The Illinois free trader and LaSalle County commercial advertiser. [volume] (Ottawa, Ill.) 1841-1843, 1842-12-16

Bonds issued to and purchased IN, -''oo'ooo w
the Bank of Illinois on accoun, of
state stock, ono o,o oo
Bonds issued on account of the state 'N'" w
house at Springfield, eiOoo M
Due the government of the United
States when called for, on account
OF surplus revenue deposited in
the state treasury, 4779le 90
a portion OF this sum, by act Of the
general assembly, was added to the
school fund, and consequently, by
our present law, we are indebted
to the school fund on that account
in the sum of 335 600 M
Due the school, college, and semi.
nary funds for moneys borrowed
by act of the general assembly tn
assist in paying the current ex-
penses of the state, l7lAgo "a
Due the State Bank of Illinois for
paying auditors warrantsand in
terest on the same, s9llSO 90
To the Bank of Illinois at Shawnee
town on settlement, 3c999S 90
Upon the whole Of this sum, except So much as
is due to the school, college, and seminary funds,
and SO much as is due to the United States on ac-
count of surplus revenue deposited. interest is now
due from the first day of July, 1S4l. 1t has hi
thero been supposed that the profits Of the state
stock in the two banks would be amply sufficient
to pay interest, not only OH the sum paid in bonds,
amounting to two millions six hundred and sixty
five thousand dollars, but also on the further sum
ofthree hundred and thirty-fve thousand five hun
dred and ninety-two dollars, par, of the surplus
revenue, first added to the school fund and then
converted into bank stock. But the failure of
those banks, and their present precarious situa-
ton, renders it almost certain that, if continue
| a.. IL. E
paid in will he nearly total loss, and, consc-
quently, that sum will fom one of the demands
upon which interest will have to he provided in
future. Those banks have not, for long time
past, So far as | am informed, declared or paid any
dividends in favor of the state; consequently, the
interest provided by law to be paid to the several
counties on the sum of 1885 s92 part of the sur
plus revenue added t. the schuol fund, has formed
a demand on tho state treasury and has been paid
out Of the ordinary revenues derived from taxes.
cannot believe that it the intention of for
mer legislatures to make this permanent demand
upon the treasury to be raised by taxation 1t
| must, undoubtedly, have been supposed by our
predecessors, that the profits OF banking would be
fully sufficient to NEE, the appropriation there
fore submit to the general assembly whether the
state Is any longer bound to pay interest on that
sum, unless i can be derived from the profits OF
the investment.
Many persons suppose, and, ! think, with great
probability, that an arrangement can be made with
the two banks. by which the state can get back
the So 6G5 600 in bonds, which have bee issued 10
| them.
AS the banks have not furnished the proper de-
partments with the information from time to time
required by law, nor published any account Of the
state Of their business, i. is at present impossible
| to Judge whether the assets Of those institutions
will, upon final settlement, he more or less than
the market value OF our bonds. II those assets
| should amount to more than the market value OF
the bonds, SO to make It probable that our bank
stock would sci! for more .han our bonds, would
recommend sale OF the stock and with the avalIs
| purchase bonds TO n greater amount But ap-
prehcnd that our stock in those institutions could
not be readily and advantageousiy sold. The
state owns majority of stock III both the banks,
and, by law, is entitled to only minority of tho
directors. The minority III interest controls the
majority. This being tie case it does not appear
to me probable that this stock would be desirable
to individual owners. In fact BY the fundamen-
tai error committed by our predecessors, in giving
a majority Of the directors to the private stock
holders, the state stock has been rendered of little
or no value 10 the state. would, accordingly,
recommend, if we can, by any just arrangements
with the banks get back our funds invested with
out loss, that such an arrangement should DO
made feel further warranted III making this re-
commentator, by former experience OF the disas-
trous attempts at state speculation, III which we
ALWAYS have been and always VIII be the losers.
States and nations cannot possess the facilities anu
| shrewduess in bargaining, which characterize the
business of sagaciaus individuals to their own az
| fairs aud can never attempt 1t without beng cir
cumyented in thousand ways, Unforeseen ana
unprovided for by the Legislature.
If this arrangement eau be made, the rem aiming
Indebtedness will amount to {l2, lsb,ios ~, from
which, if we exclude the SUM OF S419i9 peihg
the surplus revenue deposited in lhe treasury, and
for which we are not as yet accountable ana pro-
baby never will be, we lind the sum OF sll'ooo'-
1877 II of principal, upon which interest ougnt ="
be paid amounting annually TO the sum oil so9o,-
$50
| am happy to bavc it in my power, 10 an
nounce to the legislature, and through them 10
the world that there is no disposition, so TAR as
know, in any department of the government or
with the people of the state, to avoid the payment
of this debt. Although the elections IN August
last we're conducted with much warmth on the
par. of the candidates and people, not more than
one or two individuals were found willing to oler
their services upon tue principles oil repualatloh
and those individuals were unsuccessful IN their
elections. Thus demonstrating, beyond the pos
sbility of doubt, that neither public nor indivld-
ual honor and honesty are extinct, but that as
strong an attachment to the principles of justice,
and as sound state of moral feeling exists here
as is to be found elsewhere.
Nevertheless, the magnitude of the debt and the
failure ON the part of the state to pay interest,
have been attended by the most injurious conse-
ouenccs. Our people have been rendered unhap-
nv. and look with alarm at the prospect before
them. Many of them if possible would dispose
of their property at considerable sacrifice, with
a view 10 emigration; another considerable Por-
ton at the north, for this reason have desired TO