The daily gazette., 1877-01-02


by the legislation of 1873 and by the abol
ition Of the mortgage tax since 1875, the
revenues Of the State have proven anaple
for the payment of all demands upon the
Treasury, and also for the accumulation
Of the gratifying surplus have mentioned
Taking two years together, and including
the expenditures OF the Legislative year,
the average annual expenditures excluA
sive of purchases ofbonds, will be, accord
ing to reliable estimates, about one hun
dred and five thousand dollars, ($105, ,000)
while the annual receipts from all sources
will, at the present rate of taxation, be
about $195, 900, thus securing an annual
surplus Of ninety thousand dollars ($90,-
000), for the redemption fund. t.fa4 i
Notwithstanding certain extraordi-
nary appropriations by the last GEN
eral Assembly, and the large reduction
in taxation and corresponding dimi>
pution of revenue, the surplus in ex-
cess of interest disbursements and
current expenses during the past two
years and applicable to the payment
of the public indebtedness has amounts
ed to the sum of one hundred and fifty
three thousand dollars, (8153, ,o00). in.
elusive of the net balance now in the
Treasury awaiting safe and profitable
iuvastment. The exceptional appros
priations referred to were $40, 900 to
Centennial stock, and $4,000 to be
expended under the direction of the
State Centennial Commission, "a, 900
for attorney fees in railroad cases.
81, SEQ to fishery Commissioners, $2,.
920 for State Capitol repairs, 81 800 for
binding residue of Revised Codes, and
$8, IT'S in satisfaction of judgment
obtained by the Junction and Break
water Railroad Company against the
late State Treasurer. These expendi-
lures, amounting to about $4,000, the
State will mot be called upon to incur
hereafter, and therefore the said sum
may be considered as part of the fu-
ture annual surplus applicable to the
redemption OF outstanding bonds. and,
if added to the $153, 900 surplus OF the
last two years. the aggregate amount
will be 1888, 900, and show an accumu-
lation of at least 800, 900 per annum
to be applied TO the extinction of the
} State debt.
Since the meeting of the last Legis-
leture the State Treasurer has paid
$23, ,G60 of the matured bonded debt
with interest, and accumulated the
D said net balance of about 500, COO
which he has endeavored to invest IN
0 the purchase and cancellation of the
n UNINSURED bonds of the State, but
without success, making a tota! of
0 lS113, COO of substantial decrease of the
n bonded debt. This amount, in con-
pection with the actual reduction ol
% S373, $40 of the bonded debt during
N the four years prior to January, 1875
y shows the practical liquidation oi
lalmosG a half million of dollars oi
bonded liabilities since January, 1871
A financial achievement which is high
lily honorable to onr State and extreme
ly advantageous to her pecuniary
credit.
But this signal success of our fisca
20 policv, while it has unquestionably
~ demonstrated an ample ability to main
tain the credit of the State. and great
ly enhanced the value and popularity
of its bonds, has nevertheless beer
attended with other results which arr
worthy of serious consideration.
SURPLUS REVENUE.
BY reference to the State Treasur
er's Report, herewith transmitted, i
81 will be perceived that in addition tt
: the net surplus of about $90.OO'
y already referred to, he has in hand til,
sum of S2l, 900 out Of $25, GOO former
ly loaned to the New Castle and w il
mington Railroad Company for thu
20 benefit of Free Schools, and repait
TO him by said companyln May, 1875
+ and which he has been unable to in
Is vest in the purchase of unmaturet
y bonds of the State. The proper disposi
10 tion of said sums and also of the larg
- annual surplus which l have showl
y must arise from year TO year, if tn
~ present rate of taxation shall be con
~ tinued, presents difficult problem
io for your careful investigation ant
practical solution.
10 Whether the said surplus shall b
invested from time to time in the pur
90 chase and cancellation of unmature'
80 bonds of the State at market value, o
w invested in reliable securities for tn
90 benefit of Sinking Fund for the re
demption of said bonds at maturity
is is deserving of mature consideration
z Against the proposed purchase of tn
y unmatured bonds of the State at thei
D. market value, it is urged that such
policy would so appreciate The prlc
j. of such bonds that the payment of tn
$ exorbitant premium thereon woul'
'e occasion unreasonable losses withou
u = compensating benefits to the Treasury
}. and would be inconsistent with SCUM
. principles of finance. On the othe
ie T. hand, if Sinking Fund is to be &C
II cumulated, it is believed that the an
~ ~ nual surplus, raised by taxation TO
~ u such purpose, should be rigorousl.
"a limited to the requirements of tn
, strictest necessity consistent with tn
- maintenance of the public credit
70 Experience has abundantly show
as 's that large amounts of money, evel
y invested IN sinking funds, tempt t,
"a improvident expenditure and iliegiti
u mate use: So long as sinking fun
= investments are subject to the eontro
~ - and disposition of every successiv
y Legislature unrestrained by constitu
4 tional restriction, they may be divert