Indiana State sentinel., 1845-04-10
From tAs n. Z. Sun. Aprtl ..
ludiaua,

of much interest on the subject of the public debt of
that State and explanatory Of the efforts she has made
to meet the demands of her creditors. 1t is clear,
comprehensive and ful of valuable statistical infor
nation bearing on the present condition Of Indiana
and contains important suggestion contested with
her future standing and prospects.
INDIANA, HER PUBLIC DEBT, AND HER
CONDUCT TOWARDS HER CREDITORS.
To the Editor of the Sun.
SIR.-During the past winter, some of your neigh
bors Of the city press especially the Editor of the
Tribune, have seen fit to speak in terms unmeasured
and unlustied by facts of the State of Indiana in
connection with her public debt and her treatment Of
her creditors As of her representatives, in the
late Congress, sought occasion during the ses son
that has just closed, to reply to such aspersons the
floor of the House; but finding no suitable opportu-
nifty, ask that you WILDE kind enough TO allow me
te avail myself of the extensive circulation of the
Sun, in stating the facts of the And these fair
ly stated, am willing to abide the judgment of the
country confidently committing to well informed pub
lie opinion, the reputation of my adopted State.
1t is but too well known, that Indiana, some nine
wears siRce miSled BY the of similar under
takings in older States engaged in extensive sys-
TEN of public works system devised without judg
ment and managed without discretion. The result
has been, that Of nine different works, which with
rash improvidence growing out of sectional jealous
les, she undertook to construct and finish smultane
OuSly, not Is vet cOmpeted; nor Win Tie single
exception of her Wabash and Erie Canal yet ap-
proaches completion The State is dotted over with
detached fragments of works, utterly worthless and
unprOductIve; deep cuttings, isolated IN the centre OF
her forests and huge mounds standing alone, without
apparent purpose some remote valley, washed into
shapeeSs Masses year after year, by the action of the
elements. And, with scarcely an item Of productive
value as an equivalent Those who thus rashly guided
her councils have entailed upon the State for Internal
Improvement alone, debt of fully twelve millions Of
dollars nearly eleven millions Of foreign and up
wards of million and a quarter of domestic debt
The whole of that amount, however, it ought to be
stated has not been squandered by the bad
agement that ruled her public business For about
three millions of her bonds, included in the above
debt, she nerer receired the money ct dR Her Fund
Commissioners, with a degree of imprudence that
merits the eplthet of recklesSness sold credit to
an institution, then on the verge of bankruptcy, (he
Morris Canal Coz upwards of millions and three
quarters of their bonds, and nearly quarter Of a
million more to sundry free Banks of Western New
York. the whole proving dead loss by the insolvency of
these institutions. An examination set on foot by the
Agent of the State proves, that these bonds al
most instantly transferred hypothecated to third
persons unapprsed appears of the nature Of the
transactions by which they were obtained.
These circumstances, taken altogether, form case
well calculated to es TO the uttermost the good faith
and honor of State. The people of Indiana know
aud keenly feel that the confidence they have reposed
abused Their property has been virtually mortgaged
for an amount of principal fully equal to oNETENTH
of their present entire taxable list, real and personal
For that amount enormous compared to the property
of the State, her citizens know that they have, with
exceptions not worth regarding, absolutely nothing to
show not dollar of annual revenue to receive.
And they further know that out Of fourth Of that
amount they have been defrauded by speculating In
stitutions.
All this furnishes no sufficient reason why Indiana
should refuse to pay her debt. But it must be con-
fessed that it offers temptations TO reputation sucf
nations not often exposed to.
How, under these trying circumstances, has thi:
heavily burdened State conducted herselfi Has shC
acted like wholesale swudler as your neighbor O
the Tribune (adOpting language unworthy of him, Fl
only for the self-righteous exclusives of Londor
club) would have the world believe Let facts ant
figures furnish the reply.
Has Indiana repudiated even. the very bonds alb
stracted from her by the false promises of broker
banks No. On the contrary, giving her creditor
the full advantage Of the doubts III this case she ha
regarded their sale absolute, and recognized tn
right to payment of those who now hold them.
All this, it will be replied, is well enough but fai
promises cost nothing. 'Pay me that thou owest !;
such is the language of the creditor. And it is n
very satisfactory reply to that demand that nero
ly admit, in words, the business of the debt. Wha
has Indiana done! That is the practical question
Delay becomes denial. What measures has size ADOPT
ed-what> exertions made--to work through deb
which in terms she does not repudlate
Nine years ago, at the commencement Of her In
ternal Improvement system, the ad valorem State ia
levied on her citizens fire cents every hundre
dollars of property 1t was gradually increased fir
to fifteen cents, then thirty, and one year, 1S4l
to forty cents; being eight times the ad valorem ia
which originally suifced with small poll tax to pa
her current expenses and that estimated the fu
actual value of her taxables not, in Ohio al
some other States, on mere nominal appraisemen
the poll tax, however, remaining at fifty cents,
cept in lS4l, when it was raised to seventy cen
for each poll.
ed in Indiana, by direct taxation and for State pu
poses alone in the last eight years, upwards of e
teen hundred and fifty thousand dollars.
But the present current annual expenses of Il
State government of Indiana are, by the estimate
her Auditor, about seventy thousand dollars. tn,
have, heretofore, been somewhat higher. PuttiI
them, at an average Of eighty thousand year, th'
would amount, eight years, to six hundred al
forty thousand dollars; about third of Il
amount Of taxes raised; leaving two thirds, abo
million and quarter of dollars, to be applied to {
extinguishment of her public debt from the sing
source of direct taxation and without reckoning bal
dividends, sales of public lands and other small
sources of revenue. 1t is true, that this amount
chiefly been applied to liquidate the domestic debt
the State, and that, during portion of that time,
interest on Indianas foreign debt has remained U
paid. Fhs has happened naturally, almost necess
riy, the result of the extreme pressure of I
times, causing the State to pass law by which
State scrip, the evidence Of her domestic debt,
ceived In payment of taxes and other State dues.
this be cast up to Indiana reproach, 1t may
asked, In reply, whether there be any example on
cord of nation preferring her foreign to her dom