Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15

V0tF - iJfls lUAsIVrb vi ttbt. All NriA
Years and 3per cent. for ninety years. non-
tax-receivable coupons. Principal on 1st
Juty. 1891 OF new bonds. II all indsbted.
| ness be exchanged, $4,000 0J- Principal
on lat July. 1891. Of 5 per cent. bonds now
| in the hands OF til. pubic and literary
fund, sos, 242.50. Total principal OUT
standing ist July, 1891. S25o8l ,2il.o0 lex
elusive OF bonds he!d by colleges.
| Jhs total annual interest dus by the
State under the settlement with the Oh
colt Committee. including interest on
| kidtlsberger 3 psr ceat. bonds beld BY
| the literary fund and in the hands OF the
| public on October I. 1891, 1851. l37.T. An
annual saving Of interest for ten years 10
the State. oveT settlement under the
Rddieberzcr bill, OF 81. 45l.56, which sg-
! g,egstes $9i4.515.60.
The Auditor reports a. applicable for the
/ payment OF intereston the public DEBT
from the revenues of the State Gncluding
taxes on railroad property about $780,
307.39
The Second Auditor reports annual
dividends on the stock. etc.. of the Rich
mond. Fredericksburg and Potomac Rail
road Company S32.746.
Amount of revenue available for pay
ment of interest on the public debt. $685.
| 053.29: amount annually required to pay
interest on the public debt. 1861, 437 az
amoGnt to be provided for. about $780,
.98. il all the bonds are exchanged at
once. which is scarcely probable.
TIE PROPOSED SETTLEMENT.
BY All examination of the JOINT resolu-
ton you Will observe we were restricted
to an agreement based upon the principles
of the Riddleberger bill. We do not be-
lieye we have materially transcribed our
powers. Ii ascertsiDing the amount due TO
the creditors we have adopted the basis OF
settlement used in the Riddleberger bill.
/ Ten years having elapsed SINCE Its passage.
there has been a considerable increase in
the debt by way of interest.
| We agreed that $40, 0O0,0 900 should be the
MAXIMUM amount of new bonds TO be is
sued in exchange for the outstanding obi
| cations Of the State now in the hands OF
| the public. but not including bonds
ALREADY funded under the act Of February
j., 1882 There were on October l, 1891,
| 81. 03l, 242. 50 OF these bonds in the hands
| Of the public and the literary fund, which
with the proposed new issue Will make the
sum of S25. Osl .242.50. On this amount we
will he compelled TO provide annually for
the accruing interest. This appears to be
an increase IN principal over the set
Element of 1882. The consideration
| Of how this principal IS 20 be met
is postponed for a hundred years. We do
| not think II worth while to concern our
selves about the financial condition OF VIZ
ginia hundred years from now. We have
| ititerpOsed four generations between us
and tGe payment of this principal. III -
sufficient 10 affirm that unless oil OF our
calculations prove delusiye based as they
are on the constant increase of taxable
valuabies in the past ten years, tue state
| will be much better able to take care OF
tue principal of the debt then than we are
to provide for the interest now.
We adopted the form OF the Rlddleber-
ger bill. As fer ss il Is applicable TO this
contract, with its non-tax-paying coupons.
THIS is matter OF much moment. II re-
heves us of this device which enabled the
coupon holder to intercept the taxes due
by the citizen before they reached the
been fruitful source OF contro-
versy, and the suits arising from
this subject have been the cause
| OF forcing the State az litlgant
| in the State and Federal courts. The tax
paying coupon Is an imputation upon the
| good faith of the Commonwealth and q
reflection upon her financial integrity by
| giving lien upon her revenues. which Is
| unusual. unnecessary, and Illuminating.
Our people would never ratify settle
ment which embraces bond with this
| feature attached, however favorable II
might be in other respects.
We are to pay per cent. interest Tor ten
wears and after that per cent. for ninety
! years. Our greatest difficulty will be Tor
the first ten years. Our settlement, we are
assured, will be the cause of bringing
population and capital into this State.
| Each immigrant will help US to bear the
burden of taxation. and every dollar
worth of property introduced will contri
bnte its due proportion 10 our revenues.
WILL BE ABLE TO MEET THE INTEREST WITH
OUT IScRkAsING THE RATE OF TAXATION.
| have no doubt Of il. See the facts.
The report of our Auditor shows that
In 1880 the amount OF property
| assessed for Saxee Was. "....sJO4,oo3,ybs
In 1000 u
| In 1871 II was. .......'..., ooV'o"i'oi'
| In 1880 the taxable value OF our .
| railroads Was..................... s,o lp,oV,
| In 1880 u was......-.- a2'sna'oEs
| In 1S9O IL was. f~,oVOiots
With this rate Of increase there i:
scarcely room for doubt that at oui
present rate of taxation we will be able t.
4 support the government, take care OF oul
charitable institutions and schools anc
colleges, and our old soldiers without EN-
| barassment TO our finances at present
There will be new sources Of revenue, the
amount depending upon the prosperity
| and development of the State, which
gives every reasonable assurance that We
are not too sanguine in our calculations
and satisfies me of our ability at the enc
of ten years to meet the 3 per cent. rate 81
interest and at the end of one hundred
years TO provide for the principal.
REDUCTION OF ExPENsEs.
Upon an examination of my regula
message you will see l have pointed GU
the way by which our expenses may b'
reduced thousands of dollars every year
If you will heed my advice, and enforo'
l,xr Hot N
enough NAV be saved to meet any increase
necessary for the payment of the annua
interest upon the public debt. If in thes'
suggestions we are in error. it 10 fac
about which there IS no speculation, tia
we have money enough now In the Urea
sury to meet any ordinary deficit. if no
wasted by iniudicious expenditures.
THE oLcoTT SETTLEMENT BETTER ToR TIL
STATE THAN THE BIDDLEBERGER.
Had all the outstanding debt been fund
ed in Riddleberger bonds in 1882. the time
OF It's passage. except the bonds held by
schools and colleges, we would have hac
to pay annually 1858, SsS.S3, which up L
this time would DO S5,oSi. 999.47. Thi
would have taken all of our available reve
nues. and without increasing the taxes II
would have been impossible to have me
our necessary expenses.
The State has saved, in consequence o
bondholders falling to fund under tn
Riddleberger bill, IN interest, 1854, $50. 81
This has enabled her to spend Sl,3s5, 1856. 81
in the purchase Of S2.357 $1,000 of her owl
bonds, and thereby reducing her debt t
that extent. She has also paid $1,000 90
srrearages due public schools, and S379. 90
of interest due the literary fund 5000. 90
to her disabled soldiers, and she has spen
over 81, 0OO. 900 in the enlarging. improving
and in the support of her eloemosynsr,
institutions. This Indispensable worl
could not have been done with our presen
rate of taxation had the whole debt bee
funded in 1882. Money which woul'
have been paid to satisfy the interes
(the creditors refusing TO fund.- w
have used in part fo- the purposes abov
indicated, and have compromised tn
amount By adding TO the principal due il
1882 TO be paid a hundred years hence
Now our taxable values have increased 4
such an extent that we can meet all ne
cessary demands for our revenue. III tn
Government be economically admins
tered" there is no need FOR higher rst
OF taxation. BY the2 per cent. interest TO
ton wears we will save S9l ,45l.46 each yeai
With this sum ludiciously invested W
NAV be able to so reduce the principal O
| our debt that when We are compelled Z
paw tine per cent. rate of interest the an
nual amount due will be within our pres
| . x<..l. ah -