The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-01-22
nThe New Plan' for Adjusting and Payini
."" the Public Debt.

aThe New Plan" for Adjusting and Paying
the Public Debt.
To the Editor Of the State Journal.
l see in your issue of the 10th, a notice of
new plan for adjusting and providing for
the payment of the State debt, introduced
by Mr.. Stovall, of Halifax, by which he
proposes to adjust the new debt Of the
State, on the basis of the taxable property,
as of the LIST of January, 1871, compared
with the taxable property in 1860. That
is to say, Gf understand the proposition,)
as me taxable property in 1860 was to the
then debt, so shall the new debt be to the
taxable property of 1871 that is, as
$685. ,000, 900 is to $33, 900 900, being then
the debt, so shall the debt now be to $367,-
000,0 900, the assessed value of the taxable
property in 1871. To ascertain what this
gives, it is necessary to ascertain what per
cent. the debt of 1860 bore to the
taxable property at that time. This, | find
to be 65-100of one per cent, which rate
on 1867 900, 900 would give new debt of
$40, lS5, 900. To this | understand Mr.. S.
stock held by the State in internal improve
ment companies, as well as the debts due
by said companies, as of the list of Janua-
ry, 1866, which he estimates to be $l0,-
100000. Out of these assets he proposes
first 10 pay the full amount of the 5 per
cent. sterling bonds, with accrued interest
which is estimated $2,600,o00 leaving bal
ance of SO ,000, 900 to be applied to the re-
naming debt, which would give new
bonded debt of near $31 100000. While
this proposition greatly increases the debt
of the State, as compared with the taxa
BILE property before the war, yet it
would be nothing more than the
bondholders have a clear right to, mas
much as the debt was created for the pur-
pose of constructing these works of i'm
provement. The debt thus adjusted ought
to give, and no doubt would, satisfaction,
both to the bondhoders and Taxpayers.
The debt thus ascertained, Mr.. S. proposes
to provide for, by new system of taxa
ton, which he denominates indirect vol
untary'' taxation by introducing the gallon
tax on spirits in the license system, apply
ing it to ordinary keepers and retail liquor
dealers, by fixing the special tax for such
license at S25, and so cents per gallon on
their monthly sales,. to be assessed at the
end of each month by the commissioners
of the revenue of the cities and the asses
sors of the townships, thus carrying the
tax TO the consumer, by making every such
liquor dealer indirectly collector of the
revenue.
Mr.. 49," then proceeds to estimate the
probable receipts, by assuming that the
number of licenses that would be issued to
be SO, 100''-a reasonable estimate-and
estimates their average sales at 125 gallons
per month, thus giving monthly from this
source, in the aggregate, $193 ,750-being
an annual income of So ,250, 900, to which
should be added SIT 800 for special licenses,
which would make, in the aggregate, 49,
1927 ,500-an amount sufficient to pay the
cost of collection, semi-annual interest, and
set apart sinking-fund of $3l2, 900 to pay
the principal of the debt, leaving balance
of $4,000 to be applied to ordinary ex-
penses Of government.
You have well said this plan is ''new and
original, and deserves notice." and if the
attention of the Legislature should be given
to this proposition it would in my opinion
work out solution of the complex ques-
ton that beset them.
think it reasonable to conclude that the
estimates of Mr.. S. will be more than re-
allied, as the statistics show that the value
of spirits consumed in the United States, in
1871, was 5000, 100000, and as Virginia
has one-fortieth of the population of the
United States, it is fair calculation to
estimate that she consumes one-fortieth of
this amount, which is sl5, 1000, 900; thus,
at an average of 50 per gallon, would give
$500, 900 gallons, at fifty cents per gallon,
would yield a revenue Of $3,750,000, far
exceeding the estimates of Mr.. IS"
In conclusion, Mr.. Editor, permit me to
say that, if this policy should be adopted,
am of opinion that the amount estimated
might be fully realized, and by the next
session of the General Assembly the tax
on land and property might be reduced to
30 cents on the 800 value.
Very respectfully,