Year: 1873

To provide for this large unliquidated debt there


is only the delinquent tax due the general fund


and the amount of receipts from that source will


the most favorable estimate, come very far


short of dischsrging these liabilities. The receipts


into the treasury account OF this fund have


been, for the past five months, e697 842 a. and the


amount of warrants drawn against the same for the


same period s ,I31 ,086 49, OF this latter amount,


$436,379 % have been retired, leaving $75O.2O7 "a


outstanding. The collection of the current taxes


being. to great extent, inevitably deferred until


near the close of the year the receipts into the


general fund, from that source. will. without


doubt be mach greater during the remaining


seven months than during the past five.


Still, from most careful estimate of these re-


ceipts, due consideration being given to al! reliable


information and data in my possession, I find that


there is no reasonable probability that they will


equal the amount appropriated at the last session


OF the Legislature and for which warrants must


be drawn. The deficit will be. nearly can be


estimated. about SiOO, ,ooo-much less. 1t will be


seen, than that of previous years. out none the


less burdensome that account. Unless some


method of liquidation is adopted which will retire


these warrants in the course of the year, this large


overdratt must be added to the already enormous


total of Outstanding warrants OF the previous


years.


It is obvious that this process OF an annually


augmentng excess of expenditures receipts


must result in a large increase the present
onerOus rate of taxation. or in reputation or


bankruptcy. On the other hand, if the excess can


be avoided this year, the tide will De turned and,
with proper management and economy of apprO-


pIatOn. it need not -ecur in any succeeding year.
As long as the general fund is Overdrawn. the
State warrants will be thrown on the market and
bought and sold at discount-the extent Of de-
probation being very fair index OF the of
warrants over receipts. When the receipts into


that fund equal the drafts against it and warrants
are las contemplated by law paid by the Treas.
urer issued, speculation in that class of
State paper must cease, to the great credit of the
State and to the great relief OF the Auditors and
Treasurers Offices now harassed with many EN-.
barrassing difficulties.


OF the warrants drawn against the general fund.
a ve,y large proportion sre never paid to the
original holders. They sold to spectators and
bv them cashed as opportunity offers the time of
payment depending the vigilance of the broker,


and the pertnacity Of his attendance at the Treas
urer's counter. 1t thus happens that when money
| is paid into the general fund, 1t is forthwith
claimed and Of course paid. TO redeem this class
of warrants and all the receipts are absorbed in
y
| bought from the original owners at large dis
count.


The original pavee who is the meritorious claim.
ant gets benefit from the payne INT III full,
tie State any benefit from the discount in the
] market. Nor parties hOldn: warrants who
are not willing or not able to maintain system
attic surveillance of the Treasury, hope to obtain
paylnen. in full. They will be constantly fore
stalled by the more vigAnt broker, and forced to
| hold their warrants indefinitely or sell them at a
discount. This palpable injustice results from a
system which never contemplated the anOmalOu.
condition OF affairs in which find ourselves. II
is nv desire to remedy the evil far possible


or a, least if the original claimants receive


payment in full for their warrants, to to the
State the benefit of the discount which they now
willingly pay to the broker.


| 1 shall, therefore. on the fifteenth day Of July
| 1873, and the second Tuesday OF each mont.
| thereafter advertise for proposals for the pur
chase, with warrants, Of the currency then OIL
| hand belonging to the general fund Or, in other
words sell the amount O.. cash hand, at auction
| to whoever Will pay the most for i: IL warrants
! issued suisse, ueDt to January l. 1875.


lam aware OF the nature of the criticism which
this is likely to invite. We shall he charged
with speculating in own paper. / answer that
that is q refinement winch tlt money market
| whose remorseless rules subject to. takes


no account Of and that it is better il any view


of the case, to buy our own paper, il by so doing
we advance it to par without injustice to our
creditors, than to allow parties who little


nothing for the credit of the State TO speculate il
it until its value and purchasin. power are reduced
| to nothing.


II the law does not expressly enioin this course


it does not forbid it. I; it is objected that the Law
| does not contemplate this method of liquidation


reply that the law did not contemplate the present
condition of affairs; and If anything is to be pre-
suned in relation to the duties of the fnancia


officers Of the State it is that they will make the
| best possible of the assets placed il theil
| hands whatever may be the circumstance The
assets of the general fund are not how nor will


they be during the current year. equal to its eur
| reu. liabilities


IL 10 my desire TO divide the assets equal,
| anon: The creditors OF that fund So ia; iron
| nuriog the credit OF the State l think it is %
| vious that this course win improve it. The prob


able current receipts will if expended in the pur


chase of warrants at their market value retire al


nearly all the issue of the current year ieavin.


q: its close wita Little o. pothing to bs added t.