The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-16
DOES VIRGINIA
owe GREAT sum-.
Belief Prevalent III Some Minds
That State Is Indebted to
National Government.
ACCOUNTING ABOUT YEAR AGO
New Question Develops i'll Con
,lcction With Proposed Bill
fol. Mount Vernon Road.
lErom Or Regular Correspondent,

(From Dir Regular Correspondent
WASHINGTON, y. G., Dec. 15.-Therc
+. is3a belief prevalent In the minds Of some
EVirglnians that the State owes the Ma
tIolal government large sum. which
offsets all claims whicl, the State has
against the United States This fact
has developed since the talk OF the intro
dnctlon of a bill BY Senator Daniel pro.
ridlng for the payment OF the sum OF
sl2o,ooo, with Interest, to the treasurer
OF the Mount Vernon Association to be
expended In building n road from this
city TO the tomb Of Washington. The
sun provided for is to represent the
money. principal and interest. loaned the
United States by the Stute Of Virginia
IN the latter part OF the eighteenth cen-a
ional Capitol.
Had an Accounting.
The United States and the State Of
Virginia had an accounting about one
year ago, and all claims I, OF the one
against the other were settled. The Ma
tiona government owed the State money
for expenses incurred by Virginia In In
dian wars, etc. but Virginia also owed
tho National government. Whenever de-
mand was made by either upon the other.
offsets were mentioned. and settlement
way Impossible. Finally Senator Daniel
had a bill passed which provided that
where there were counter claims as be-
tween State OF the Unipn and the
s United States. settlement should be made
a rs OF the time when the two accounts
were closest together. Accounta Is found
that the claims OF Virginia against the
United States and OF the United states
against Virginia were nearest together
on q certain date abou T. 1880 at which
time the claim OF Virginia exceeded that
OF the National goverItncnt by five doll
lars. Governor Montague and Second
auditor Dew came u to Vast ington and
Y took home with them the check Of the
& Secretary Of the Treasury for five dol
lars. which was turned into the State
Treasury.
Blaine Advocated Payment.
The claims settled did not include the 1
sum loaned the, United States by Vir-
\ ginia for the construction OF tho Capitol
That sum Is still due. and as a distin-
giished Republican senator before the.
war Is said to have remarked on one
occasion. will remain debt until the /
United States pays It. Hon. James G *.
Blaine Is said 10 have advocated the pay
..nent OF the claim and William X. Seward
IS understood 10 have taken the same po-
eition. Mr.. Blaine. il will be recalled
favored the assumption OF the State debt
Of Virginia by the National government,
because OF the cession to the United
States by Virginia Of the Northwest Ter
ritory from which were carved several 3
& o. the richest States Of the Union Mr..
Blaine also wanted the United States to 4
build slack watcrS canal from Clifton
Forge to Richmond, In return for what
Virginia had done for the Union. OF I
course he must have known the scheme /
was purely chimericai.r and he was one 4
OF those mainly instrumental in building
The 1 old Richmond and Allegheny Rail-
road, which took the place OF the James
River and Kanawia Canal. which was
built by the State and EXTENDED from
Richmond to Buchanan, a distance OF
about two hundred miles.