Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-02-06
Os.z-Send an those petitions at once. We're off!
The State Debt.

engaged In figuring out the ability OF the people
to pay up the interest on the State Debt If we could
rely on the statements of of Them the imposition
of tax sufficient to meet the demands of creditors,
would be but mere bagatelle. Whether they have
taken calm and thorough a review of the available
resources Of the State, as was done by the last
Committee of Ways and Means, may be matter Of
some doubt. If that Committee had possessed the
courage of Editors, perhaps instead of indirectly
recommending compromise with our creditors, they
would have assumed fact the ability of the people
to paw in full and reported revenue bill accordingly
Be this it may, glad to the subject
agitated for whether the ability of the people to pay
be under-rated the tendency of the discussion
Will probably lead TO the election 10 the next General
Assembly of men who will do something TO adjust the
claims of the State creditors, at least who will
refuse as the Wings of the last House of Represent
atves refused to pass any act looking to such adjust
ment, by compromise otherwise.
Our purpose at present is, not to 90 into general
discussion of the subject, but notice misappre
tensions which prevail to certain extent, to the
action of the Senate on the bill introduced by Mr.
Defrees and in relation to a supposed agent of
Bond holders" who in Indianapolis during the
session. Among those who speak in the most positive
tone upon the subject the editor of the Greensbugh
Repository. In late article, he says
"As renders agent of Bond
holders indianapolis this winter during the session
of the Legislature who authorized to make proposals
the authorities of the State for adjusting the public
debt tie willing 10 fund the State debit principal
and interest," 10 lsiSihe interest per cent provided
that the State would levy n of 80 each 500
worth Of property, and H. long that
necessary pay the interest Ia accordance with
the spirit o this propOson Mr. Deees, OF the Senate
proposed plan for adjusting debts He proposed
bonds
and The interest for year advance all ut which
would make the of 81 y907 800. this amount
be taken by of bonds, bearing three
cent interest," pay able annually, and the principal after
the expiration of thirty years. The interest this
would be S4I7.2I9; and the annual expenses of the
State are about $I50 This would make Sig2,2l9
TO be raised every year tax of 80 each
hundred dollars worth of property and 81 each POLL
would, independent Of other resources have been
sufficient pay II. To say the least Of H. Mr. Delrees
plan was good one, though had murh rather
State would come up the works and pay off whole
of the interest her debt, she promised to do
The supposed agent of our Bond holders - about
whom the writer of the above positively speaks,
was neither less than broker of Cincinnati
who is believed have been quite deeply interested
in getting the Legislature to pass law for the re-
dcmption of per cent. scrip with new quarter per
cents. In this scheme he was successful, and no
doubt pocketed a round sum by it. In his other
scheme, acting the pretended agent of bond holders
he was not successful There evidence, further
than his assertion that he an agent for any
body but HIMSELF far we know And it is further
true that in the communications sent to the Governor
from bond holders and the agents of European
creditors in New York, they made no distinct
enuncation of their Desires further than to ask for
some action in their favor from the Legislature. The
writer Of the financial articles of the n. Y News,
formerly the money writer of the Herald, probably
has as good a knowledge of the disposition of our
creditors and their agents in that city as any one
except themselves possesses. Of the supposed agent
who visited this city during the session, this writer
under date of Jan. %, spoke in these terms:
/" An individual holding few bonds which he had
purchased nj low price, represented TO the Legislature
aud Executveh he empowered 10 compromise the
Debt behalf of the creditors of the State that the
latter holders of O0o 900 bonds had proposed through
him fund the debt up l6i9, reinquishIng half
the Interest that has accrued, and shall up that
period The ST year alter that time the debt To bear
one per intel est the succeeding years pen
cent and subsequently to continue at three per cent
The Legislature rejected by a OF "a To SO.
" An attempt made, through Mr. Defrees, 10 hurry
through bill this effect, be're the facts should be
Investigated, or the deception discovered This three per
payment would be profit to the broker,
although loss the bona de creditors of the
State, who made no such proposition. They merely
proposed that the State should make small payment
now and the remainder to be paid in full at some
future Time on the cOntray the pTetenueo agent lnuuS-
ousy circulated ihrougho the State that he proposition
receive payment of three per cent. in full On
this false representation, petition freely circulated
throughout the northern part Of the State for the Legs
ature impose the necessary this, which
supposed 10 be offer from the creditors Had this plot
sueceeded the schemDg broker would have become pos.
sessed "f large profits, while the creditors hand
and the State the other, would have found hemselve
far fnm settlement large majority of those
who signed the petition for the payment of the did
IN the belief that the offer Of compromise had really
u :.
would lay the State open the charge of Reputation
which believe very few of them would countenance
would they assent any thing less than offer oil
full payment the part Of the State.
The writer had previously made the following
statements on the same subject:
awe recently stated that petition in circulation
in Indiana purporng pray fnr the imposition Of tax
In liquidation of the State debt The document set forh
that could made with the Stale creditors
for the payment of three per cent. tile State debt
instead of five per This impression, aliIoug
false one, which has gained ground in Indiana. Her
creditors OF classes The largest and inhu-
eniIa Is composed of those who lent the State their
money good faith, low OF interest Some ol
them paid premium. The other class consists of a
clique of small spectators Wall street with sy house
at their head These have bought the State Bonds n
from IL To 20 per of their value aud very ready
compromise for what they get. The former class
The honest bona fde State crediIors-,cH e0mpro
mise The stock debt of Indiana is S12,2 900 Oh
tins 900 900 is held by bona 6de creditors and 5O
000 the outside, by spectators who have purchased
low IL II we call the average %
cent what they hold S:S00,000. Now The
effect Of compromise would be ihs-the holders Of the
first amount would receive $500 900, when there is
$550000 due them, and the latter holders would get
S36000 IL per per for their outlay, and
ultimately receive 81 dollars for of principal If the
stock redeemabe twenty years The spectators Ion