Newspapers / Carolina Watchman (Salisbury, N.C.) / Feb. 1, 1877, edition 1 / Page 5
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OK THK EXECUTIVE COMMITTEE UK BONDHOLDERS OK THK . - STATE OF NORTH CAROLINA. ' tfe lItuvtthU the Geiiend Axxi mtiiy f the State of Xortlu Carolina: A meeting of the holders of thelxmds of the State of North Carolina was held in the city of New Vork.m. Dv cemler 27th, 1876. Its object was to devise such a scheme or measure for funding the debt as would be acceptable to the people of that State. A plan was agreed upon, and a committee appointed to present it to the general Assembly during the present session. As such committee, and in pursuance of the res olntions under which Uiey act, the un dersigned herewith' present the case as briefly as tire circumstances admit. Be fore proceeding, however, it is well to state that the speakers at this meeting, without a single exception, expressed the kindest interest in, and sympathy .-m ... . i i m lor, tne fctate ana us peopie. i uvy io manifested a commendable willingness to concede' to the State all that is reas onable; and to aid the General Assem bly and State officials in re-organizing its finances and placing them upon a solid basis." ' The bonds represented at this meet ing were chiefly those which the State has recognised as valid. None but the lmlWa nf these bonds were allowed to vote, and the committee represent no other. In transactions with a commonwealth, it is advisable, in the outset, to define, clearly, the relations of the parties thereto. "This is but a plain business proposition, which individuals and cor porations alike recognize. To carry out tills principle m me iimnc -;, between the State of North Carolina and its creditors, would be, compara- - ".-... un .kv -were tle committee stat), anil i t iiiiii tli.it it in able to jay in-full. Oil tJie other liand, it is , well-known to tlie committee that the people of the State, and many of their representatives, plead extreme poverty h -o l.., .11.. ; ...v 4v4 Aivru 1UI U1C yJXl 1 44. All viding an honorable and etpuitable ad justment the State's indebtedness. Between interests nd views so diverse, the committee, tliemselves interested parties, fully realize the difficulties of their task. They, therefore, bespeak the candid consideration of their views. lioth by the General Assembly aiuLtlfe holders of, tlie bonds of the State of North Carolina. .- It is not denied by the authorities of the"State,rthat nearly all of -the. recog nized debt was contracted to aid, direct ly or indirectly, in promoting internal -improvements. Tlie larger part of this indebtedness is represented by ' bonds issued more than twenty years ago, to gether with the issues -under the Fund- jects were, . first, to. fund the interest .which had accrued, previous to and in clusive of the years named; and, second, to retire a port ions of the ante-war bonds that "had then matured. When the original bonds were placed on the market, the credit of the State-, was rated - very high. Its bonds, at one time, commanded a considerable pre mium, and wjre regarded as a safe in vestment by managers of trust funds, as well as by some of the wisest private capitalists. Many savings institutions in the city of New York, and elsewhere in the Northern States then became purchasers of these bonds and still hold them. It is also " known to gentlemen -of this 'committee, that many individ uals who invested in them the savings of years, have been reduced to the most straightened circumstances, some of them almost to beggary, by the failure ojt the State to pay the coupons as they came due, and to make some adequate provision for the settlementlf the prin cipal. Tlie comniittee are in a position to state, that a large percentage of these bonds is still in the hands of the original purchasers or holders. llaving great faith in the future of tlie "old North State," many holders of the ante-war and funding bonds, also invested in the several issues made since the war. Without their assistance, the State never could have established its ftxiA ruHway system, which has aided so largely in ibjveloping Hs resources, and which cannot fail, under intelligent su pervision, -to place it, ultimately, -wv in wealth and general prosperity, among " t he greatest in the Union. Unfortunate ly, the State now rests under the cloud of virtual repudiation, even of its justly - contracted and recognized indebtedness. With. this incubus removed, and its fi nances re-established upon a sound ba sis, its credit would improve rapidly, fresh, capital could be obtained upon reasonable-terms,; tojjomplete old and inaugurate new improvements,'' both State, corporate and individual. - At present, however, the publlScbt hangs over the State like a pall, crip pling its industries, and reflecting dis credit upon the individuaf citizen, , as well a upon towns and cities, whose levelopment is greatly retarded by their failure to secure, at fair rates pf inter est the assistance of outside capital. The cityTof Wflmmgtou'Jias -a popula- lion of about flftetftt thousand . people, and real and personal property said to mmmmmmmmmmmm m . - 4-4.