The Evansville journal. (Evansville, Ind.) 1834-184?, 1845-12-25
MR.. BUFFERS LETTER IN BEHALF
OF OUR FOREIGN BONDHOLDERS

our Foreign BondhOlders, addressed TO the
Governor and Legislature. 1t will be read
with interest by every one. The first por-
ton of Mr.. Buffers communication, is IA
comparison drawn between our domestic and
foregn creditors, in which it is shown tina
while the domestic creditor has been prompt
tly paid the principle of his debt, the foreign
creditor has not even received cent Of the
interest ofhis; and ofthis the agent complains
He says:-
"Allhough in the estimation of our for.
eign bondholders, the Stale would have been
partial TO our own domestic creditors, to an
extent that would have justified apprehen
sion on their part, if she had given to them
her bonds or obligations in precisely the
same form, as she had previously given 10
those who had advanced her their money
(and surely this was all they could have ex-
acted } and if she had, TO the extent of the
interest on such bonds, allowed higher rate,
and provided forts punctual payment, in full,
out of the revenues ofthe State, before any
application ofthose revenues should be made
TO the payment of the interest on the other
bonds:-yet they would doubtless have sub
mitted 10 it without any complaint; and they
cannot but regret, that such plan was not
adopted, as it would have projected the
State itself from great embarrassment, and
enabled it, as the history of its finances for
The last four years abundantly prove, not on
y to have paid the interest in full on its do
nestle debt, but also TO have paid some por-
lion of the interest on her public debt, at the
same time: and however small that portion
may have been. it could have saved many
from runous sacrifices, and contributed To
the relief of others, who during that period
have been siraitened in their circumstances
in consequence of not having received their
just dues from the Stale; and it would have
been such an earnest of intention and effort
on the part OF the Stale, 10 maintain IFS faith,
and meet its liabilities, TO the extent of lis
ability, as would al the same time have en-
couraged and relieved its creditors.
He then proceeds to say:
now come 10 another branch of the SUBJ
ject, of the deepest interest TO portion OF
the bondholders, represented by me, viz: the
holders of the Wabash & Erie Canal bonds.
These bonds were issued for money borrow
ed for The construction of that canal from La
fayette, or the mouth of the Tippecanoe riv-
er, east 10 the State line (Which was The Wa
bash IL Erie canal in Indiana, as originally
projected and pledged,) and the canal its
lands, its revenues and Toll, were SET apart
and appropriated, and by the original acts
authorizing the loans, were irrevocably pledg-
ed and guaranteed by the State for the pay
ment of the interest and the redemption of
the principal of those loans; and upon this
pledge the loans were obtained. The Ca
nal has been finished, it's entire length from
Lafayette east TO the Stale line, and the
Stale has realized, and is, at this moment.
realizing a considerable revenue from il, and
yet no application has been made OF any por-
ton Of it, according TO the original pledge,
and for period OF five years has the same
remained unpaid. The holders of those
bonds conceive that they have right to in
sist that those tolls and revenues be thus ap-
piled, and they feel that the State has no
right 10 divert, or use them for any other
purpose. however desirable it may be to The
State, without their consent, and they APP.
peal to the sense of justice and honor of the
State, TO fulfill the pledge which was so just
ly given, which is engravened on the face
OF the bond itself, and on the security of
which they Obtained the money. That
those tolls have, by law, been made receiv-
able in land scrip, issued for the coustruc
ton of the canal west of Tippecanoe, at par,
the market value of which is only forty cents
on the dollar, is circumstance calculated
10 make them feel more deeply the injustice
which been done them, in diveriing the tolls
from the object to which they were original
ly pledged; as they cannot see in such dis
position of them, any public benefit to COM
pensate for the manifest vllaion OF public
faith involved in it. If The State had, at the
same time and by the same law, which divert
ed those revenues from. their Legitimate end,
provided by tax, for the payment OF the inter
es, on the canal bonds, the holders would
have no right to complain; but as no sach
provision has been made, they are consraiI :
ed 10 present the bond Itself, to the notice OF
your Excellency and the Legislature; and TO
respectfully and earnestly insist on the full
flment of the obligation which il imposes;
tor il will not be do ubted that the necessities
of those individual holders, are more press
ing than can be those of the State; and in
order that your Excelency and the Legisla-
ture may better understand the views and
feelings entertained on this subject. by this
class of your bondbolders, subjoin hereto,
the letter of Mr.. CottereIl, with copy of the
bond held by them. When it is considered
that there is a contract existing between the
State and every single holder of one of It's
bonds, il is TO be expected that he should
feel a deep personal interest in every act OF
the Legislature affecting the terms OF the
CONTRACT and calculated in the least toweak-