Litchfield enquirer., 1878-01-17
WHOLE NO. 2694

year is only $1, ,3O0, 800, remarkable result considering the stringency of the times. We enter, however. for the current year upon q different condition of things.
 The action of the last Assembly imposing a tax of of one per cent. on deposits, restrict ing interest to 6 per cent, and requiring re- serve of of one per cent. of their deposits each half year for surplus-thus increasing du- ty and diminishing ability at the same time together with the difficulty of collections shrinkage of values, and'the conversion of large amount of loans into real estate by fore closure, are going to embarrass these institu- tions in earning for the present year satisfactO- " dividends for depositors. These dividends must not be forced down to apoint which shall disaffect depositors and induce withdrawal of deposits. Distress and ruin lie in that direc- tion not merely to the banks and the poor whose all is in them, but to the revenues of the State, and to the debtors of the banks, | whose name, neednot say, is multitude: The wisdom of providinga surplus ls self-ev- l ident This wisdom, however, passed for fol- l ly whilst the banks were allowed to collect : | per cent interest, and could easily have made the provision. The duty is enforced now in the midnight of panic and when the institu- l tions, whose breath is in the nOstrils of their | depositors, are put to their wits ends to make | living profits for their depositors. AS meas l ure of temporary and much needed relief, 1 re- 
 | year of the statute requiring such reserve for surplus and CD that the banks be allowed to recieve 6l per cent. interest on loans, or if this 1 be thought nadviSable that the State tax on | deposits be reduced to of per cent. This | matter is in my judgement vitally important. There is scarcely another pecuniary interest in the State which has equal claim for protection | on the wisdom of the Legislature, and no other | time ever demanded better exercise of that ! ysodo I ifc inonO rt0uf vii n most emphasis.
 | desire to see this State avoid the disasters which have overwhelmed so many of the sav- ings institution of so many other States, and | thus show that we are capable of managing our | own husbandries, and have no need therefore to call to our aid the banking talent of the post-ofice department or of Congress. STATE FINANCES. The treasury balance ct the beginning
 Income Ul for for' ths hsc year including od | 6S2 40 proceeds of new bonds issued. 3424.6s0h l Making an aggregate of $S, ,5U3, ,Is5.Ss | The expenditures for the same year, in cluding $l l,O6S9OO bonds reeeemed. 27s9 7slS1 Balance due to credit of new year . .$T32 4I4.33 | The large apparent revenue of the above year is due to the fact that S39, ,S09.60 of bal ances to special accounts have been transferred to the credit of the civil list, and $352 TOP. 3G of taxes properly belonging to the previous year were by mistaken change of statute, | postponed to the following year. The amount os revenue from ordinary sources properly at tributabe to the last fiscal year is $l 963 77S.- l 75 only.
 | The estimated resources Of the current
 Estimat sd expenditure ,G4G.UO
 Estimated over expenditure. .sSSsO 7ls. | STATE TAX.
 The excess of revenue for the last fiscal year is due in part to a reduction in expenditures abont $15O, 900 effected during the year, and 1 to an additional half f-mll tax imposed on the | grand list by the last Assembly. A cOntinu- | ance of this tax is unnecessary, in my judg | ment. l recommend that it be restored to it's former rate of one mill on the dollar. l think there will be an opportunity, at an early day, of making other reductions of taxation. STATE DeBT.
 | The funded debt at the last report of the | Treasurer was $5, O14, 800, bearing 6 per cent. | interest Bonds to the amount of $1.077, 300 had become redeemable at the pleasure of the State. Of these $1, ,068, 900 have been redeem ca during the past year, and S1, ,O31, GOO new bonds issued at per cent. interest, payable in twenty years, or at any time after ten years at the option ofthe state. This issue of bonds was disposed of at a net premium of S23, 532.- 40. effecting also an annual saving of interest of 1O,779, and an aggregate saving for the ten years of $107, ,790.
 The public debt at the present time is repre- sented as follows:
 January 1, 1863. redeemable JaEury |,
 1883, per cent. $s77,001
 January I5, 1861, redeemable January l5
 1884, per cent 1,3Is,5OO
 July ], 1865 redeemaEle July l, 1885, 6
 Ter cent I,7H,IOO
 May l, 1877, 1edeemable alter May I. 1sT7
 5 per cent I,O3l, ,OO0
 s4,9576Jh
 The State will, in my judgment, find nodif- ficuty, in paying off the first, second and third classes at maturity, and of availing itself promptly of it's ten years option on the last class; not only without increased but with di- minishIng taxation in the meantime.
 STATE CAPITOL.
 The total expenditure from the Treasury on the new State House is $1 ,513, 800; amount during the last year is $35O, OOO In addition to this $297 ,O0O, has been expended from con tributions by the city of Hartford. There re- mains to be contributed from this source $203. 900. The balance of State appropriation here after to be drawn is $486 800 The building will probably be completed before the next session of the General Assembly, and will be paid for in full from the appropriation already made
 SALARIES.
 For many years past the salaries of certain public officers have been by law, payable in advance. An act of the last Assembly, passed on the eve of final adjournment, provides that all public salaries shall be paid quarterly in advance. Irecomend the repeal of this act, and all pre-existing statutes authorizing ad- vance payments. l cannot imag zine any possi ble reason for such payments. The objections are self-evident.
 RETRENCHMNETs
 | had the honor of suggesting, in my last message, that some efforts should be made at retrenchment, in State expenses, and to this end the appointment of a commission to ex- anime and report on the subject. Such a com mission was raised, and will, in due time re- port. This will enable the Legislature to re- peal the act of thelast Assembly orderinga re- duction of 10 per cent, on all salaries and fees great and small, and in lieu of blind and in- discriminate leveling of compensations, to make intelligent retrenchments and disCrlmi- nations 1 commend this subject to the care ful attention of the Legislature, and to it's best sense of equity and economy.
 NORTHAMPTON COMPANY. Three thousand shares of the capital stock of the Northampton Company have been for thirty years past exempt from taxation. It is perfectly clear to my mind that this company is not, on any principle of justice or constitu- tional law, entitled to this exemption, and recommend it's repeal. I did so in my last an nual message but the corporation proved stronger than the Executive. l renew the re- commendation once more. If this company is entitled by right which is beyond tlie reach of the legislature, to exemption from that common duty which rests on every natu- ral person, rich or poor, and without which the State could not exist, the Supreme Court will so determine It has not so determined; neither can it pass on the question so long as the present statutory exemption exists. nature unmerited, partial and odious, If it exists as constitutional right it must be re- spected, for the State must keep its contracts no matter at what cost but let us at least do justice othe tax-payers of the State by repeal.