-41 . "., ......... 4i. 1.1.1-1.4.4,.- ii-' xj., s;....,,. -......i: ..i,-.....l I .44-44 . ....... .- -. - . 1 1 lie worth 10,000,000. Its lxuided debt is placed at only six per cent. -f this sum, or .$000,000. Its lionds foold) pay eight per cent. ier annum, and should sell freely at a iremium of not less than ten per cent. Instead of this they are selling at a discount of from twenty to -twenty-five per cent. No doubt this is, in part, due to the character -of the men who, for years past, liave controll ed the city government; but the chief reason is to be found in the uncertainty in the public mind regarding the debt of the State. In contrast with "Wil mington, take the city ef Richmond, Virginia. With a population estimated at fi.i.0071, it has to pay about one-eighth of the t --xes for all State purposes, its pro rata Wing nearly .?3G0,000 per an num. The municipal and county ex" Ienses amount-to at least as much more; and in addition, it has to pay interest at an average rate of seven per cent, on a bonded debt of $4,500,000. Yet, in spite of all these burdens, itseight per cent, currency bonds are sought after at a premium of fourteen per cent. Settle the debt of the State of North Carolina and the bonds of Wilmington, and other cities within its borders, would speedily advance to a level with those of Rich mond. " Those who invested in the ante-war bonds, and subsequent issues, did so in the belief that the State would never invalidate its promises by enacting laws in any wise repudiating its justly con tracted debt, or that would impair the public credit. The traditions of the State, as well as its statute law, justified this confidence on the part of its credit ors. Section 41, chapter 82, of the laws of 1 848-' 49, declares, "That as security for the redemption of said certificates of debt, the public faith of the State of North Carolina is hereby pledged to the holders thereof." This wise provision was confirmed by the adoption of the Constitution of 1868, under w hich the State was re-admitted into the Union; Article I, section 6, of this instrument reads as follows: "To maintain the honor and good faith of the State untar nished, the public debt, contracted be fore and since the rebellion, shall be re-' gardecT aa inviolable, and never to be cvnentioned, &c. And that tl.ee imnlit 'v 4i.iji-cjn-iii.t.- I-; - illation ami Ity adequate taxation, pro vide for tlie prompt ami regular payment of the interest on the public debt, and after the year 1880, it shall lav a specific annual tax upon the real and personal property of tlie State, and the sum thus' realized sliall be set apart as a sinking fund, to be devoted to the payment of the public debt." There can be no doubt that the wise legislation of the State, and the honora ble action of its officials before the war, did much to establish its credit and enable it --to borrow at a lower rate of interest than was offered and paid by ether States Tlie same may be said of the constitutional provision of 1868, which the landholders regarded as only the authoritative expression of the estab lished practice of the State. The holders of the recognized bonds, do not, 'however, base their claims wholly upon legal grounds. They also smmrt morift jbttgtkMf ttffflStst? , . I ! n r mmmmmm,,mmmmmmmrHm-?0m'!rr?T77T ' ''- " - ;ViM Si: I slioulil. t-lsv. I"' il;(fel ;s liiU as I tl,e State claim that it lia i4t iaiiicl I 4 - . . . - - - - - - - - - 1 . 11 . . " n 1 will 1 aiuki iutii iiiut i I . .. ... ..11 ... . 1 . . . 1 .. , . . . i-i... . . . . . 