The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1844-10-04
From the New York Journal Of Commerce.
'Ehc Indebted Stute..

The Indebted States.
II is fact which forces itself upon the
minds of many who deeply regret to
believe it, that the debts of some OF The
new States are SO very large in proper
ton to their available resources, that they
neyer can pay them, except through an
understanding with the bond.holders,-
by which they may be enabled 10 render
productive their half finished Canals and
Rail Roads, for tie construction of which,
the debt was created. In plain English,
if the bond-holders would secure what
they lave already loaned, they must adj
venture lule more. The very fact Of
tie bankrupt States owing so much, rem
ders it impossible for them TO obtain far
Their loans for the completion of their
worNs, from parties not already interested
in their finances. And without the COM
pleton of their works, they can have but
little revenue, except what is raised by di
rect taxation. And this, in new State
especially, is a hard way to raise money
for the payment of millions Of principal,
or even half million Of interest annually.
In short, it can not be done, in the pre-
sent state of things; and without some
cooperation, Of the nature we have him
ted at, the bond-holddrs may as well hang
up their fiddle. We say this with regret
and notification; but ruth is truth, not
withstanding. There are perhaps only
two or three States in the category Of
which we are speaking. Indiana and H.
linois are the most prominent. Its some
years since they have paid dollar of in
teyest on their bonds, and without some
new arrangement, we doubt if they ever
will, And the longer the compromise is
deferred, the more difficult will it be to
make it to advantage. For not only are
the unfinished works continually going to
decay, and thus deprecialing in value, but
the population Is rapidly changing, and
giving place to new class, who will per-
haps ayow they had no voice IN creating
the debt; that they have derived no ben
eft from it; and that they ought not to
pay it. Observe, this is not our language,
but that which we suppose will be utter
ed, or thought, by many PLAN men who
in their individual transactions are upright
and honest. The population Of the new
States doubles, and in some cases trcbles,
in ten years A few years more will
leave the citizens who contracted the
debts, in a minority. The majority will
be composed of persons who have since
moved into the State (or States from 9th.
or parts of the Union, or from Europe
1t cannot be expected that these men will
feel any greet interest in paving of what,
they Will call other peoples debts. And
ii may be taken for granted that thew will
nol be assumed by the general govern.
ment. Whichever party may succeed at
the approaching election, the result will
be the same in this respect. And if the
bond-holders are waiting with any such
expectation, they are leaning upon a bro.
ken reed.
We have often enough expressed our
views Of tine solemn obligation of State
Debts, not only upon the State in its pub,
lie character, but also upon the individuals
composing it. That is to say, every in
dvidual citizen ought to hold himself rea-
dy to be taxed to the utmost of his ability.
to enable the State to meet its engage
ments. Above we have stated, not what
ought to be, but what we think will be, in
regard to the debts of Illinois, Indiana,
and perhaps one or two other States, un-
less the bond-hoIders come into some spec
dy arrangement with their debtors, of the
nature above indicated.
The only one Of the insolvent States
that has made any effort to come to an ar
rangement with its creditors, is the young
and enterprising State of Illinois. She
went To her creditors and declared her de-
sire to pay. but her positive inability so
to do at present, without aid. She offer
ed all her property as security to those
she owed. She asked for no loan, but
proposed to give up to the bond-hoIders
her valuable Canal and all her property,
at the same time guaranteeing TO them the
possession and absolute control of the
Canal, and the sales and receipts of all the
property and tolls for all time To come, I'M
I'll they should be reimbursed. principal
and interest, for all their debt
This was an offer that among business
men would have been considered fair and
honest, and one that would have been at
once accepted. 1t was alike honorable to
the State, and fair for the bond.holders
and but for the improper interference of
men who wished to make the negotiation
bend to selfish motives and schemes for
speculation, the creditors would long since
have consented TO an arrangement, and
that great Canal which is to unite our in
land seas with the Mississippi, would now