Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1858-12-29

latter to be secured by sinking fund absolutely
pledged for their redemption; unless arrangement
which will answer the purpose State be made
with some of our banks. hope shall be pardon
ed for remarking that think the credit of the State
is likely to be as much more affected by the ac-
tion of this Legislature than any that has preceded
1t. Iit SHALL besides making suitable arrangements
for taking up that portion of the Public Debt that
falls due in the next two years, make abundant
provision by revenue bill to meet current eXpens-
es, and shall so increase the sinking fund that it
shall in the end be sufficient to extinguish Pub
lie Debt it will have the effect of elevating
stocks in the market; but failure to do these will
fear, impair our credit Our taxes are regarded
by some of our people as high, and they appear to
be so when we compare them with what we were
paying before we entered upon general system of
Internal Improvement; but an examination of the
taxes paid by the people of most Of sister States
will show, that ours are comparatively light. L
make this remark with no view of recommending an
increase of State Debt for any purpose, but in
the hope that it may encourage the making of ade-
quate provision for meeting that which has been al
ready created. We shall be compelled to issue more
State bonds these WILL at last of course have to be
paid, and it is certainly important that should
realize for them much possible. The shrewd
capitalist seeking to make investments in State
stocks, examines, | find into matters of this kind
with great scrutiny; he wants to see not only
promise to pay, but also evidence of preparation
to pay This question addresses itself to us not as
partzans; it is not one to which party projected
or which opposed the works that gave rise to this
Indebtedness, which section of the State is most
or least benefited by them, but it comes to us as
great North Carolina question, invoking all of US
to protect her credit"
The Treasurer then proceeds, in compliance with
law to report revenue bill for the next two years
to the General Assembly. Among other things he
recommends an increase of three cents on the hun
dred dollars valuation OF land and five cents on the
poll. He concludes his report follows:
"Since your last adjournment the country has
passed through a monetary crisis which for severity
has certainly had few If any, equals in this country
1t happened that the storm about at its high
est when it became necessary for to place funds
in New York to meet large amount of interest ac-
cruing upon bonds at that point. 1t was of
course, difficult at such time to procure such funds
would be taken in that city in payment of our H.
abilities; but by proper eXertion | succeeded in
placing there the required amount before it became
due; the result was, l am happy to say that We
placed our credit on even firmer basis than it was
before. But | was compelled on that occasion to
pay unusually high premium for Northern ex-
change, and as that has strengthened in the minds
of some, the objection which they have always urg-
ed against the policy of making State bonds
payable in New York, instead of Raleigh, | hope /
shall be pardoned for referring to the origin of this
policy, and the reasons for adopting it. Soon after
coming into Office in 1851. advertised for sale some
of our old form of bonds in New York and re-
ceived in response to this advertisement, letters
from sundry capitalists in that city, making en-
quircs about the form of our bonds, where payable
&C.. and proposing to bid for them if the bonds
suited them in these particulars Upon informing
them, that they were known in the market as regis
tered bonds, were payable in Raleigh, and in every
case of transfer the old bond had to be cancelled at
this Office and new one delivered to the purchas-
and the necessity of passing receipts for interest
every six months, they all declined to bid for them
found too, that they met with but little favor at
other distant points.
Looking, then to the act of the Legislature of
1S4S, TO incorporate the North Coralina Railroad
Company" and seeing that it required as soon as
the work was commenced, a sale of half million
of this description of State bonds. every six
months, until two millions were sold, besides the
requirement under the act, of the sale of
1852, 900, for the extension of the Raleigh and Gas
ton Railroad to Weldon, and for the Neuse and Tar
Rivers, and it apprrent that the work on the
North Carolina Railroad would be commenced soon
after the adjournment of the next Assembly, and
that the call for the appropriation for the other three
objects, would be made about the same time, con-
fess felt alarmed at the gloomy prospect of raising
this large amount of money in short time by
offering to the public form of bond which be-
came satisfied suited to domestic market
only, and which, if relied upon, would result in i'm
pecuniary loss to the State besides its most
deleterous effect upon her credit at home and abroad
J. therefore, under solemn sense of my duty to the
State, and in view of the heavy responsibility and
greatly increased labor that would be thrown at
upon this department. if the form of bond | was
about to recommend should be adopted, recommend
cd to the Assembly of 1852 to direct the Treasurer
to change the form of State bonds, and to issue
coupon bonds, payable not in Raleigh, an interior
point with which the world has comparatively but lit
tic communication, but the city of New York the
great monied centrce of the continent and connec-
ting us above any other point with Europe, and to
make them payable to - or bearer, that
hoy mir he frap Sfcrab1 hy de1iv In
fact it has now become the custom uf most of the
States to make their bonds payable in New York
What difficulties we should have had to encoun-
ter in raising with old form of bonds the mil
lions of money which we have had to raise to con-
StruCt the improvements In which we have embark
ed, purchasing the iron, engines, cars &C., which
had to be sought after in Europe and the North
are, think, well understood by those who have
had, and those who now have charge of these works
And think may confidently refer to all those who
have control of our banks, but who do not WELD
altogether an active Banking capital, equal to our
present State debt to show the utter mpracticabii
ty of raising here at home the money we have been
compelled to have for improvements. 1t is OBJ
vious that banking circulation is not equal to
the wants of our citizens, without their being
compelled to encounter the overshadowing competi-
tion of the State, for halfa million time with
bond of such form as would confne her mainly to
the of supply. Moreover, 1t is the true
policy of the State to invite capital from abroad
while she is engaged in constructing works for the
development of her resources. l will remark in
this connection that any party who desires it, can
have his State bonds registered at this office without
charge. At the time, however. of this recommends
ton the State had been engaged for four years in
effort to deveopc the resources of the valley of Deep
River. l believed then, as do now, that these re-
sources of immense value l cherished the
hope then, and still cling to it, that before the
bulk of present debt falls due that region
will be made to yield up its rich treasures and that
they will be found floating Mrouqh our oann ports