1 to protect! their rights and property. It procured their money under laws of its own making, and upon the representa tion of its chosen officials. It also holds for its own protection? bonds and stocks of the corporations in whose interest its, credit was given, the amount being,) nominally, alxiut equal in value to its indebtedness. At the time it accepted these securities, it, doubtless, believed them good. If, afterward, it found they were not, then it had the power amply to protect itself. If it failed or neglected to do so, should it or its cred" itors bear the consequences? But even if it held no security whatever, the State lias derived benefit from the in vestment of the capital of its creditors, incalculably greater than the whole amount of the acknowledged debt. Upon these clear and explicit premises, thcAiondholders base their claim thajt the State is bound, both legally -and morally, to maintain the inviolability 6t its pledges to those who have trusted it. This, they hold, is due them, and, also, the people of the State, the full and rapid development-of its resources beinjg retarded wholly by reason of the dh -credit which so long has vitiated the cliaracter of its bonds. In view, however, of the prevailing financial depression, and general shrinkage in values, it is claimed that the State can not now, nor for a lonjg period to come, pay ail its indebtedness. Recognizing this fact, the bondholders very generally signify their readiness jto accept a compromise which shall be fajir and Homn-Wa f0r the State to tender themv In this connection, ?t-t necessary to suggest that the funding proposition, under the law passed by the General Assembly in the session jof 1874-'5, was not such as the bondhold ers had reason to anticipate, nor such jas they could legitimately accept. That this is true is evidenced by the fact, published by State Treasurer Jenkins in his last biennial report, that only $506,400 of the entire debtwas offered for adjustment. Possibly, this propo sition of the State was based upon the extremely low prices at which its boijds appeared to be selling in New York. These quotations were merely nominal, and represented transactions of only- a few thousand dollars, in many cases but a single bond. It is safe to say that the dealings in the bonds of the State have not, for several years past, averaged $50,000 per month, and that the lame j - - bonds were sold and re-sold by brokers. Boiia fide holders have not parted w ith their bonds, for the reason that they lieljeved the State would, ultimately, reiljeem its promises. ot including the liond issued to the Nojrth Carolina Railroad Company, the holders of which look to that coipora tioli for payment, the debt on October 1, 1876. was as follows : j Ji Z 4. r- i-s 2. v - 5 5 - Jf- S"5 : F V- i 2 ft; ! 3 3, i 19 s To settle this indebtedness, the fund ing scheme of 1874-s75 -provided for the issue of new bonds having thirty years to run, and bearing different rat es f interest, the average being less than four and one-half per cent, per annum. This rate of interest was, undoubtedly, objectionable to many creditors of the State; but the failure of its proposition resulted almost wholly from the insuffi ciency of the compromise offered. Ig noring the accrued iuterest, the State proposed to fund the debt on the basis following: "urSniff "V 5 aL 40 Pr ct ,23I,-W A!wS3T i 8-8b7'u'; at s pr -2lfi786 TOTAL, $14,44.045 S4.4S,46 This is less than thirty and eight tenths per cent, of the principal only. Taking the principal and interest to gether, the percent in only twenty wild crettitors aiwmt dollar. These figures explain themselves, and clearly indicate the cause of the failure of the present funding scheme. The sum offered by the State is, in propor tion to the debt, so small, that a ma jority of the bond-holders have preferred risking the loss of the whole, rather than accede to this plan of settlement. At the same time, as stated by the com niittee in the outset, the Itond-holders are generously inclined, and ready to close with the State officials upon the basis of a fair and equitable proposition. It is not to their interest to ask more than the State is able to jy, and they will accept such a compromise as it should be willing to concede. Hence, at the meeting previously referred to, resolutions were adopted setting forth the basis of such a settlement as would be acceptable to the bond-holders. vided that in any compromise between the State ami its creditors, the bonds to Ik? issued in settlement of the present debt, shouhl pay interest at the rate of six per cent, per annum, the coiito;is leing made payable in January ami July, at New York and Raleigh, and to be receivable for taxes and all State dues. The next resolution states that a just and reasonable compromise, one that would be to tlie advantage of the State and acceptable to the Ixmd-hoiders, would lie fifty percent, of the principal and interest of the acknowledged debt. In the opinion of the comniittee, this proposition is as fair as the State has any reason to expect, or should ex act from its ' creditors. Funded upon this basis, the debt would, nominally, amount to $10,704,691 50. It is probable, however, that even more than the excess over $10,000,000 would accrue to the State, because of the loss or destruction of a,n equivalent amount of the bonds heretofore