The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-12-15
AUDITORS REPORT.

We have received the report of the Au-
ditor of Public Accounts. 1t is = very
neatly printed pamphlet, and creditable in
the clearness and fullness Of its state
ments. Among the important recommen-
dations, we notice one requiring every coun-
ty to pay its own criminal expenses; also,
"that the Agricultural College Scrip be
sold and the proceeds invested in the United
States, or some other safe stock.n
The Auditor sees the need of providing
by loan for the July interest under the
Funding Law, and so states. We copy en-
tire the portion relating to the debt.
INTEREST ON THE FIRST JULY, 1874.
Whatever the rate of tax may be which
the General Assembly may impose, it will
be impossible to realize any revenue there
from prior to the first day of July next.
The deficit can only be met by temporary
loans, and | respectfully recommend that
authority be given to the Commissioners of
the Sinking Fund to loan to the State such
bonds and other securities as may have
been deposited with them by the various
railroad companies ofsthe Commonwealth
for the purchase of the States interest
therein, to be hypothetical as security for
the payment of such temporary loans as
the said Commissioners with the concur
renee of the Governor may find it necessary
or proper to make.
If the suggestions made by mein this re-
port shall meet with the approval of the
General Assembly, and acts corresponding
thereto be passed, | think it may be posi-
BILE to tide over the coming year with the
present rate of tax on land and property,
supplemented Of course. by judicious tax
on licenses and miscellaneous subject. Can
dor, however, requires me to say that un-
less there be a large increase OF revenue
! from the sources have indicated, or from
others that may be suggested, it will be inn
| possible, as shown by the figures in for
mer part of this report, to meet the liability
of the State on the first day of July next.
This is rendered more certain from that
portion of the funding act which authorizes
matured coupons to be received in pay
ment of all public dues. 1t should be dis
tinctly and constantly borne in mind that
if the annual liabilities Of the State be in
round numbers three million dollars, tax
that will realize that sum over and above
the amount of insolvents and the cost of
collection, must be imposed, or the pay
ment of interest in July must be suspen-
ded. This, however, is not the only evil
which will result, for it is plain that unless
a sufficient tax be levied to absorb them,
the matured coupons which may be re-
cev> d by the treasurers and paid into the
treasury will absorb all the money therein
and effectually suspend all the operations
of the government. say may. My opin-
ion, however, is that very small portion
of the taxes will be paid in coupons, for
the following reasons, viz
LIST. Because it would afford no relief to
the taxpayer to use the coupon in payment
of his taxes, unless 1t could be procured at
a discount, and End. That as probably
three-ffths of the coupon bonds are held
by persons residing beyond the limits of the
State, the coupons themselves would be pre-
scented at the counter of your treasury for
payment and not placed upon the market
to be sold at discount for The 6ene,I Of
the tar-payer. View the subject az we
may, the net revenue realized from taxa
ton should equal The amount of your liza
bilties, let them be presented in what form
soever they may.
1t is proper should state that III all my
estimates, &C., as you will observe, have
pTOceeutu upon tic dosuinptioH uiat inc
entire debt will be funded, and the whole
amount of interest drawn. 1t may be, and
Judging from the experience of the past, it
| probably will be otherwise. Bondholders
seem slow to fund, and many of them have
heretofore been very slow in collecting the
amount of interest to which they were en-
titled. 1t may be so again, and as far as it
shall be, to that extent your treasury will
be relieved. | have deemed it altogether
proper, to present the subject in the mode
| have done that you may see it in its yari-
Gus bearings, and be governed accordingly.
Whatever disposition may be made of the
various suggestions contained in this re-
port, | am content to believe that the
credit of the State, which involves the
credit OF every subordinate interest, will
be properly cared for by the General As
sombly.