12 REPORT OF THE

conviction that all the burdens of taxation must be borne by it, while
capital invested in more profitable enterprises is allowed to escape
taxation altogether.

STATE LEVY.

Statement "K" shows the State Levy for all purposes for the'
year 1871, to be $802,288.24. Of this, the amount designated as
"Direct Tax," and which the Legislature is under no Constitutional or
other special obligation to continue, is $125,014.88. This tax was
originally laid for the purpose of realizing the amount necessary to pay
the interest on the debt of the State, contracted for Works of Inter-
nal Improvement, and has been reduced from time to time, in ratio
and amount, and if the legislation, suggested in this report, be
adopted by the present General Assembly, they may and ought to
repeal the Direct Tax altogether. I recommend this course in the
strongest manner, and have no question that the experience of
another two years will evince the wisdom of repealing a much,
larger portion of the general taxation imposed by existing laws.

I merely recommend the repeal of this item, at this time, leaving
future reduction to be governed by the success of the measures
which this Legislature may adopt. I also suggest that the day for
declaring the Levy in the several counties of the State, be uniform
by law, and recommend that the first Monday of June be fixed as
the legal day for that purpose.

As the law now stands, some of the counties are compelled to
make their Levy before the end of the session of the Legislature,
and from this fact discrepancies have occurred, which would be
guarded against by fixing a later day.

PUBLIC SCHOOL TAX.

Statement "L" shows the Levy, Receipts and Disbursements on
account of the Public School Tax, as authorized by the Acts of
Assembly of 1865, chap. 160, 1868, chap. 407, and 1870, chap. 311.
The receipts for the year ending 30 September, 1871, on this ac-
count, were $410,065.54.

BOUNTIES.

Statement "M" shows the sums paid as Bounties to Volunteers,
Drafted Men, &c., during the fiscal year ended 30th September,
1871, and also a condensed statement of the total disbursements
made in various years on that account. The amount paid for
Bounties during the fiscal year ended 30th September, 1871, was
$71,150.00.

the Navy Department at Washington has been enabled, during