Year: 1872




rest the further funding of the public debt
there is rot In this resolution single clearl


expressed purpose of any kind or character


Whether there shall be any examination in


to our financial condition, and if so, when an


how long TO continue ; when the funding is t


be resumed, if it all and what are the ulsimat
designs and purposes of the Legislature, ar
all uncertain. and left to mere conjecture.


Such, when analy yzed and it's complicatet
verbiaee unravelled, appears to be The tru
character of this resolution [ cannot believ
that it expresses the mature judgment of tn,
General Assembly. | am confident that it coult
have been neither carefully considered no
thoroughly understood. Over two-thirds of tn,
debt has already been funded, and as to tha
portion. the funding act has become an exeeu
ted contract which must be fulfilled Throwf
around it is The protecting shield OF onr owr
and the national Constitution. though L trust
the occasion will never arise when the aid o
either will have to be invoked But the balance
of our creditors "a small and helpless minority
who by their very delay 10 funding have
manifested the greater confidence In our integ
rity, are rldely thrust aside without remedy OF
hope OF Immediate redress. Is this right, is II
just? Is it the mode in which a great and
sovereign State shonld deal with those who,
trusting implicitly in her honor, have furnish
ed the means with which to construct her rail-
roads and canals and develop her resources p
Why should not all our creditors be placed up
on the same equal basis?


What justification, paliation, OF excuse, can
be offered for this unjust discrimination against
one portion of our creditors? know Of none
and have heard of none, am aware hat it has
been assumed by some that to pay the annual
interest, if the whole debt we're funded, would
necessitate an increased rate of taxation; but
this is mere assumption, not sustained By the
facts. have already laid before you my views
upon this subject, and further reflection entire
iy satisfies me that If they are sanctioned by
prompt action on your part the fears of increas-
ed taxstion vii! be effectually dissipated


NOT only do not favor increased taxatiou
but | am an earnest advocate Of measures
which will senslbly relieve The people from the
heavy load OF county, township, district road
and municipal taxation-t their real burthen.


Why not strike at the root of the evil, and
limit by appropriate legislation this local taxa
ton, rather than bring untold evils upon The
Commonwealth by tampering With her credit? !?


But it is said that the further execution of
the funding act ought to be stayed because that
act is unjust. But to wham2 Certainly not tn
the State, for beyond question more favora-
bic settlement was never made by State with
her creditors than that provided for US by this
law. Let US consider this subject briefly,


At the beginning of the war the State owed
a bonded debt Of over $3l 000 900 During
he war interest was paid upon portion Of
this debt, and remained unpaid upoa the bal
ance


After the war the Legislature which conven-
ed II 1876, by an act passed March ID Of that
year, authorized the funding Of all this unpaid
interest matured and maturing to January lst,
1867, 10 new bonds of like CHARACTER, and bear
ing the same rate Of interest as The old bonds.
Under this act between six and seven millions
was funded Go the 2lst of March. 1857, the
General Assembly authorized the payment of
four per cent Of interest upon the entire au,ounA
Of the public debt excarl the bonds Issued un-
der the act of 1866 These several acts recog-
nized and confirmed lie binding obligation Of
the whole debt upon Virginia no' wiihsand.ng
Lhe fact that during he war The STATE of West
Virginia had been crgauized. s..verig from her
jurisdiction nearly third OF her original ter
ritory and nearly nne-fiiird of her population,
upon the fundamental obligation that the new
State should assume and ray her jlst proper
ton of the public debt contracted prior to her
separation


The legality Of the l.gisls-ion 81 the General
Assembly of 1866 ard 1867 has never been
called IN question. But If an, deubts upon
this sniject We're ever enter aiued they were T.
na''y and iul!y solved by the adoption in 1869,
BY an almost uaanlm ,us vote of The people, OF
our present i'onstitntion which not only vail
dated all the legislation subsequent 10 the war,
but distinctly and unequlvocally recognized the
public debt, and the nnquestioned liability of
he State for the whole amour, Of it, hoi n
principal and interest.


This brief statement of tae action of the
State upon this suhjact must, without the aid
Of public law, whica sin I,effect harmony with
it silence all discgsio" IL 10 s.ie liability of the
State for this debt. lha, Liability is absolute
and undoubted, and yet 10 objection can be
raised to the funding act, because it recognizes
this incontestible fact. The first Legislature
which convened under our present Constitution
having failed to make any settlement with w.
Virginia, recognizing the vast Importance of
maintaining unsullied the honor of the State
and the sauctity of our public obligations, and
that further delay would inevitably
result in great, and perhaps irreparable, injury,
bnth 10 our public aud private credit, after ma
ture dellberaiion adopted what is popularly
known as the funding BILL


After reci,ipg the undoubted act that the
State is uagne stionably liable for two-.hirds of
the deb, this act authorizes the funding of
fwo-fhirdS Of the amount, both principal and
interest, OF all outstanding obligations OF the
State in new bonds, dared he lss day Of July,
lSfi, heallng the same rate OF interest as the
original bonds, payable sen.i-aanually, and the
princlpai payable in thlrty-iour years from date,
upon the condition however, that the original
bonds be surrendered and no claim made upon
US for the balance due upon them, except in
accordance with such settlement as shall here
o ftar ha had W. h Wast Nirrin:c


Can the execution OF this act work apy inius-
tice to the State2 viii not all the advantages
accrue to her? Does she not thereby obtain
an extension of time upon the principal of the
debt, and is she not released from all present
liability for e-third of it2 1t Is true that the
interest which we have heretofore failed to pay
is added to the principal and funded 10 like
but is there anything wrong or unjust
TO the State in that? Is not the payment of
interest as much part of the obligation, and
as solemn and binding, as the payment of the
principal? The failure to pay the one is no
less and nc greater dlshonor than failure to
pay the other. We were unable to pay eitber
and the extension of the time of payment of
sums already due for period OF thirty four
years is an advantage Of great Importance to
the State. The act authorizes the issue Of
either registered or coupon bonds, at the op.
ton of the owner, and the coupons of the lat
ter at and after maturity are legal tender for
all tages AMI debs due the State. If we 10
tend to meet our obligations at maturity and to
pay the interest on our debt when it falls due
what objection can be urged to the coupons?
They nett her increase nor decrease our liability
and instead OF lsnpairlng vii! rather cenduce TO
the support and maintenance of the public
credit | have bus briefly reviewed the pfn-
cipal and more important features Of the fund
lug act for the sole purpose Of ascertainlng
whether ii contained any provision which could