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


, the lmpossibility of enccting n sale o
State bonds at par, and the general de.
rangemcnt of financial affairs, present to
my mind insurmountable obstacles to
their further prosecution under existing
circumstances But should your wisdom
dictate otherwise, and YOU determine to
proceed with portion of them, then the
salutary lessons of experience we have
had, and every principle of economy and
public interest, point out the plan of opor-
atlonS too obviously to be Inexperienced
either as regards the present or any future
period.
All the means and energy employed
should be concentrated on the most useful
and important road first, unlil that is COM
pleted, and then the next important, until
all are finished.
BY pursuing this course, the income
upon the roads in operation would in all
probability pay the interest upon their
cost, and greatly facilitate the construction
of others, while the comparative amount
of money which might be required, could
be obtained on more favorable terms.
The question, therefore, naturally arises,
whether we proceed with our internal
Improvements system or not, what policy
can be adopted which will best subscrve
the present emergency, and promote the
public veal i'll our future operations.
Laying aside any doubt as it regards the
payment of the January interest. which
can only be done by the hypothecation or
sale of State bonds at some price, how is
a permanent fund to be provided to meet
the future interest, and, eventually, the
principal, as they respectively become
due and payable.
The policy of paying the interest out
of the money borrowed must ere long be
abandoned, and the only alternatives
which have suggested themselves to me
is an increase of our banking capital, and
resort to direct taxation. The solution
of these questions call into rcquisition the
united wisdom of this General Assembly
and, i'll order to enable YOU to arrive at a
correct conclusion, and settle down upon
a policy, the momcntous consequences of
which deeply involve the interest and pa
triotism OF the people, too much care can
not be taken in adopting the line of action
to be pursued. Shall the first alternative
be adopted The consequences attend
ant upon and inseparably connected with
an increase of our banking capital, should
be narrowly scanned and well weighed
in the balance before venturing upon such
resort. In the first place, should that
policy be pursued, the capital cannot be
obtained without involving the State in an
additional debt corresponding with the
increase; and if obtained, could such n
resource be relied upon to pay any por-
ton of our liabilities beyond the interest
accruing upon It's own account! 10 in
sure such a result to an extent commens-
uratc with The object for which it would
be designed, you would necessarily be
compelled to raise the interest upon bank
accommodations to ten or twelve per
cent, and i'll this way tax the people
some five or six per cent. upon the whole
amount of notes issued under such a sys-
tenn, the benefit of which would accrue as
well to the private stakeholder as to the
State. Then, if the bank should be well
managed, we might expect the highest
dividends, but the late and repeated cx-
pansions, suspensions, and contractIons
of the banks generally, furnish ample
proof that the paper system is fundamcnt-
ally wrong in principle, destructive in
practice, and at war with the best inter
est of the country, and the genius and
spirit of our republican institutions. lis
tendency and inevitable result is, to spread
merely the appearance of prosperity for
Il season, and then gloom. revulsion, and
distress; thus proving that ii has no
power to regulate and render stable the
currency OF the country.
Whatever plan may be devised to pro.
vide means to pay off the liabilities OF
the State, none can be adopted that will
not operate as tax upon the property
and industry of our citizens; and it ough
not to be concealed that if the vast deb
which has been incurred on account o
our internal Improvements, is ever paid
it must be done through the medium o
taxation. The dictates of wisdom ant
prudence, as well as sound policy, there
fore, require that the most simple anC
economical plan should be pursued ant
it only remains TO determine between ;
} direct and an indirect mode. am aware
: it has often been alledged that the peopl,