issued. The committee, therefore, deem it perfectly safe to say that the recognized debt, funded as proposed, would not exceed $10,000,000. Is the State able to pay the interest on this sum, and provide a sink ing fund sufficient to cancel the princip al within a period of thirty years ? This question, the committee will, endeavor to answer by a careful analysis of the taxable value of the property and re sources of the State. . C , . Heretofore, the Railroads' of the State have nM borne their legitimate share of the taxes Discrimination in their favor is unjust, first, to the people of the State who have already been called upon to contriDute mu.y millions, of dollars toward their construction; and, second, to the creditors of the State, their mon ey having gone to enrich these corpora tions. jThe committee, therefore, would respectfully suggest, that where no charter or other legal obstacles are in the way, the railroads be assessed in the same manner, and pay the same rate of tax, as the other real and personal prop erty of the State. In this connection, the committee deem it advisable to refer to the bonds and stocks of railroad and other corpora tions, now held by the State, as security for the assistance rendered them. These securities have been earning nothing, and, for a long time to come, are not likely to bringanything into the treasury of the State. In view of this, would it not be well to return them to tlie several 4 4 - .SWI'l'l I lllilHH . 4. . ' 4 4 . jk.uhi 441 41 4 4 41 41 1 1 I f 1 1 I P Y Si 111 1 1 1 '1 1 li kl I ..I t .14. 41-1 1 ?1I11XT 1 1 11T dL l,rilll. I I 1P"'1II- I corporations, and hf lieu thereof, re quire them to pay into the treasury of the State, tor the neitt thirty years, one per cent, of their grfss earnings? Tak ing a a basis, the published returns lor four years, ending Iecemler. 1H7.". the earnings of the Wilmington and Weldon. the Raleigh and Oston and Seaboard and Roanoke railroads amounted to ?4.- TiMl pt-j- mile. The. are. probably, the Wt roads in the State, and shouhl not W taken to leterniue the earnings of the remainder. It 3s. however, safe to assume that all the roads now average about 4.0!K a utile per annum. As there are some 1.500 miles of road in operation, this rate would make the gross earnings forthe first year f (1.000, 0tK. Starting at titis point and adding five per cent, per aimum for increase, a figure by no means extravagant, the fund thus created if cominninded at six per cent. ier annum, would, at the end of thirty years, amount to more than $10,000,000 or the entire public debt funded as proposed. It is possible this suggestion will meet opposition on the part of the officers and stock and bond holders of the railroads. When,- how ever, the matter is fairly explained, they could not reasonably object: first, lo calise of the assistance heretofore given them by the State, and the surrender by it of their securities; and. second, be cause of the sinallness of the tax. That the companies should le eomielleo:. in some way. to reimburse the State for portion, at least of what it has given them, is a pr.Msition ueedi.i u argu ment to enfoivoHt. Whether or not the plan suggested Is the right one and can be legally carried o it. is not for the committee tosa : and they are satisfied with having brou .jht it to the at ten ion of the General Assembly. Compare I with o'her So lhern st ites, a large measure of pro -p l it y has Veen enjoyetl since the war. b tie K'ople of North Carolina, Its in.-oine for the year 1H70. pi-obably'am nut -d to over tH)(,000. of which were taken from the soil at least $70.0 Hi, KK). A glance at the returns of the pi I i -fs o' tU it year, is full of instruction. Pkoditts or NoitTH Carolina, kok THE Ykar 1M70. s Ckns. s Rk- Tl KXs. . Tons Hay, Hales Cotton, Lbs. Tobacco, K3.540 144. 933 11.151,087 4,297,834 2.059,281 1.404.040 799,667 - 75.185 59.552 21.257 H 19.054 62,348 33.H88 6.M.855 418 Kutter. Rice, " Honey. ' " Wool. ! Cheese, ? Flax. " .Maple Sugar. " Wax. A -Galls. Wine, i Syrup. " (Sorghum Molasses, . h'ds Sugar;' Craii1erries, Betterments -and addition to stock, Estimated worth. Orchard Prducts, Market Garden Products, Forest Home Manufactures, Animals, slaughtered or 59. 3.59, 635 394.749 48.499 1.089,145 1.603,513 sold .7.4,83.132 for slaughtering, Medicinal Herbs (estimated) 250.000 Fisheries r; " 250.0(H) Manufactures, 19.021.327 Total. ! 9 1,00,4.000 In the sanii year (1S7 V). the property of the State was estimated as follows ; Real Kstatei; Personal " Horses Mules and Asses, Milch CowsL Working Oxen. Other Cattlef Sheep. Swine. Fanning Utensils an I Ma chinery, u Other Personal Estate. S3.322.01 10-2,763 50.04 196.731 45,40m 279.023 463.435 1.07.1.215 25,O02,643 Total, :i 130, 378, 622 Estimated Worth. 