824 



VIRGINIA. 



the amount to be raised or our ability to bear it. I 

 think, in effect, this is quite as unwise as to declare 

 our opposition to any increase whatever, without re- 

 flecting on the dreadful results that must follow. 

 To pay" this large deficit, together with the back and 

 accruing interest, would not, as some quite_ lightly 

 assert, require only a small increase of taxation, it 

 would require no less than an increase of from thirty 

 to forty cents on the hundred dollars of property as 

 at present assessed, or the finding of other subjects, 

 for which of late so much diligent search has been 

 made, and of which as yet so few can be found. We 

 must also remember that a large amount of these as- 

 sessed values are unproductive, and that they do 

 not represent the actual wealth of the State upon 

 which there is no other incumbrance than the State 

 debt. In addition to this State debt are local and 

 individual indebtedness. The local often exceeds 

 the State tax, and much property throughout the 

 Commonwealth is mortgaged for the improvements 

 upon its surface, and which yet shows upon the 

 books as so much clear value. It is wise and right 

 for those in office to consider these things in mak- 

 ing up a calm and impartial judgment. 



If the State of Virginia, then, is not able to pay 

 the debt or the full interest thereon, and ultimately 

 the principal, she ought to have recourse to the other 

 measure this side of force to which I have referred 

 an honorable and amicable adjustment with her cred- 

 itors. 



In March, as has been stated above, the Le- 

 gislature passed a bill making a simple propo- 

 sal to the creditors of the State for a settle- 

 ment. Under it the Governor issued his proc- 

 lamation, stating its provisions, urging a con- 

 sideration of them and a response. He also 

 commenced a correspondence with the credit- 

 ors as extensively as possible. The result of 

 the correspondence consisted in recommenda- 

 tions from the most powerful corporations and 

 the most respectable and influential business 

 men. The first response came from the coun- 

 cil of foreign bondholders in London. It pro- 

 posed 4 per cent, in gold upon the whole debt, 

 principal and interest funded, exempt from 

 taxes, with coupons receivable for all taxes, 

 debts, dues, and demands due the State, with 

 sinking fund, the proceeds of the 4 per cent. 

 to be distributed by the creditors among them- 

 selves, so as to make the law effective. The 

 next response was from Baring Brothers, A. 

 Belmont as the representative of the Roths- 

 childs, and Brown Brothers and others of New 

 York. It recommended 4 per cent, for the 

 consol and 3$ in gold for all the other classes 

 of bonds, principal and interest funded, with 

 coupons, to be received for taxes or other 

 dues to the State, with suitable sinking fund. 

 This was a surrender of one third of the an- 

 nual interest. Looked at from the side of the 

 State, the proposition seemed to possess four 

 objectionable features. It made a distinction 

 between the holders of consols with tax-re- 

 ceivable coupons and the other classes of cred- 

 itors, it recommended the tax-receivable cou-' 

 pon feature, and the funding of the interest, 

 and it demanded an increase of taxation. This 

 last objection was of practical importance. 

 It was estimated that the deficit under these 

 recommendations would be about as fol- 

 lows: 



The amount of interest to be raised on whole 

 debt funded, principal and interest, at 4 per 

 cent $1,341,558 00 



The amount from revenues as they now stand 

 to be applied to payment of interest, as per re- 

 port of Auditor 972,262 49 



To which add interest on literary fund 



$369,295 51 

 84,349 64 



To be provided for ........................... $453,645 15 



Such was the aspect of the State indebted- 

 ness presented to the Legislature at the open- 

 ing of its session on December 4, 1878. It re- 

 mained at the close of the year in the same 

 position. A strong expression had been made 

 against the adoption of any measure which 

 should lead to an increase of the State taxes. 



The amount of liquor licenses assessed for 

 the year 1877 was as follows : 



Wholesale and retail liquor-dealers.. . . . . $221,144 95 



Ordinaries .................................... 29,089 83 



Eating-houses ................................. 5,920 64 



Eectifiers. .................................... 666 67 



Distillers ...................................... 5,373 16 



Total tax assessed against liquor-dealers licensed 

 during the fiscal year ending September 30. 

 1877 ........................................ $262,195 25 



There are ninety-nine counties in the State, 

 of which sixty-six have made no report of the 

 results of the Moffett law. In some of them 

 the registers have not been put up. Reports 

 have been received from twelve cities and 

 thirty-three counties, and but partially from 

 some of the largest of these. An estimate for 

 the ensuing year, made by the State Auditor, is 

 that the tax on the sale of liquor under the 

 Moffett register would yield $500,000. He rec- 

 ommends a uniform tax on all liquors, wheth- 

 er alcoholic or malt. 



The vote for members of Congress at the 

 election on November 5th was as follows : 



The various institutions of the State are un- 

 der careful and prudent management, and show 

 the usual results for the year. 



The institutions for higher education are 

 well maintained in the State. There are about 

 1,600 youths in the colleges, and 1,000 more 

 in the high-grade schools. The State appro- 

 priations are also large. 



The new criminal code became operative on 

 July 1st. The first case of the use of the whip- 

 ping-post occurred in Norfolk. The victim was 



