Repudiation of Debts - VA History

Description

The Repudiation
Of State Debts
A Study in the Financial History of
MISSISSIPPI, FLORIDA, ALABAMA, NORTH CAROLINA,
SOUTH CAROLINA, GEORGIA, LOUISIANA, ARKANSAS,
TENNESSEE, MINNESOTA, MICHI
GAN, AND VIRGINIA
By William A. Scott, 1873
348 pages, searchable
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Bonus
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Essays on the Civil War and Reconstruction
By William Archibald Dunning, 1898
393 pages, searchable
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Autoboot CD for Easy PC Access; Manually Open Files on MAC
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CHAPTER VI.
REPUDIATION IN VIRGINIA.
The Civil War left the State of Virginia with
an enormous debt. In 1861 it amounted to more
than ,000,000, and with accrued interest it
amounted on Jan. 1, 1870, to more than #45,-
000,000. Arrangements for the refunding of
this debt, and for the making of provisions for
the payment of the annual interest charge, as
well as the ultimate payment of the principal,
early occupied the attention of the legislature of
the State, and the result was the passage of the
funding act of 1871. ^
This act divided the debt into two parts. One-
third was set aside as West Virginia's share of the
joint indebtedness of the two States before they
were separated. For these bonds certificates were
issued setting forth that "payment of the amount,
with interest thereon at the rate prescribed in the
bonds surrendered, will be provided in accordance
with such settlement as shall hereafter be made
between the States of Virginia and West Virginia,"
and that "the State of Virginia holds said bonds,
SO far as unfunded, in trust for the holder or his
assignees."
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