, 1863-01-06

A. tmsie A0s aso Deeu Pa1a tNe 1uILuer SUM OF
$3.50 81, in redemption Of warrants Issued
previously to December1, 1860. -.
The aboye SUMS, paid out, amount In the
aggregate to 81, ,4O0, ,543.G8, leaving in tie
treasury, on December !, 1869, 3374, ,G07.19 {.
On the 1st day Of Decembr, 1860, the treas:
uTy Tae completely drained Of revenue, as caU
be seen BY reference to the reports made to
the Last GenerafAseembly. .,'~'
INTEREST FUND.
The amount or interest fund received
d trtng the two years. covered by the re-
ports Of u thc Auditor and Treasurer is i.
This amount, with the sum Of $3.50, ,4a1eo,
transferred from the revenue fund for tho pur-
pose Of payment Of interest on the public debt
as authorized by the act sof I February, r ts6ts
makes. in the aggregate, u osa, ise:aa ~
accrninr npon the funded debt OF the State,
amounting to 81 33S9 153A
This. leavea IN the hands Of the Treasurer
on - tSIs soant as sahe If III s.
apIredL to meet the inatallment Of interest due
January ], 1868. Also further sum Of $n0,-
164 90 Wfl1 be required to meet the INSTALL
ment Of interest due July 1855
The latter amount is, however, subject to
variation. Oh account ofthe fuctuntiou5 In the
rate sterling exchange. The basis used In tho
calculation is IL per. cent. premium for ex-
change when purchased with coin -:;,s
quired for the July issta1lment. Of interest
than for that falling due In January is he-
cause the Interest on . part Of the sterling
canal bonds Is payable annually, instead of
semi-annually. IS Is the case with other bonds
The laws, governing the levy md rates Of
the tax for Interest purposes, now In force,
| authorize the Auditor TO levy, for the pay
ment OF interest on the debt, other than the
".War Loan" tax not exceeding one md
one-half mills on the dollar Of taxable propers
I tv. The Auditor Is also authorized md re-
! quired to levy lin addition to the Mregoing)
! such rate Of tax as will produce an amount
sufficient to pay the interest on the :.Waz
| The taxes levied By the Auditor under these
laws are one and one-half mills on the dollar
for general interest purposes, apd one-haE
mill on the dollar for interest On the t.War
The frat Of these rates Is the highest allowed
for the purpose Of paying the interest on the
"War Loan,' no more than q sufficient rate
for the payment Of which interest can be 1e--
gally ASSESSED. .,-f
An examination Of the statementscontained
/ In the Auditors report, showing the amount
Of property assessed In the State, and Of the
statements showing the proportion collected
Of the taxes 1eTied, will demonstrate clearly
that The receipts ofinterest tax at the highest
rates Of levy now authorized will fall consid-'
cEably short Of the amount OF interest to be
paid ! presume that no change in the rates
Of tax for this purpose would be necessary, II
ment Of State taxes by the Illinois Central
Railroad, as the fund derived from the pay
ments Of said company, together with al
other surplus funds in the treasury, is By law
made subject to the payment Of interest.
The experience Of the past year shows that
as to time, be relied on. It therefore seems
!, necessary that niger rate Of taxation should
| ! be authorized tor payment Of interest On the
public debt. It Will be for your honorable
body to determine the proper. rate to be aal-
, thorized. Ny own opinion Il that not less
thnn three mills on the dollar Of valuation will
be found sufficient
COLLECTION OF TAXES. w.:
In view Of the entire withdrawal Of gold and
, silver, and the substitution Of United States
: Treasury currency as circulating medium, I
+ cannot but deem 1t my duty to recommend
) the passage OF laws authorizing the collection
! Of State and other taxes IN the national cur
q rency. The difficulty, amounting almost to
: impossib11ty, Of obtaining coin at any rate Of
9 premium p1aces it out Of tho power Of the
/ mass of the tax payers to discharge their ohlf-
5 cations to the S1nte Government In any other
: than the currency they, themselves, are re-
h quired to receive for their labor and produc-
| tione. - -.
: lam clearly of opinion that the effort to
!. collect tares in coin would only result tn Ger.
