Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-03-16
Especial Telegram to the Globe

Especial Telegram to the Globe.
WASHINGTON, March 15.-The Virginia
readjusters are elated by the recent de-
cision of the United States supreme court,
affirming the right of the state legislature
to enact what is kHOwn as the coupon
killer. The effect of this decision is to de-
preciate the value of tax receivable inter
est coupons of the bonds issued in 1871
under Democratic rule. The readjusterS
have fought With all their strength the tax
receivable feature of these coupons, and
when they got control of the Legislature
they passed law imposing restrictions
that will diminish to a very large extent
the number of coupons that will be offered
in payment of taxes to the state. Hereto
fore the aggregate of taxes paid in cou-
pons has been so large as to seriously
cripple the state treasury for cash to meet
its current expenses, and the remaining
bonded debt of the state not funded in
bonds with tax receivable and self collect
ing interest coupons was neglected or only
partially met. The Democrats have stood
by the original funding act, Directing to
the passage of the act called the
coupon killer, and the best lawyers in
Virginia are said to have held that the
coupon killer was unconstitutional be-
cause it impaired the obligation of the
contract of the state with the creditors
who funded under the act of 1871. A large
portion of the holders of these bonds re-
side In England, but many of them are
held in Baltimore, and that city has been
the principal market for Virginia securi-
ties. Its proximity to Virginia has made
the trade on tax receivable coupons very
profitable to Baltimore brokers and bank
ers. 1t is understood that they and the
English bondholders will seek to obtain
rehearing from the supreme court.
THE WHISKY TAX.
The treasury department. is informed
that the shipment Of whisky out of the
country to prevent payment of tax before
it Is required for consumption, has already
begun. st is going, we understand, in
considerable quantities." said an official
of the internal revenue bureau, in speak
ing of it to day, ''ard prob
ably will continue so long as
there is more whisky to come out of bond
each month than there is demand. Isup-
pose the shipments will be made each
month as the time approaches for paying
the tax. The fact is, congress ought, at
the last session, to have passed the bill ex-
tending the bonded period indefinitely.
That was the only thing to do, and do de-
Gently, about the matter. But as it did
not, the only thing these men can do is to
pursue the course they are now following,
or pony up the tax, and wait until they sell
to get it back"
'Where do you understand that this
whisky is going?"
'Some to Europe, some into Canada and
some to other sections
And are these people going to make it
pay to bear the cost of transporting the
goods abroad and back simply to avoid
payment of the taxes? Will not the cost
of transportation more than equal the in
terest on the taxes?
THAT don't know. The cost of trans
portation into Canada is not great. Where
it is transported across the ocean it is
claimed that the quality of the whisky i s
improved by the shipment"
Glow is that?"
Il don't know, 1 am sure. 1 only know
that that is claimed to be the fact. Then
it is not improbable that the evaporation
in the English climate might be less than
here"
''Is the loss by evaporation very consid-
erable?''
eyes, it is so great that our rules allow
regauging and allowance for loss up as
high as seven and one-half gallons per
barrel in a certain nu mber of years."
Western Associated Press
GOVERNMENT PRINTER APPOINTED.
WASHINGTON, March 15.-It is understood
that Secretary Folger has rendered the po-
sition of chief of the bureau of engraving
and printing to Geo. w. Corning, of
Geneva, New York, at one time sergeant
alarms of the Legislature of New York.
and that he has virtually accepted the ap-
pOintment.
SECRETARY FoLGER's ILLNESS. =
Secretary Folger is reported better to-
day. His improvement is slight however,
and it is feared his perfect recovery will
be slow. He took cold Monday and is now
suffering with liberated sore throat.
ADDITIONAL CHARGES