Year: 1876

sources have so far restored the credit oi the state that we can borrow money to pay our exIens es until such time as our taxes can be collected in currency, and when that time comes the rate Of taxation can be safely reduced.

 In conclusion, the board states positively that it is not intended to pay, in whole or ill part, any interest or principal on any bonds of the state issued prior to May 9, 1874. until special authority therefor be given by law"

 The revenue collected in cur rency is scarcely sufficient to re imburse the money borrowed to defray the expenses of the gov ernment and to meet the interest on the bonds of the state that have been issued since May, 1874, it being the sum of S294, 1855.

 The collection in scrip is $S27,- 925, of which 74,325 is to be paid out on the school fund, leav- ing S653, ,599 actually redeemed.

 The amount of scrip outstanding on the thirtieth day of June last, exclusive of interest is Sl, ,39S.- 512.63. The present assessed value of the taxable property in the state is $94,095. 2l3. and the bonded debt, principal and inter. terest, up to June 30, 1876, as claimed, is s15, 5,90S,310.

 1t will require st the present rate of collections, two ifnot three years to retire this scrip. Until that is done, or until at least two thirds of it is retired, no definite proposition can be entired into looking to final settlement of the bonded debt. The board, un- der the joint resolution of Janua- rv IS, 1875, having had consider able correspondence with the par ties claiming to hold the bonds of the state, and almost invariably they have replied they have prop osition to make, and would not expect the state to offer any, as by her taxation and reported as setts she could not hope to pay in terest on any new bonds she might issue, and until the scrip was either returned or brought to a standard near par it was useless to enter into any adjustment of the debt. Hence the creditors are not pressing for payment or settlement, but are waiting for the time to arrive when it can be seen exactly what can be done.

 For these reasons the board have made no offer. and have none noN to submit. They would 1 not in any case recommend any settlement for the faithful cary ing out of which they did not 1 have positive assurance. The state cannot afford to default on ! any new bonds she may issue. l This fact is appreciated by all thinking men, and the creditors themselves want to know what is | agreed upon will be promptly | met, and knowing this, the board feel confident that there will be but little difficulty in coming to all equitable and fair adjustment of the state bonded debt.

 When our people look back at [ the difficulties and trials through ! which our state has within the last two years passed, and reflect that scrip has gone from twenty five to seventy cents, that our bonds for the expenses of the Bax- ter Brooks troubles are now COIL manding a price above par, and the prompt and full payment of taxes by the people there is every | reason to believe that our tinan- ] cial troubles will be solved justly ! and fairly in a comparatively i short time.

 This whole subject will be placed before the next legislature i with all the facts and figures, as a full report up to that time of the work of the board.

 A. H. GARLAND, Governor and President of Board

 of Finance,

 T.. NJ. RosE,