Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1859-02-09

present liabilities of the State and Of thore debts
which might reasonably, nay almost Certainly, b.
expected to become charge upon the tr asury, and
had found that it would require $4,000 annually,
regularly invested every six months to meet it If
then this annual sum of $150,000 should be raised
amounting to but Al millions atogethcr) it would
realize by being invested at the end of thirty years.
| over . millions of dollars. In answer to ques-
ton by Mr.. Ashe Mr. B. said that the present and
prospective liabilities of the State would according
to the Treasrers Report at the end of thirty years
amount to $l2 100000 Mr.. Bledsoe resumed He
now occupied the same position this subject as
was occupied by him before his constituents in the
late canvass. The State had contracted an honest
debt, andssh willing to tax the people, if
sary, to pay it. His constituents wished and desired
to get rid of this debt, and he desired it too, in
manner the least burdensome to the people Now
if this annual tax of 100000 should be submitted
to- in thirty years it would realize. out of an actual
sum of but ~ millions, the aggregate Of $12 740
600. This amount would pay every cent of the
States debt, and this amount could he raised by no
other means. If the sum should not be raised by
the sinking fund.- the annual taxes would become
heavier yearly, and at the end of thirty years the
people of the State would have the entire debt on
their shoulders. His constituents were opposed to
rolling on this debt to a vast accumulation. He de-
sired to get rid of it. and they were anxious to know
what their proportion was. Mr.. Bletsoe insisted
that failure to pass this law would affect the value
of our State bonds in the money market of New
York. 1t would at once be seen that we were ma
king preparation to pay our debts This system
of rolling State debt would continue till pos
tcrity would be driven to reputation. 1t would
not be possible to meet the debt by taxation at the
end of thirty years but if the Legislature would
take the responsibility of adding the proposed com
paratvey light taxation, in thirty years the entire
debt would he wiped out. Then if our State works
should pay, the taxes could be reduced accordingly
Senators seemed to overlook the fact that large
amount of our State bonds became due within the
next few years, while the revenue bill provided
merely for the necessary current expenses of the
State. lie hoped the bill would pass.
Mr. Ashe concurrcd in the necessity of the States
taking the earliest and most effectual means of pay
ing her debt; but whilst he admitted this he was
far from conceding the necessity of laying tax
now to pay it. 1t was time enough when it became
due. The debt was between and millions 1t
was not necessary to provide for more than that
sum. The sinking fund was composed of the in
come from works, one of which paying six
per cent, another would shortly pay two three
per cent 1t was unwise to lay tax to pay debts
which might never become due. The people of the
State were not willing to it, however it might be
with the people of Wake. He was opposed to the
general system of taxation proposed by the bill
The people of New Hanover now paid onc-twentieth
of the taxes of the State. Was it right, then to
burden them with the proposed addition? The gen
cral principle was wrong. In addition to the i'll
come to the sinking fund from the Raleigh and Gas
ton road he felt satisfied the n. c. road would be-
fore long pay dividend of four per cent, if the
State kept her hands Oft and let the resources of the
west be developed. The true policy was to wait
and see what was needed and then lay taxes.
Mr. Ble''s' c was sorry to differ with Mr.. !Ashe-
they generally concurrcd But this was question
of dollars and cents That Senator did not seem to
give the question the consideration it was entitled
to. lie overlooked the prospective debt. Mr. B.
then pointed out the States pledges to the n c.
Road and to the Wilmington and Rutherford Road,
&c.,-amounting to = millions. All knew this
must he paid and ought to be prepared for. If this
was not positive charge. it was almost certain it
would become so. For the latter work. the State
| would be called upon during the next year for
fSHo,noo. Would the company be ready to meet
the interest on thiS9 The State would have to pay
it. No provision had been made for its payment
if there had been he would like to hear of it. lie
contended the best way to meet these claims was BY
sinking fund. He was for taxing the people for
their leneft-it clearly to their interest to be
so taxed, that by the payment of !. millions they
could meet payments to the amount of *l2, 40, 0m'
Every year this matter DELAYED only tended to
increase the sum. If the n. c. road should pay in
the of four years four per cent into the fund
/ with what would otherwise come in, then under
this BILL the people would have to pay not one cent
into it.
! Mr.. Pool thought it would be to the interest of
the State to adopt the reverse of Mr. Blcd>OcS pro-
! position. The proposition was to squeeze out of
the people sufficient sum- invested again and again,
to amount to II millions of dollars The result of
this would be that at the end of thirty years the
State would own every road or other work in which
+ she was interested That was not the intention
when this system of improvements was begun; il
| 1t had been, the subscriptions never would have
! been made. The object should be to meet the in
tcrcst and keep down the debt as it accrued and at
length sell out her interest in the works and pay the
! principal. If a case occurred in which the debt
could not be met in any ono year, the State could
4 81 her stock in some one work and meet the pay-
mcnt. Mr.. p. then spoke of the "rea policy" with
regard to the enhancement of the value of lands,
! from which the burden of these sums was to be
! borne. 1t was now proposed he said to tax other
lands to pay this debt before the increase in the
| value of those through which the road ran In
thirty years he thought, if we continued to be so
situated as to require it. the stock could be sold at
par or above par, and the debt could be paid. He
asked if the interest on the debt was to be met by
this sinking fund?
Mr. Bledsoe, No.
Mr. Pool. Then the fund goes to pay the princi-
pal and the interest must be met by taxation?
Mr. Betsoe replied that Mr. Pool was arguing
against what did not cxist-he did not seem to I'M
derstand the provisions of the bill The bill pro-
posed to ensure to the sinking fund $3.50 900 per
annum to meet the principal of the States debt
This amount included the receipt from other sources
already pledged to the fund.- In other words $780,
GEO was to be raised annually If all of this should
accrue from profits of the State works now pledged
to the fund, then it would not require one cent to
be raised by taxation. The tax was proposed in
the event Of the money not being derived from any
other source.
Mr.. Pool said he did not misunderstood the case
at all. He asked Mr. B. if the - millions should
be raised in thirty years, would not the State own
all the public works she had an interest in?
Mr.. Bledsoc. No.
Mr.. Pool. What not own them? Then if not,
who would?
Mr. Blcdsoe. The State will own only her own
part of them She has not subscribed to all the
stock.