Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1828-07-04

nal, which would finally pay, or even more than.
pay, the three items above named. 30, that
would finally operate as gain rather than loss to
the State.-The Improvement in this case would
be polite the part U the State precisely III the
same way as the farmer may sometimes determine
10 clear aud drain particular piece OF land; though
he IL well aware, that from unavoidable impede
inents thrown in the way OF cultivation, the crop
81 the first year Will not pay him interest on the
money capital expended.
But let us adopt the calculation which seems
much the most probable; that these contemplated
iinproveu en's viii at once pay the three items a.
bovc enumerated, viz the rent OF the land where
OH the Improvement il made, which, in the pres
ent case, would be very triiling, If any thing. I'd.
The interest Of the capital expended IN construction
and Improvement. 81. The annual charge oil main
tcnance.-Mhen this is the case, the expenditure
will not operate as tax OIL the community. Sup
pose, for example, the State should subscribe ST.
O00 900 90 these projected improvements and that
II Immediately receives as dividend Si20,O0O,
which is the interest the 81 600, 00a above
toned, supposing per cent. the market, as well
~ legal rate q, iuterest.-Thc State loses nothing
by this operation; its money has been employed in
safe aud profitable investment; X holds stock il.
its hands, which ainaysbe sold at par, or even
more, should the State be anxious ever TO regain
lis capital, which will always command the i'll
tcrest, if il should choose TO remain a holder OF
stock You had as well suppose the inii'i to
carry on 4 pernciOus trade, when he loans out his
capital TO the responsible undertaken who pays him
yearly the market rate OF interest, as to suppose
the State at all injured by such Improvements as
those mentioned above.
But, il is confidently hrleved thatthe tolls would
not long remain at point barely sufficient to pay
the above mentioned charges, but would 60 on in
rreasng from year 10 year. This is the history OF
all profitable improvement. Under these circum-
Stances then, the State would be gamer by the
excess OF its dividend above the market rate of in
tcrest. If this excess should be per cent, the
State would make an animal gain of 800 900;
should it he per cent, of $ 900, and so But,
this would not be the only gain. Stock would be-
come more and more valuable in proportion TO the
excess above mentioned; thus if that excess were
per cent. every share, surprising each hundred
dollars originally, would be worth SIG 66 23;
suppose the excess per cent every share would
he Sl33 So IL; and the original $S2,0O0,000 OF
stock which the State holds in its hands would
now be worth ;S2,666,666 66 2-3, having thus
made gain in the value OF its stock OF $666,666
66 23
We may perhaps be again met here by the in
llabi.ant OF the Lower Country, with the asser
ton, that the 81, 000, 600 subscribed by the State
must in the first instance, at least be paid by the
State il must then be taken out OF the pockets oil
the people-and that il never returns back-that,
although Government, considered i'll the light of
dealer, may not have been injured, may be bene
fitted yet this not the with the people, who
the tax-Tayers-that, when once Government
has taken the money from their pockets, it is ne
yer returned again. but lost irrctr;evably the tax
payer. The of this opinion, will be found to
consist in not rejecting that an Individual may be
well benefited by being disencumbercd OF any
great charge, or by remission OF any ordinarily
attendant evil as by positive gain, or immediate &C
QUESTION. Thus, il the estate of A. should be
charged with an annuity OF $50, and he should he
suddenly released from the payment OF this annui-
~, the advantage accruing to him would TIE just as
great Us the sudden acquisition OF 1000; supposinS
per cent te be the average rate Of profit; Tor, the
$50 have hitherto paralyzcd capital OF $1,000
If the annuity be reiiuquished, the $50 profits will
be devoted to his own use-or, II the annuity re-
nsin, and $1,000 be presented to him, this CAPT
tai will only produce 500, which just compensaies
Tor the annuity.
Let us apply dis reasoning 10 the case under
consideration-let suppose, for simplihcation,
that the annual tax paid by A. is II dollars; this
is the interest of200 dollars Consequently, there
200 dollars of capital every year laid aside for
the production of The tax, and OF course, complete
ly lost TO the owner. Now, suppose Government
call on him at for 500, as his quota to the
S2,O00.00O, which are supposed 10 be subscribed to
Internal Improvement He would not'be at all in
jured by this demand: the proceeds arising from
the tolls which will be paid TO Government, will
amount to Sl20,0 900, the interest at per cent.
the 50 600 900; consequently, the expenditure OF
Government remaining the same, $4,000 of tax
may be RENTED And thus, il as we have
supposed; the whole tax formerly pas Ss240,000,
=. will now have to pay only Sc so, that he is
not at all injured by the operation Of this system,
although not cent OF money isTePaid to him. He
is benefited by the remission q tax Ii the pro-
ceeds from the Improvements should he more than
g, Say ner cent, y. would then have 10 pay 10
Government ONLY 50. supposing the expenditure to
remain the same. This 10 a. would be equivalent
10 positive gain of SIG SO 2-3. Ii the proceeds
should swell to sper cent, this would be equva-
lent to positive gain OF 33 33 Is; for, he would
now pay only 81 tax. Finally, if the proceeds
should ever amount to II per cent. all the taxa
ton would entirely according TO the suppo-
silion above made; and the advantage accruing TO
4. would be equivalent TO 500. All dividend be
yond this point, might be distributed among the
people, we have supposed the whole eXpendi-
ture of Government 10 amount to SS2iG 900 only.
II per cent then, according to the assumed case,
Is the point TO which the profits the 81 900 900
may proceed, before any money would be refund
ed to the tax payer; after this, his positive gain
would commence. Yet, it is evident from the
soon as the proceeds Of the improvement exceeded
D per cert.
Thus, your committee hope they have satisac-
torly proved that the State Sustain 10 loss, if
the annual dividend shall amount 10 per cent,
which will be the most probable result, and like
wise that the tax payer will sustain none; the
contrary, that there is the highest probability that
both will be greatly benefited. LccI to the
Great Canal Of New York, which now Yields di-
vidend OF more than per cent, and see what an
immense advantage il Is both TO the Government
and the tax payer for TO the latter an amount Of
lax, equal TO the annual dividend, is forever re-
mi.ted, which operates permanent advantage
Vet, the New York Canal was cut under great
disadvanIaEes---it was one among ilic first works
OF the Kind IN our country since that time the ex-
pense OF these works has much diminished and
great Improvements introduced in the construc-
UOn.
We have, therefore, every reason 10 look with
confident expectation 10 the most complete