The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-08-09


ending 30th eptember. 1879
2. The current expenses of govern
meHt, ordinary and extraordi-
nary. which for the year preced-
irg tSenate Document ID, Ses- - -
sion 1882, page q werc..;.. 1,o596f5 "a
8. The annual amount due The
schools (Sce report OF House
COMMITTEE on Ftuarce, january
~, 1878 7S)......................... 497.7SZ 80
Total expenditure. rc.............&3.3 &3.3s4.202 26
Deduct average revenue. 2,5bo6I9 w
And there appeared an annual de-
fcit of........... .....,.....'...." So4 4hoIo 20
To annihilate this deficit, and bring the en-
penses Of the Government within lhescope
of a revenue which was not to be increased
by additional taxation, demanded OF course
a reduction Of expenditure. This couid
not be effected in the matter OF the schools,
and the Legislature was compelled to seek
II in the clrrent-eXpense account, the inter-
est account, or in both; and the first effort
Of needed reform was made in the account
of current expenses.
The ordinary expenses OF the Govern
ment for the year 1867 were $685.. .39S.42.
a jealous and exhaustive scrutiny OF
every item OF public expenditure was
made, and, with uusparinm hand, every
superluous outlay was pruncd, every
dispensable Office abolished, and many
salaries were diminished, and the ap-
preparation bill for the current year (See
Acts 1889. page 21D discloscS the result
in an aggrcgate-eXpense account OF only
$500, ,533, from which, in estimating current
expense proper, must be- deducted S30,OOO
appropriated to the enlargement OF the
Eastern Lunaiic Asylum, S3l. 900 for en-
Iargement of the Western Asylum, and the
half of the $50, 900 appropriated for legisla-
tive eXpcnses-for, the sessions being
hencetorth Biennial, this expenditure will
be encountered only once in two years.
With these deductions, the annual ordinary
expenditure or the government amounts to
s6S9, ,533.
That the ordinary expenses Of the State
government need not exceed this sum in
the future is demonstrated by the recent
communication of the Auditor OF Public
Accounts, dated August /, 1879, in reply to
Senate resolution, by which he estimates
the ordinary expenses OF the government
for the year 1S79-'S0 Mt SGS0,5SS. in which
It will be seen he includes 100000 for the
eypenses of the General Assembly for the
coming session, which will make that body
only cost $4,000 per annum, thereby re-
ducing the ordinary expenses to S650.5SS.
It will be noted that this estimate OF the
Auditor is based upon the practical results
OF the rctrenchment measures OF the SeS-
sion OF 1878.
This cutting down Of expenses was in
deed treating grave public question with
heroic hand but under the circumstances
it was as salutary as severe, and proved the
sincerity OF the party pledges OF reform.
The far more Important difficulty OF re-
ducing the annual interest on the debt re-
manned. The first bill passed-the Barbour
biIl-made no pretence OF q reduction OF
this item. 1t was simply 4 bill to arportion
the revenue, and confessedly would not
have diminished the annual deficit one dol.
lar. 1t was vetoed by the Governor on the
ground that it was unconstitutional, and
failed OF passage over that veto. Thereupon
what was known as the Docock-Fowlcr
bill" was passed-approyed March IA, 1878.
(Sess. Acts, 1ST7-'7S, p. 230.) This was a
tender to the public creditor Of a new nom
taxable bond, bearing interest at per cent.
for eighteen years, and 4 per cent. for
tbirty.two years, in exchange Tor the out
standing bonds OF the Stute carrying per
cent. Shortly after its passage the Legisa-
turc adjourned.
On its reaSsembling in December, 1878, it
was aScertained that no creditor had ac-
Icepted the terms, and such was the appa-
rently irreconclable diversity OF opinion
which had been disclosed in the discussions
in the body that compromise seemed now
hopeless. But our party had assumed the
burden OF that settlement, and under the
strong appeal OF the Governor in his mes
sage OF December 4, 1878, accompanied by
propositions from persons representing
creditors, made through him to the Legis-
lature, the Assembly resolutely resumed its
task.
By Joint resolution approved January
Is. 1879 (Session Acts 1889, page 29), the
creditors and their agents were invited to
resume negotiations with the Assembly on
the basis of the Conservative platform OF
August, 1877-'' that such speedy, Just,
and final settlement OF the pubic dept
should be consummated as will bring the
payment OF the interest assumed thereon
within the ability OF the Commonwealth
The result of these negotiations and o!
the discussions which cnSued thereon was
the present settlement, familiarlY known as
the McCuIloch bill, under which the credit
ors are now rapidly funding the entire prin-
cipal OF the debt and one half OF their past
due interest (giving up the other half in
new bonds, non-taxable (as the Bocock-
Fowler bill providcdl. having forty years to
run after January l, 1870. when they are
dated, bearing interest at per cent. for ten
wears, per cent. for twenty years, and 5
Der cent. for the remaining ten years the
interest-coupons for which are receivable
for all taxes, debts, and demands due the
State.
This settlement. which has been accepted
bg the public creditors with promptness
beyond Interpretation OF its most sangulne
friends, meets all the conditions Of the Con.
serratiye pistform. The new bonds are all
OF ene class, and there will be no dlstlnc-
tion between the holders Of them; and that
the payment of the interest on the refunded
debt mil be within the ability Of the State
without an increase OF taxation is demon
slrabie. ,.g..s ~. =, - ....Es.
'% -. REs0DRCES.
The year ending September 30, 1878, vas
the first year OF a fair test OF the Mohett
liquor tax, and the revenue OF that year,
with deduction to be, hereafter stated
offers the most reliable stana ard by which 10
measure the future income Oh the Common
wealth. The Income OF the late that year,
exclusive OF loans, was, ,S2,G3l ,6is. %. (Com-
munication OF Auditor OF Public Acconnts,
Senate Document IA. 1889. From, this de-
duct tho. tax on ,consol bonds. which is now
aboiished on the newibonds, and which for
that year rmounted 70 POI, ,s2s'ls. sReport