Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1868-06-17
VIRGINIA.

8 w present IN this article IacCs OOLalleo ITom
official sources.
Ga the first day of the fiscal yea for 1860
'67-October l, l966-the balance in the
Treasury subject to warrant was S334,6O7.l6,
with large amount Of the tax Of the year pre-"
ceding unpaid, but considered available in the
financial estimates for the then current year.
This expectation was realized in measure
only. Upon this balance and the estimated
addition from taxes in arrear the Committee OF
Finance of the House Of Delegates
1866 '67-based its measures to provide tor the
expenses of government and paying the State
interest.
The tax at first proposed in committee for
this purpose was twenty. eight cents IN the
hundred dollars value of property; but it was
suggested that, in view Of the fact that con-
vention to frame new Constitution would be
probably called, it would be proper to increase
this rate to meet the expenses OF that Conven-
ton. The committee, therefore, increased the
tax to thirty cents in the hundred dollars, and
tbs General Assembly adopted this rate.
In imposing this rate the General Assembly
did not mean to indicate.it as permanent tax;
it was but to meet the wants OF the Common
wealth for the current year. This is shown IN
the act Of March 81, 1867, entitled AN act
to provide for the payment Of part of the in-
terest upon the public debt" which specifies
only two periods of payment--to wit, the lst
day Of July, 1867 and the 1st day of January,
1868. The regular resumption Of the pay
ment Of interest, as we'll as the tax On the same,
was left to be determined by future legislation.
1t is true an act OF the General Assembly was
passed on the 23d of April, 1861, which con
tanned the following provision: And that
the semi annual payments OF interest required
by the said act (2lst of March, 1861 he, con-
tinued until otherwise provided by law" This
provision was intended to assure the public
creditors that it was the purpose of the Gcner-
al Assembly that the interest on the public
debt should be paid as it fell due. The failure
of the Legislature to meet ut the regular ses-
sion was not anticipated.
The passage Of the reconstruction measures,
and the entire subordination of the State to
military authority, changed the whole aspect
of affairs. No Legislature assembled IN 1867
'GS, and no change In taxation was made to
meet the changes wrought by the public dc,
preston and want Of confidence growing out oil
these causes. The tax Of thirty cents proved
to be wholly inadequate to- the wants OF the
State, depleted as the Treasury was by causes
which we will explain.
1t is difficult at all times to make in advance
reliable estimates of public expenditures. 1t
was supposed that $40, 900 would bn liberal
allowance to cover the expenses OF the Gener-
al Assembly for the session Of lSG6-'G7. The
actual cost OF that session was $780, G2O S9.-
Again, the estimate for criminal charges and
guards was 800, 000-a thousand dollars more
than the estimate for 1850, before the State
was divided Yet the actual expenditure on
this account has been $l64,0G7 %. A remark.
able result, with the State deprived OF third
of its tcrrtory-a startling example OF the IN
crease Of crime under the new order OF things.
Thus we have in these two items an excess
of expenditure over estimates of $l2O, GSS. ii.
Again, it was estimated that 100000 would
defray the expenses of the, participated cOnvcn-
ton to change the Constitution; yet that body
has already been charge to the State Of $l4O.-
900, and the amount will probably reach
$l5O,OO0 If to these sums we add about
$lG0, 1000 Of uncollected taxes for the year 1867,
we shall have accounted for deficit of $500, 900
in the Treasury, which would have gone far
toward the payment Of the July interest.
! On the lst October, 1868, the beginning OF
the last fiscal year, there was balance OF
$9l, 1903 GS, with considerable amount of tax
es still in arrcag. Since then great difficulties
have arisen in the collection of these remaining
taxes-such as the scarcity Of money, the tail
ure of Crops and an unwillngness on the part
of those who were able to buy to bid for their
neighbors' property when exposed to sale
for taxes. Their ultimate collection is alto
gether predetermined.
Under these circumstances, it might have
been best to have postponed the January IN
terest but an earnest and perhaps an over
weening desire to maintain the credit OF the
State determined the Executive (Gov. Peir-
point, with the concurrence of Gen. Schoield,)
to make the attempt to pay. The January IN
tercSt was paid partly with borrowed money.
The borrowed money has been repaid to the
banks from which it was borrowed, with the
exception of $685. 900 not yet due, for the pay
ment of which there is an abundant balance IN
the Treasury. This probably has given rise to
the rumor that the State owes the banks $780,
OOO-four times more than the amount Of its
actual Indebtedness ..
1t might we'll be supposed, with these facts
before the State officials, there could be no
hope Of meeting the approaching July interest.
The principal financial officer of the capitol did
nevertheless cherish the belief that with the
collection of taxes in arrear the taxes on spring
licenses, and a supplemental loan, that inter,
est might still be paid. But on the the LIST OF
June, when the tax on licenses was due at the
Treasury, it was found to be not at all up to
the receipts of 1867; only small part of the
unpaid taxes had been collected, and the de-
lnqucnt lists for the year were found largely
in excess of those Of former years. These We're
natural results Of the political condition OF the
State At once it was seen that the deficit
would be large, and unless it was made up by a
loan, the interest of 1st July could not be paid.
1t was found impracticable to borrow sum
large enough to make up the deficit upon terms
satisfactory and just to the State, and the idea
of paying the July interest was abandoned.
What is to be done with respect to the States
obligations depends. -.
lst. Upon the political status Of the Com
monwealth
3D. The results of the growing crops.
These two points have powerful bearing
upon the prospective condition of Virginia.