Year: 1870

ninety cents on the dollar. but also that
much Of the cost and irritation incident to
session would have been avoided.


earnestly invite Your attention to those
recommendations They, each and all, form
part Of the general plan for our relief from
the great evil that depreSSes us-a dishon-
ored State credit. When the body polite
becomes disordered, learned and patriotic
doctors are never wanting, each Of whom
has some sovereign specific which he mag
unanimously and pcrststently urges upon the
attention of the sufferer. Some are actuated
by the sole and sincere desire to benefit the
patient, while others, with loud protesta-
tions OF like desire in rendering their new
and questionable nostrums, have always q
Keen eye for personal gain and future ag-
grandizement. Our patient has not been
tree from these attentions. Numerous reme-
dies, some OF them new and untried, have
been freely suggested. In my opinion, there
Is but one sovereign remedy for the evil
which afictS us, and that remedy is q strict
1nHIment Of oar solemn obligations. Here
tolore, since the close of the late war and
until the restoration Of civil government in
the State, We were powerless to adopt this
remedy; but the time has now arrived
when we ought to and must apply it. Some
deem 1t advisable to inausurate the resump-
hon Of the payment Of interest on the pub
lie debt by paying three per centum inter-
est the first year, four the second year, five
the third, six the fourth, seven the fifth,
and so on, increasing each year until all
the deferred interest shall have been paid,
and then resume the regular payment Of
interest rs it falls. due. While this plan
would not fully accomplish the desired OBJ
ject--viz., complete restoration of the


State credit, because it would not be full
hlment either in letter or spirit of the obli-
CATIONS Of the State, and because 1t would
necessitate the payment Of interest upon
the deferred interest, and thus compound
ing it in order to finally and fully meet


what would be justly due, and would thus


become an increasing burthen from year to


year until the resumption of the regular


payments Of interest according to the con-


tract; nevertheless, it has the merit of tenn.


porary relief to our people, and, upon the


principle that "half a loaf is better than


no Bread" would be manifestation to that


extent of our intentions and desires to meet


our obligations as rapidly and fully as cir


cumstanccs would permit.


Another proposition entertained by some


is that the Stale should only pay four per


centuln interest per annum until the State


Of West Virginia assumes her just proper


tion Of the debt. This proposition Is based


upon the aSsumption-frst, that this State


is not liable for the whole debt; and, Sec


ond, that the proportion of that debt


which the State of West Virginia ought


to assume and pay is exactly one


third Of the whole. But this is mere as


sumption, without any substantial founda-


ton. The first Legislature of Virginia


which assembled after the war, and the


legality Of whose acts has never been uues-
toned by us, virtually assumed the whole


debt by authorizing the funding of all the


interest due upon the whole debt, up to
going on ever since, until now nearly all


the interest due upon the State debt, up to


january, 1867, has been paid in new bonds
Of the state Of Virginia. The holders of
these new bonds are rs clearly creditors OF
the state rs the holders Of the old bonds
issued prior to the war. The obligation to
pay them is a> solemn, sacred, aud binding


as any other obligation of the State. Not
only Is the State bound to pay these new
bonds, but in their issuance the State, in
the most solemn manner, acknowledged
her liability 10 pay the principal of the debt
upon which this interest had accumulated.
II was, III law, new dS$umpStt, as binding,
i'll every respect, rs the original promise.
Again, 1t was never intended or contem-
plated that there should be division be-
tween the two States Of the original indebt-
etlness in its original form. Such transac-
ton would be impracticable, if not impos.
sible. The obvious intent and meaning of


all the legislation upon this subject by each
State is, that whatever amount the State
Of West Virginia ought to assume should
be paid into the treasury Of the State Of
Virginia, to be by her used in the eXtin-
u, ,f bp rirri,n lo1, hnh hnp
are the bonds of The State Of Virginia, not
West Virginia and to the treasury of the
State Of Virginia does the creditor look fol


the payment of his debt. This view was
| incorporated into the legislation of 1866,


and rcsanctioned by the people of this State
in the adoption Of our present Constitution,
the nineteenth section of the tenth article
of which declares that "The General AS
sembly shall provide, by law, for adjusting,
with the State of West Virginia, the proper
ton Of the public debt Of Virginia proper


to be borne by the State of Virginia and


West Virginia, and shall proride that such


sum as shall be receiUed from West Virginia


shall Je applied to the payment Of the public


debt Of the State" Again, in advance of


any settlement, how can it be arbitrarily


assumed that one-third Of the debt is the


proper proportion TO be paid by West Nir-
ginia: What is the basis of this aSsump-
tion? Upon what principle and upon what
facts is the estimate made: That we have
Il just claim against the State Of West Nir-
ginia, l entertain no manner Of doubt,
and | am equally clear as to the basis
upon which Il settlement should be
made. After deducting from the total
debt the market or cash value of the assets
or securities (bonds, stocks, &C., held by
either State, which originally belonged to
the State of Virginia, the remainder of the
debt should be apportioned between the
two States in proportion to the population
and taxable valuations Of each. 1t is plain
and simple proposition, not unlike the
closing up Of co-partnershlp. The assets
must nrst be applied to the eXtingulshment
of the liabilities, and if insufficient for this
purpose, the deficiency must be met by the
co-partners in proportion to the original
interest of each respectively in the adven-
ture. Upon this basis, it appears to me, the
question at issue between the two States
could be readily, fairly, and satisfactorily
solved. Until, however, a final adjustment
of this matter is reached, it can only be re-
s-arded in the light Of a claim or asset Of
uncertain value, not in anyWlSe affecting
our liability for the whole debt. Whatever
sum may be eventually realized from this
claim must be paid into the treasury OF our
State, and applied to the liquidation OF the
debt OF Virginia the same as other funds
appropriated for that purpose. But thus
far there have been no satisfactory indlca-
tions that the State Of West Virginia in
tended to acknowledge herself liable to us
for any portion Of the public debt. All our
efforts up TO this time to effect Il just settle
mcnt have proved unavailing. The Legis.
laturc of 1867 instituted measures for The
organization Of joint commission for
the adjustment OF this matter, but
our action met with no favorable
response from the State Of West Virginia.