21,993,67 That this appraisement was made far lielow the title value of the property, appears on the face of it. A validation of the fanning utensils and machinery, for instance at $6,9.13,967 would lie clearly inadequate, yet this would place the live stock, embracing 2,213,259 head of all kinds' at the insignificant sum of 15,000,000, or 6.80 per head. But, conceding tlie correctness of the above values, it is clear that the rate of taxa tion, in past years, has been out of all proiiortion Ho even this low appraise ment of the property of the State. The census of 1860 placed the taxable value of the real and personal property of the Statj at $292,297,602, and the true value ai not less than 360,000,000. In 1870, the; valuation, as stated above, was only 130,378,623, a sum altogether too leW, even after making generous al lowance for the emancipation of the slaves, anct.the destruction of property by the wai! or resulting from it. The State Auditorj in his report to the Gen eral Assembly, for the year ending Sep tember 30, 1874, raised the appraise ment to 139,953,361. That this was far below the real value is clearly de monstrated by an examination of the items composing the sum named. They are as follows : Land, (say 26,000,000 acres) 74,489,707 Town property 1 6, 4 14, 319 Horses, mules, cattle, &c. 14,888,740 Money on jhand or on de- posit, solvent credits, 34,160,595 farming itensils, &c. il Tot$V 139,953,.S61 In this appraisement the lands, inclu ding between five and six million acres under cultivation and the improvements thereon, are valued at an average of only two dollars, eighty six and one half cents, per acre. The live stock were rated on the same basis. The average price per head wan as follows : hoi-ses, O.O: mules. '7.:4 : jacks. 55.75: jennets, $20. 20; milch cows working oxen and other cattle. &.r:l; hogs. $1.17. and sheep. 1.0'!. The laM published reput of the State Auditor is for the year ending Septem Wr :0, 1M75. It hows an increae. dur- inir the vear. in tlie taxable value of the property of the State, amounting to $l2.592,e;2. Of this sunt !l.:!45.212 appears to have been added to the er- sonal etate. other than livestock. This is tl: Hi's s ; ) i ' T.and r2ti.tMHI.tKMI acres) ,..: HI. .!'. Tow n projKM ty 1 7.047.:?21 Ki.('s:!.(Htti Horses, mules, cattle. vVc. Farming utensils, .money on hand or on deposit, solvent credits. Are. 4:i.505.st)7 Total 152,5415,02:3 The advance in land was two and one-half cents ier acre; but the live stock were rated far 1 x-low 1874. The increase in twelve months was 5 42.476 head, of all kinds. To keep the aggre gate value as nearly as possible to that of the previous year, it became necessa ry to reduce the prices. Hence ' the horses were returned as worth only sf52..M) per head; mules, $tMI.K5: jacks. sK0.:H): jennets. $17.42; goats, km cents: milch cows, working oxen and other cattle. 1.74; hogs, l.0:J; sheep. i(i ceuts. It is needless . to observe that these figures do not even approximate ly represent the real value, either of the laud or the live stock. Taking the latter at the prices upon which taxes are levied in Virginia, the aggregate would le $.W,757,M(i5, or $17,074,7(iy in excess of the valuation in North Carolina. To guard against misunderstanding on this point, it is well to give, in detail, in parallel columns, the prices loth in Virginia and North Carolina: Horses, average jer head. 75.2 Mules. m.x: Milch cows, oxen and other cattle, aver age per head, IK ,5 Hogs, :,.50 Sheep, average jier head, 2..M) -V. ( '. $52.30 t50.K5 t.74 1 .03 0.9 As appears alnive, the value of prop. erty liable for taxes increased 0,574, 73!) between 1M70and 1874, and 12. -'!. c.i;- r..r fi..- v.:.,- .-.wiiM.r' v..,...Mfirr the reports of the State Auditor, and other sources of information, justify the committee in m dcing the appraisement following : 'Improved farms. 5.500.000 acres, at 10 per ayre, 55.omio,IO Other lauds, including tini ' ber and turpentine dis tricts, 20.50 .(KMI acres at 2.50 per acre. 5I.250.O o. Town proiM'ity, including " mills and machiuery, 45,000.000 Live stock, farming utensils ami machinery, 35.000.00:1 Cash tn deposit, or in hand. stocks, bonds. solvent credits anil other personal estate, 50,000,000 Railroad property. 30,000,0:10 T.jtal,- 206,250.000 The entire recognized debt, including interest, is now only eight per cent oftliis sum. On the basis of the State Audi tor's figures, it is fourteen rjr cent. To piyjnterest eveu on this pcireuta"e should not occasion any trouble to the State. Funded as prop ped v tli com niittee. the debt would represent only four per cent, on a valuation of 25:. 