The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-12-08

the tnlteu btnteSs OuI oWu cVnis n"e
said: "The honorcd name and high
credit secured to State by un-
broken faith, even In adversely, VIII,
apart from all other considerations, he
worth more 10 her in ollars-incalculably
more-than the comparatively insignificant
amount OF the interest on portion OF the
public debt, enjoyed by breach OF con-
tract.v The decision OF the Supreme Court
OF the United States quotes these as
swords full OF WISDOM" and adds, "Ihe
court thus expressed great truth which
all Just men appreciate, that there Is no
wealth or power equal to that when ulti-
mateIy comes 10 State when in Ill her en-
gagements she keeps her faith unbroken."
Have we reason TO know and feel that the
Supreme Court has received but little SYM
pathy from the coordinate Departments OF
the United States Government In these
profound and lofty sentiments!
HOW STAND THE FINANCES NOW?
The Auditor OF Public Accounts has
furnished me statement OF their condi-
ton, allowing for reduced assessments OF
land, etc., and adding prospective mere
ments. and has given me the balance that
will remain in the treasury. supposing the
receipts and disbursements otherwise to con-
tlnue the same as last year, after paying all
the expenses for the support Of govern
ment for the support Of the Public Free
Schools, the interest on the taX-paying cou-
non debt, cOnSol and 1910, and on the
bonds held by colleges, and the amounts or
dered by law to be paid quarterly on arrear-
ages due the Public Free Schools. This
balance is ?27G,904.43.
This sum is applicable to the interest on
the public debt-Old unfunded and peeler-
which amounts, according to the Second Au-
ditor's statement, made at my request, and
now before me, TO the following: Sterling,
81 30, Sjl 60, at five per cent. interest; and
Dollar, s., 42i, 292.5l, QeSs the sum OF 81
33j, Gs7.60, held by colleges, on which in
terest has been and il paid annually, us be-
fore recited,) at six per cent. interest ito
a loan of 500, 800 due to the Miller Manual
School, with interest from November,
1879; to the account OF arrearages due
the Public Free Schools, according 70 the
Auditor, 1924. 2A5.37;- to amount due
the Literary Fund, rs per report OF Second
Auditor September, 1881, SJl6, 1922. 9;-
aud to arrearageS OF interest due on public
debt. rs per same report, 1906, 33l.19.
TIE PENITESTIARY A PAYING INSTITUTION.
The Superintendent of the Penitentiary
reports: " estimate the net rerenUe OF the
Pententiary during the current fiscal year
mt 81, 0O0;" which he suggests may be in
creased. should certain of his recommends
tons be adopted. | must commend the
diligence and efficiency Of the Supcrintcnd-
ent. aided by an equally efficient and SYM
pathizing Board OF Directors, who, both
aided by the revival OF business, which has
enabled them, under the various statutes,
to make contracts for the employment OF
the cOnyicts within and outside OF the
Peniten;iary, have converted it from an eX-
pcnSiyc INTO paying institution.
This viii make the aforesaid balance
more than 100000. which, added to the
current revenues. will nearly, II not quite.
pay the interest on the entire principal OF
the debt Of the State-cOIsol, peeler, and
uniundcd-at the rate OF interest il now
bears. in the hands OF the holders, what
ever may he it, form-ful interest to the
colleges, all the expenses OF government,
and the amount annually due
THE PUBLIC FREE SCHOOLS.
There will be still outstanding the above
items of the Miller-School Loan. the ar
rearages due TO the Public Free Schools. to
the Literary Fund, and to the interest
upon the debt.
~ to the Literary Fund and the Public
Free schools, the one is the states proper
ty, the other the States progeny; both to
DC cared for and protected. We are bound
to support the Public Free School system
as part Of the organic law. The debt is
equally so, and Of equal, il not prior, obi
CATION. ] make no boast Of eminent
service. The records will show that the
school system has received at my hands
every aid in my power, under the Consti-
tuition and laws, TO establish and perfect It,
and make il OF greatest value TO the State.
In the settlement with the creditors or
their representatives, under the 1910 or
McCullOch Fill, by THEN generosity the
schools were preserved in their entirety.
/ The statute. commonly called the "IIenkel
/ Bill" which thus provides for the schools.
still stands in full operation. whilst tie
! residue OF the settlement, through which.
1 by consent, the creditors were TO receive
their diminished interest, has been de-
featcd.
Bv this statute the schools are now pro-
vdcd for, and receive all they are entitled
70 under the Constitution and laws,
amounting annually TO upwards OF bali
million OF dollars ont Of the state, and that
.
Doration treasures. These arrcaragcs are
of doubtful and unsettled amount. The
present Auditor has given me the sum
above stated. Ills predecessor fixed the
amount at many hundred thousand dollars
less: and according to what he thought the
correct mode OF aScertaining the amount
due. at nothing at all; indeed regarding
them rs overpaid. The Superintendent OF
| Public Schools differs from the for
mer Auditor, and has made no c,ti-
mate since the latter has been in
Office. In any event, now that they are re-
ceiying in full their annual quotas, and the
pressing demands upon the State require
il, the settlement Of these arrearages can
very well be postponed till her resources
Justify it. which, from the present outlook,
with the rapid advent OF capital 10 Olr
midst, we believe will be very soon.
no INCREASE OF TAXATION.
A. TO the accumulated interest on the
public debt, there are various modes in
which it could be provided for without any
increase in the rate Of taxation, which |
do not think il necessary to urge. Not That
would not 80 urge TO meet the states OBJ
legations. | certainly would. Taxes are
not agreeable, but they are the cost of good
government, and everything that term inn
plies.
But this increase is not necessary. The
State has several millions OF dollars OF as
sets which can be sold and applied. All
the bonds which bear five and six per cent.
interest are now redeemable at the option
OF government; this fact alone 50 changes
the situation since the lst day Of July last
as to enable us to view it with more conf
dcncc. Hitherto, consent Of the holder
was implied. Now, with a resolute deter.
mination and announcement 10 meet its Obli'
cations, the Commonwealth can issue il
bonds at a much lower rate Of interest, and