The democrat. [volume] (Weston, W. Va.) 1868-1874, 1871-02-27
Total half yearly
amount brought forward
S9S,4l4 6S
S93.414 6s
9
Making the total amount
for .nlers.s, during the

year . q ..l7F 1,7S6, ,S2S 30
Tie commissioners have eudeavored to
ascsrtain what amount the debt Of the
state is liable to taxation; but there arc
no statistics within their reach which af-
fsrd the information. As the policy OF
taxing the bonds of the state BY the state
itself has been questioned, and it is be-
liered that the proprie,y of allowing cor.
'p"ration, to levy such tax has further
tendency to dspreciats state securities.
the commissioners OF th. revenue may be
required, in taking their taIab!e lists. to
kcep'a distinct list Of the assessment on
state bonds which would snow the
amount Of the Ak darivabls from this
source, and furnish the data to prove
whether the effect Of the tax il not to in
sure loSs rather than q benefit to tho
treasury ,EJGEG7 r : SfE
b The law imposing the tax, in effect cx-
enpts .nou-residsuts from its payment.
A nonresident, therefore, holding bond
Of the state, receives the iateres. contract-
! ed to be paid on the bond, while resi-
dent holding bond of the same issue. re-
csivss his intsrest, ,raduced blythe amount
of ,as'taz; and it he happens to reside
in any Of the corporations which tax their
own bonds, a, wen as the bond, of the
state, his interest is again reduced by tho
amount Of the tax lerisd by the corpora
lion. t7sb
1t may b. safely estimated that ouc-half
Of the state bonds are held by non-resi-
deats. 1t has been said thltit was politio
to exempt non-residcnts from the tax, bo-
cause it induced foreign capital to seek
investments in state bonds. The same
! argument would show that the other half
ahich is held by residents. sif the tax is
continued, would be driven from the state
to seek more prOfssbls Investments else
where.
of,he portion Of state boads held by
residents, and liable to taxation, it may
ba said with Prspriety that while some.
who can afford to belr the tax are required
to pay it, yet a great many persons are
forced to pay who are not ablsto bear the
imposition, and are not in position to
relieve themselves. 1t has been the pol
icy Of the state for many years. to require
guardians, curators and fduciaries Of er-
cry description, who have Investments to
mako for estates, for minors and others
under disabilities. to make them in state
bonds. as being the best secured and most
certain Of ofyielding the interest; but many
OF these helpless persons, who live mostly
upon the Income, derived from these in.
yQstment,, are. by means ofths reduction
OF those incomes. through The operation
Of the tai. reduced to much want.
The tax. as we attempted to show in =
former report. must have a tendency to
reduce the r,lac Of state securities below
par. The amount ofths tar o. a s:x per
cent stock is forty cents !; the interes! is
thereby rslds.d to FIVE dollar, and sixty
cents. And as the holder Of the bond
values i. by'i its producsivsness, he e,ti-
mates the bond to be worth niuety-thrse
aui third dollars and no more; which
bs, been the average standard q: which
the state bonds have stood during the
! present yo,r; sometime, something less.
in proportion to the pressure 90 the mar
ko:-sometin.rs little more, as the timo
! for the rsymcnt of lie inlsres. approached.
Now. II :Lc state wa. not borrower in
the msrkrt. but continued to reduce iis
deb! sy tha operation o: Inc Sinking fund,
Us the supply Of bonds vas diminished the
demand might increase, and The ralu,
might be snhaucsd beyond tho intrinsic
value Of the bonds. II the Sinking fund
va. the only state fund in operation. this
fund, by purchasing state bonds willis
they are below par, might bspss'ins 3
considerable amount. aud reducing tho
stats deb. much faster than those xbn
created the fund had calculated though
sven then. the purchase a. the reduced
rate may De Questioned as afor ding an-
other uean, Of reducing the bonds, the
operation being designated as shaving th.
stite's owp paper.
7 But there is another a'rees in which
! this question is to be considered aud we
think We can demonstrate, thai while tho
Sinking fund may be gaining The amount
nsde BY the prschasc Of bonds below par,
The stale herself is losing muoh mere than
she maksa by the sale OF a much greater
ap,pdnt Of bonds also greatly below par.
There is another fund under The centrol