The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-12-06
MESSAGE OF THE GOVERNOR OF NORTB
CAROLINA.
The Financial Condition Of the state.


The Financial Condition Of the stnte.
Governor W. W. Holden, OF Norih Carolina In his
last annual message says The present debt OF the
State is as rollows:-
Old or ante-war bonds, ss,37s 200; bonds Issued 10
railroad companies during the war; under acts
passed prior to May TO- 1861 1918 000 bonds issued
to Chatham Railroad Company under ordinance OF
Convention, 1861 s2i5,Ooo; bonds issued since the
tax bonds, $ll. 4o7 900. Total, $40. 600, 0l5.
AS VIII be seen, there are included in the above
amount amour coupon bends amounting to S1,l2s.oOo,
Issued on account Of certain railroad companies i'm
1881 1862 and 1863 the greater portion OF which was
expended for work done on the roads. These bonds
are not marketable, having been issued during the
war; but 1t Is commended that they were issued In
AID OF the rebellion and ought to he recognized 1t
possession Of citizens OF the state.
Under act OF the General Assembly ITO restore the
credit OF the State and to facilitate the construction
OF our diminished railroads. bonds to the amount of
$4343,000 were returned To the Treasury including
$16500O0 OF the issue OF 100000 to the Chatham
decision OF the Supreme Court. This issue to the
Chatham Railroad COMPANY was omitted by the
state treasurer IN the statement OF the debt
panying his report for 1862 by OF the decision
OF the Supreme Court referred TO. The debt is
therefore, actually reduced s26s8,Ooo.
The entire debt is therefore, about $40 900 600 TO
pay the interest on which, at six per cent together
with the amount necessary TO conduct the STATE
government Will require tax OF 81, 800, 600. viii
the people OF The Stale submit to an annual payment
OF this amount OF taX9 To be candid with YOU gen
tiemen, l DO not believe they WILL ! have not
1t would be wise, and would be sound economy m
the end, to pay the interest on the debt ana every
dollar Of II when due, yet | need not tell you who
are fresh from the people, That this not TO be ex
pected or hoped for The people reason thus on this
supJect-Ihey say they lost their slaves and large
amount OF property by the rebellion that this rebel
lion was not anticipated when a part of this debt
was contracted, and that provision could be
MADE against u; that they lost their baak STOCK,
nearly all the yalne of their bank notes all their
State Treasury notes and Confederate bonds and
notes. and nearly all their old debts: tDa the bonds
previously has IN
large extent on slave property: thai the war left
them impoverished, their lands neglected aud
reduced In value, the whole system OF labor
changed that many OF the special tax bonds
have been hypothecated for small sums and lost;
the rebellion, are languishing, and have for the
most part failed on account or the loss or state
whole they will pay part OF the old State debt, and
they Will pay on the new or special to debt such
amounts a. were realized from the sale OF bonds
from nrst hands. Is there member OF your body
who Will say that this is not the feeling OF the peo-
plef Gentlemen this is not my judgment would
State should say nay. Yet | am win yourselves. a
servant OF the people and 1t Is my duty OBEY their
commands. The decentralization and loss occasoned
by the rebellion Is such that many OF our people
cannot or will not pay their own individual debts
Can you expect those who cannot who VIII not
State debt2
There must be a compromise. The State debt
must be consolidated and interest paid accordingly
and the sooner II is done the better.
Assume, for example that the debt Is $50 0o0 900.
Three per cent on this would be 5000 900 per an
mum. But reduce the debt by issuing new bonds,
to SIS. 00O 000-the interest would be, at six per
cent, the same amount as the above. The debr,
however, wonld DE still further reduced. II certain
OF the special tax bonds should be recognized and
met only at the amounts which they commanded
from hrst hands. The people would pay
$l,50o,ooo per annum to met the interes.
and carry on the State government, bat
/ doubt If s2,5O0,O00, as above stated,
could be collected. have deemed IL my duty to
speak freely on this subject. II were disposed TO
court popularity at the expsnse OF duty, or II
feared the consequences OF stating plainly what |
know to be the feeling OF our people. | would have
avoided the expression OF these your honor
ablo cody; put This question must be met, aud the
longer Its settlement is postponed the greater Will
be the difncutes that surround it. The Interest
rest Is not paid, and the debt Is, therefore, growing
larger and larger. Promptitude In the payment OF
interest Is Indispensable to credit. 1t Is better to
pay three per cent promptly the whole debt than
TO pay six per cent once In two or three years aud
then promise to pay and fail TO meet The promise.