Year: 1863

view, the act constitutes species OF con
tract on the part Of the State with the
soldiers, and we thus stand pledged to 1T
faithful observance. Its repeal, or any
modification which would render it les.
beneficial to those for whose advantage il
was intended, would be breach of faitt
on the part of the State. The mainten
ance of the act in its full spirit and effect
has, therefore, passed from question o.
legislative cxpediency to one of public
honor.


There is change, however, whi,h may
be made in it, entirely consistent with the
views just expressed. BY the 4th section
of the act it is directed that the amounts
found due to the several towns shall, on
the FIRST day of March, be passed to their
credit by the State Treasurer in book
kept for the purpose, and shall draw In
terest on it after that date. And on the
said first day of March the Treasurer
shall issue to such city, town, or planta-
ton. in his capacity Of Treasurer, his
scrip for the amount found due to each,
respectively, made payable to the order OF
such city, town CIR plantation, at the State
Treasurer office, at the pleasure of the
State, with annual interest"


| think this mode Of paying the towns
is unsatisfactory, and for many reasons
Objectionable 1t will prove inconvenlcut
to the towns to have running accounts,
with the State and settlements by small
due bills while it will increase the labor
OF the Treasurer and be derogatory to the
State to have its obligations floating about
for small sum which ought at once to be
liquidated by cash payment. recon-
mend, therefore, that the section be so
amended as to direct the Treasurer to pay
the ascertained dues to these towns in
cash on the FIRST day of March; and if
the current funds in the Treasury are in
sufficient therefor, that he be authorized
to Negotiate loan for the purpose. Not
the least advantage to the State in this
arrangement is the saving of interest on
all payments made with current funds.
and the gain of the premium BY nesotia-
ting regular loan when extra funds be-
come necessary.


The total receipts into the Treasusy
from all sources tor the year 1SG2,amount-
ed to S659, 9,l2,03, and the expenditures
were S633, e93, l., leaving a balance OF
S9i ,353,54, in the Treasury on the lst OF
the present month. Full details under
these heads will be found in the Treasur-
er's Report. The State Tax was increased
by the last Legislature to S4l3,0l4,4l, IN
view of the extraordinary expenditures
entailei by the times. As compared with
a large majority of the States in the
Union, our tax is still a very moderate
one, and indeed of the total tax paid by
our own people, it constitutes a much
smaller proportion than Is generally sup
posed 1t is now at the rate Of two and
a half mills to the dollar, whereas the tax
actually assessed for all purposes in the
various towns and cites ranges from > t.
l3 mils--very few towns being under the
frst named figure. 1t will thus be seen
that the burdens imposed by the State
Government, are in 10 sense oppressive
Indeed, considering the duties of the
State Government, its larga and bcnefcent
field of usefulness in its Executive, ) u
dical and Legislative functions, 1t may
we'll be affirmed that no other form oi
civil administration was ever maintained
at once so effective and so cheap.


| have already alluded to the fact that
within the past year the sum of $4,000
of the State debt was paid. During the
present year fifty thousand dollars more
will mature, and | earnestly recommend
that it be paid, Instead Of being renewed
as has too frequently been our custom ii
the past. The policy of liquidation, IT
my Judgment, is the true, safe and wisely
economical one for the State to Adopt
Whatever may be the theory or the truth
in regard to the advantages OF National
debt, do not think that a State debt
should remain unpaid day longer than
the time when the people can dischargf


it without,, Especially or unlu'y burdenu5
themselves with taxation. Oar debt
other than that contracted on account ot
the war, all falls due between this and the
close of the year 1871 in annual sums
varyin. in amount from $4,000 to SSH
0OO, averaging precisely s4l,GOo PEI
year. 1t will be evidently the part o.
wisdom to pay these sums as they mature
The annual payment will be easy, aud the
aggregate relief will be great. The whole
OF the war loan thus far negotiated
$500, ,000) natures IN 1871. At present
therefore, we cannot do anything directly
towards its payment, but wise provision
may be made Tor meeting a large portion
of it when it falls due, by making Sink


ing Fund of whatever sum may be REIN
bursed to us by the Federal Government
on account Of war expenditures. To thi'
Sinkin. FIni, in itself stimulant 10
economy, miga, be proftably addeI any
surplus which rigid care in the admins
traton of our affairs may leave at the
close of each year. Keeping the policy
of liquidation steadily in view, and pro-
viding for it by such means as your Wis
DOM may su sest we shallnot only decreas
the State expenditures with certainty ana
rapidity, but shall maintain our State
credit in so enyable a condition that We
shall fud it available whenever an unlor'
seen exigency may require US to use it.


In authorizing the Treasurer to nego,
tiate such loans as may be necessary,
would suggest whether it be not expedien'
to fix the rate of interest at five per cent
In the present surplus Of money seeking
;..n. 4r,-,ut Stntn etnnlc .af Snnh hinb