'll the case of Hartman
V. Greenhow (Io2 U. S Rep, 677), which
is as follows:
"We know the fact as matter OF pub
lie history that prior to the late civil war
Virginia had become largely indebted
fol moneys borrowed to construct public
works in the State. These moneys were
obtained upon her bonds, which were
issued to an amount exceeding S3o,ooo,-
600. Being the obligations of State of
large wealth, which never allowed its
fidelity to its promises to be questioned
anywhere, the bonds found ready sale
in the markets of the country. Until the
civil war the interest on them was regu-
larly and promptly paid. Afterwards
the payments ceased, and until 1871,
with the exception of few small sums
RENTED in coin during the war to Lon
don for foreign bondholders, or paid in
Virginia or Confederate money, and a
small amount paid in 1866 and 1867, no
part Of the interest orprincipal was paid
During the war a portion Of her territory
was separated from her, and by its peo-
pie a new State named West Virginia
was formed, and by the Congress of the
United States was admitted to the Union.
Nearly one-third of her territory and
people were thus taken from her Juris-
diction. y Both States, Virginia
and West Virginia, have recognized in
their constitutions their respective liabil-
ity for an equitable proportion of the
old debt of the State, and have provided
that measures shall be taken for its set
tlement. The constitution of Virginia Of
1870 declares that the General Assembly
shall provide by law for adjusting with
the State of West Virginia the proportion
of the public debt of Virginia proper to
be borne by the States Of Virginia and
West Virginia. and shall further pro-
vide that such sums as shall be received
from West Virginia shall be applied to
the payment of the public debt of the
State
"The constitution Of West Virginia
which went into effect in 1868 declared
that AN equitable proportion of the pub
lie debt of Virginia, prior to the first day
of January, 1861, should be assumed
by the State, and that the Legislature
should ascertain the same as soon as
practicable, and provide for the liqui-
dation thereof by sinking fund suffi-
cient to pay the accruing interest and
redeem the principal in thirty -four
years
"But notwithstanding these constitu-
tional requirements and various efforts
made to adjust the liabilities of West
Virginia, nothing was accomplished up
to March 80, 1871; and it is stated by
counsel that nothing has been accom-
plished since. = Virginia there
fore undertook to effect separate adj
iustment with her creditors, and for that
purpose, on the goth of March, 1871,
passed an act known as the Funding
Act of the State It's preamble recited
that in the ordinance authorizing the
organization of the State of West Vir-
ginia it was provided that she should
take upon herself a just proportion of the
public debt of the Commonwealth OF
Virginia prior to Jan. I, 1851 and that
this provision had not been fulfilled, al
though repeated and earnest efforts on
that behalf had been made by Virginia
and then declared that TO enable the
State of West Virginia to settle her pro-
portion Of the said debt with the holders
thereof, and to prevent any complica-
tons or difficulties which might be inter
posed to any other methods OF settle
ment, and for the purpose of promptly
restoring the credit of Virginia, by pro-
viding for the certain and prompt pay
ment of the interest on her proportion OF
the said debt as the same shall become
due the Legislature enacted that the
owners of the bonds, stocks or interest
certificates of the State might fund two
thirds of the same and two-thirds of the
interest due or to become due thereon
up to July I, 1871, in six 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 cou-
mons 70 bearer. Forthe remain
ing one-third of the bonds thus funded,
the act provided that certificates should
be issued to the creditors, setting forth
the amount of the bonds not funded, with
the interest thereon, and that their pay
ment would be provided for in accord
ance with such settlement as might sub
sequently be made between the two
States; and that Virginia would hold the
bonds surrendered, so far as they were
not funded, in trust for the holder or his
assignees. The bonds of the State with
the accumulated interest amounted to
over $40, ,ooo, ,ooo."
The wheeling Ordinance, y" of April
20, 1861, which was the first step taken
towards the formation of the new State
of West Virginia, provided as follows in
its ninth section 1.-The new State shall
take upon itself just proportion Of the
public debt of the Commonwealth of Vir.
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