The Illinois free trader. (Ottawa, Ill.) 1840-1841, 1840-12-04
NUMBER 90.

State. Large amounts of it have been
purchased by spectators at prices greatly
below par, to the injury Of the communi-
| ty, to an amount corresponding with its
depreciation, and but little hope can be
entertained of advanced prices so long as
It's circulation is continued as an article
of trade. | would, therefore, respectful
ly recommend the adoption of such mea-
sures as will provide the means for its
earliest redemption.
In the month of March last, General
Thornton and others, as committee on
the part Of the canal contractors, visited
me for the purpose of making arrange
mcnts 10 provide means to pay of the
estimates as they would become due for
the remaining part of the year; alledging
that unless a positive assurance was given
that the money would be forthcoming to
meet these estimates, the contractors
would be forced 10 abandon their con-
tracts, and that in this event general dis
tress and bankruptcy in most cases would
ensue, and consequently great loss TO the
State. Knowing that bonds could not,
at that time, be sold at par to raise mon
ey for that purpose, they proposed, on
the part of the contractors, that bonds
should be placed in the hands of suitable
agents to the probable amount of the ex-
pendturcs for the year, to be paid to
them at par TO which assen,ed, condi-
toned that the bonds so paid should be
placed in the hands Of an agent whom |
might approve, to be sold for their benefit
in our eastern cities or foreign market,
to which condition they assened, and |,
therefore, placed IN the hands Of General
Thornton, Canal Commissioners, 81 .200,-
600 IN bonds for that purpose. 500, 0eO
of which has since been sold By him in
London, rs agent for the contractors, at
the rate of eighty'fve per cent, which
has enabled them TO prosecute the work
on the canal throughout the season with
energy and success, and, as am inform
ed, without loss, as the reduction in the
price of labor, provisions and materials
has equalled the fifteen per cent reduc-
ton on the bonds. Under the circum-
stances, | would suggest the propriety of
the State mourning the expense and COM
pensatlon of the agent while engaged in
the performance Of his agency. This
would seem to be just and equitable, as
the payment of bonds, instead of money,
to the contractors, superseded the neces-
slty, on my part, of employing an agent
to sell them in foreign market, and con-
sequenty threw the expense and respon-
sbility of the negotiation upon the con-
tractors themselves, besides the loss of
fifteen per centum upon the whole amount
of bonds sold. Ii is proper that should
here remark, that exceedingly regretted
the necessity of paying the contractors
with bonds, but as money could not be
raised by sale Of them at par, to meet
the estimates on the canal as they became
due, and the contractors proposed to re-
ceivc them at that rate, and hazard sale
of them on their own account, felt con-
strained from sense of duty towards
ihem, and good faith on part of the State,
to place the bonds in the hands of the Ca
nal Commissioners for their benefit.
BY an act of the LIST of February last,
the Commissioners of the Illinois and Mi
chigan canal were required ''to sell such
of the canal lands and lots the present
year as were required to pay the interest
on loans made for canal purposes" As
early as April last the President of the
Board verbally informed me that il would
be impossible to realize money from the
sale Of these lands TO pay the interest
due in July following, and, consequently,
other means were necessary to be resort
ed to to furnish the funds for that purpose.
To meet the interest upon bonds sold pri-
or to 1899 by Gov. Duncan, and payable
in New York, the sum of $4,000 was
loaned by Col. Mather. President of the
State Bank Of Illinois, and TO pay that
portion of the interest falling due in Eu-
rope, draft was drawn by Judge Young
upon Messls. John Wright & Co., OF
London, for .e20,O00, it being part Of
: e3O,C0G advanced by said company on a
contract for 81 ,O00,0 900 canal bonds en-
, tered into in October, 1899. glO,0OO
being the residue of the above .e30, 0CO
) advanced by said Wright & Co. has been
r placed on deposite in the U. S. Bank,
; ANA have instructed Judge Young 10
f apply so much thereof as may be ncccs-
5 sary for the payment Of the interest be-
A coming due in New York on the first
: Monday in january next; and am in
n louned by Gen. Thornton tina, the meaus