The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1845-01-31

| ct, with such an olier before them, the bOndho
ders declined accepting the proposition of the
stale. If the bondholders ever intended taking
the property of the state in payment OF their debts
is il likely they would have refused the offer al
ready made 10 them, aud that, too, after their own
agents had examined the property, and had re-
/ ported to them that it was ample security for the
amount required to complete the canal
! From all this it must be evident that there is
some powerful cause why the offer of the state
has not been accepted by her creditors. | will
now inform you what conceive that cause to be.
The business men in Europe, who are interest
cd in our bonds, and who give tone and direction
to all American transactions. have certain fixed
and established principles which govern them in
all their business relations. Among these are fl
deity to contracts, prompt payment at the time
agreed upon, and certainty in the Transaction
These are unalterable, of long standing, and OF
binding force In this country we are in the ha-
bit, oftentmes, if contract is not complied with,
Of giving more time, making compromise, Ia
king property for deb. which had been agreed
to be paid in money and sometimes changing
the terms OF the contract altogether and this too,
without njuring the reputation of the PARTIES
! But not SO IN Europe. A failure there TO COM
! ply with contract is followed with disgrace,
aud the party failing is regarded with distrust -
Ii a contract is made to be paid in money, 10 one
thinks of offering any thing else. If they did, i,
would not be accepted. II debtor has failed TO
meet his engagements, he must furnish mos, I'M
questionable proofs Of his most earnest desire to
pay to the utmost of his ability before he can
gain any degree of confidence or standing. And
it would certainly evince u most extraordinary
degree of indulgence OH the part of the European
creditors, II they should make exceptions to these
| Just requirements from individuals in favor Of
| governments and states. Illinois is regarded by
them as debtor, so'emnIy bound by all the ob-
cations OF other debtors to pay what she honestly
owes them. They know of no reason why she
should be made an exception to an established
rule. II she Is unable to pay the whole OF her
interest they only ask that she shall pay such a
portion as her ability will permit They cannot
be brought to believe that sovereign state con-
tanning more than half million of Inhabitants,
and embracing 35 000,0 00 of acres of the most
choice and fertile lands upon the globe is unable
to pay any part of her interest. Our creditors
have laid down principle which they will not
depart from. 1t is not a new principle. 1t is as
old as commerce itself The principle is that the
state shall acknowledge her present debt before
she contracts any more-not an acknowledge
ment IN words only, but in acts. An ac-
acknowledgement by which she shall actually pay
portion of the debt however small. This re-
QUESTION Of our creditors does not go beyond
their requirements of Others. 1t is precisely the
same in dealing with other states and nations
If we are disposed to murmur at this exac,ion,
think that little reflection will convince US, that
it would be ruinous to the bondholders to accept
of any thing short of this.
Pennsylvania, Mary land, Indiana, and several
other states are owing the same bondholders large
amounts. If they should accept the unfinished
works of Illinois in payment for their bonds
without requiring the payment ofany part of the
accruing interest, these other states would de-
mand of them to take their public works in pay
ment of their debts. The bondholders would soon
have all the unfinished railroads and canals in the
United States on their hands; and with such ali
| amount OF unptoductvc property in their posses
sion, they would be more embarrassed than ever
II they should once establish a precedent Of re-
ceiving property, canals or railroads IN payment
for the bonds they hold, there would be an end to
all loans and commercial transactions. No House,
however powerful, could exist moment after
they had acknowledged such principle. There
would be no longer any certainty in their trans
actions, confidence in their ability to meet their
engagements When relying upon the repay
meat OF heavy loan to meet any of their liabili-
ties they might fail by being forced to take unpro-
ductvc property III payment Of their debt, where
they had expected money. They have transac-
tons with almost every nation on the globe, and
loan large sums to other governments than the
states OF this Uuion and it must be apparent To
all that single departure from their established
business regulations would prove disastrous and
ruinous.
There is another fact which should satisfy US
that this proposal would not be accepted by the
"a, 1T, I'm l.. a..
works to her creditors in manner similar to that
now proposed by the gentleman from Vcrmilion /;
and tina, offer was rejected by her creditors. If
the public works in the large, rich, powerful state
OF pennsylvania, state containing commercial
cities, manufacturing towns, immense mines of
coal and lron-a state whose agricultural, COM
merclal aud manufacturing wealth is almos, un-
rivaled In this country, were not sufficient to
tempt the bondholders, is IT likely that the public
works In lllinois-a state comparatively new and
unsettled whose resources are uadeveloped, and
lillle known, would offer such superior induce
ments as to be accepted by the 5ondholders!
The state of Maryland made a similar offer
ana tailed IN like manner; and certainly think
that these examples should be sufficient to deter
US rom relying upon any proposition of this
KIND tor the payment of our debts.
Mr.. X. said that he was perfectly well aware Of
the difficulties in the case. He had been made
sensible of them during his visit to Europe. The
bondholders will not loan more money until the
principle of paying interest is recognized; and it
was but awastc of time to pass such laws as that
now offered by the gentleman from VermiIion.-
Is there a Senator within the sound of nv voice
asked Mr. R.) who is not already satisfied. tina,
such oilers will no, be accepted And why sho'd
We by passing such laws, disappoint the people
in their expectations Of relief Mr.. II. said that
from the intercourse he had personally had with
the bondhoders, he was firmly of the opinion,
that |, was idle to hope they would accept any
part OF our unfinished works in payment, of our
Debt until the principle Of paying interest was
recognized.
When satisfied Of our inability to nav nil Of
our accrung interest they will be willing to com.
promise; but TO avorably dispose them to any
such arrangement, we must first gain their conf
denoe, by uneluIvocal and positive action; which