VIRGINIA. 



821 



sion of the Legislature began on December 6, 

 1877, that some measure should be adopted rela- 

 tive to the debt. But a divided sentiment had 

 already begun to prevail. Some were in favor 

 of an increase of taxes sufficient to meet all 

 delinquencies ; others opposed every increase of 

 taxation, and others proposed new bonds at a 

 reduced interest. Thus measures for readjust- 

 ment of the debt were introduced early in the 

 session. They proposed to refund at 3 per cent, 

 interest for ten years, 4 per cent, for ten years, 

 then 5 and 6 per cent, in bonds of forty or fifty 

 years. But the propositions contained a pro- 

 vision retaining the tax feature of the coupons. 

 This was a fatal objection to them. Mean- 

 time the Finance Committee of the House in 

 January reported the following condition of 

 the debt : 



Debt, exclusive of the literary fund, the sink- 

 ing fund, and accrued interest West Vir- 

 ginia off- September 80, 1877 $29,350,826 88 



Accrued interest on the debt 4,188,141 33 



$83,538,967 71 



Annual interest on the principal of the debt of 



$29,850,826.38 at 6 and 5 per cent $1,742,85 82 



Debt, including the literary and sinking funds. 85,924,343 53 



Accrued interest on literary and sinking funds. 1,108,267 90 



$~37^032,611 43 



Annual interest on the principal of the debt of 

 $35,924,843.38 at 6 and 5 per cent $2,135,031 76 



Total debt, including the literary fund and the 

 sinking fund and accrued interest 41,220,752 76 



Total annual interest on the principal of the 

 debt, $41,220,752.76 at 6 ana 5 per cent 2,453,716 31 



REVENUES. 



Total value of real estate as assessed with taxes 

 for 1877, $246,391,193.56; tax on same at 50 

 cents on the $100 value is $1,231,955.96, and 

 back taxes assessed of $1,1260 22 makes... . $1,233,216 18 



Total value of personal property as assessed 

 with taxes for 1877. $76,17S,43S; tax on same 

 at 50 cents on the $100 value 380,892 19 



Total value of income as assessed with taxes 

 for 1877, 3,457,715.40; tax on same 1 per 

 cent 84,557 15 



Capitation tax assessed for 1877 : White, 174,- 

 861; colored, 110,054; total tax at $1 per 

 capita 285,815 00 



Licenses assessed May and November, 1877... 541,444 25 



Taxes derived from banks, railroads, insurance 

 companies, clerks, notaries, etc 120,000 00 



Revenue derived from all other sources, net 

 and other than extraordinary 75,000 00 



Totalrevenue $2,670,924 77 



Deduct commissions for collecting 94,203 40 



$2,576,721 37 



Deduct insolvent capitation and property and 

 delinquent land tax 127,506 73 



Deduct current expenses of government. , 



$2,449,214 64 

 1,073,886 33 



$1,375.328 31 

 Deduct amount due public free schools 497,782 85 



Net revenue applicable to the payment of in- 

 terest $877,545 46 



In the Senate on January 29th the following 

 resolution received four votes, and was disposed 

 of in the House by reference to a committee : 



Whereas, The revenue oftlie Commonwealth, based 

 on the present rate of taxation of fifty cents on the 

 one hundred dollars value, is inadequate to meet the 

 expenses of the State, the public schools, and the 

 interest on the public debt ; and whereas the interest 



on the public debt should be paid in full ; and whereas 

 this can not bo done without uu increase in the prcs- 

 ent rate on personal property, real estate, licenses, 

 and all other subjects now taxed by law therefore, 

 t80faed,T\\&t the Finance Committee be arid they 

 are hereby instructed to report as early as practicable 

 such a bill increasing the rate of taxation on licenses, 

 personal property, real estate, and all other subjectB 

 LOW taxed by law, as will meet the current expenses 

 of the State, the public schools, the interest on tho 

 public debt, and any and all other debts now due or 

 that may become due during the fiscal year by the 

 Commonwealth. 



In the House on February 1st the Committee 

 on Finance reported as follows: "The Com- 

 mittee on Finance to whom was referred the 

 following resolution 4 Resolved, as the sense 

 of this House, that the rate of taxation upon 

 real and personal property should be increased 

 to such an extent as will enable tho Common- 

 wealth to pay the interest at the rate of 6 per 

 cent, upon its debts' with instructions to 

 inquire into the expediency of increasing the 

 present rate of taxation, respectfully report 

 that it is inexpedient to increase the present 

 rate of taxation on real and personal property." 

 The report was agreed to yeas 110, nays 4. 



Meantime the Finance Committee of the 

 House of Delegates reported a bill which de- 

 clared in its preamble that the condition of 

 the people was such as to render an increase 

 of the rate of taxation impracticable; that the 

 rate of fifty cents on the hundred dollars was the 

 utmost limit to which the Legislature should pro- 

 ceed in levying taxes ; that the present amount 

 of taxation was not sufficient to maintain the 

 governmental organization, to discharge the 

 constitutional obligation to the free schools, and 

 to pay the present rate of interest ; and that 

 the preservation of the government was abso- 

 lutely necessary. The bill, therefore, provided 

 that there should be a tax first of twenty-five 

 cents on the hundred dollars for the exclusive 

 purpose of defraying the necessary expenses of 

 maintaining the government ; second, a further 

 tax often cents for public free-school purposes ; 

 third, a further tax of fifteen cents to pay the 

 interest on the public debt. After an extended 

 debate, this bill was passed yeas 71, nays 40. 



In the Senate the bill was amended by adding 

 revenue from some incidental items to the 

 fifteen cents for interest on the public debt. 

 It was then passed yeas 21, nays^ 16. In the 

 House the amendments of the Senate were 

 approved, with the exception of an unimpor- 

 tant one, which was modified by the House 

 and subsequently approved by the Senate. On 

 February 27th the Governor returned to the 

 House the bill with his reasons for not signing 

 it. He urged that the bill did not meet his 

 wishes, which were that the State debt should 

 be finally settled, and that in his opinion the 

 clauses of the bill are both unjust and uncon- 

 stitutional, apart from anything beyond their 

 simple terms. The veto was taken up wr otfflr 

 sideration on the 28th in the House of Dele 

 gates. On the question of the passage ot 

 bill notwithstanding the Governor s veto, the 



