The daily gazette., 1881-01-31
MONDAY. JANUARY 81, Hasa.

THR STATE DKBr.-WheA the pres
ent bonded debt OF the State was placed
upon the market some of the States
were paying seven per cent. interest.
The Commissioners appointed to sell
the bonds were Chief Justice j. p.
Comegys, Hon. Eli Salisbury and Gen.
Jesse Sharpe, dec d. The bonds were Of
fered for sale at public auction by those
gentlemen in the City Hal in this city.
Our correspondent states that Chief
Justice Comegys has written letter to
Mr.. McWborter, the Chairman of the
Committee having the conversion of the
debt in charge, in which he says many
of the bonds sold much below par-that
some of them were parted with at a
discouAt of % per cent. He also makes
some good suggestions as to the present
mode OF converting the debt. There
is vast difference between raising
money by the sale of 6 per cent. bonds
at a discount of rs per cent. and selling
per cent. bonds at par without cost
Yet this is precisely the difference in
the condition -four finances between the
two periods. With very much dimn-
ished aggregate of debt we may start to
pay 4per cent. only. Under the circum-
stances we think we could afford to
strike off some OF the tax that our peo-
pie are subject TO. 1t would be only
just TO diminish that which weighs upon
our industries. This could readily be
done by brief law directing reduc-
tion of all taxes now levied by way of
licenses upon professions and trades
men, that were not in force in 1860 in
the several counties, one-half; with the
exception of The tax upon mortgages,
due from corporations and on bonds,
mortgages and shares in corporations
ont OF the State. These lakes should
be repealed as they were impartial and
never considered equitable since they
taxed the holders thereof twice.
Mr.. Nathan Williams, our correspond
ent states, has written a letter suggest
Ing to the committee the sale OF the
securities of the State ang tssa Ia naruan,
OF the bonds tbsyeetw III Tm. nIan H.
S'eeC1 hinted at before; but there has
always been disposition TO avoid
touching what is termed the school
fund. The securities consist of a large
amount of Bank stock in the several
State Banks, viz: In the BaLk OF Della.
ware 20 shares; in the Farmers Bank
1878 shar 5, as follows: 932 shares in
Dover; 24S shares at Georgetown 95
shares at New Castle. II would be
Glmcult to tell just what these stocks
would sell for at this time. Perhsns
they would all bring par, but this may
be doubted, as to some of them. con-
sidering the large amount 10 be dis
posed OF. If they are paying the State
Six per cent per annum 1t might be- bet.
Ter TO defer their sale until the proposed
new 4per cent. bonds come due. They
could then be disposed of in quantities
to meet any contingency thai might arise.
In addition to these Bank ocks the
State holds a mortgage against the p.
w. X b. X. k. Co., tor $4,000 that il
has right TO convert into stock at par.
1t holds mortgages on other rail Dads
that We do not believe could be sold or
collected without a great sacrifice. II
all the States securities could ba col.
lco1ed aud disposed of TO an ADVANTAGE
there might be inducements TO follow
Mr.. Williams plan. But under TIN.
circumstances ii would seem to be the
simplest, most possible and best plan
f0r the Legislature to convert the whole
debt into per cent. bonds, or a lower
rate II feasible. This We are told can
be done through Drexel & Co., without
cost to the State. Hereafter when these
bonds become due it would be very
well perhaps to meet some of them with
the securities on hand and let each
county rest upon its own people for the
means for educational purposes.