Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1879-08-13

Deduct average revenue.. 2,556,679 %
NAL deGcit Of ''"'......... sl7,52S26
To annihilate this defct, and bring the
expenses of the Government within
the scope of a revenue which was not
to be increased by additional taxation,
demand of course reduction OF ex-
penditures. This could not be effect
ed in the matter OF the schools, and
the Legislature was compelled to seek
1t in the current>eXpense account, the
interest account, or in both; and the
FIRST effort of needed reform was made
in the account Of expenses.
The ordinary expenses of the Cow
crn neut for the year 1867 were
S967,393.42. A jealous and exhaus-
tive scrutiny Of every item of public
expenditure was made, and, with M,
sparing hand, every superfuous outlay
was pruned, every dispenssble office
abolished, and many salaries were di
miuished, and the Appropriation bill
for the current year See Acts 1878 .
page 211} discloses the result in ag-
gregate expense account of only $780,
533, from which, in estimating cur
rent expense proper must be deducted
$4,000 appropriated to the enlarge
ment of the Eastern Lunatic Asylum,
$4,000 for enlargement OF the West
ern Asylum, and the half of the $780,
900 appropriated for legislative expen@
ses-for, the sessions being henceforth
biennial, this expenditure will be
encountered only once in two years.
With these deductions, the annual or
binary expenditures of the Govern
mont amounts to $3.50, 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 Audi
tor of Public Accounts, dated August
| |, 1879, in reply to Senate reso luton.
by which he estimates the ordinary eX-
penses of the Government for the year
| IS7OJSO at $3.50, 5SS, IN which it will be
seen he includes $50, for the eXpen
SEES OF the General Assembly for the
coming session, which will make that
body only cost $50, 900 per annum, there
by reducing the ordinary expenses to
| s65O,5SS. 1t will be noted that this
estimate of the Auditor is based upon
the practical results Of the retrench-
ment measures Of the session OF 1917
rs.
THIS cutting down OF expenses was
indeed treating a grave public question
with heroic hand; but under the cir
cumstances it was as salutary as severe,
and proved the sincerity of the party
pledges Of reform. The far mere i'm
portant difficulty of reducing the annual
interest on the debt remained: The
first bill passed-the Barbour bill
made no pretence Of reduction OF this
item. TWAS simply bill to apportion
the revenue, and conlcssedly would not
have diminished the annual deficit one
dollar. 1t was vetoed by the Govern
or on the ground that it was unconstl-
tutional, and failed Of passage over that
veto. ThereupOn what was known as
the "Bocock-FOwler bill" was passed
approved March II, 1878. (Scss,
Acts. lS77I7S, p. 230.) This was a
tender to the public creditor OF a new
non-taxable bond, bearing interest at )
per cent. for eighteen years, and 1 per
cent. for thirty.two years, in exchang
for the outstanding bonds OF the State
carrying per cent. Shortly after its
passage the Legislature adjourned.
On its reassembling IN December,
1878, it was ascertained thatno creditor
had accepted the terms, and such was
the apparently irreconcllablc diversity
of opinion which had been disclosed in
the discussionss in the body that a
compromise seemed now hopeless. But
our party had assumed the burden OF
that settlement, aud under The strong
appeal OF the Governor in his message
OF December 4, 1873, accompanied by
propositions from persons representing
creditors, made through HIM TO the
Legislature, the Assembly resolutely
resumed its task.
| BY a JOINT resolution approved Jan
ulry rs, 1879 Session ACES lS7o'19,
page 29), the creditors and their agents
were invited to resume negotiations
with the Assembly on the basis OF the
Conservative platform of August, 1917
that such a speedy, just, and final
settlement of the public debt 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
of the discussions which ensued thereon
was the present settlement, lamlliarly
known as the McCulloch bill, under
which the creditors are now rapidly
funding the entire principal Of the debt
and one half of their past-due interest
Giving up the other half in new bonds,
non-taxable las the Bocock. Fowler bill
proyided), having forty years to run
alter January /, 1879, when they are
dated, bearing interest at 3 per cent.
tor ten years, per cent. for twenty
years, and 5 per 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 ac'
cepted by the public creditors with a
promptness beyond the expectation OF
its most sanguine friends, meets all the
conditions of the Conservative platform.
The new bonds are all Of one class, aud
there will be no distinction between the
holders of them and that the payment
of the interest on the refunded debt will
be within the ability Of the State with
ont an increase of taxation is demon
strable.
RESOURCES.
The year ending September 30, 1878,
was the first year oil a fair test of the
MoGett liquor tax, and the revenue of
that year, with deduction 70 be here
after stated, offers the most reliable
standard by which TO measure the full
income of the Commonwealth. The
income Of the State that year, exclusive
of loans, was $2,63l, G72.25. Com
munication OF Auditor of Public Ac-
commits. Senate Document ii, IS79.'9.)
- xh;s ,adnct fha fay nm conenl