Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-04-25

Is this and thc ether eonteuporsnsoqs
decisions except coupon-hclders VINO
are taxpayers. The people Who oe-
ing taxpayers, are compelled 70 ias-
nish the government Of Virginia with
ready money in amount sufficient to
pay its yearly expenses are alone 81
lected by decision which permits
taxes 10 be paid in coupons, while leav.
ing Just a. much money to be provided
for in cash.
Il follows that Che taxpayers OF Vir-
einia, ss body, II they should con-
clude to par the whole or any considc-
rsble part Of their State taxes in con-
pons at their face value, will be out OF
pockets Just what the coupons cost
them. This Is easily demonstrated.
The present rate Of State taxation In
Virginia is forty cents on the hundred
dollars, and the amount collected under
Il is no more than sufficient to pay the
demands on the treasury authorized
by law, which does not include any
provision for payment Of the tax-re-
ceiyable coupons Of 1871. Suppose
two million dollars be the yearly reve-
nue. from State taxes and the tax-pay-
ers conclude to supply it with that
amount of coupons. The latter viii
not be Of the slightest benefit to the
treasury, as the Commonwealth must
have the two millions in money to pay
out. or course another tax levy might
be met in the same way, and another
and another SO long as there is sum
cheney Of coupons, but, sooner or later,
these same taxpayers, who are buying
coupons to pay their taxes with, Will
have to put their hands in their pockets
to supply the State with money-for she
must have it-and then they will ind
that they have thrown away the exact
amount which they paid for coupons.
There is no escaping this proposition.
When the act of 1871 was passed the
tax-paying property Of the coupon was
only an incident in the contract there
placed to make coupons more readily
negotiable and so enhance the value OF
the bonds as well as coupons. The main
contract was that of the State to pay
both, which has been fatty repudiated.
So long as the State paid coupons to all
holders--tax-payers and non-tax-payers
alike-the taxpayers were, Of course,
paying money to outsiders; but siuce
that has been done away with and cou-
pons are only good to pay taxes in the
hands of taxpayers, the latter, in SO
using them, are simply putting oil tenn
porarily the payment OF taxes IN money.
Those taxpayers who now own cou-
pons or who can purchase them for less
than par might save a little money II
the amount Of coupons to be rendered
for taxes could be kept so small as not
to necessitate an increase in the tax
rate, but this is not likely to happen.
Whatever policy is determined upon
will probably be supported by prac-
tically the entire body Of taxpayers,
and that policy will make no difference
to them in the end whether they de-
termine to pay or not to pay their taxes
in coupons, even supposing they had
the coupons.
Those who have all to gain and no
thing to lose are bondholders who are
not taxpayers, and who, of course,
stand ready to sell their coupons to tax
payers.
.'Think of that, Master BROOKE"
If the taxpayers pay five millions of
dollars of coupons into the treasury
the Legislature will still be compelled
to have money with which to pay the
expenses of the government. No doubt
of that. After you have bought cou-
pons and used them, you will still have
to pay as much tax in money as you
now pay. All that you pay out for
coupons will be lost, unless, as the Post
says, the taxes now bring in more reve-
nue. than the government needs.