Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-12-18

And here deem II proper to refer the copy OF
Indiana Internal Improvement bond annexed hereto.
| come TO ano her branch of the subject Of the
deepest interest TO portion Of the hondhodeTs represent
ed by viz the holders of the wabssh and Erie canal
bonds. These bonds issued for money borrowed
for the construction OF that canal from Lafayette the
mouth OF the Tippecanoe river the State line,
(Which was the Wabash and Erie canal in Indiana as
originally projected sus pledged) and the canal its lands
It's revenues and tolls set apart and appropriated and
by the original acts authorizing the loans irrevoca
bly, pledged and guaranteed by the State fr The payment
of the interest and the redemption Of the principal of those
loans; and upon this pledge the loans were obtsined
The canal has been finished lis entire length from Laay
cite east TO the State ne and the State has realized and
Is at this moment realizing considerable revenue from
IT, and yet no application has been made Of any portion of
those tolls and revenues the payment Of the interest
any portion Of it, according the original pledge, and
for period Of five years has the remained unpaid
The holders Of those bonds conceive that they have right
to insst that those tolls and be thus applied and
1hey feel that the State has right divert them
for any other purpose however useful desirable it may
be TO the State without their cohseni and they appeal
the Of justice and honor OF the State to fulfil the
pledge which justly given, which is engrasen
the face of the bond ITSELF and the security Of which
they obtained the money. That those tolls have by law
been made receivable IN land scrip, issued for the
sirucOn Of the canal Of Tppecanoe at par, the
market value of which is only forty the dollar
Circumstance calculated to make them feel deeply
the Injustice which has been done them, in dverng the
tolls from the object which they originally pedg-
ed as they cannot in such disposition of them, any
public benefit compensate for the manifest violation Of
public faith involved in it. If the State had the
time and by the law which diverted those reveEues
from their legitimate end provided by tax for the payment
Of the interest the canal bonds the holders would have
right to complain but such provision has been
made they constrained present the bond ITSELF the
notice of your Excellency and the Legislatures and
respectfully and earnestly insist The fufIment of the
obligation which imposes for will be doubted
that the necessities Of those individual holders
pressing than be those Of the and in order
your Excelency and the Legislature may better under
stand The views and feelings entertained this subject
by this class of your bondhodcrs, suj,n hereto the
letter Of Mr.. COerell, with copy Of the bond held by
them When is considered that there contract ex
listing between the State and every single holder one
its bonds il is 10 be expected that he should feel deep
personal interest in every Of the Legislature affecting
the terms Of the contract, and calculated in the
weaken bis security.
There be a strong feeling of uneasiness and
encouragement manifested in relation the increasing
magnitude OF the public debt by the accumulation of in
terest; and from the observation which have been able
make the subject, led believe that the people
of Indiana will cheerfuly submit to any reasonable
for the purpose Of maintaining the faith and credit Of the
State, provided the imposed will furnish the means
without any after increase, of paying the interest the
public debt-and ultimately extingulshng the principal.
In order to meet natural a sentiment, and which
have to believe prevails and is increasing with the
great body Of the citizens of your State, aud which your
]
half TO say that they will be satisfied with any arrange
ment which will ensure the application Of reasonable
revenue according the present and future ability Of the
State, towards the liquidation of the accruing interest
And the creation aud application Of such
be controlled by and graduated TO- the actual ability of
the people, and prospective and the question
resolves itself into Of ability. my attention has been
directed examination into the official documents
nusly submitted to the Legislature, which exhibit the
resources and progress OF the State and which il is pre-
sumed may be relied furnishing the basis for n,e
gent action.
BY reference to the Auditors report for the present
year-a document distinguished more for It's lucid
and minute exhibit of the finances of State than
sound and practical views, which reflect credit upon that
able olcer appears that the entire public debt, call
ed Of the State mot including State scrip. and bonds is
sued for Bank sock) exclusive of all back interest is
eeven millions and ninety thousand dsuars; the annual
interest which is 1855 220. have thought pro-
per add the Of nteres; the principal of the
debt as until il be funded forms part of the funded
debt BY the document il appears that the value Of
taxable property in the for the year 1915 falls little
short of hundred end f,ceny millions Of dollars, and
the number of polls for the year is estimated
less than I24 OOnhat the increase of taxable
property for several years past has been nearly Ue and
half millions of dollars per annum,in other words that
the average annual increase has been fully equal 10 one
half of the entire funded debt of the S,ae and it is
be considered that this increase in the wealth of the State
has taken place during series Of years of admitted pres
and difficulty and while the credit of the State
under cloud 1t certainly affords striking ard
aging evidence Of the growing prosperity and fepressbe
energy of the people of Indiana.
assume that the average annual increase in the value
Of taxable property Of the for the next ten years.
will not be less than millions Of dollars per onnum,
and that there will be corresponding increase of polls
It be admitted all hands that this calculation
is moderate one and that it PROFESSIONALLY falls short Of
what will he the actual result
calculation based these facts will show that without
imposing higher property than a three mill tax,
thirty cents on the hundred dollars ard placing the poll
seventyfv cents sufficient would be pro-
duced after paying all State expenses pay per cent
interest annually the entire public debt Of the State,
from and after the first day of July, 1896 up the LIST
day Of January 1851 inclusive besides leaving surplus
be applied the payment of the six Per cent treasury
notes of over one hundred thousand dollars annually
and these being absorbed within that time the State would
them by the further addition of half mill in $780, have
the means pay from and after the LIST day of January
1851 three per interest annually the thee entire
funded debt, besides leaving surplus to go sinking
fund for the gradual redemption Of the principal; and
which of interest being secured by de-
rived from alton, may be safely assumed the limit
at which taxation may be fixed aud reliance may be had
on the revenues of the Wabash and Erie canal when fin
ished from the line the Ohio River NEE; any
deficiency having every to believe that The receipts
from that will the amount in full after that
time and in abiding this canal take occasion to
that your bond holders regard the progress and completion
of that great work Of internal Improvements as intimately
identified with the future wealth and prosperity Of Ind
ana and adding greatly to the ability of the people to
' meet their Just ohlgsons and in expressing willing
ness in their behalf cooperate NTH the STATE, in any
way that may be desired for the accomplishment of
great an object the completion of tina. canal at the ear
est practicable pero (upon the security alone Of the
canal and the muncient grants of land donated by Con
gress for that purpose needless TO say that they would
be Influenced by consideration Of interest," which they
believe to be mutual between the Stale and themselves
In order 10 ascertain the total funded debt Of Indians
: on the first day of January 1851 it is suggested,
l. That for the of interest on all the bonds
the first day ofJuy 1916 certificates be given the holders