The daily union. [volume] (Washington [D.C.]) 1845-1857, 1845-12-30
INDIANA.

INDIANA.
A plan for the payment Of the interest Of the debt
of this State has been submitted by Charles Butler.
Governor Whtcomb, without expressing any opin-
ion upon the project says: cit is not doubted that
the whole subject will receive that thorough consd-
alton which its gravity and importance are well
calculated to command" Mr.. Buffers plan is this:
DEpr OF ISDIsNA-pLAN FOR THE PAYMENT OF
INTEREsT.-On the 10th instant, Governor Whit
comb, of Indiana, communicated to the Legislature
of that State n long and able letter from Charles
Butler esq, of New York, as representative of the
holders of a large amount of Indiana State bonds
The governor expresses no direct opinion IN regard
to the plan proposed by Mr.. Butler, but says 1T
is not doubted that the whole subject will receive that
thorough consideration which its gravity and inn
portance are so well calculated to command" Mr.
BIS plan is briefly this
"Without imposing higher property tax than
three-mll tax, thirty cents on the hundred dol
lars and placing the poll tax at seventyfve cents,
sufficient revenue would be produced, after paying
all State expenses, to pay two per cent. interest
nuay on the entire public debt of the State, from
and after the Ist day of july 1886 up the LIST day
of January, 1851 inclusive, besides leaving surplus
to be epplled to the payment of the six per cent
treasury notes of over hundred thousand dollars
annually; and these being absorbed within that time,
the Stale would them by the further addition ola half
mill in 1850, have the means TO pay from and after
the LIST day of January, 1851, three per cent interest
annually the then entire funded debt besides eav
ing surplus to 90 to a sinking fund for the grad
ual redemption Of the principal; and which amount
Of interest being secured by revenues derived from
taxation, may be safely assumed the limit at
which taxation may be fixed; and reliance may be
had on the revenues ofthe Wabash and Eric canal,
when finished from the State line to the Ohio river
20 meet any deficiency, having every reason to be-
Iieve that the receipts from that source will cover
the amount in full after that time and in abiding
TO this canal take occasion to say that your bond
holders regard the progress and completion of that
great work of internal improvement as intimately
identified with the future wealth and prosperity of
Indiana, and as adding greatly to the ability of the
people meet their just oblig atoms; and in express
ing willingness in their behalf to operate Nth
the State, in any way that may bc desired, for the
accomplishment Of so great object as the compile
ton Of that canal at the earliest practicable period
upon the security alone of the canal and the NUM-
ticent grants Of land donated by Congress for that
purpose,) il is needless to say that they would be
influenced by consideration Of interest," which they
believe to be mutual between the State and them
selves.
In order to ascertain the total funded debt of In.
diana, ON the first day of January, 1851, it is sug-
ges,ed--
IL That for the arrears of Interest on all the bonds
up to the FIRST day Of July, 1916, certificates be CIV
en- to the holders payable on the first day of Janu-
airy, 1851, or then funded, at the pleasure of the
State, in stock bearing interest at five per cent from
",
H2d. That, for the Of interest accruing be-
tween the first day of July, 1916. and the frstday
of January, 1851, like certificates be given, with the
privilege of funding the same at the latter date in
similar manner; and from that period (lst january,
1851 the interest in full upon the whole debt to be
paid from the sources above alluded to--that 10 to
say, three per cent from the general revenues of the
Stale, derived from taxation, and the balance from
the revenues of the entire canal from the State line
to the Ohio river.
~ 81 IL.
tax, or in any other way, for the payment of two
per cent. per ennum interest on her foreign bonds
commencing on the first day of January, 1647, up
TO the first day of January, 1851; and that we may
reasonably calculate out Of the of the canal
TO receive additional one per cent. per annum du
ring the same period, making three per cent.
On this basis the entire funded debt of the State
on the first day of january, 1851, may be estimated
as follows, viz:
Principal according to the AUDITORS re-
port ....................... Sll 100000
Back interest from lst January ,,ls4l, to a
LIST July, 1916, is 81 years. ......... 3,055, 430
Estimated deficiency ofinerests
between LIST July, 1886, and
LIST January, 1851, say per
cent .....................$ 1898, 100, 053, $50
Total funded deet LIST January, 1851. rs, 49, $50
ne ahhua, interest on which would be,
per cent. ................i5blI6 5O
at 8 per cent. $50. 46d 1905 80
ut . per CcHt. .OU<,OfU OU
Thus the amount Of interest to be paid annually
from and after the first day Of January, 1851 the
entire funded debt, would be seven hundred and
ifty-seven thousand hundred and seventy-six
dollars and fifty centsj of which S454 305 80 would
have to be provided for by taxation (being three per
cent interest on the whole amount,) provided reli-
ance be had the revenues Of the canal for the bal
ance, as suggested"
The Baltimore American says that alt is
undesirable that the State of Indiana should es-
cape from the position Of dishonor and bank
ruptcy which she now occupies; and the above
plan, if adopted, will accomplish the object. The
burden of Taxation which it proposes is not severe
and should be cheerfllly met by an honest people
for the discharge Of their just obligations. If hey
prefer it, the bond-holders, it seems will aid in the
completion of the canal, after the manner of the ILL
nois bond.holders: We in this city pay nine or ten
mills per annum upon the value of property NEARLY
or quite three times as much as the Hoosiers will
the bond -holdcrs Can they hesitater'