Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1858-03-19

vote of the people. and, IN ease u us reJec-
ton. by authorizing the formation 0i ne"
State gOvernmeut.
The Tax on our State Credit.
Ia previous article, We have called atten-
ton to the serious evils attendant 90 this
novel system of reputation. One point,
however, we have not required to with outh-
Gent distinctness-lnd that is, that the tax
; now imposed on state bonds entirely pre-
cents the further Issue of such bonds.
To demonstrate this, We must resort TO q
accumulation of facts all eady stated. The
Safe tax alone reduces the interest received
by the s,ockh0Iiar on Virginia six per
cent. bond to GO per cent--the corporation
tax of Richmond further reduces the same to
1 60 per cent. Other CORPORATE rs are en-
covered to lay similar taxes. and We may
ke the instance Of K chmOnd as criterion.
Now nothing is moro apparent than that our
! own capitalists will not consent TO invest
their money in stocks yelling but t oO per
cen,-aefce there can be no doubt that the
; further sale of stock by the State 10 her own
ctiz ,us is no longer possible under the pre-
enr system. The further issue of bonds to
non.residents is equally impossible. The
Stat, is precluded from selling her own
/ bonds below par. The tax which she mpo-
ses and permits her own municipal corpo.
ratious to Impose, keeps her beads below
par in her own market. The current price
1t K edmond is az this time kept down to
per cent below par. Richmond affords
! the criterion lIr the price OF State stocks IN
! Virginia, and the Virginia price Is the cr'te'
ron for ali other markets 10 the case vi our
own stocks. M stock merchant elsewhere
will consent 10 pay higher prices for Virginia
| bonds than they will command At their own
! h me market. TIE State oil Virginia demands
mar value; the merchant in NV Y.rk, Pniia.
! delphia, Paris, or l., ndon /, f:rs but - per
cent. The State canuOt a5ate her price, n
can the foreign merchant raise his. Any
! bargain and sale il Clearly imuO+'Ibe und r
: the circum,t stances, and would be equal I'M
possible, were Virginia bonds quoted at ~
/ insteai Of 81 Virginia bInts must stand At
/ rar ia our ogn market, before the State eau
! issue single coupon 10 a trelgn purchaser.
! Thus the issue Of State bonds, IN any maoner
/ or frrm. is rend cred as absolutely impossible
AZ ia Constitutional provision pos lively pr, =
! hibited the Stare from contracting any La
whatever. And what Is the efect-the trst,
! immedi te, necessary etfec? SIMPLY tIis:
| No appropriation whatever can be applied
! TO any work Of internal Improvement, great
! or small. LIT the friends Cf Internal I'M
! movement take hold Of this matter boldly.
Il is the first step necessary; uatil the tax on
| State bonds is removed, auy appropriation
to internal improvements will be lnOcEery
s a lima
proyement can as sat .ly graft nominal ap
preparation of 100000, 900, az SoOO,u
20 the Corington and OnU road. lnsiead OF
! $500, 900, they may accord 500, OO0,OOO I" the
Oraoge and Alexandra road, and then laugh
| in their sleeves, il they can only induce The
! friends Of these pu bic works t. continue the
tax Oh State bonds. Any appropriation
made, will not he worth the paper on which
| it is printed Uatil this tag shall be re>cind'
ed, every appropriation will simPly authorize
the relief of public works by the sale OF
bonds hich caanot possibly be sold.
The State credit is bcggared, internal i'm
nrovemen,s are lett unfinished, the honor 1t
! the CommOnw cath is Compounded, tie "eo-
ole are taxed for the payment ct debt al
ready incurred by the State, md from which
the State cannot derive Is sarthIng OF prom,
20 long as it remains invested IN naii-in sh-
ed works. And all this damaged dett and
di.nonor are weighing heavily on the eneT-
,cs of the State in order TO secure n rover ua
of less than three thousand doi1dra. Dad any
E.au ever sell his birihrignt for Such a mess
! VI pOttage?
It is perfectly demonstrsbie that the year
| ly revenue accruing to the State, from this
tax on her own bOuds, canrOt exceed. and
! probably falls much below the sum above
stated The loans and discounts OF cur
/ banks throughout the State. in January 1897,
amounted to nearly S25 coo 600 We NAV
safely calculate apart flom State bonds
that bonds, securities, &c, &C., yielding
taxable interest, amounted during the same
year to at least half of the extent Of accom-
moiatiln afforded by the banks We will
place it at less than half--'ny 250, 900 for
tn e entire year of 1857. That This is an ur-
der-esjimate caonot be dcHied tax OF six
and two thirds per cent. on tie interest OF
this amount would yield exactly $4,000 Of
revenue. Now, the report of the Fist Au'
ditUr shows that the entire amount II tax re-
ceived on Interest" throughout tho State
Estate bonds included) does not amount to
Sl7 500. This calculation would reduce the
amount Of tax received On ) ate bonds 70 less
than $500
Not only d,es this prove The absurd in
sutfciency of the wages Of di-honored c!ed-
j., but it demonstrates the fact that not
rrhe Of the State d btremaius in the hands
Of our citizens Virginia citizens cannot
afford to purchase the bonds Of their own
G mmonwealth. even st a heavy discount,
when they find them hawked about in a for
eign market. As We have tetCre demon
srea:ed, 40 more State bonds can be issued
at all, and Virginia bonds already Issued
can never become a profitable investment
for Virginia capitalists, until persistence
10 the present system shall further reduce
their value in the maIket, By such a de-
probation Of the State credit as will permit
them to be yurchased for seventy seven certs
10 the dollar.-Rich. Eng.
Prince Georges County, nd.
Gen. Samuel Coe, Of Pscataway district,