The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-08-17

The painful emotions excited by the conciton TO
whlch me public works are thus reduced, might be
sohleWnat renewed, II there We're any well grounded
nope that their prosecution would be resumed within
any reasonable period But the provisions OF the
law suspending those works, well as the contem-
poraneous expositions Of the grounds on which 1t
was snac!ed with every rational view which can be
taKen OF Its tendency, forbid any such expectation.
Inc policy OF the act plainly is that the debt OF the
'ate siiali IN no evenbe increased Tor the prosecu
llon OF improvements; nay further, that the whole
Oh the existing debts shall be extinguished before
any additional sum be borrowed, and the accruing
revenues instead OF being appropriated, hereto
lore, TO the prosecution OF the works. be henceiorh
applied exclusively to the establishment OF fund for
the extlDgulshment OF the existing debts, althoug h
win small exceptions those debts are redeemable
only at distant periods II is but too apparent that
these provisions render any further progress
The present genera,ion,l if this law continue,
must abandon all hopes Of seeing the system re-
sumed, and 4 will only remain for them to pay the
whole cost OF works in great degree useless, be-
cause left unfinished, and Fastening rapidly to aila
pldation and ruin.
The objects which the Legislature had in view, in
directing the suspension of the public works, were
declared to be to pay the debts of the State and pre-
serve Its credit. The of paying the debts are
derived from revenues and taxes. But the State,
SO tar from diminishing, has increased its indebted
ness, by becoming liable to contractors for heavy
damages which might have been avoided by prose-
cutting the works, while by disseminating the neces-
sary enlargement OF the Erie canal the inc rease of
revenues hther so constant, and so confidently
he'd upon for the reimbursement of the debts is
checked, and must ultimately cease Simultaneous
ly with the commencement of this policy, new
mod" OF stating the public accounts was adopted
Debts due from the State to ITSELF and debts for the
payment OF which funds had been invested and set
apart, were added to the aggregate of debts for
which no provision had been made; the conditional
guaranty OF the credit of the New York and Erie
Railroad Company was converted into fixed debt
by withholding the aid necessary to complete their
m ucttv anI IL.
guarantees In regard to which there had been no de-
fault, nor indications OF default, by the PRINCIPALS
frst liable, were made to swell the aggregate in
debtedness with which il was represented that the
treasury was oppressed. The principle that our i'm
provemenis Were 10 be made exclusively on the Gre
dit OF their revenues, and without burthening the
people was abandoned by levying tax exceeding
SIX hundred thousand dollars, bearing alike on the
districts the least welllas those the most bene-
fitted by the construction OF the works. Nor has the
expectation Of restoring the stocks of the State to
iheiriormer high valuation been adequately realized
and certainly not 10 any extent commensurate with
the sacrifices which have been made. The fiscal
officers OF the State are not now able to negotiate
oanJVen al seven per cent, except occasionally for
small amounts. Under these circumstances the in.
curry arises whether the policy thus attempted ought
10 be continued. An imperative sense of duty CON-
pels me again TO decrare my conviction that it is
radically wrong,and that erroneous views have been
taken OF the causes OF our embarrassment
Previously TO the present session of Congress.
when as yet only one State had omitted to pay the
interest on its debt and that too, not without pre-
textthat betrayed desire TO avert the consequent
ces OF so great error, called the attention of a
general failure by tue indebted States, and invoked
the constitution effort when that government might
effectually make to avert such catastrophe. AZ
forwards, when the Legislature of this State assem-
bled at the beginning of the present year. the same
apprehenslons were communicated to them, with a
view OF the deep interest which we had at stake IN
the maintenance of the credit of our sister States
urged that their failure would produce effects dis
acf tn al
that would necessarily result in diminishing the
revenues from our canals and all other sources. |
submitted, also, that although we had ampl. resour
ces and reoenues, our credit must unavoidably re-
ceive some INJURY from our intimate political con-
necon with lnsolvenf Sates and that if it should
become materially impaired, serious embarrassment
would be experienced in prosecuting the public
works. Advertlng to erroneous opinions then |
somewhat prevalent, showed that the revenus from
the canals, steadily increasing at tbs rate of fifteen
per cent every two years, Notwithstanding Temporal
ry fluctuations, together with the revenues from the
public DOMAIN, constituted ample resources for Dor
rowing all the money necessary to complete the
works, and tor paying the interest on the then
existing debts, and those which it would be ne
cessary to contract, and tor extingushng the princ
pal as last as it would become due. demonstrated
ed that the danger TO which the credit Of the State
was exposed, arose, not from any cause merely To-
cal or temporary, nor at all from the extent oil our
diminished works, uor from The amount of our in
nor from the frmness with which we
had persevered in our movements during the three
previous years. but from the failure of the confidence
OF foreign capitalists, and even of the American
people themselves, in the financial wisdom and in.
tegrity OF the governments of other states
submitted "a a course proper in the emergency
that care should be taken to foster our own credit
by stating Justly, and without exaggeration the ac-
revenue; bypreventing our conditional guarantees
rom becoming fixed debts; by scrupulously per-
forming our engagements with contractors; by rro-
scouting the unfinished works firmly, and even with
tfnns ~ Il.
to the fundamental condition that no more money
should be borrowed IN any one year than sum- the |
interest OF which could be paid with the current
revenues, to be ascertaned from the actual receipts
OF the preceding year, and by constituting sinking
fund with the moneys annually received from he |
proceeds OF the national domain, together with n /
sufhcient portion of the surplus revenues which |
should be invlolaby pledged, and steadily applied
to the constant diminuon and final extipguishment
OF the principal of our debt.
And to these suggestions, relating to the direct
acton OF the Legislature, added others, earnestly
recommending that the influence of this State /
should be exerted TO secure the adoption of national
measures which the exlgency rendered necessary
Prominent among those measures were tariff laws.
The restoration of the currency, and some mode of
enabling, the indebted States to render their por-
lions OF the proceeds OF the public lands Immediately
available for the payment of their pressing engage
ments. And also urged that the false and fatal |
principle of repudiating public debts, which as vet
mas not been openly promulgated, should be metby
VIII ouCi an cApTcSsOn vi transportation
and rebuke, aswould convince the world that come
what might OF trial or DISASTER far as our action
and influence could be efiectual, the faith of not
only this, but of all the States OF heAmercan Union.
should be preserved for ever involable
The policy thus recommended did not prevail.
and the evils then apprehended are fully realized L.
Sale alter State, some with unavailing struggles
but others without any, have neglected to perform
heir hscal engagements, and thus dark stain is
lifusng Itself over the escutcheon Of our country
The credit even of the Union is virtually destroyed
and our own is impaired, notwithstanding our great
and the convulsive efforts which have
been made to induce discrimination betwee that
credit and the broken faith of other States.
Under these circumstances, must adhere TO the |
views before submitted, and invite their econsdera-
lion ; and to avoid any misapprehension. / recon.
mend that the Legislature rescind the law directing
the dlscontlnuance of the public works render TO
The New York and Erie Railroad Company the aid
necessary to enable them to recover their credit and