Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1869-01-14

Should such failure occur during the present
session, you will doubtless consider the pro-
pricty of declaring, by law, the happening
OF the contingency upon which revocati IN
was to take effect, and provide, by such fur
thcr legislation as you may deem proper, to
meet the issue which such failure will pre-
sent
BY provisions of an act of the General As
sembly, passed at Dover. October 27th, 1864,
the moaey derived from the tax on carriers
ofpassengers by steam power is appropria-
ted to the payment of the interest and prin-
cipal of the debt created ''to relieve the peo-
pie of this State from draft" &c. 1t was
expected that the funds derived from this
source would be sufficient to pay the inter
est and sink the debt by the time the bonds
Of the State would mature. Owing to re-
duction Of the profits of railroad companies
and other carriers of passengers by steam,
caused by a diminution of travel after the
cessation of the war, this expectation may
not be realized; sufficient however was re-
ceivcd during the year ending with Septem-
her last, to pay the interest on the debt, for
the same period, and leave small balance
in the hands of the State Treasurer.
The revenue received from this source
from September, 1864, to September, 1865,
inclusive, together with the sum paid
in December last, which was the taxes for
the month of October preceding, amounts
to the sum of three hundred and fifty
nine thousand seven hundred and eleven
dollars and sixty five cents, of which there
had been paid for interest on bonds, previ-
Gus 10 the first of the present month, the
sum of two hundred and fifty-two thousand
one hundred and four dollars and sixty-six
cents, and there was at the same date, of
this fund, remaining in the hands of the State
Treasurer, the sum Of thirly-three thousand
six hundred and thirteen dollars and ninety
cents, leaving balance thereof, which had
not been applied as appropriated and direct
ed by the Legislature, of sevcnty-three thou
sand nine hundred and ninety three dollars
and nine cents.
am informed by the Treasurer Of the
State that previous 10 the passage of the tax
bill of the session of 1867, the revenue of
the State was not sufficient to meet its cur
rent expenses; that these expenses were
greatly increased during the existence of the
war; and the unpaid claims against the State
had so accumulated as to rendcrii necessary
for his predecessors in office iO borrow of
this fund, from time to time, an amount
equal to the unapplied balance, to enable
them to liqutlaic the claims against the
STATE. riiis Was done with the expectation
that the Legislature would make provision
for the return Of this amount to the Trca-
suler, 10 l'r applied as originally appropri-
ated. Since the passage OF the lax bill nj
The li,l session Of the Legislature, the rev.
enuc appropriated to the ordinary expenses
of The State has greatly increased, and there
is in the hands of the Treasurer rapidly
| increasing surplus, out of which The amount
ho. rowcd Of this fund should be applied as
originally intended.
| The Governor states that the revenue of
the State left no surplus previous To the war;
and 50 much money was then spent in extra
sessions Of the Legislature, &c., thnt the
misapplopriation just indicated was a ne
cessity. He proceeds to say that as the tax
from passengers may be temporarily inter
rupted' moderate State tax" should be
imposed.
In my Judgment such u measure is de-
manded by high considerations of public
policy. BY it the credit Of the State would
be strengthened, her bonds increased in val
ue, and her creditors would rest in the assu-
rance of the prompt payment of the interest
on her bonds and their redemption at maiur-
ity. These are considerations which far
outweigh any temporary inconvenience
| which tee in,rasitinn af snnh 81 Tax would
| occasion.
Should this suggestion meet the approval
of the Legislature, | beg to present, as a
| UutSIlUn NUItuy vi COllsltltTuliOU, WUttHtl
any tax bill for this purpose ought not, in its
adjustment and details, to be coniormed
TO the present condition of society, and
whether the requirements Of even and exact
Justice do not demand thatthe amount of tax
levied upon each individual citizen should BE-
measured by the amount of his wealth with
out regard to the character of his property OF
the nature ofhis Investments. What good rea-
son can there he beforexempting the entire estate
ofthe man ofwealthllom taxation because his
Investments are in stocks, bonds, mortgages,
and other securities, and taxing real estate to
an amount equal TO its whole value, or fol
taxing the stock necessary to the prosecu-
tion of agricultural enterprise and exempling
the valuable machinery of the large and
wealthy manufacturer Ifit should appear
to the Legislature as it does to me, that the
imposition Of State tax is necessary, woult
it not be wise to place such tax upon
correct basis, and to apply the principle
adopted for its adjustment TO our county
rates and levies?
The subjects of investment and sources o
income have increased, and the wants Of so
ciety demand corresponding increase O
revenue. In making provision to meet these
wants, no unjust discrimination should b,
made in favor of the holders of one class o
property ever those of another. In my jude
ment, the only discrimination which ough
to be made in any system of taxation here
after adopted should be in favor OF tina
character of property most necessary to thu
comfort Of the poorer classes. By placin,
: taxation upon this basis, no greater amour
J will be required or paid, either for State o.
} county purposes, than would be necessary |
collected under our present system, Will,
the burdens of government will be mort
equally distributed among all classes of oul
citizens.
In this connection | desire to suggest, fo
J the consideration of the Legislature, thu
propriety and necessity of change in th,
mode of taxing the banking institutions o
this State. Under existing laws, a tax o
nehalf Of one per cent. is charged by th,
) State upon capital used for banking ptirpo
ses under State charters within its limits
exclusive of that portion appropriated to the
1 school fund. This tax was paid by all oul
banks as long as they continued to do bust
ness under the State charters, aud is still
paid by the Farmer5' Bank and Bank o
Smyrna, which are the only banks in opera
tion under charters granted by this State
All the other banks in the State are organ
zed under the provisions of an act of Con
gress entitled "An act to provide natona
currency, secured by pledge OF United
States bonds and to provide for the circula
tion and redemption thereof"
\. The tax on banks previous TO the passage
of this law of Congress was source of grea
revenue to the State, all of which has beer
} lost, with the exception of the ia,
upon the Farmers Bank and Bank o
J Smyrna, amounting annually to abou
two thousand four hundred and fifty
four dollars and eighteen cents The bank
ing capital in this State is represented b,
! shares of stock to over two and quarte
millions Of dollars, which, If. taxed at til,
rate paid by the Farmers Bank and Bank o
Smyrna, would yield an annual revenue t.
the State of more than eleven thousand dol
} lars. l therefore recommend the Legislature
to so amend existing laws as to impose tal
upon all the shares in all the banks or bank
ing associations located in this State, accord
ing to the value represented by the shares o
stock in the banks respectively, and to appl,
its provisions to other moneyed capital il
; the hands Of individual citizens of this Stat,
} so as to avoid any conflict with the provi
} sions of the law of Congress above referred
, to.
In former message l submitted, for thu
, consideration of the Legislature, the question
! of whether the convenience and interest o
the people would not be promoted by pub
fishing the Revised Statilfes of thic Stata !.