VIRGINIA. 



843 



the Funding Association filed their assent with 

 the Governor ; and they might present for fund- 

 ing at least $8,000,000 of the outstanding obli- 

 >r:iti<>n9 of the State on or before January 1, 

 I.*MI. K \vry six months thereafter they nuiy 

 fund $5,000,000 until the whole debt of $34,- 

 000,000 is funded. In the year 1885, and an- 

 nually thereafter until all the new bonds are 

 1, there will be collected a tax of 2 cents 

 on the $100 of the assessed valuation of all 

 property for a sinking fund. 



The position of the Readjusters in their op- 

 position to the funding scheme was defined in 

 the following resolutions adopted at their con- 

 vention held in Richmond, February 25th : 



1. That Virginia fully recognizes her just liability 

 for her fair proportion of the public debt contracted 

 before her territory was divided. 



2. That Virginia can never recognize liability for 

 that portion of the debt which should attach to West 

 Virginia. 



8. That in any settlement with the State's creditors, 

 the annual interest of the recognized indebtedness 

 must be brought within her revenues under the pres- 

 ent rate of taxation. 



4. That the capacity of these revenues to meet such 

 interest must be determined by deducting therefrom 

 the necessary expenses of the government, the appor- 

 tionment to schools, and reasonable appropriations for 

 the support of the cnaritable institutions of the State. 



5. That these limitations should be carefully ascer- 

 tained and guarded so as in no event to allow the pri- 

 mary obligations of the government and people to bo 

 subordinated to any other demands whatever. 



6. That a settlement within the limitation desig- 

 nated is the utmost stretch of the people's ability to 

 pay. and should be satisfactory to the creditor as the 

 furthest exaction he can fairly insist on. 



7. That any settlement, to be final, must rest up_on 

 tho sovereignty of the State, and find its best security 

 in the good will, good faith, and honor of the people of 

 Virginia. 



8. That the sovereignty of the State can not bo 

 pledged nor delegated except for public service, and 

 when so pledged or delegated is at any tune revocable 

 by the Legislature. 



9. That any self-executing lien upon public revenues, 

 such as is given by tax-receivable coupons, is against 

 public policy and degrading to tho State and people. 



10. That no discrimination between creditors can be 

 made or sanctioned by the State, in any readjustment 

 that may be consummated. 



11. That Virginia should deal directly and frankly 

 with her creditors, and should never place either their 

 claims or her revenues and obligations in the hands of 

 intermediaries who are not completely under her con- 

 trol and direction. 



12. That all exemptions from taxation not authorized 

 by the Constitution are intolerable, and can not be af- 

 forded in the present condition of the State's finances. 



13. That the rate of taxation is as high as can bo 

 borne, and, instead of entering into an undertaking 

 that may necessitate an increase of taxation, a diminu- 

 tion in public burdens should bo provided for. 



14. That public free schools should be protected and 

 sustained to the fullest extent. 



15. That reform and economy should bo energeti- 

 cally pressed in the administration of affaire of State 

 and country. 



16. That full recognition of these principles and 

 declarations by the people of Virginia and her credi- 

 tors is absolutely essential to any amicable readjust- 

 ment, and no readjustment in which they or any of 

 them shall have been neglected can be final, certain, 

 and satisfactory. 



The amount of the debt funded in accordance 



with tho McCulloch bill was $8,491,961 at the 

 time of the meeting of the Assembly on De* 

 ivinhcr 8d, the gum of $8,000,000 required to 

 make the contract binding having been reached 

 before the 1st of October. The total revenue 

 of the State, based on the returns for 1878, is 

 $2,762,519, derived from the following princi- 

 pal sources : Tax of 50 cents per $100 on total 

 value of real estate (assessed as $244,563,717), 

 $1,222,818 ; tax of 50 cents per $100 on personal 

 property (assessed as $71,018,105), $355,065; 

 tax of 1 per cent, on incomes exceeding $600 

 (aggregating $2,971,203), $29,712; capitation 

 tax of $1 per head on male citizens over twenty- 

 one years old (whites 175,970, colored 109,401), 

 $285,371 ; licenses (regular merchants $382,- 

 717, licenses and registered sales under Moffet 

 liquor law, less expenses and rebates, $340,- 

 766), $673,484; taxes derived from railroads, 

 banks, insurance companies, etc., $120,000 ; 

 revenue derived from other sources, $75,000. 

 Deducting from the gross revenue the expenses 

 of collection, errors in assessment, and defaults 

 of insolvents and delinquents amounting to 

 $237,951, a net revenue remains of $2,524,568, 

 or, with the tax on coupons added, $2,586,078. 

 The estimated expenses of government are 

 $701,118, and the amount estimated to be due 

 to the public free schools annually is $487,442, 

 leaving an annual surplus applicable to the pay- 

 ment of interest on the debt, and to the ex- 

 traordinary expenses of government (averaging 

 for nine years $74,369 per annum), amounting 

 to $1,397,517. 



The state of the debt and interest charge 

 stood on the 1st of October, 1879, as follows: 

 Amount of bonds funded at 3 per cent, under 

 the act of March 28, 1879 (dollar bonds $7,674,- 

 449, sterling bonds $375,000 $8,049,449, less 

 $105,134 bought in by the Commissioners of the 

 Sinking Fund), $7,944,314, the annual interest 

 on which amounts to $238,329; principal of 

 sterling bonds outstanding, $1,472,805, the in- 

 terest on which at 5 per cent, amounts to $73,- 

 640 ; amount of dollar bonds issued under act of 

 March 30, 1871, still outstanding, $20,250,184, 

 the interest on which at 6 per cent, amounts to 

 $1,215,011. The total principal under both 

 acts amounted to $29,667,304, and the interest 

 due annually thereupon to $1,526,980, which, 

 deducted from the net revenue, stated above, 

 applicable to the payment of interest, leaves a 

 deficit of $129,463. Adding the interest at 5 

 and 6 per cent, on the debt held by the liter- 

 ary fund (principal $1,428,245), amounting to 

 $84,849 per annum, the deficit increased to 

 $218,813; if the interest on the literary fund 

 is reduced to 3 per cent., the deficit is reduced 

 to $172,310. Were the entire debt funded un- 

 der the act of March 28, 1879, including one half 

 of the interest in arrears on the bonded debt 

 and full interest on the college and literary 

 funds, the total principal would amount to 

 $31,227,083 ; the interest on the refunded debt 

 at 8 per cent, would amount to $986,812 per 

 annum, the full interest payable under existing 



