Prior to the war, Virginia had embarked upon an extensive program of internal improvements which under normal circumstances would have paid for itself eventually and which during the war had accumulated much unpaid interest on the bonded debt. This financial burden would seem secondary to the tremendous poverty of the Virginians themselves at the end of the war. However, the General Assembly which had met prior to the adoption of the Underwood Constitution pledged the payment of all the ante-bellum debt plus the interest, even though Virginia had lost one-third of its taxable assets because of the separation of West Virginia. Some of the members still hoped and actually believed that West Virginia might return to the fold of Virginia after the war had ended. At the Governor's suggestion, in order to obtain revenue, the state sold its railroad holdings at a great reduction. Another method was the exchange of certain bonds for new ones at six per cent interest for two-thirds of the amount of the old bonds. For the additional third, certificates were issued endorsed against future settlement with West Virginia. Although these attempts were made to obtain necessary revenue, the amount received was very insufficient, and the state actually became more indebted because of them. Another grave problem which faced the state at this time was the establishment of a state system of free public schools. This action was based upon a provision of the Underwood Constitution of 1869 and although having a most worthy purpose, the action was a costly one. Schools were to be furnished for the Negroes (approximately 30% of the total Virginia population) as well as for the whites, and this condition made the problem more difficult since there was a large number of illiterate Negroes. Dr. William H. Ruffner of Lexington, the first State Superintendent of Public Instruction, was elected by the General Assembly when the new state public school system was organized in 1870. The formidable task facing him can be better appreciated when one considers the creation of an entire public school system with very little money and few trained teachers available. The interest from the Literary Fund, all the capitation or poll tax, a new state property tax and a new one dollar annual tax on each male citizen twenty-one years and older were to constitute the financial support of the public school system. Local school and capitation taxes were optional with each county and public school district. Dr. Ruffner received much help from Dr. Benjamin Mosby Smith who helped him formulate a program and at the end of the first year, twenty-nine hundred schools were in operation with three thousand teachers employed to teach one hundred and thirty thousand students. From time to time, the schools were seriously threatened when the interest on the state debt was so high that there was little surplus left for educational purposes. Dr.