The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-12-07

public credit involves the ob!iteration OF
,riyata credit, but the maintenance OF pub
lie faith establishes private confluence;
The restoration of our State credit, and
along with It. confidence in our integfiey ~
q people. which the law has ana WIN
accomplish, will condnce more to Inc
prosperity OF our people and the develop
ment Of sur State than any other cause or
influence which can be named. Capltai,
ALWAYS cautious and tneryously sensitive,
never seeks investment In the property or
securities OF a people who betray want
or integrity either in their public or pri-
yate capaclty, and immigration never seeks
n country where obligations are not scru-
oulously respected, and where properly
rights are not safe and secure. Win tne
restoration Of our State credit ana Inc
adoption of wise and comprehensive
nlan for tho encouragement OF lmmigia-
tor, both population and capital VIII HOW
into our State, constantly increasing us
taxable valuations, and constantly oe-
creasIug the rate of taxation In cores.
pondfag degree. We have taken the nrst
step in the right direction for the accom-
plishment of this important object, out iIs
complete realization in large measure
depends upon your Wise ana pruoeh'
action. 49, mi.
The very full and able report Of the flfst
Auditor, herewith submitted. contains,
besides the tabular statements exnlolting
the OPERATIONS Of his department. curlnS
the last fiscal year, many pertinent sugges-
tions. some OF which I cordially endorse,
and all of which / commend to your care
fuI Derusal. As legal proposition, tne
interest on the funded debt must unquee-.
tionabIy be paid. There Is no escaping II
if we would, and [ am confident tnere -
NO disposition to avoid it if we could. 70
do this, however, without increasing the
rate and burthens Of taxation, economy IN
every branch of the Government must pc
ricidly enforced. No expense mus, De IN
cnrred except such as shall be absolueeiy
essential to the proper administration OF
The affairs of the State, and the taxes i'm.
Dosed must be thoroughly collected In all
cases and under all circumstances. Taxa
ton for State purposes is lighter IN Vrgl-
MIA than In nine tenths Of the States, ana IL
should be our earnest effort, as 1t Is our
duty. to keep 1t as low as possible. both on
account of the direct benefit resulting 10
the peop1e and because or the inducement
it offers to capital and immigration.
By the report of the Second Auditor,
herewith submitted, 1t will be seen that the
total debt of the State on the 1st OF July
last, fundable under tho law above men
toned, was 81, 900, 1856. 43, two-thrds OF
which is S31 ,393, 910.98, which IS the portion
assumed by this State, and on Whic ca Inc
annual interest would be Sl.Sb5, 4oo.SJ, or
1892. T25 - semi-annually. 49,.
OF the whole debt the amount funded on
the 1st instant was S26,6l0, 69185. on two
thirds of which-viz., 7,740, 46l.23-lnte-
rest will be due and payable January lst,
1872. It is safe to estimate that by the lst OF
Janusry, 1872, $50, 100000 Of the old debt
will be funded, and that consequently $780,
600, 900 will be the sum on which interest
will have TO be paid ct that date, amount
ing to 100000. But the debt Is in reality
not SO large as the Auditor reports it, pro.
ylded the proper deductions are made.
There has been received from the Richmond
and Danvills Railroad Company l,034,.
burg Railroad Company 1915, 400 in State
bonds for the sale of the State
stocks in those companies, In all
81, elO, 1874 %, which must be applied
60 the reduction of the Stats debt,
and should be deducted from the total
liability of S4T 900, 866.43, which would re-
duce that amount to S45, 4S0, 542.2l. And
this sum will be further reduced certainly
to the amount Of sTI55, 1862, and probably
more, within sixty days, by the sale, under
an advertisement of the Board of Public
Works in pursuance Of law, OF, bonds and
stocks owned by the State OF the Rich
mond and Danville, Richmond, Frede-
ricksburg and Potomac, and Washington
and Ohio Railroad Companies. which Will
reduce the total liability to S43, 724, 6S0.21
and it is altogether probable that the Sc
cond mortgage bonds Of $1,000, 900 of the
Atlantic, Mississippi and Ohio Railroad
Company held by the State and to BIO sold at
the same time will further reduce the total
debt to $40, 7A, 6S0.2l. By the sale Of the
States interest in the Orange, Alexandria
and Manassas Railroad Company, (that com.
pany having already accepted the law ap-
proved March %, 1917 amounting, with
interest and dividends claimed by the Board
of Public Works 10 be 81 ,5T3, PASTA, the
total debt will be reduced to S39, 15l ,43l.H,
two. thirdy OF which SUM is S26, 100, 954,3l.
But this sum Is subject to further reduc-
lions by amounts realized and to be col
lected Oh the claim against Sclden. Wlthers
& Co. and the sale Of other property and
stocks held by the State. a very consider
able amount Of the debt will probably
never be presented for payment for, con-
sidering the age and multiplicity Of the
forms Of Indebtedness issued by the State,
and outstanding July LIST, 1871, some OF 1t
must have been lost or destroyed. One
sure source Of profit to banks of issue is
the loss and destruction Of their notes ;
and why should not the same be true OF the
paper issues of our State [ am we'll Salts
lied that the debt on which we shall have
TO pay interest under the funding act
will not exceed $500 900, the annual
! interest on which would be 81 900, 600.
But, to be entirely safe, suppose that the
full amounts given above should not be
! realized from the bonds and stocks OF the
II A IL 4 o,,I ~
Alexandria and Manassas Railroad Com
panies, sufficient certainly can be realized
/ from these and other sources TO reduce our
proportion Of the debt to S27 zoo, 900. on
which the annual interest would be 81 go,
900. This sum, together with sufficient
| amount to pay the current expenses of the
State Government, must be annually real.
1 ICED from taxation. But what will this lat
ter sum amount to-: The answer rests
l mainly with you, The Auditor, on the
| basis OF last years expenses, estimated il
at 81, 104, 509.16, but this estimate includes
1 about the sum OF S227 200 for Legislative
\ expenses, and I am satisfied that this
amount can be still further reduced.
l In my message Of 9Th March, 1870, estf
\ mated that the ordinary current expense:
| of the State Government, eIclusire Of legiS
flatiYe expenses, ought not to exceed $3.50,
| 00O per annum, and think they can be re
duced even below that sum. The amount
| of the legislative expenses rests entirely
| with you. hope, and 1t appears to me
| that you will be able TO complete your la
bors in sixty days, and If you do this the
per diem Of members will amount to less
than $S5, 900. am also well satisfied that
| you can very considerably lessen the ex
penses Of your session in other respect:
/ with advantage to the State and without
| any considerable Inconvenience to your
selves. The expenses of the last session o!
! four months, Of your immediate predeces-