Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-01-09
Report of the Committee of Ways and
Mems.

This report was made to the House, as will be seen
by our Legislative reports, on Tuesday last. The
following extracts will be interesting to our readers:
"The presen. condition of the Treasury, destitute
as ii is, virtually, of all means to meet the demands
upon 1t for the current year, seems to present but a
gloomy prospect for the successful operation of our
State Government during the trying crisis of the
present fiscal year. The practice of raising means
for the current necessities, upon the credit of the
State whether by direct loans, or in the more insidi-
Gus form of issuing Treasury Notes, which is, indeed,
nothing else titan a loan in disguise, is to be deprecat-
ed, as much as the necessity Is to be regretted, which
introduced into our financial operations a resort to
either. If you raise means for the current year by an
issue of Treasury Notes, they will more or less de-
p~reciate, a necessary CONSEQUENCE of which is, that
the next years revenue brings them back into the
Treasury and the Legislature is again driven to resort
to a similar issue, or other temporary means, which
leaves the Treasury ct the close of each fiscal year but
little improved in condition by the issue of these
Treasury Notes, to say nothing of the injurious effects
of a deprecated currency upon the business and
industry of the country. The same may justly be
said of a loan, except as to its effects upon business
and labor. To borrow money to pay State creditors,
only changes our creditors 1t does not diminish our
Indebtedness. These considerations have induced your
committee to seek, if possible, to avoid either a loan,
or an increase of the circulation of Treasury Notes
by an issue thereof to defray the ordinary expendi-
lures OF the State Government.
To this end your committee have availed themselves
of the best means of information within their power
relative to the probable proportion of the reye-
nue. of 1874 which will be paid into the Treasury in
current funds, and your committee are happy to ex-
press the opinion that perhaps one third of the amount
will be paid in par funds, which, if realized, will be
amply sufficient to defray the ordinary expenses and
keep the machinery OF Government In motion during
the fiscal year. 1t is believed that this course Will
rapidly tend to produce health and stability In our
revenue, and hasten that most desirable consum-
nation, the final payment of our domestic indebted
ness. Should the anticipatIons of your committee be
realized, and par funds received in the revenue of
lS44 be more than sufficient to meet the ordinary
expenses of Government, the residue should, in their
opinion, be applied to the bank loan, and they have
introduced a provision for that purpose in a bill here
with submitted. 1t will be seen that your committee
propose no means for replacing the trust funds at the
present time, as the interest is a. that is generally
lawful TO he used, and it is believed that the whole
may, at no distant day, be replaced without materially
increasing the present rate of taxation, which your
committee think it would be impolitic to do at this
embarrassing period in our financial affairs. The
issue of Treasury Notes of 1910 bearing six per cent.
interest viii, in the month of April and other months
in this year respectively, in which the several issues
were made, amount to six dollars and fifty cents
each, principal and interest There is no other purpose
to which they are applicable in which interest is
allowed except revenue, and In that way they are
absorbed but slowly. 1t has been suggested by the
Treasurer IF State that a large amount Of these notes
could be taken up in exchange for Treasury NOTES
bearing an interest of but one quarter Of one per cent
allowing interest upon the six per cents UP to the
time of the exchange. This would be exchanging on
our part evidences Of debt, bearing one quarter OF
one per cent. interest, for those bear .ng Six per cent.
and would certainly be a gteat saving to the state by
stopping the accumulation Of interest. This opera
ton is too plain to require any example or demonstra-
ton of the truth of the proposition. The only re-
mainp enquiry then. is. will this proposed exchange,
if carried into operation, depreciate the quarter oil
one per cent notes in a greater proportion than six per
cents, allowing for the difference of interest, or adding
the interest to the principal Of the six per cent. notes
Now bearing in mind that the amount put out,
draws in by the exchange an equal amount, diminish.
ing the accruing interest from six to one quarter Of
one per cent, and not In any wise increasing the
amount in circulation, it seems difficult to see any
cause why an unequal depreciation should follow,
The committee have for the reasons aforesaid reported
q bill authorising the Treasurer to make such ex.
change. Your committee, taking the Auditors est.
mate of S232, COO as the amount Of revenue for 1874,
think it not extravaganza to estimate the revenue Of
1916 at S240,000 with the continuance of the same
rate of taxation. They deem it unnecessary to in
crease the present rate of taxation. They therefore
recommend that the same tax be levied as was last
year. Your committee have carefully examined the
Office of Auditor of public accounts, and Treasurer Oh
State, and they take great pleasure in saying that they
found the books and papers OF each OF said Offices in
good order and condition, and that every facility was
rendered your committee, IN their examination, by
both the g~entlemanfy officers"
The COZ nmitiee estimate-th the annual increase of the
revenue hereafter at $4,000 and enter into calcula-
tons to show the timeswhich our domestic debt, In
GLIDING bank debt in the shape of 5 per cent. Bank
Scrip. can be fully discharged, a more full detail Of
which viii be given hereafter. The one is a csleuls-