The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1845-01-31
Remarks Of Mr. Ryan,
Made in the Senate, Jan. 6, 1915, on tie pro-
fi0n Of q one mil fnr


lroduced by Mr.. FIrHiAs, ins,ructing The com
nitiee on the judiciary to report bill granting
the canal, canal lands, water power, and all the
property Of the state, tn a company.
Mr.. FITZPATRICK had moved an amend
men proposing taxation 10 pay part OF the IN
terest upon the public debt.
Mr.. McMURrRY had proposed to limi, the tax
to one mill, which was accepted by Mir. KILL
PATRICK as a modification.
The question was on striking out the original
resolution offered by Mr.. FIrmAN, aud inserting
the amendment of Mr.. III LLpATRlCR Us modified,
and which read as follows:
Whereas the completion Of the Illinois and Mi
chigan canal seems to depend upon the action Of
the present legislature in levyng tax sufficient
at least to pay portion of our state debt:
And whereas, our canal bondhodcrs have ma
infested willingness to advance money sufficient
to finish said canal, on the condition said levy Is
made by the present legislature;
And whereas, his exceency the governor has
urged upon the necessity Of increasing the tax
es on tho people as the only means left to restore
the credit Of the state and to finish said canal
Therefore,
ResOiUed, That it is the opinion Of the senate,
that the present legislature should Increase the re-
venue of the state by taxation, as to restore the
credit of the state aud finish the Illinois and Mi
CulStll pIONIuCu sdiu TAX SlIdli lOt tASttu
one mill per cent.
Mr.. RYAN said, that, in discussing the amend
ment before tho committee, he should not lose
sight OF the original resolution offered by the gen
teman from Nermilion. Ii was his intention to
discuss them also. That proposition contom-
plates conveying all the property owned by the
state-her canal, her lands, her water power, her
rail roads, finished and unfinished, to II company
in consideration that said company shall finish the
canal and cancel our entire state debt If such
proposition should be carried out, 1t would GER
tanly be very desirable; but he (Mr Ryan, did
not believe 1t would be easily carried out as the
proposition already made to the bondhoIers.
The question now before the committee. (sald
Mr.. R.,) is undoubtedly the most important that
ever came before this legislative body. It's deci-
sion will exercise an influence which will be more
than ephemcral and produce consequences which
will be more than iranstory Upon its decision
depend name, character, honor, and all that among
civilized men is held most dear and sacred. There
is a crisis now in cur affairs, which imporatively
demands our most serious elaboration. We can
no longer cvade or postpone the subject OF our
public debt We must act and upon our action
the peoples hopes OF future prosperity, welfare,
and happiness depend.
/ had confidently hoped, Mr.. Chairman, that
the gentleman from Vcrmon would state what
his reasons were for expecting that the bondhold-
crs would accept his propositions; for it must be
apparent to every senator that this Ian could not
be carried into effect, except by the consent and
Cooperation Of the bondholders, because the plan
con,einplates an ultimate surrender of all the
bonds In their possession. But he failed to give
the committee the smallest particle of information
upon this point, SO indispensable to the success OF
his plan. The gentleman has entertained US with
plans, figures, and calculations, which are no
doubt very clear and satisfactory TO himself; bu,
he seems to have forgotten that there were two
parties interested IN this business and though 1t
would be extremely convenient to the state to pay
her debt in unfinished canals and rail roads, that
1t would require the consent of her creditors TO
render such plan availing. He has furnished
no evidence as to the wishes and nclinatons of
the bondholders upon this subject, and we are,
therefore, left to determine by sn examination of
his plan, whether it is likely to be acceptable to
the holders of our bonds, and whether it can in
any event be successful
In making up his estimate the gentleman from
Nermilion assumed tina, the bonds of the state
were worth but so cents To the dollar, and then
has Fixed a valuation to the canal property that
would equal the value Of all the bonds at such
prices.
Now must respectfully beg leave to protest
against our assuming, III any plans that we may
adopt, that our bonds are worth only 80 cts to tie
dollar. We have received par for them, and we
are most socmnly bound to redeem them at the
same. 1t Is unbecoming the character and dgn-
ty OF sovereign state to proclaim to the world
that her own paper is worth only onc.half its face
in her own estimation and that she expects to re-
deem 1t at such prices with unproducve proper
ty. must also correct the gentleman in his cs-
Inmates Of the value OF tia canal proper
ty. He has quoted from Mr. Arnold's report
made two years ago, to show the correctness of
his estimates; but in doing so, has overlooked
very important part Of that report, which reads as
follows "The value OF the canal lands, lots, and
property, depends on the couD!eti0n of tina. great
work. Withou, going into detail in this portion
OF the report, we now hazard the statement that
the canal property WILL on the completion of the
canal, II properly husbanded and judicously sold,
cxtinguish the entire canal debt" Is there any,
thing IN this language to warrant the assumption
that the canal property is not worth much as
the canal debt! An the estimates ever made, by
the friends ofthc canal, of the value of the canal
property, have been fixed after the completion Of
the canal. The canal property at the present time
is comparatively worthless, and If forced into mar
ket now, would not pay 1.-THE Of the canal debt
The last sale OF canal lands only averaged s735
per acre IN scrip, which at the time of the sales
was selling for 30 to % cents to the dollar, max
ing the cash value of the lands less than 50 per
acre. Therefore, the calculation of the gentle
man, that these lands are now worth from IS to
20 dollars per acre, is manifestly wrong, and his
plan based upon such estimates wI evidently be
incompatible.
But have other and stronger reasons for be-
!ievng that the proposition Of the gentleman from
Vermilion would never be accepted by the holders
OF our bonds 1t will be recolIec,ed that the state
OF Illinois has already offered these bondholders
the canal, oil the canal lands water power, &c,
and that, too, at time when the canal bonds were
selling 70, 20 cents to the dollar One million
of dollars, at these prices, would have purchased
the whole $4,000 900 Of canal bonds. and 81 600,-
600 would have completed the canal; and the
parties who would have bought the bonds and
completed the canal, would have had a lien upon