: tain failure. lwould, therefore, recommend
c this subject as one demanding your immcdi-
+ ate attention It Is important that whatever
action Is bad 1n the Tpsep1ises should be at the
= earlicstposslblc date, the tar books being noW
t in the hands Of the collectors, -
d There ls gold enough In the treasury, aecru'
E ing from the interest Tux, to pay the interest
+ due January1, 1868. There is also sufficient,
r including Interest, revenue and Centrail Rail.
d road funds, to pay that falling due in July,
y 1868. The revenue now collected to pay in:
terest will also not be needed TIL the 1st Of
le holders VIII not receive the Treasury notes,
T. md If these notes will not command the
d amount due at par, 1t would perhaps be better
&c to convert them into gold at q discount, II the
IS credit and best interests of the State should
b demand it, rather than attempt the Impossi.
n bic task Of collecting the taxes In gold and
4 | silver. Should the taxes have to be paid In
C gold and silver 1t Is certain that tho rates
which our farmers and mechanics would have
II ous.
y The Legislature, at It's called session, ap.
lt proprtatcd, for war purposes, the sum ot
l. IS, $50, Goo, as follows:
J For the purchase Of arms. 800 oo(
ente sas TIT Into 81 gte sersfce s ssn fss
It For Executive contingent war fana-.---- a00o(
9, Under the act creating arfund.----.-. 400Q0U
= Making as above .saRo oo
T. | Under these several appropriations the Leg.
n tslatuEe only provided for the Issuing Of bonds
!, to the amount Of $4,000 600, and bonds have
: been issued and sold to that amount
Y Notwithstanding the necessity Of the sale o1
J. these war bonds at q time Of great financial
l. embarrassment, and when bonds from nearly
IT every other State were thrown upon the mar
l. kct, the amount realized therefor was largely
o above their va1ne in the New York market
g ;, The condition Of this account, In the acgrc
l, gate, Is rs follows:
l. Amount received from the aale of
Il Amount received from United States, '1''''>'''
s reimbursemeuts Of cfe1penditures.- 1,e4i, t290s
n Amount refunded to the treasury, on
= erroneous allowance 6s5.E
!. disbuzse5, fos State troops. 1,io..of
II saslo, *
n this fund paid and cancelled. a59S 695a y
- Leaving now In the treasury. .:... st5 1o1 =
7 e,ssss ~ 1N'e's' % ''N''
Besides paying to the United States thf
:. puota Of the direct tax assessed against the
q q State Of Illinois, there yet remains due to the
:e lures embraced in The foregoing 81 statement t
E. sna nov pending for adjustment, the sum O
4 The amount Of claims Tor which warrant,
IS have not. as get. been issued, VIII not chang,
|
u 1t will be thus seen, although 1t was uu
! doubtedly the intention Of the Legislature te
n increase the State Indebtedness to the amount
&C Of these war appropriations that from tht
u j funds arising from the bonds.sold, q debt O.
le the State to the United States Of $1.146,55
st has been Gquidated, and that when the State
1e shall have been fully reimbursed for claim
{. get uuadfusted, the whole cost Of the WAT tt
y our State, from discount on bonds and nj
70 other expenses, outside Of the direct tax 1ait
IL upon us by the general government, afore
said, up to this time, is less than half million
9, OF dollars. .
N DIRECT TAX.
70 Your attention Is called to Law Of Congress
"a ! passed August S, 1861, imposing = direct IA,
= upon real estate Of $20,6O0, ,000.: This sun
i. was apportioned by the provisions Of said ac
~ to the States respectively y-the portion Of ths
he Ette Of Illinois being s, ,146, ,551k. - -,
20 January Inst, / gave the necessary notice tc
the SECRETARY Of the United States Treasury
that the State OF Illinois would assume anl
= pay Its quota Of said direct tax imposed or
y. said State, and I" that the mode Of such pay
Sd ment will be by executing release OF ar
equal amount Of the Hquldated and deter
m{ned claims Of said State Of Illinois agnins
% the United States, according to the Sd pro
no vision Of said SD section Of said act"
~ On the 31st day Of September, 1863, re
m ceivcd an of1cial notice frum the Treasury
. Department, that the "sum OF 3914, ,5g9 u la:
% teen carried to the credit Of the State Of I'LL
e. nois. In liquidation Of her quota Of the direc
2, tax imposed on the State By act of Congress