The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1844-07-19
With great respect.
| have the honor to be,
Your obedient servant.
JAMES X. POLK.
From the N. Y. Journal of Commerce, July 10.
The Canal Loan.

The Canal Loan.
The following extract from circular Of Messrs
Magniac, Jardine, a. Co., and Messrs. Barring,
Brothers, & Co., addressed to the holders of ILL
nois and Michigan canal bonds, contains the terms
of the proposition to be made to the state of ILL
nois by the foreign bondholders, as a basis of a
further loan by the latter sufficient to insure the
completion of the cana
1t has been urged, and we think with
great reason, that, whilst our previous
proposal in making any further payment
beyond the first instament of twelve and
a half per cent. on the present Canal debt,
conditional upon the promise of the gov
crnor of Illinois 10 recommend to the leg
lslaure some provision for the interest of
the state debt, rendered it imperative up
on the authorities of the state TO take
some step towards the performance Of It's
engagements to its creditors, there was
nothing in the form of The subscription
which involved, if such steps were hon
orably taken. any obligations on the par,
of the subscribers to increase their pay
ments beyond the original amount OF
twelve and a half per cent, and that such
a subscription might, therefore, be regar,
ded in Illinois as imperfect, and inefficient
to effect the object proposed by the legis-
lature in its act of February, ls43. On
the other hand, it seems to US that, as the
Legislature of Illinois will meet in regular
session in December next, it is proper
that this condition, which, in the alb
sence OF tina! assembly, applied to the
governor OF the state, should now be
transferred 10 the Legislature itself. We
propose, therefore, that, provided the le-
gislaure shall at its next session adopt
and establish system of revenue, by
which provision shall be made for a
prompt and continuous payment OF a part
OF the accruing interest upon the whole
state debt, and shall also provide for the
gradual payment of the arrears OF interest
now due, and of such arrears as shall
hereafter accrue from her present inabii.
ty to pay the whole interest a. its exact
then each subscriber shall be
bound TO pay, on due call of the Canal
trustees, OF which timely notice is to be
gwen, The remaining nineteen and half
per cent. Of this subscription, or forCei,
ali claims to the interest upon, or reim-
bursement of, the twelve and half per
cent. On the other hand. should the leg
Islalure fail to make the stipulated provis-
ion, then such portion of the twelve and
half per cent. previously paid, which
may not at the close of the next session
Of the Illinois Legislature have been ex-
pended, shall be either retained by us or
returned to us by the trustees, and divid-
ed, pro rata, amongst the subscribers
and such portion thereof as may at that
lime have been expended, shalt be secu.
red on the Canal and Canal property, and
rank pari passu for its reimbursement
and claim to interest, with any other
sums which may be afterwards raised for
The completion of the Canal, not exceed
ng in all one million six hundred thou
sand dollars, in the righ, of priority of
payment stipulated for in section sixteen
If the law of February, lS43.
Under such circumstances, we propose
% make the advance Immediately TO the
extent already mentioned, and we cannot,
ioub, that the legislature of Illinois, ac-
ing with the same good faith towards its
which the subscribers exhibit
owards the state, will readily NEE. our
views, and adopt measures, which will be
dictated not only by sense of justice,
'ut by due consideration of wha. will
most tend TO the Ultimate credit, advan-
age, and prosperity Of Illinois.
TO simplify the arrangement OF SUBJ
'cripuon, we annex form Of application
o Messrs. Magnlac, Jardine, and Co.,
or certificates to the extent either of pre-
'ious subscriptions, or of such amounts
IS other parties may now be disposed to
subscribe, and the certificate to be deliv.
red by the trustees when the whole
mount is subscribed for, will be of the
ubJolned purpori; although, Of course,