Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-12-06
GOVERNOR TAZEwELL'S MESSAGE
TO THE
GENERAL ASSEMBLY OF VIRGINIA.
Concluded
Fellow CrTlzeNs OF TIE SENATE,
AND HOUSE OF DELEGATES:

OF these Corporations, the commonwealth may
well be considered as free from debt. The sum
then due by it was so inconsderable, and was
so easily and perpetually diminished, that the
extinction Of the debt was process the effects
Of which were not felt, and could hardly be
calculated. The current disbursements OF the
Government were provided Tor by It's current
receipts, annually; and the difference between
them in any year, was the eHect OF mere casu-
altv To correct all such accidental difference,
the General Assembly, in 1910, most wisely de-
priyed the Treasury of all funds proceeding
from casualties, and appropriated such, Ito the
encouragement of learning" Thus insuring
frugality i'm the administration of the revenue,
by combining the regular receipts OF the Go
vernment, without leaving any surplus or de-
ficency that could be guarded against; and
at the same time, making the very negligencies
and vices of the community contribute TO their
own eradication, by aiding in its future ntellec-
tual improvement
The last war with Great Britain disturbed
this arrangement somewhat. Much exposed to
the attacks of the common enemy at time
when the Government of the United States could
not furnish to Us that prompt and effectual aid
which its duty required the State was compelled
TO rely principally upon its own resources. The
taxes were then increased greatly; and to enable
US to- carry on the war, large sums were bor-
rowed by the State, upon the pledge OF It's own
credit When peace took place. Virginia found
herself involved in a considerable debt: but she
was a creditor Of the United States, for much
OF its amount. Although the taxes were then
very properly reduced the receipts from this
source proved sufficient to satisfy all the ex
penses of a frugal Government, and to provide
frf The punctual Fragment of all the interest on
this public debt In this state of things, the &C
count of this Government with the U. States
was settled in part. Out of the proceeds then
maid to the Commonwealth, sum sufficient 10
extinguish the debt then payable by it, was APP
piled to that purpose; but having no immedl-
ate occasion for the residue, to avoid the evils
arising from fuctuatng system OF revenue,
or a large surplus in the Treasury, this residue
was appropriated by an act of the General As
sembIy passed i'm 1916, to public education"
Such is a brief history of the origin and pro-
gress ofthat great Corporation, now styled 1.-THE
President and Directors of the Literary Fund"
By the prudent management OF the affairs
of this institution, (Which with a single well
known exception, have been admirably con-
Quoted, J its funds have augmented to an amount
that is computed quite low, when it Is estimated
i'm money at a million and a halt OF dollars
The annual receipts from this capital, after
deiraying the annual charges upon them OF
$50, 900. and all the expenses Of the Corpora
ton have generally lett surplus much exceed
ing $50 OO to be reinvested and converted in
TO new capital.
II is the iudicious investment Of the capital
stock of this institution, and its surplus prohts,
that has given to it a character and use not Tore
seen by its authors and make it most valua-
BILE fiscal agent very large portion OF the
debt due hy the State directly, is now held by
and constitutes part Of the capital stock OF this
Corporation. The surplus profit ofthis capital,
being regularly invested In other stocks Tor the
paymeut of which the Commonwealth is bound
ultimately, creates new competition In the &C
ouistion of these stocks; thus increasing their
value and productiveness; so preserves the
credit ofthe State, and facilitates greatly many
of its fiscal operations.
To give full effect to this scheme, | recon-
mend TO YOU the enaction of statute authoriZ-
inc new loans to be made, to an amount equal to
the debt now due, or soon to become due by
the State directly. Some portion of this debt
bears an interest CHER than even the legal rate,
and much higher than that at which new loan
for the same amount may be effected, prcba-
bly,. Therefore, by applying the proceeds oil
snch loan to the extinction OF the existing
debt the Treasury may be at once relieved
from much oil the burthen Of interest now charg-
ed upon il; and as the stock Is held by this
CORPORATION the only effect will be, to change
the character of this stock and to diminish
somewhat the future surplus profits OF this in
sttution. BY continuing this process from time
TO time as the debts become due for which the
Commonwealth is bound directly, the Treasury
may be greatly relieved, without diminishing
the capital stock in this Corporation in the least
IL Will De PRUDENT dlSO, ihihh, w PipfiuS
that so soon as the permanent capital of
this institution shall have accumulated to an
amount deemed sufficient TO satisfy, out OF It's
annual profits, the annual expenses OF the Cor
poration, and the annual charge with which 1t
may be thought proper to cucumber it, that the
surplus of such annual profits should be paid in
to the public Treasury, and applied to the ex-
tincton of any debt due by the State directly
Sound policy seems to forbid that any Corpo,
ration should possess the privilege of unlimited
accumulation OF capital. All our Governments
themselves are restricted, not only by the emu
meratlon of the powers they may exercise, but
by the specification of the objects for the attain
ment OF which the enumerated powers may be |
exerted: so that they are inhibited from accom-. |
plishing any other than permitted end, and |
this only by granted means. The privilege Civ /
en- to this Corporation of increasing its stock |
indefinitely, by the annual conversion of surplus |
profit into permanent capital, has already been |
used to very great extent although hitherto
But il acquires new strength dali
" by its progress in this directions; and the time
s not far distant, perhaps, when left unchecked,
ts dspossible means will exceed those of the
49,. !..olT Tho effect of such state of things