Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1881-08-31

one for two, or reeelrstte at par by sil
collectors Of taxes for any and all state
take. on real snd personal property
assessed against him. 1t Is also pro-
vided in this section thSt the Auditor
shall issue loan certificates on The
zane terms for taxes payable to the
treasury directly by law,' which are
mainly the taxes Of Rail Roads, Banks
and Insurance Companies. We come
now 10 consider the effect Of these lean
certificates on the revenues, ali the
tine assuming that the statement in The
Riddleberger bill which places the net
revenues 10 be relied on at 50, l65 900
under the present rate Of taxation to
be true. The taxes assessed against
real aud personal property on tie the
orv Of the bill would amount 10 abou
81 100000, that On banks, Railroads
and Insurance Companies to 100000,
IN all aggregsting some $l4OO,OOO. The
effect of receiving the loan certificates
at par for these taxes, the certificate
having been purchased from the state
for an amount equal to one half their
face value would be to reduce the
amount of revenues to be received from
a.. obove somce from 81 400. 900 60
400 900. In other words the mel
revenues under the present rate OF tax
alton BY the operation Of the loan csi-
tifcates would be s2,ls5, 00G less $780,
600 or 81, 465, 600, Again, another clause
Of The preamble Of this most wonderful
production of the legislative brain de-
clares that the necessary expenses OF
CONDUCTING the government alter adopt
ing aud applying every practicable meas
ure of reform end scsnomy, cannot
safely be estimated below the s1m OF
5000. 900, which deducted from l,465'
600 leaves $5e5, 600 whersvilh TO sup
port the schools axd psyl interest on the
debt when refunded under the bill.
To pay this interest would require
$500. coo in round numbers, or s25, geo
mere than would be left az above after
paving the expenses of government; and
not a copper for ths support 81 the
schools would be left; Or If the schools
Get the S4Sl, 700, the amount declared
in the preamble to be due them from
m. revenues. then We would have only
s133 300 left uherewlth to pay tbs in-
terest on the public debt amounting to
400 900. But. in reality the bill
makes no provision to pay the interest
an the debt to be refunded under It's
provisions. The 18th section in the origi-
nal as reported from the committes OF
finance IN the Senate did provide that
the semi annual interest as 1t may
become due and payable upon the
bonds issued under this act may be
promptly aud regularly met one third OF
the net revenue collected frsm the levy
on all property, personal, real and IN
come). and one half Of the net revenue
collected from licenses, shall be seplr-
ately collected and paid into tbs treas
ury to the credit of tie public debt aud
the same applied to the payment Of IN
terest thereon" but Paul and Fuker-
sou insisted on this section being
amended 50 as to read as fouad in the
bill as psssed VIZ: The treasurer Of
the Common wealth is authorized and
directed to pay the interest on the
bonds issued under this act, as the
same shall become due and payable
out Of any Money in tie Treasury MOI
sthrwiss appropriated" In ether
word. Paul aud Fulkarsol rscog-
nized it as lndsputabe if the
statements sf fact iu the preamble OF
the Bill. " ere true that under the OPP
Grafton Of the loan certificates there
would not be sufficient money lef; 10
pay interest on the debt, after paying
the expenses Of government and tie
schools without an Increase Of taxation
to the extent Of nearly doubling the
rate on real and personal property.
We are forced to conclude therefore
that the Riddleb6rger Bill is nOlhmg
more than Il reputation measure in
d. sguise if 1t be not the intention Of Il 6
promoters Of the scheme to double tie
rate Of taxation on real and personal
property. aud on subjects, the taxes Or
which are payable directly to the trea,-
urer, when they come 10 pass their tax
bill should the coslilionists succeed in
Virginia.
And II ncta measure Of reputation
the tax payer can derive no benefit
whatever from the issuance Of the loan
certificates for the rate OF tax will have
to be doubled BY reason OF them to
obviate repudia ion.
Butt is claimed that these certificates
brought int competition with the tax
receivable coupon would drive the
latter out of the market aud co APPEL the
creditor 10 accept the terms OF the bill.
We will now proceed to demonstrate
that as a measure oil f0rcible readjuSt-
meat these certificates Guild accomplish
nothing. The consol bonds (sou e
tl4, 400, 900 or which are outstandius)
bear SIX per cent interest secured BY a
coupon receivable in payment OF taxes.
the receivabiity OF which can not he
affected by adverse legislation Cor the
Supreme Court Of the U. 5. has Rdiud =
Gated the question:. Now it is pro.
posed to refund the consol bonds at he
rate Of $50, for 500, the sle0 bond