Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-01-15
STATE or NORTH CAROLINA,
Treasury Department,
January 9Th, 1869.

Treasury Department,
January 9Th, 1860.
To tie General ASSEMBLY Of North Carolina:
beg leave again respectfully 70 call your
! attention to tho financial condition of the
State.
| It is with the deepest pain that ! am
compelled to report that it was found ut
| terly impossible to raise money to pay the
interest on the public debt due January
LIST, 1869. Every effort was made to Dor
row the money needed, about $3O5, 900,
| both in this State an. 4 Now York, but
without effect. The only power in addi-
| ton to the general credit of the State Civ
en- me by the General Assembly under IAN
Act to authorize the Public Treasurer to
supply temporary deficiencies In the Treas
ury," ratified Dist December, A. d. 1865,
was to pledge the same amount from the
taxes first thereafter receivable. The same
power was conferred under IAN Act to
provide for the payment of the interest of
! the lawful debt of the State, ratified 10th
August, 1868. [ would not indnco capital
lists to consider this pledge sufficient, be-
cause no tax bill has been passed adequate
to the emergency. The Revenue Act now
in force is only calculated TO produce about
$500, 900. AS Of course the State govern
ment must be supported, requiring more
than this amount, it is abundantly evident
that the security OF taxes 30 be received
under this act is very meagre, and capital
lists so believing refuse to advance their
funds
It will be remembered thai Immediately
on the opening of the late session OF the
General Assembly, / made a full statement
of our finances and l then urged the I'M
mediate passage of Revenue Act which
would certainly net amount sufficient to
meet the expenses Of the State government
and pay the interest on the public debt. [
used this language: 1T is impossible to
restore the credit of the State except by
raising the necessary funds by taxation. 1t
is altogether practicable to borrow money
in anticipation of taxes to be repaid when
the same shall be collected, but it is idle to
dream of elevating North Carolina to her
once eminent position OF financial credit
without putting our hands into our peck
cts and providing for the annual expenses
for interest as we'll as supporting the State
Government by promptly paying them IN
cash."
In tho above paragraph [ averred the
practicability of borrowing money in ad- |
vance of taxes, prO0i}ed u sufficient leUy
should be made. L also urged the e1pedi- |
A few days thereafter, on the 2Sth day of |
November, 1868, reported such a bill and |
recommended its Immediate consideration. |
This bill, while framed to carry out the |
provisions of the Constitution requiring |
the taxation of real and personal property |
according to value, also was designed to |
fairly rate incomes privileges and licenses,
as the Constitution permits. Doubtless
the bill has defects, but its prompt consid-
Grafton with the view of removing such |
defects, and the passage OF that or SINH
lar one, would have enabled me to have
avoided the great evil of not paying the |
January interest.
Finding that it was unlikely that my
recommendations would be carried into
effect in season, I found it necessary again
to communicate with the Assembly. [ |
made frank statement of the condition
of affairs. Owing 10 causes which all I'M
derstand, we cannot borrow money at par
atqthe commercial centres without pledge
of collaterals. In my report in November
last, [ proposed that coupon bonds of the |
State, payable to bearer, should be author
lied to be kept in the Treasury, and used
as collaterals whenever temporary loans
should be needed But an assault was
afterwards made upon the bonds issued
under authority of law passed in August
last for the benefit of the Chatham Rail-
road, on the ground that they were uncon-
stitutioral. This assault, although proba-
bly, it was not so intended by the assail-
ants, produced such profound distrust of
all issues under recent acts, that the Stock
Board of New York refused to regard as
good deliveries any North Carolina bonds
dated since April LIST, 1868. It was too
late to prepare and issue new bonds to be
used as collaterals, and then take steps TO
procure revocation of this resolution of +
the Stock Board. Therefore, actuated by