Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1877-12-12
RECEIPTS AND EXPENDITURES

have been 81, 40l T26. ~. The receipts
from the same source for the fiscal year
1867 were s2,505, 3S7.E. Though
above the average, this amount is less
than the receipts for the next preceding
year by Sl73, 952.47. The reduction is
due to the difficulties which were en-
counteredin changing from one system
of liquor taxation to another-the taxes
imposed upon consumption by the new
law having been wholly suspended for
a considerable period by the injunction
of a Federal court, while the same law
very greatly reduced the taxation OF
wholesale dealers, The loss to the
revenue from these sources during the
last fiscal year was not less than $780,
900. tr.
The disbursements OF the revenues
from taxation during the lastiscai year
were as follows: ,
For ordinary and permanent e1-
penses of the government .......s 967, 3a3 a
For extraordinary or temporary ex-
penseS, required by special acts of
Assembly, for purposes other than
the current support OF the govern
For public free schools 32s ,2e6 AZ
For interest on debt ... 80. 1,e721le II
5alance applied to temporary loans
of the year 1876. 1894 GO
sa5os, 1857 IT
trhe FISCAL year of the State and that Of the De-
partment of Public Instruction begin at different
dates-hence an apparent discrepancy between
sums reported by the Auditor of Public Accounts
and the Superintendent of Public instruction.
The ordinary expenses Of the govern
ment for the last fiscal year were less
thoy, fNr CT iho rnr tifntiOJ1
took effect, and less by sSS, 5S3.0S than
the average annual expenses of the last
eight years on the same account. 1t
will be found that the criminal expenses
which are wholly beyond the control of
the Executive department, have con-
tinued to increase in extraordinary
manner; and, due allowance being made
for that fact. it will be seen that the
reduction Of the other ordinary ex-
penses Of the government has been con-
siderably greater than the foregoing
statement indicates. ....
THE PRESENT CONDITION OF THE
DEBT OF VIRGINIA.
Of all the vagaries and extravagancies
Of the period we live in none exceed the
missapprehensions which have obscured
the financial condition Of Virginia. 1t
is to be deplored thai Interests so COM
plicated, sensitive, and sacred as those
of State faith and credit should ever be
bedraggled in the ephemeral excite
ments of personal and partisan politics.
The principal sum OF the debt, the
arrears Of interest thereon, and the
annual deficiency in the treasury, have
all been subjects of the widest ex-
agseration; while the market value OF
the public bonds has been deprecated,
and the popular mind has been dis
couraged by mIscalculations as to the
ability of the State to carry It's debt.
which are in the last degree erroneous,
fanciful, and eXtravagant.
l propose to recapitulate the financial
condition ofthe State and to present its
entire Indebtedness with the utmost
possible exactitude. The particulars
are drawn from the only authentic
sources, and they are verified by the
only tests which can exclude the posi-.
bility of error.
The principal sum of the entire debt
proper OF the Commonwealth, as of
the beginning OF the present fiscal
year, is ................ So, 359. sic &c
The arrears OF interest which have
accrued since the funding bill TOOK
effect, and which constitute
much misunderstanding debt,
amount Observation-Disclosures. 4,1ss,l41 80
Consequently the whole of the pub
lie debt, including principal and
ali arrears of interest, is go. 90, j33, 959 09
The entire debt assumed by the
funding bill was ............... $50, AS. 745 40
The difference is the increase of
the debt during the six years
viii ch have elapsed since the
funding bill went into Opera
ton fiz:.,......- .............. So, 9oo 20 %
These figures show that the averag c
annual increase Of the debt during the
last six years. resulting solely from the
accumulation of interest arrears, has
been $50, 036.l0 and no more.
Fortunately, the State yet retains
several interests in internal properties
other than the water-line, which are
salable and have determinate market
value. If it be the pleasure OF the
General Assembly to provide. for the
sale Of these interests at their present
value, and if the proceeds of such sales
be invested in the new funded bonds of
the second class, they will suffice to re-
tire 81, 900. 900 Of the existing debt, and
thus the entire outstanding indebtedness
of the State will be reduced to s3l, 63S,-
95S.O9.
But, in calculating the deficiency in
the treasury for the future, let it be
assumed that this measure of relief may
not commend itself, to legislative aJ-
prevail.
1t is as clear as mathematical demon
stration that, If the Legislature shall
leave the general features Of the present
revenue system untouched, merely
correcting patent defects in matters of
detail, the current resources Of the treas
ury will hereafter suffice to pay full III
terest on the entire outstanding debt.
Even if orr taxable values should not
continue in the future to increase, as
they are now increasing, by the slow
but certain processes of reproduction
and accretlon, even If no retrenchment
of the general expenses be made, and If
the present revenue system be simply
perfected and then allowed to go on
without interruption, full interest will
be paid to the creditors of every class.
The recent constitutional amendment,
which prescribes biennial sessions of
the Legislature. will necessitate an
average saving. in Legislative expenses
alone, of one hundred thousand dollars
annually. This single item ofretrench-
menL reduces the: aversve annual de-
ficiency. in respect to the debt froi-i
$5l0, 036. 10 down to $4lO,036.l0. The
balance of revenue needed to cover this
reduced deficiency is already guaranteed
by the new revenue measure devised
by the last General Assembly. The
method now in force for taxing the
consumption of alcoholic and malt
liquors is an experiment which its
authors have not claimed to be free
from defects, and although more time
is required for giving it full and etfeetual
operation in many portions of the State,
yet the returns already made demon
strate beyond question that upon the
obvious defects of the measure being
corrected the increased revenue to be
derived from it cannot fall below a half
million of dollars annually. This is no
conjectural estimate. 1t is the result
which ia irrpsiS tihl u nroyad hv tho o.