The daily gazette., 1881-01-04
State have been managed and my con-
fidenee in continuation Of such man.
aQ0ment.

4
State have been managed and my con-
fidenee in q continuation Of such man
| agement.
CONVERSION or STATE BONDS.
The outstanding bonds issued to pay
b0unt'es and for volunteers, being
four hundred and forty one thousand
dollars as before stated, mature on the
first day Of January, 1885. It is man.
ifest that the annual surplus win not
be sufficient to extingaish that part Of
the debt represented by said bonds at
maturity. 1t will therefore be the du-
ty Of the General Assembly, either at
this or its next session, 10 make previ-
sion for such an emergency. As
means OF doing so, recommend the
conversion of such q portion of the
bonded debt just mentioned into semi
annual interest bearing bonds at the
rate OF four per centum per annum
payable in twenty years, but redeem
able only at the pleasure Of the State
after the expiration Of ten years from
date, as will enable the State Treasur-
er TO pay on the residue of such bonds
at tie maturity without the imposition
OF further burdens upon the resources
Of the people. And as an economical
measure, purely, also most earnestly
recommend the conversion, in like
manner, of the remainder of the Inter
nal improvement Bonds which mature
in 1890 and 1898, none of which to be
negotiated at less than their par
value.
1t requires no argument to demon
strate the feasibility Of this scheme -
The established credit OF the State in
financial circles, together with the fact
that capital Is seeking investment at a
Lower rate OF interest than six per cent.
in fret class securities, in my judg-
ment, insures its success. Already
the State Treasurer has had applica-
tions from capitalists outside Of the
State to negotiate our debt 1T a lower
rate of interest, provided he should be
authorized SO to do. have no doubt,
however, that such bonds can be nego-
tiated entirely within our own State.
ARREARS OF NATIONAL BANKS.
By the report OF the State Treasurer
it appears that The National Bank of
Wilmington, The National Bank OF
Delaware, The Union National Bank
OF Wilmington, and The National
Bank Of Brandywine, have refused to
pay the tax assessed on the shares of
their capital stock under an act of the
General Assembly entitled .'An act
taxing the shares OF Banks" passed ut
Dover, April 8, 1869, upon the theory
that such law is in conflict with the
United States statutes, which impose
certain limitations upon the taxing
power Of the Slate. shall not enter
into any discussion OF the question
rasied between the State and these de-
llnquent National Banks. II is enough
to say that, having refused to pay The
taxes thus assessed, and the whole
matter having been referred 10 you by
the State Treasurer, 1t win be your
duty. in asserting the authority vested
in you over this matter, to instruct
him to procsed TO collect the taxes due
from them in accordance with the
opinion OF the Attorney General, which
accompanies the r0pors Of the 4ta,s
Treasurer.
RAILROAD ARREARS.
herewith transmit the annual re-
port Of the Breakwater and Frankford
Railroad Company, containing its re-
1eipts and expenses for the year 1879,
made in pursuance of joint resolu-
tion adopted by the General Assembly
at its last session, for your cpnsidera-
tion. 1t will be seen by tho report
submitted, that the gross receipts of
the company for the year 1879 amoun-
ted to $40, AL %, and the gross ex-
Penses for the same year amounted TO
S19, ,683 55, In which was included on
ly one moiety OF the semi annual pay
ments of interest on the mortgage held
by the State against the COM
pany, which shows that the
expenses of the company ex-
elusive of the other moiety Of interest
for that year, were in excess of the re-
ceipts$241 o3. But it appears blythe re-
port of the State Treasurer that the
company has been prompt in paying
The sum of %, 600 semi-snnually in ac-
cordaneS with the provisions of said
resolution, on account of the interest
due upon said mortgage. While such
10 The case IL would not be advisable
10 force the payment of the mortgage
held by the State because Of the con-
tinuing default In the payment Of in
terest which Accrued prior 10 January,
1879. therefore suggest the propri-
ETY. of suspending the authority vested
in the State Treasurer TO collect the
MORTGAGE by due process Of law for q
period Of two years longer.
FARMERS BANK.
/ herewith submit the several re-
ports Of the State Directors OF The
Farmers Bank OF the State of Della
ware and the branches thereof, made
under an act of the General Assembly
entitled "An act requiring the Direc-
tors of the Farmers bank Of the State
of Delaware and its Branches on the
part OF the State to make an annual
report" passed at Dover, March IA,
1879. Il appears by such reports that
a part of the branches of said Farmers
Bank have been unsuccessful in their
business operations, and therefore, un-
profitable. 1t will therefore be your
duty to adopt such measures with ref
erence to this matter as the difficulty
may suggest.
PUBLIC OFFICES.
Tho compensation of our county of
ficers is made up Of fees prescribed by
statute which, in many instaLces, are
never paid by the parties liable there
for. This method OF remunerating
| nuhlia servants is unjust to them, be-