822 



YIEGINIA. 



vote was yeas 71, nays 41. Two thirds not 

 yoting in the affirmative, the bill was lost. 



On February 22d the Finance Committee of 

 the House reported a bill for the consolidation 

 of the public debt and for the payment of in- 

 terest thereon. This bill authorized the Gov- 

 ernor to exchange for outstanding bonds, dollar 

 for dollar, registered bonds bearing interest at 

 3 per cent, for twenty years, and 4 per cent, 

 thereafter until paid, exempted both principal 

 and interest from taxation, and the bonds to 

 become due in fifty years, but redeemable after 

 ten years. Two thirds of other interest-bearing 

 bonds and certificates of indebtedness may be 

 funded in the same manner upon a release of 

 the remaining third, accrued and unpaid inter- 

 est to be paid out of any excess of revenue in 

 the Treasury, etc., etc. 



On March 5th another bill for the consolida- 

 tion of the debt was presented in the Senate, 

 and its consideration postponed. One of the 

 Senators (Fulkerson), speaking in opposition 

 to its reception, said: 



There was only $103 in the Treasury this morning 

 not a dollar more. The Banks have refused to loan 

 the State another dollar; the State owes the banks 

 now $175,000 borrowed money; it is behind with 

 tlie appropriation to the asylums $121,000; there is 

 $1,000,000 of uncollected taxes, and $864,000 of cou- 

 pons on the market, with $600,000 to mature on the 

 1st of July next. So that we will have less than 

 $150,000 to run the government to the end of the 

 fiscal year, while the necessities of the government 

 during that time will require $900,000 ! w hat, then, 

 shall we do? Fritter away the balance of the session 

 discussing senseless propositions of compromise, or 

 set to work to devise the ways and means of keeping 

 the government alive ? 



The condition of the Treasury thus stated 

 was confirmed by a report of the Auditor. It 

 was finally relieved by the passage of two bills, 

 one of which required the general license tax 

 and the other the liquor tax to be paid in law- 

 ful money of the United States. 



On March llth the House ordered to be en- 

 grossed an amended bill which offered to the 

 creditors to refund their bonds in registered 

 bonds which will bear 3 per cent, interest for 

 eighteen years, and 4 per cent, for thirty-two 

 years. They were to be non-taxable by city, 

 county, or State, on principal or interest. This 

 finally passed yeas 84, nays 13. In the Sen- 

 ate the bill was considered on the next day, 

 when Mr. Fulkerson said "he was opposed to 

 the bill because there was nothing in it ; it 

 would turn to ashes on the lips of its invent- 

 ors in less than twelve months. He predicted 

 that in twelve months, if this Legislature as- 

 sembled then, not a single bondholder would 

 have accepted the terms of the bill. The bill 

 was only intended to bridge over one year ; 

 with the weak-kneed and the friends of the 

 bill, it will pass to-day, and be telegraphed all 

 over the country. But I shall vote against it, 

 if no one else will ; and I am sure that my pre- 

 dictions will be verified." The bill was passed 

 yeas 29, nays 5. On the same day the Legis- 

 lature adjourned. 



Notwithstanding the conflicting views on tLe 

 subject of the State debt, and the passage of a 

 bill which presented no special inducement to 

 the bondholders for the acceptance of its terms, 

 yet many important measures were adopted at 

 this session. Salaries were reduced, additional 

 sources of revenue provided, apportionment of 

 legislative members made, and the date for the 

 commencement of biennial sessions was fixed 

 for December, 1879. 



On January 24th the Legislature elected the 

 following State officers : Superintendent of Pub- 

 lic Schools, W. H. Euffner ; State Auditor, W. 

 F. Taylor ; Register of the Land Office, S. H. 

 Baykin ; Secretary of State, James McDonald ; 

 Superintendent of Printing, R. E. Trayser. 

 Subsequently, on March 3d, the General As- 

 sembly elected R. M. T. Hunter, Treasurer, 

 and Asa Rogers, Second Auditor. 



The next regular session of the Legislature 

 convened on December 4, 1878. At its open- 

 ing the Governor said : " In entering upon the 

 duties and responsibilities of legislation, the 

 same great question rises that confronted you 

 at the beginning of your last session, and oc- 

 cupied you, in one form or another, during its 

 entire term. It is the question of questions for 

 Virginia, involving every other. There is not 

 a department of the government it does not 

 reach ; there is not an operation, however ap- 

 parently remote or small its detail, that is not 

 directly or indirectly affected by its existence 

 or discussion. As long as the State debt con- 

 tinues unsettled, there is an incubus upon the 

 spirit and a clog upon the movements of Vir- 

 ginia ; when it is settled honorably and finally, 

 she will start upon a career that will not be 

 unworthy of her history." The views now 

 represented in this body soon appeared to be as 

 various and conflicting as at the previous ses- 

 sion. Some asserted that by the payment of 

 an additional tax of twenty cents on the hun- 

 dred dollars the State could meet all deficiencies 

 of the revenue, pay full interest upon the entire 

 debt, maintain the State government and pub- 

 lic schools, and provide a sinking fund which 

 would in a few years extinguish the principal 

 of the debt. This statement was denied by 

 others, who urged that it was based upon an 

 erroneous report to the public ; and to show its 

 incorrectness reference was made to the follow- 

 ing statement of the Auditor of the Treasury : 



FROM WHAT SOURCES REVENUE IS DERIVED. 



Value of real estate as assessed with taxes, 

 $246,391,193.56 ; tax on same at 50 cents on 

 the $100 value, is $1,231,955.96, and back 

 taxes, assessed at $1,260.22, making $1,233,216 18 



Value of personal property assessed with taxes, 

 $76,178,488.00 ; tax on same at 50 cents in che 

 $100value 880,892 19 



Value of incomes as assessed with taxes, $3,457,- 

 715.40 tax on same at 1 per cent 34,557 15 



Capitation tax white, 174,861 ; colored, 110,- 

 954 ; total tax at $1 per capita 285,815 00 



Tax on licenses 600,000 00 



Taxes derived from banks, railroads, insurance 

 companies, clerks, notaries, etc 120,000 00 



Kevenue derived from other sources, not and 

 other than extraordinary 75,000 00 



Total revenue .... .... $2,739,480 52 



