The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-03-06
lFor the Dispatch.
The State Debt.

The State DeDt.
TIE PROPOSITION OF THE AMERICAN boSD fCND'
ING ASSOCIATION.
IF instead of wasting its tinac in dl>cred-
ting the State and all her citizens by VAIN
epdeavors to devise expedienis to avoid that
u bicb canuot be avoided, our Legislature
would look the situation squarely in the race
and seriously address itself to the task OF
dealing with the State debt according 10 tue
exicencies of the situation, no reason TOT
gloom or dependency would be found; but
every reason would be discovered for the
assurance that tie solution of our difhcul:
ties is in our own hands. The proposition
of the American Bond-F unding Association,
now before the Finance Committee, is entl-
tied 10 the most serious consideration OF that
body as well as of the entire Legislature.
The proposition Of this, company as at
first made met with but little appreciation be-
cause of that provision which PIT the stare
and the taxpayer ut the mercy Of the bona
holder by giving him the power to buy ana
collect taxes whether the Legislature was
willing or not. This company has no"
modified its proposition by agreeing that
this power shall be stricken out of the con-
tract. leaving the performance of her under
taking entirely to the good faith of the State.
1t was also objected to the scheme that IL
might result in the company bringing IN all
the neelers and registered debt, stopping
there, without bringing III dollar OF the
copsols with taX.receiyable coupons attached.
This objection has been met oy the company
agreeing that the act shall be OIL no force OF
effect unless on or before the lst OF January,
1876, it deposits with the treasurer co.
11,, "A = ~fe Ilo~n
for every 100000 of the other debt which it
brings in it will bring in 100000 of consols.
Is there any possibility by which this ar
Management could injure the State, and if it
works at all, is it not bound TO result in good
| Is not the agreement that it will put up
these sums of consols before the act Shall
have any effect, a complete guarantee TO the
State that if. it works ut all 1t must WORK iof
| her advantage!
IF this proposition is accepted the interest
on the entire State debt can be patd without
increasing the present rate OF taxation. Le'
Us look fora moment at figures:
The annual interest on the State debt al
four per cent. gold. in London, including
premiums and exchange, would be Sl,3il,
542. Now, the present tax bill will Ger
tainly yield, as any one may learn VINO VIII
| take Tile lTOuOie W uldkc iuc PiotCl ihiuiA Us
at the Auditors office, s., 100000, and if pro
perly enforced will yield nearly 80, OOO,OO0
| TheAuditor estimates the expenses of govern
ment, including the school.taX, at 81, 2S9,
TAT. Surprising the tax bill to yield only
g, 800, 900, after paying all expenses OF Gov
ernment there would remain Sl,21O,253 tc
pay the interest on the entire State debl
with-that is, Sl61,3ll less than the Interest
on the entire debt.
| Let it be observed that this estimate ha:
been made by assuming that all the estimated
expenses OF the Government will be realized
and putting the yield of the tax bill at it.
lowest possible figure. If the expenses Of
Government were reduced in few tritliDg
particulars this S1G1. 81 could easily be mad,
up. If the taX-bIIl yields but little more
than the lowest estimate for it, i. is made up
In any eyeut there is but the paltry sum OF
S1G1;3l1 to be raised in order to put this
hateful and YeXed question forever at rest, &c
restore our credit ut home and abroad, and
lift from our reputation the taltfill charge o.
faithlessness and reputation. And let 1t be
observed further that there are $4,000 ,OOC
of consol bonds now in existence with tax
receivable coupons, sending annually into the
Treasury S1,20C,00O of coupons. This sum
in coupons, which there is no power on
earth to keep out of the Treasury, is almost
equal to what will then be the interest on
the entire debt. FINANCE.