Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1877-04-17
The State Debt.


tx. Senator Il. NJ. Il. Hunter has addressed
the following letter to the Richmond Wing -
A few weeks ago | addressed you in regard
to scheme for different mode Of paying the
interest 90 the public debt so as to secure some
thing to the holders Of the peeier bonds aud
different arrangement for that debt generally.
Since then a modification of the plan presented
at that time has suggested itself to me, which,
in my opinion, would release Us from much OF
our difficulty, to which no one could object
who admits that tie State would be JUSTIFIED
10 securing first, in preference to all other de,
mands, enough to support the government and
the necessary schools, if it will leave all the rest
to the public creditor and impose AZ much tax
as its people may be fairly said to be able 10
bear. Since the enactment OF the WhIskcy bill
in addition TO the existing taxation, it is prob
bic that the Stale has undertaken as much as
she is we'll able to bear. The existing taxation
last year yielded about s. 600 ,0O0, and the
friends Of the whiskcy tax hope Tor about
$500, 900 from that source. The State govern
mcnt and its necessary establishments, 1t Is cs
timated, will coat ten or eleven hundred thnus
and dollars, and the primary schools and Unl-
gersity, 10 addition to the township taSalIon,
will require of the State about hall a million
dollars. II half the State taxes We're required
| 60 be paid 10 money to he devoted to the sup
| port OF the government and schools, these 90
| iccts would hG accomplished AMI the residue
would nearly pay the interest on the debt.
| 10 accomplish this last object equally and Just
I ~ the 'pcrlcra" ought to be funded with tax
! receivable coupons, and let this residue hc
| divided amongst the creditors in proportion to
| their claims. All would thus he dealt with
equally, aud the revenue Increasing with wealth
and population would soou be adequate for the
payment OF interest, if, n addition to this,
it we're provided that any holder Of 4 6 per Ct.
funded bond might exchange it at pleasure for
a 4 per ct. bond having fifty years to run with
tax receivable coupon, which would be allow,
ed instead OF The e per cent. tax receivable that
it superseded. Is there any objection to the
equity oil such an arrangement? Have not the
support Of tho government and Of primary
schools claim prior TO all others Oh the assets
OF the State, even the payments OF the public
debt? Some might doubt the prior claim even
oflhc primary schools, although think it might
be maintained, but i! it should be- 50 deemed
these expenditures mi ght be postponed until The
State was able 10 meet them. But the prior claim
for the means Of supporting the State govern
ment and lis necessary establishments none,
think, can dispute. lfso, his must be caPul
iusandJiic triGus dnticyriS. 10 enable q people
TO pay debt they must be protected from "a
pine and ravage. 10 enable them to produce
the means TO pay their debts peace must BE-
maintained within their borders. 10 cnabla
labor to profit by its work aud provide anything
to pay debt justice must be maintained and dis
trihuted, the machinery OF justice must be kept
| in order and at work. The aid of Government
is 50 necessary to tho work Of production that
the right frs. 10 secure enough TO maintain
that government must lie considered as tacltly
| implied in every contrac: OF society to pay
money. For manitcstly DO long sustained effort
can he made Tor that purpose without gov
ernment Its peace, TOO, Is necessary Tor the
civilized life OF society, nor can this be prcscrr.
| cd without the agency Of government. So,
ciety, then, must be considered 10 have Implied
| the right to reserve enough to maintain its gov
ernment, unless it RESIGNS the right to sepa.
rate and independent existence. II it ceases tC
exist the capacity for constant periodical pay.
ment is gone. -
Let US then, collect half tho taxes in money, and
devote it to higher and moro sacred purpose
| than tho payment Of debt-tho support tf tho
! government. The residue 10! all tho funded
creditors reach through tho tax-paying coupon
upon equal terms ind in just proportions. We
have secured government which Is necessary
| to ensblo US to discharge oil our obligations
But we have given no priority which is not cs-
tublished by the law Of nature, as it ought to be
Of nations. We have discharged first tho one
obligation necessary to enable us 10 discharge
all others.
Tho practical operation of this achemo would
BIO thus: When ten millions more Of these INK.
receivable coupons wero thrown on the market
they would decline slightly invalue But the first
holders would have no right to complain. The
promise to fund was originally given TO tho
/ 70 fhn tIrof Al hnr
could he complain for the holder of the four per
cent, collects his interest slso through the colt
pom, no only substitutes six per cent. obligation
| which would have taken six per cent. or more
money The consequence would DO that the
tendency to exchange tho elk per cent. on the
bond Of shorter timo for tho four per cent hav.
ing longer to run would increase. In proper.
tion as this tendency increased tho sbrity OF the
| State 10 pay its whole interest would become
greater. An event which al so much desire.