The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-12-06

condition OF the State and TO present ITS en-
tire Indebtedness with the utmost possible
exactitnde.- The particulars are drawn
from the only authentic sources, and they
are verified by the only tests which can cx-
clude the possibility of error.
The principal sum of the entire 1850,
debt proper of the Common
wealth, rs of the beginning Of
the present fiscal year, Is. .s29,350.S16 76
The arrears OF interest which have ~
accrued since the funding bill
took effect, and which constitute
much Notwithstanding
debt amount to............. f,lSS,l4l 80
Consequently the whole or the pub
lie debt, including principal ana =,
all arrears Of interest," Is. .:..s33,o3e.91S W
The entire debt assumed by The
funding bill was... .............. S3u.47S.f46 f3
The difference IS the increase OF
the debt during the six years ..t
which have elapsed since the
funding bill went into operation
Wv
These figures show that the average an
nual increase OF the debt during the last six
years, resulting solely from the accumula-
ton OF interest arrears, lE.s been SOLO, 10
and no more. ~" '
Fortunately, the State yet retains several
interests in internal properties other than
the water-line, which are Salable and have
determnate market value. IL it he the
pleasure of the General Assembly to pro.
vide for the sale of these interests at their
present value, and il 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 $31, G3S,-
$500. -.
But, in calculating the deficiency in the
treasury for the future, let it be assumed
that this measure Of relief may not COM
mend itself to legislative approval.
1t is az clear as mathematical dcmonStra-
ton that, il the Legislature shall leave the
general features Of the present revenue
system untouched, merely correcting patent
defects in matters OF detail, the current re-
sources OF the treasury will hereafter sui
flee to pay full interest on the entire out
standing debt. Even ii our taxable values
should not continue in the future to in
crease, as they are now increasing, by the
slow but certain processes Of reproduction
and accretion; even il no rctrenChmcnt OF
the general expenses be made, and il the
present revenue system be simply perfected
and then allowed to go on without inter-
ruption, full interest will be paid to the
creditors OF every class. The recent con-
stitutional amendment, which prescribcs
biennial sessions OF the Legislature will
neccssitate an average saving, in lcgis-
lativc expenses alone, OF one hum
dred thousand dollars annually. This
single item Of retrenchment reduces
the average annual deficiency in respect to
the. debt from SJl0,036.10 down to S410,-
IO36.10. 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 al
though more time is required for giving 1t
full and e1iectuai operation in many por-
tons OF the State, yet the returns already
made demonstrate beyond question that
upon the obvious defects Of the measure
being corrected the increased revenue to
be derived from it cannot fall below half
million OF dollars annually. This is no con-
iectural estimate. 1t is the result which is
irresistibIv proved by the actual working OF
the new system under many disadvantages.
In my inaugural message 10 the General
Assembly l expressed the opinion, which
subsequent experience has strengthened
and confirmed, that by properly rearrang-
ing and retrenching the expenses Of the
government all the obligations OF the State
could be fully met and the existing rate OF
taxation ut the same time reduced. ReServlnS
that subject for another part OF this paper, L
take occasion now to congratulate you upon
the unanswerable fact that ii no adverse ac-
ton shall either increase the volume OF eX-
penses or diminish the supply Of revenues,
the interest on every class OF debt Will be
paid, and the financial restoration OF Viz
ginia is already assured and virtually con-
summated. ... -.
! In the foregoing statement make no ac-
count of balances, due from one pocket OF
the treasury to another, because they con-
stitute no part Of the public debt. now
proceed to state and explain them.
FUNDS WHICH ARE SOMETIMES ENORMOUSLY
CHASED AS PART OF THE DEBT.
I do not propose to repeat the expeditions
OF the sinking and literary funds, contained
in my former messages, to which reference
is respectfully invited. 1t is enough for the
present to show that these funds constitute
no part OF the State debt.
The principal sum OF the sinking fund,
now amounting to s., l2j, 80, is an ag-
gregation Of bonds, formerly held BY pub
Tic creditors, which have been paid of,
taken Ill, and deposited as property OF the
State. and as so much eXtinguished debt. in
its own Golfers. Instead OF being part OF
the existing debt, the sinking fund repre-
SCENTS nothing but so much debt as has
ceased to exist. It can only be increased
by further reductions OF the outstanding
debt; so that the larger the sinking fund
the less the State actually owes. 1t is no
requirement OF the Constitution, but the
voluntary act of the Legislature, which has
given to this fund its present onerouS
amount, composition, and character, and
which has originated the policy OF semi-an-
nually diycrting from the treasury great
sums, equal TO interest on the sinking fund,
to be expended in purchasing and retiring
or sinking other bonds OF the State. In
nerience proves that this mode OF maintain
inc so large sinking fund is all excessive
burthen upon the treasury, especially GU
ring period OF depression like the present;
and il is 4 question for serious conSlderd-
ton whether it is not wiSest to cancel and
destroy the bonds which compose the fund,
as the law-making power has unquestlonable
authority to do. No provision Of the Con-
stitution and no obligation OF plightcd faith
stands in the way OF such 4 disposition OF
the sinking-fund bonds. By the Constitll-
ton OF 1851, specified portion OF the an
nual revenues was set apart, 10 De invested
in prescribed mode, for maintaining per-
manent sinking fund. BY the present Con-
stituton no such requirements are imposed
upon the government, but both the charac-
ter and amount of the means to bc contri-
buted, and the methods to be employed for
the maintenance OF the sinking fund, are
left to unlimited legislative discretion. 1t
is submitted that il the present sinking
fupd bonds bp IoStrovpd and If Droyisi0n
be made for setting apart annually hereaf-