The New York herald., 1845-01-08

ment OF the principal at the day This contingent
liability presents another reason for strengthening
tho condition OF the General Fund, and taking
prompt measures for the gradual extinguishment Of
its present increasing debt. tA
ANer deductng the revenues Of the School, Literature
and United States Deposte Funds from the aggregate
Those Of the General Fund having been ex.
amined. may now be separated. They
And the revenues Of the Canal Fund will re-
The expenses charged upon and paid out of
the revenues Of this fund fiscal year were l77s7 80
Leaving surplus, over and above the ex-
penses chargeab!e upon the canals and
the Canal Fund, for the fiscal year, Of $b72e4E IS
Included In these expenses are the $l0O, 900 paid
to the Treasurer Tor the use of the General Fund,
and 800 900 paid on account of losses OF the Fund
pledged M 5 for the payment Of the canal debt, and
together The sum Of 81 2sl ,l2S is, and Leaving
646 664 66, the expenses OF the canals, included
in the sums refunded on tolls, and for rents of sur
plus water from the Oswego canal The above
upon the balance unpaid of the old Erie and
Champlain Canal debt, that being met by the ipte-
rest upon the funds set apart and invested for the
payment thereof.
BY the twelfth section of the Act Of 1912, sfthe
surplus canal revenue, after paying all just canal
current expenses, and the interest on the canal
debt. and the payment aforesaid to the General
third Of the interest Of the canal debt remaining
unpaid, be sacredly devoted and applied as a sink
ing fund to the redemption Of the canal debt Aow
existing and authorized by this act, and shall not
whatsoever"
Sush is the language. Of this law. and such the
express pledge 1t contains touching the surplus of
the canal revenues OF the last fiscal year. IT. the
amount Of the annual interest on the canal debtas
II existed at the close of the fiscal year, 1926,
397 80, be the correct amount from which TO mea-
sure the extent OF the pledge, aad if it be constru
than the one-third Of that interest, then the por
ton Of this surplus to pass to the Sinking Fund is
$375, ,465 IS, leaving surplus for the last fsce
.sysnd The ne a. pledged to the Sinking
The Canal Fund, however, as well as the Gre me-
raj Fund, are burdensd with heavy debt, and It
remains 10 be seen whether the obligations of this
Of the Legislature, in the application of this sur
plus money, as any pledge which the law Of 1912
could have imposed upon it. The interest of this
dsetit s true, is carefully provided tor by that law
This, without any provision for the extlpction of
the principal, may be satisfactory to some, but
such is not my view of the rule which binds the
faith and honor of the State. know Of no obIiga-
tion to meet the accruiDs interest which does not
demand, with equal force, the payment OF the
principal as it falls due and SO far a. the means
are possessed, the failure to apply them, In the
case, appears to me to be az much breach Of the
faith pledged BY the contract, as in the other
Suppose the creditor consent to the postponement
Of the payment of his principal money Between
individuals acting Tor themselves as principals,
funds; but if the agent Of the debtor were dealing
with the creditor in person, would such consent
justify the agent without the sanction of his prin-
cipal, In the diversion OF the funds placed in his
hands to pay the debit And is this not our case
Are we not the mere agents of the people in this
matterl They have permitted debts TO be con
tracted upon their credit, and at their risk, 10
struct the present State canals. The moneys in
nsrv han dc th>.
made, and came from the very source upon which
they relied to pay these debts, and save them from
oppressive taxation. Have we the right, as faith
even though their creditors red should consent, con to d.
vert their funds TO other objects, and continue the
debt upon thema strongly incline to the opinion
that we have not.
BY statement of the Canal debt, furnished by
the Canal Department, it appears that the whole
amount unpaid on the 3O,h day Of September last
was sac, ,7l3 .906 50 This includes the old Erie
and Chsmpaln Canal debt Of 81, ,sS0, ,250 IS, for
the payment Of which funds have been already set
apart believed to be more than sufficient to cancel
IT, The portion Of the funds set apart, consider
ed pavailable, amounts to 81 ,496, BOG As, being
$ll6066 10 hey ond the principal OF the debt to be
paid, and probably more than sufficient TO meet the
principal and interest. am informed by the Com.
masoners Of the Canal Fund, that the holders of
this old stock have been personally notified that
the money i ready for the redemption Of the prin.
falls due. II is the intention of the Commissioners
to place the funds in the bank, whers the stock is
transferable, and where the interest s paid, before
the day of payment, which is the first day Of July
next. and the notice given to the holders Informs
them that interest will cease on that day.
This 10 the last Of tho Canal debt, upon which
the constitutional pledge rests, and il may become
material, IN the course OF your Hesitation, to con-
s'der whether, when these steps shall have beenta
ken, that pledge may not be considered, both in
principle and IN fact, fully redeemed
The statement Of the Canal debt, before referred
to, shows that the whole amount of Canal stocks
redecmable IN July and January next, is 50, 742,-
626 OIL. This includes the sum OF 81 $50 OSO IS OF
the old debt, the redemption of winch is provided
for in the manner above specified, leaving g. S62-
536 66 reimbursable in January, 1885, for the pay
ment OF which the moneys are not yet fully pro-
vided.
The Sinking Fund provided for by the twelfth
buttons required 10 be made to it, 30 far a. the Ca
nal revenues have furnished the MEANS although il
s believed THAT the surplus for the years 1912 and
l848 did not equal the onethrd Of the accrung in
terest upon the debt.
Carrying the whole surplus of the last year to
that fund, with the whole $278,1 1877 66 paid from
the Treasury the proceeds ot the State tax and
the fund, including the accumulatfons Of interest
computed at per cent, amounts to 81 ,106, ,l02 OF,
aggregate sum more than equal to one- third oI
the interest the debt for the last three years. and
is supposed 10 be available to meet the payment OF
that amount of the stocks before alluded TO. This
than there may be surplus OF the funds set apart
to redeem the old debt, which can be applied to
this object, and the aecruing Canal revenues Of
the current year may yield surplus also thus sp-
pLcabls.