Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1845-01-24
MIR. DF.FREE,S, REPORT ON THE STATE
DE.BE.


In Senate, December is. 1871 Read. iai on he table
and ue Hundred cop ordered to be pinted to the
of the Senate.
Mr. Dofroos presented the following report Of
the select committee, composed of Messrs. De-
froos Holloway, Cotton. Akin, and llutton) 10
whom was referred resolutions submitted by Mr.
Defrecs in relation to the State Debt:
The Legislature of this State, in compliance
with tho wishes of great majorlty of the people.
in the wear 1886, passed act 10 provide for a
general system of internal Improvement. In the
attempted prosecution of that system, 1t became
necessary raise large amounts of money. This
was objected by tho issue of transferable ccrtlil
Gates Of stock. bearing upon their face the plight
cd faith of tho State for tho yrncnt of tho intor
est and tho final redemption of the principal.
These certificates were thrown into the money
market by our authorized agents. and large sums
realized upon them Tho money thus acquired
was applied to tire contradiction OF the various
works contemplated in tho general act, we'll as
to tho Wabash and Erie Canal. Before compile
ton u suspension became necessary for want OF
means for their further prosecutions lndepon-
don't of the sums raised on our bonds, the State
became indebted to contractors to tho the amount
of one and Il half million of dollars. To meet
this last indebtedness treasury notes wero issued.
The sum Of S722,tiiO was duo to tho Stato Bank
for money advanced BY her to aid IN tho prosccu-
ton Of the public works, for winch scrip, based
upon the sinking fund for It's redemption, was is
sued.
To absorb tho treasury notes, pay the ordinary
expenses of tho State, and TO meet the interest on
our bonds for the past four years. by direct taxa
ton owing TO tho embarrassed condition OF tho
country, was doomed impossible. During thus
time we have repeatedly told creditors, by
legislative action, that dobt should be paid.
That the people willing whenever they are
convinced of their ability to do So the committee
cannot permit themselves to doubt; and. that they
now have tho ability TO mako an arrangement at
hor, MT hon 1r- 40
to tho State, we think we can demonstrate.
The bonds issued for internal Improvement
purposes, now outstanding, and upon which no
provision for interest has been made, amount. ac-
cording to the Auditors report of the present
year. to tho sum of Sll ,l22,OOO. to which add
the interest due. being the sum of S2,227,-
500, and the whole sum now due Will be Si''.'''''-
600.
! After Ioduciina the revenue for the present
year. there will roman outstanding treasury notes
| to about S40l. 552. which receivable for
taxes. The scrip issued to pay the Bank debt
will be absorbed by the sinking fund.
A reference to the census shows that the va
| rious productions of tho soil amounted, IN 1910
to about eleven million of dollars and the capital
| invested in commercial and manufacturing pur-
/ suits was about ten millions. These several a
mounts have greatly increased within the past
four wears and will continue to increase as lands
are brought undor cultivation. and new objects
/ attract the attention of capitalists. Our taxable
! property, the present year amounts to 10
| $50 Otj5: and the number OF polls 70 IL $50.
/ An examination Of the statistics of the State Tor
several wears past affords the most conclusive eE-
/ idonco of increasing wealth. as well as OF popuia-
ton. 1t cannot be otherwise than that people
possessing the productive soil which renders lndi-
ana so favoraby known, should thus rapidly con-
! tinue to increase.
/ As It's beyond the ability of the State to pay
the interest now due, the committee propose that
n toUether with the prluCIpai and
terest in advance, be funded, making tho total sum
of S13, 967 800. This amount to be taken up
by an issue of new bonds bearing three per cent.
interest, the interest payable annually, and the
principal after the expiration of thirty years-lf
it be objected to this proposition tina, a reduction
of interest from FIVE, six. and seven per cent,
which our bonds bear, would not be credita-
bic to the State, we submit whether the bond
holders would not much rather accept three per
cent bonds. certain be paid, because within our
ability, than to hold to present bonds, con-