000.000. or less than seven pr ceot. o i the State An lit r's valuati o o," 152. 540.023. It will hardly le denied that a conservative appraisement for pur poses of taxation would Ik 160.0J0.O0O A tax o-i this sum of seven and one-half mills, or siveuty--five. cents on one hun dred dollars would yield 1.200,000, which is ample to p iy the iuterest at six per cmt. o:i a debt of 10.0 )'),00 . and leave for educational and State pur poses, f'H).0l!. Justly distributed; this tax could not possibly oppress the poorest person in the State, yet would suffice to re-establish its credit and re store its wonfed prosperity. To plead in ability to meet so reasonable a demand, clearly indicate' unwillingness on would tlie part of the State to deal fairly with its creditors. The rate of taxation, for State , pur- p.ses, uuring tne juist nscai year amounted to less ih m thirty-eight cents on $100 of the appraisement of 1875. Taken together, the municipal, county and State taxes aggregated aliout one .and one-fifth per cent. On a taxable valuation of $220,000,000 the rate was about eighty-five cents, and for State uses but a trifle over twenty-five cents on 100. This valuation may appear too high, but impartial and well-informed statisicians regard it as only about seventy-three percent, of the trae value. What ever difference of opinion there may be in this respect, there can be no room to doubt that the taxes, for many years past, paid by the people of North Caroli na, have been lower than in any adjacent State, or even iu the Union. Nor is any argument necessary to" prove their abil ity to meet any and all demands, in the matter of taxation, which may be im posed to pay the interest on the recog nized debt of the State. Has the State gained or lost, advanced or retrograed during the past six years? Residents, many f them natives, and all tax-payers, admit a tendency to im provemant, and great progress in the healthy re-establlshment of all kinds of industry, and in the development of the natural resources of the State. Its pro ductif eness has been greatly enhanced since 1870 ; the people have gained in education and intelligence, but not ma terially in prosperity by the failure of the General Assembly to provide for - 1 ' I the levying of taxes to pay the intert -t on the public debt. The truth of these propositions is apparent to every one at all conversant with the affairs of North Carolina, and is confirmed y informa tion in possession of the committee. Not including improvements of, or ad ditions to the real ami ersonal proper ty, it is safe to place the income for the year 187G at $75,000,000. The Treas urer's report shows that he received from all sources during the year onjy s.")t(i,274.77, or about three-quarters of one per cent, of $75, 000. 000. The population of the State in is to was 75:5,419 ; in 1M7)0. KiiO.OW : and in lKf.O, 902,022. The increase in 2 years was a trifle over thirty per cent., name ly 15.35. lietween 1840 and 1X50, and 14.70 from 1M50 to 1 KtiO. JW'tween lt'0 and 1M70. the increase was only 7. 7 30.. the population then King 1,07 l.3l and the increase 7.03 pr cent. The war. ilotibtless, caused this marked eduction in the ratio of increase. and it is safe to assume, that, since 1M.0. it has approximated to that which obtain ed between 1K40 and 100. Huswouli srive the State a present population o' not less than 1.1. 50. 000. That this ap" proxiniation is rather under than over the mark is shown by the vote of 1876, viz : 233.84. It. therefore. amtearH that all the taxes for State purposes. luring the year just ended, amounted to less than fifty cents per bead of popu lation. The comparative immunity from tax ation so long enjoyed by the people pf North Carolina, becomes strikingly ap parent when its tax levy is contrasted with that of other States. In Virginia, for instance, the people have been and are now called upon to pay annually for State purposes alone $2,000,000. During the past year tlie taxes for municipal, county and- State uses, amounted to alout $6,000,061). There are. at pres ent, about 5.500,000 acres of land under cultivation in North Carolina, while in Virginia the acreage does not reach 3, .700, 000. The money value of the pro ducts of the soil is relatively in favor of North Carolina. Taking its products ami manufactures together, it is equal - to Virginia. As stated above, tlie taxes I paid t.y the lattery in lMTfi. .mom, fed lation cannot, certainly, now 1,300.000. Ukn this basis the per capita tax amounts to over four dollars and sixty-one cents, w'lich is m ore than three times the sum; per head, raised by Un people of North Carolina. The population of South Carolina was. in 1870, 923,447, and now " numlcrs, probably, 1,000,000. Iu this respect, it is fully fifteen per cent. Ix'hind North Carolina; while, as regards the natural resources of the two States, North Car olina is, incomparably the stronger. The property of South Carolina was assessed in 1874. upon an appraisement of 141. 