The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-12-06

fund as Of that date II such had been
their desire. The tendency since then
has been towards the funding OF coupons
and certificates which represented interest
due previous or up to July, 1882, and to
withhold the consol and 1910 bond, which
called under the Rlddleberger bill for a
scaled principal. To have allowed this
process TO continue when all interest, past
due and unpaid, was fundable in new
bonds at par, would obviously have been
to create q new debt from year to year,
leaving the original obligation Of the bills
OF 1871 and 1879 untouched. Approaching
this fact, the Board OF Sinking-Fund Com
missioners construed the act OF February
IL, 1882, to prohibit the funding Of de-
tached coupons bearing date subsequent to
July /, 1892. This decision was obviously
right under the law and in policy. And it
appears that from no fault OF the creditor
delay occurred in the preparation OF the
new bonds, and In order TO protect the
revenue from contingencies very Justly to
be feared, it is recommended that such
legislation be made as will enable the hold
ers OF tax. receivable coupons, maturing at
any semi-annual period up TO the lst Of
July, 1888, to fund the same into new 3's,
dollar for dollar, and that no coupon ma
turing after that date shall be iundable un-
less attached to and funded with the bond
Of which il is the product; and then, only.
at the rate prescribed for the principal Of
the bond on which it is the interest.
PUBLIC REVENUE.
Notwithstanding the interceptIon by
coupons between the taxpayer and the
treasury Of more than a half OF a million
OF dollars, the sum remaining to the cred {
Of the Commonwealth on the 1st Of OctO-
Der, 1882, was sjj1 ,j40.j1. During the
year ending 1st OF October, 1883. there has
been paid on account OF interest on the
public debt 1913, 93j.17, and the balance on
hand in the treasury as Of that date to the
credit Of all funds was 81. .j37, ,204.SS. This
sum will be increased by several hundred
thousand dollars during the current month,
but the amount available for general pur-
poses is subject to deduction in the sum OF
100000 yet remaining to the credit of the
school fund as by proceeds appropriated,
but yet uneXpendcd, OF the sale OF the
States interest in the Atlantic, Mississippi
and Ohio railroad. During the period
commencing on the 1t OF January. 1882.
the floating debt OF the State has been prac-
| tically eXtinguished.
The suspension in the summer OF 1882
OF bank designated 10y law rs one OF
the State repositories, and the refusal OF
another to continue TO act aS such, taken in
conjunction with the rapid accumulation
OF funds in the Treasury, made It necessary
that the Governor should exercise the dis
cretiOn given him, and make new arrange
ments for the care OF public moneys. In
so doing, while the State was Offering
per cent. on its obligations and money was
a drug i'm the financial centres. il was
| found impossible to place the deposits at
the rate ~ interest hitherto obtaining.
After making application without success
| to the leading banks in Richmond and
elsewhere. il was thought best 10 sacrifice
the rate OF interest TO the procurement OF
additional security, and having required
in each contract REIMBURSEMENT OF the
statutory privilege Of $4,000 without IN
tereSt, the public funds were distributed
between the banks Of Richmond. Peters
burg. Lynchburg, and Norfolk, under
bonds for an amount more than double
those previously held, and at a uniform
rate of interest Of per cent. The State
took no loss by the suspension OF the
Richmond Banking and Insurance Com
pany: but the event showed The
| impolicy of creating banks OF de-
posit by act OF Legislature and leaving
| the State funds at the mercy OF accidents
between the intervals OF the sessions o
! that body. No change in the present law
| is needed, but experience clearly Indicate
| that the control OF these deposits shoulC
rest i'm some executive department OF Tho
| government so that constant inquiry int
/ the solvency of the several depositorie'
and the sufliciency OF their bonds may b'
! had.
in the management of the financial nj
/ fairs OF the government, 50 far rs conStan
supervision iustites 4 Judgment, it may bt
said the different bureaus have been con
| Quoted wisely and honestly. But any ont
who has become conyersant with the al
! fairs OF tne basement offices must realiZ
/ that the Second Auditors Office, Originally
created as a check or balance upon tn
offices Of Auditor OF Public Accounts anC
| Treasurer, has grown 10 be a dangerous i
not useless adjunct OF the administration
! An Officer. with considerable emOlument
and a heavy force OF assistants, under
bond entirely insufficient for the respOnsi
bilities with which he i charged, has no
thing really to do that two clerks, under spe
cific statutory instruction, could not as wei
and more safely perform. 1t is easl
for the executive head Of the gov
ernment to know Of and control the NJ
fairs Of the Treasurer's and Auditor
offices. But the second Auditors office
from the original intention Of mere clear
ing-houSe, has grown TO be the Keeper o
all the trlst-f;nds. OF the Commonwealth
/ And i'm the past fifteen years every trust
fund that has been invaded has been so in
yaded through the agency OF this practi
cally irresponsible office. This is not IN
tended TO east any reflection upon any per
son who has occupied that position; bu
simnlv 10 call the attention OF the Genera
! Assembly 10 the fact that this Office has
outprown the objects OF its creation, anC
now holds custody OF all the trust-fundS OF
the state, giving no adequate security
therefor Ii would not be unwise that th,
LEGISLATURE should consult economy and
avoid danger by reducing the force and
duties Of this Office, and by passing an ACT
refusing to commit the State OF Virginia tC
onv trust unless the money upon which
! tbe same rested should be accepted by spe
cal act and placed in the hands OF trustees
bonded for that purpose.
EDUCATION.
The condition of the public free-school
system should engage the active interest OF
every citizen Of this Commonwealth
There is no individual and no element OF
orr nopulation but should rejoice to know
that the State in the past two years has
been able almost to double the facilities fol-
free education. Reference is confidently
made to the report OF the department OF
nublic instruction to show that no proper
effort or expenditure has been lacking by
tbis administration to carry out Its pledges
in that respect. As was said 10 your pre-
decessors and pledged to the people, tho
Executive of the commonwealth knows
no higher duty than to contribute all IN hi'
mower 10 furnish the means for teaching