The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-12-13
Governor Kemper'.s Message.

|
to the Senate and House of Representatives
on the 9Th. 1t commences with congratu-
lating the State on its improved prospects,
and in abiding to the causes Of the prostra-
tlon from which she is just now emerging
says:
| In the works OF internal improvement,
constituting almost the whole consideration
of the public bebt. Virginia had preserved
very large and valuable interests. Had
these great properties of the State been hus-
banded with ordinary prudence they would
have sufficed ultimately to extnguisil very
| large part OF the existing debt. But the
policy prevailed of diyorcing the govern
ment from the control of the public works.
Another, if not equal injury, resulted
| from new adjustment of the public debt
which deprived the State of all control over
a large proportion OF its annual revenues5for
more than the period Of the present genera
| ton. After the war, and prior to the pas
sage of the funding bill, the Legislature had
| in successive acts recognized the obligation
| of the debt and p1ighted the public faith for
| its redemption. But nothing had been done
which countenanced the policy of bargain-
ings8f the future revenues of the State and
subjecting tho maintenance OF the govern
ment in any degree to the mercy of bonded
creditors. No call from the people at home,
no pressure from creditors abroad, necessi'
| tated or justified or suggested such u settle
ment. I'D to that time nothing but sympa-
thy and goodwill had marked the relations
of the bondholders to this Commonwealth
| the enactment of the funding bill was a sur
prise no less to them than our own people;
and we now know that a settlement incom-
parably better for all parties concerned i'll
the DEBT OF Virginia could then have been
easily and honorably procured.
In addition to this heritage Of troubles
transmitted to us BY our predecessors. other
causes have supervened to embarrass the
government. just four yeats ago moneta-
~ collapse settled down upon the business
Of the general country, and its disastrous
pressure was felt throughout the civilized
! world.
In fairly estimating these accumulated
difficulties from within and without we have
right to rejoice that Virginia has struggled
successfully through them all. speak IL
yisedly and deliberately i'll affirming that
the worst is over. For more than a year
the great monetary panic has been steadily
and visibly receding. The taxable values
and annual revenues give every promise OF
continued and progressive improvement;
while in all practicable directions, and as
far as the existing laws permit, the public
expenditures have been correspondingly re-
duced.
RECEIPTS AND EXPENDITURES.
The average annual receipts from taxa
ton for the last eight fiscal years have been
| 81, 4O1, 1858. The receipts from the same
source for the fiscal year 1867 were s., $685.
3S7.H. Though above the average, this
amount is less than The receipts for the next
preceding year by SIZE, AZ. The reduc-
| :ion is due to the difficulties which were en-
coun:ered in changing from one system OF
! LIQUOR taxation to another-the taxes i'm
posed upon consumption by the new law
having been wholly suspended for consid-
| cradle period by the injunction OF a Federal
| court, while the same law very greatly re-
duced the taxation of wholesale dealers.
The loss to the revenue from these sources
| during the last fiscal year was not less than
| 100000.
| The disbursements of the revenues from
! taxation during the last fiscal year were as
| follows:
| For ordinary AMI permanent expenses
of the government. ...$ 967,'S3 AZ
For extraordinary or temporary ex-
penses, required by special acts OF
Assembly, for purposes other than
the current support OF the govern :.
ment,. Jz,S3z %
For public free schools. 326,266 46
FofintereSt on debit. lO65 ll0i7
OF the yeai 1873 IS ................ 1884 60
s2,5O53s7 II
xThe fiscal year of the State and that of the De-
partment OF Public Instruction begin at different
dates-hence apparent discrepancy between
sums reported toy the Auditor OF Public Accounts
and the Superintendent of Public Instruction.
The ordinary expenses of the government
for the last fiscal year were less THAI for any
wear since the Constitution took effect, and
less by SIS, 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 con-
troll of the Executive department, have con-
tinued to increase in an extraordinary man
ner; and. due allowance being made Tor
that fact, it will be seen that the reduction
of the other ordinary expenses of the gov
ernment has been considerably greater than
the foregoing statement indicates.
| THE PRESENT CONDITION OF THE DEBT OF
VIRGINIA.
After abiding to what is termed extraya-
CANT statements in regard to the State debt,
Governor Kemper says:
Ipropose to recapitulate the financial con-
dition Of the State and to present its entire
| Indebtedness with the utmost possible ex-
actitude. The particulars are drawn from
the only authentic sources, and they are
| verified by the only tests which can exclude
the possibility Of error.
The principal sum OF the entire
debt proper of the Commonwealth
as OF the beginning OF the pres
| The arrears Of interest which have
| accrued since the funding bill
took effect, and which constitute
so much non interest bearing
debt, samount to.................. Abb .l4l ~
Consequently the whole of the pub
lie debt including principal and
all arrears of interest, is...... $33,533,953 90
The entire debt assumed by the
funding bill Observation-Disclosures. 3O47s,74s 40
The difference is the increase Of
the debt during the years which
! have elapsed since the funding
bill went into operation, viz. &3 $780, l6 90
These figures show that the average annu-
| al increase of the debt during the last six
| years, resulting solely from the accumula-
/ ton of interest arrears, has been $50, OS6.l0
! ard 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 pres
| ent value, and if The proceeds OF such sales
/ be invested in the new funded bonds OF the
second class, they will suffice to retire ST.
| SOC, 600 of the existing debt, and thus the
| entire outstanding indebtedness Of the State
| will be reduced to So ,G3S, 95S.09.
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 approval.
| 1t is as clear as mathematical demonstra-
ton that, if the Legislature shall leave the
| genera. features Of the present revenue sys-
| TEN untouched, merely correcting patent de-
| fects i'll matters of detail, the current re-
sources of the treasury will hereafter suffice
| to pay full interest on the entire outstand-
| ing debt. The recent constitutional amend
ment, which prescribes biennial sessions OF
tie Legislature, will necessitate an average
saving, in legislative expenses alone, Of one
hundred thousand dollars ANNUALLY. This
single item of retlenchment reduces
the average annual deficiency in respect to
the debt from $5l0. O35.l 10 down to $40, $780,
10. The balance Of revenue needed to GOV.
er this reduced deficiency is already guar.
anteed by the new revenue measure devised
by the last General Assembly.
In my inaugural message to the General
Assembly expressed the opinion, which