624,925, and the receipts from taxes in that year, amounted to 1,712,26M Hereafter, even under the wisest and most economical management of its Ust citizens, tle tax levy for State uses w iU exceed 1,500, IKK), annually. This is about 300,000 more than, or one and a 1uaiter 111 psranHTOee. quarter times the amount which the the people of North Carolina. Alabama will not compare cither in climate, in situ iti ni. or in natural re sources, with North Carolina. Yet. with a property assessed at 160.0: M. 000. its true value boiu. perhaps. 20 oo:). 000, and a population nimbering. p ssi bly, 1.050,000.- it has to raise anan illy more th.tn would Ik; necessary in North Carolina, to meet ent reat expenses and pay interest on a d.4t of $0.ojo.o . The taxable value of the projM'rt y o!" Louisiana is placed at ab ut 250. ojo.. 000. Tlie p ipulatiou in IS 70. was 725. 915, and can not possibly e ceed s Mi ll :) at the present time. The receipts, for State purposes'only, from taxes, licenses. fcc,, amounted, in 1873. to over l.O0 ).- 000,. and will,': probably, reach at least 3.000,000 for the current fiscal year. This necessjates a tax of one and one" fifth per cent, on the valuation given above, or three dollars and seventy-live cents per head of total iopulat ion, which is about tliree and three quarter times the tax which the committee suggest shall lie raised by the je ple of No ih Carolina. Extravagance and utter disregard of the welfare of the people have, for years past, characterized the legislatures and officials of South Carolina, Alabama and Louisiana. North Carolina, also, has suffered in this regard, but very lightly, indeed, in coiiqwirison with the other States named. The committee can. and do, sympathize with the people of thes States. Several members have had-to share with them the losses entailed by corrupt legislation and dishonest offi cials. But, while they denounce both the , wrong and the wrongdoers, the Commit tee are justified in directing attention to the fact, previously stated, that, com pared with either oLthe States mention ed above, the .people of North Carolina have been singularly, if not unjustifia bly, exempt from taxation, in view of the obligations resting upon them in tlie matter of the public debt. Speaking for themselves, and in behalf of the holders of the recognized bonds of the State, the committee show their appre ciation of the circumstances of tlie icc ple, and sympathy for them, by volun tarily agreeing to accept , it full settle ment of their claims one-half of tlie sum which the State admits is justly due them. ' Is it, then, unreasonable to ask that the tax levy shall be increased by a rel- exceed I ativelv small percentage, so as tosansiy the :n erest on but one half of the debt recognized by the State? To adopt measures to this end, and faithfully abide by their provisions, is the initial of renewed prosperity! and re-estab lishment of the public credit of the -commonwealth. I'ntil 18:U), it ranked fourth among the States of the Union. That its' resoiuces are capable of such development as t.hall restore iti!. r ink, can not 1h doubted by any one familiar with its climate, the varied pro ducts of its s il, and its inexhaustible mineral riches. Nature has, indeed, contributed her choicest gifts w ith Lav ish hand. The soil yields jibund.mtlv N heat. corn, rye and other cereals, with various kinds of root crops, grow ill luxuriance. Tobacco, cut 011 ri.-t and flax also thrive; while in cattle and sheep raising the State is second to but few in the I'nion. Its territory embra ces more than twelve million a. res of the finest timber in tlie world. Hick ory. oak. maple, ash. walnut, lime, pine and spruce are the natural growths of its forests, whose timber products arc unexcelled. Its water jiower is in itself a staple source of w ealth, and abounds in all parts of the State, except the coast division. Of the 3,642 manufac turing establishments in ojieration in 1870, it was estimated that more than 26,000 of the 5U? 152 hoi sa power requi site, was furnished l. water: and this represents but a sin ill fraction .." what me tare is catailc o. doing m that direction. Its mountains andA.dles abound in iron, coal, copper, lead, zhv.:, mica, silver and gold. To develop. these resoure.es, and place North Carolina ;i the front rank of the State of the Union, it is necessary