The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-14

GUfEBkOR 5 hESSAHE UN FtNAACb-
A communication from the Governor II
response to resolution of the Senate re
questing him to give to the General Assem-
Div his views as to the best mode of raising
money to pay the interest on the public deb
and defray the expenses Of the State, sc.
was communicated to the Senate by bis sec
rotary, Colonel Owens, aid on motion of Mr.
TAYLOR, of Loudon, was laid on the table anG
ordered to be printcd-two hundred ant
fifty copies in addition to the usual number
COMMONWEALTH OF VIRGINIA.,
EXECUTIVE CHAMBERS,
.... RICHMOND, January ID, 1873.
To the Senate Of Virginia:
I bave the honor to acknowledge the re-
ceipt of n copy Of reso'utio agreed to by
your honorable body, which is in these
wurds-viz.: 49,
"Resolped, That in view Of the late deci.
sion of the Court of Appeals the Governor
of. this Commonwealth be requested to give
to the General Assembly bis views, at the
earliest moment, as to the best mode OF rails.
ing money to pay the interest Oh the public
debt and dcfray the expenses of the State,
and The increase Of taxation necessary"
] take pleasure In responding to this cour-
teous request Of the Senate; and II the views
hereinafter expressed shall contribute to the
proper md satisfactory solution of the i'm
rortant question involved the time and labor
devoted to their consideration will be amply
rewarded.
The resolution embraces two distinct i'll
Quiries:
FIRST" GAS to the best mode of raising
money to pay the interest on the public debt
and defray the expenses Of the State and,
second, "tbe increase of taxation necessary
As TO the second inquiry desire ut the out
set to express confidently and unhesltatingly
my opinion that if the views hereinafter
stated are adopted by the General Assembly
promptly and fully 10 increase whatever in
the rate Of taxation will be necessary to meet
the full interest upon the public debt and
delray the current expenses OF the State Gov
ernmcnt. These views, which will consti-
tute the answer to the first inquiry summa-
rized may be arranged under three differ
ent heads, or expressed in three propositions
First: The reduction Of The principal or
stun total Of the public debt to the lowest
amount possible by applying our non-pro-
ductive assets to It's liquidation.
Second: The reduction Of the current en-
penscs Of the State Government to the lowest
degree consistent with its proper and eff
cicnt administration.
Third The assessment OF all the property
in this COMMONWEALTH in accordance with
the mandates Of the Constitution.
] will briefly elaborate these propositions
in the order in which they are stated, and
first as to the reduction Of the amount OF the
public debt. The State to-day is the owner
of the following assets
Second mortgage bond Of the Atlantic, Mis-
sissirpf and Ohio Railroad Company. 90 COG
First mortgage bond of the Richmond and
Danvi!le Railroad Company. 5S5,0oG
Capital stock In the Richmond, Fredercks-
burg and Potomac Railroad Company. 1852
Capital stock In the Chesapeake and Ohio
Railroad Company. ................ 2,Ol49OC
Capital stock In tic Roanoke Navigation
Company ...........................' 10000
Capital stock IN the Upper Appemattox
Company. ......::.:....,:. l2,sOC
road Company. Observation-Disclosures. 5e.5Ot
Making sum total of.................s G.Slp2se
The State also OWNS the following turn
pike Stocks-viz:
Berryvile: 7l5t
Saiius 49, :, $1,000
HoIh"esterh'' .l6 00i
And the Armory and Public Warehouse
property in the city of Richmond and rlaimt
against Selden, Withers & CO., which stocks
would probably bring S260,000 in cash, hut
these are not Included in the present csti
mates.l
The above amount Of SG,S19,2Q0 is or car
be soon made available in liquidation of the
State debt. The Second Auditor, in his lasl
annual report, states the public Gtent to be on
the 1st Of July, 1871 (tI,e date from which all
bonds issued under the act Of March 80, 1871
draw interet,) the sum of S45,71S,117.93
Now, deduct from this sum the amount OF
the assets above stated (5G,S19, 2OO), and I,
leaves but S3S,S9S,9l OF
which is S25, 1892, sos. IA, the ANNUAL Interest
upon which is 81 ,555, esS45.
This calculation Il based upon the as
sumption that the policy of applying our
assets to the reduction OF the SUN tosaI
OF the old debt will be eentihued. But
it has hccn suggested, and with some
reason, that owing to the attitude of the
state of West Virginia upon the subject
or the old debt this State would be justified
IN applying these remaining assets to the
liquidation of the two-thirds of the old debt
which she has already assumed to pay. II
this plan were adopted it would further re.
duce the liabilities we have assumed nearly
one-third Of the amount OF these assets,
The Second Auditor reports The total of the
debt assumed by us at 3o,4IS, III .49 on tic
1st of July, 1871. Deduct from this sum the
total amount of assets as above giycn-yiz.
S6,s10, 200-and the maximum of our debt is
reduced to the sum OF S23, 1905 40, the
annual interest upon which would be
81, u9.5i2.4S.
do not propose, however, to base my cal.
clllations or estimates upon this suggestion,
but shall assume until further action is had
that the policy already adopted will be pur-
sued in future, and that all our assets will be
applied in reduction of the old debt, As
already stated, if this be done, the debt may
be reduced TO so, 932. 60S.14, the annual
interest upon which will he $1,000, 956.4 S.
But it may be advisable to use q small por.
ton of.the more valuable of these assets,
say the bonds of the Washington and Ohio
and the Richmond and Dauyille railroads, as
well as the stock in the Richmond, Fred
ericksburg and Potomac Railroad Company,
amounting to S1l2,70O, to relieve our pre-
sent necessities, and to use tho Arinory and
Public Warehouse properties, the Seldep,
Withers Il Go. Claims, and the turnpike
stocks in the reduction OF the principal of
the debt, in which case the two-thirds Of tue
debt we have assumed would not amount to
a sum exceeding S26, 100000, the annual
interest upon which would be 81 500, 600.
OF the propriety and necessity of disposing
of these assets for the purpose OF liquidating
the State debt, md to q corresponding ex-
tent tightening the bnrthen OF the people,
there can be no question. Not $500, 900 or
them arc producing any income 10 the State,