that its finances shall be readjusted and reduced to system commensurate in scope to the needs of the State. Speaking of the public -debt a id in support of a measure looking to a par tial adjustment of it, some six years ago, the Hon, J. W. Graham tnitufuliy and eloquently summed up the case in the manner following: 'We often hear the cry now, 'Why not repudiate the whole concern?' Under the constitu tion of tlie United States, we are bound hy the obll .'"nfl'""1! rf nr- -li.nil.ler .ur .4 ,-l !0Uit.i.'H iixi'l not cast all our litVnii It i.. l,,. j vi !niK.y the dictates of conscience and of honor and go on in the pla,n path of duty.rustinthr.t In; H, to overcome all difti eulties, recollecting that the way to do this ,s to -face thenj and not to shut ureyes on them. Unless we so re .ve Usee nothing but wandering in tlie wilderness, until the present gener ation passes away. Let us not fear the dangers and perplexities of the route tor we will reap but the greater reward lor successfully contending with them. Tt H ai-f trifli n ri l i i . - - T 11 11 41444 4 1 1- 1 TT 1T. I. . , -'Usterna'. vet it is certain it wili never lie remedied a Fo-rg a3 flie opp - w iM-ium oi an overdue and unsettled debt shall lie subject of ci iimnations and re projujhes betw -enih -Stte and itscr ,. itors. As n ithin can soqnickly revi the general - business - and productive energies of the p o le so nothing can give th- State so nm -h abi4fty to 1 ay full intere t o:i fie d bt as measures resolutely providiur the -means for its payment. Procrastination bu' serves t deepen tv- existing depression, to swell the arrears of interest and lessen the ability to pay. To Iiegin paving renews confidence and c inverts unproductive into product i e va'ues. gives a fresh im pulse to all entci pr'si's. and so hvrent. the ability to c mtinue pavin y. If the requirements .f h m ir did n t? o.crride all other e--'derat ions and nn possible to ec iie,tne payment o any of our obturations, as it is not. ih? 0m;. me ut f rt-p'tdliitiitfi em, thf hn f th-A inmhf futiiil hmf nj thr f ,,, !,- many tiiiHH qrenter in amount than thr rntlre debt itxelf. Unquestionably, if expedi ency alone be consulted, the cheapest and easiest, as well as the on'y 0 get rid of the debt, is to pay it off." Truer words were never tittered by statesman and. in their application, they are universal. To ajly them to the debt of North Carolina is maiifestlv nt only the pirt of wlsdomThnt the clear est diclate o" interest. To iW'e-a satis factory solution of all the questions laun der discussion must be fraught with disaster to the go h! name of the State and to the welfare of its Ropier while to provide for the liquidation of the publie debt is. in the lanuua e of His uAiueiK ji, ma. u. ance, to restore its "credit to its ancient standard." It will also attract emigration toward the State whose domain is so grandly diver sified aud iica in hidden treasure. Capital will a" so seek the State, and, securing the purpwe of the investors u awarding them a sure and satisfac tory return, will hasten the develop ment ot its natural industries. So long, however, as the present uncertainty exists regarding the status-of the public debt; so long as speciiil pleadings of poverty are indulged ; so long as an honorable compromise with its creditors is delayed ; just so long will the depress ing influences of the past and present icij ujjuu me oiaie. " - The Committee, therefore, appeal to the members of the Geueral Assembly m iiw Moiie ana conntie,ace that by united cooperation such a measure w2U be devised as shall be satisfactory both -to the creditors and to the people of the; State. William J. BKsTrf 'hm'n., William Li mm is, Sec, GEOBOK T. Bo.NXER, Andrew Kkvax, Thiiva biri.kT William G. Chittick. . Committee. " N. U. Communicatioii!Lmaybe al dressed to the Committecat f he Offi -e i of Mechanics'', and Traders Savings In, stitution, New York Cit-. we will realize that, 'As after the night looms the sunrise of morn So out of the gloom, future brightness isborn." In similar manner, Governor Kemper, m his last annual message, refers to the debt of the State of Virginia,. ' The true way," he says, "toremre the bin Iranees to our progress the w iy to arouse a vigorous and healthy public spirit and start the commonwealth o ; a n?w career of develop nent. is by rco - ganizing our credit to ba iish distrust which Kicks up or drives qT capital, arid prostrates enterprise. -.While we k know the present ileprrmon resv.it from a combinati m o" canoes ertiin,- !
Carolina Watchman (Salisbury, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 1, 1877, edition 1
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