Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-12-18

holders of very large amount Of the bonds Of the State
same laid before the House, which you have the
10 preside.
1t doubted that the whole subject will receive tina
thorough consideration which its gravity and importance
so well calculated to command.
am, very respectfully,
Your ob't servt,
JAS. WHITC0MB.
INDIANAPOLIS Dec. TO- lS45.
To the Hon. JAMES WHIrcoMB,
GOUernOr Of the STATE Of Indiana:
DEAR S-The undersigned in behalf Of the holders OF
large amount Of the bonds Of the State Of Indiana (Wabah
and Esie Canal and Internal Improvement Bonds beg.
leave TO lay before your Exceeuey and through be-
fore the legislature session, their situation 10
pect 10 the stock held by them and solicit your
and candid consideration Of the subject.
The interest these bonds has been paid oi the space
Of Eve though the holders have INDUCED the hope
that the State would be able 10 meet its obligations, and
fulfil It's duty to Its creditors at each successive recurrence
Of the period when the should have been paid
cordng TO the terms Of the bond yet they
been disappointed In this
They invested their money in the purchase of the stock
of the State Of Indiana with the entire confidence
the integrity Of the people, and in their ability to their
obligations and they led such of their
property not only in reliance the pledged public faith
the State, but from desire TO place their money where
while il would be thus safe beyond question: they might
calculate receiving the interest puncuay, according
the Of the receipt of which has been
and is 10 all Of them MATTER of great importance and
large share Of them, Of indispensable necessity enable
them TO meet their daily They but depOre
common with the citizens OF Indiana, the existence
those causes, which have involved such serious dsappOnt
ment and loss them and they regard with oicude the
period when they shall cease exit and the State OF In
diana shall be able to redeem her plighted faith.
They do not indulge doubt the disposition and in
tenon Of the people Of Indiana to pay their debts 70 the
uttemot farthing, they shall be satisfied thai
they have the ability TO do but becomes question of
rou importance with them know Uhea and hOC they may
expect be relieved by the payment Of the interest
what calculations they safely make egatd
ture and their anxiety this subject has prompted them
In If he of
feHing with your Exceency and the Legislature in relation
thereto and making such arrangements shall be
necessary, and shall be within the ability Of the state ia
relieve them practicable from their present po
sition.
They believe that this measure will greatly promote the
interests Of the State aud its creditors and that the adjust
ment of the business satisfactory them and hon.
orabie to the State, viii: be accelerated by it.
Ii any apology for this shall be deemed proper il
will be found the importance and urgency Of the interests
represented by and in the hope which INDUCED that
by this plan may be devised for the relief Of
your bondhodeT which shall not only be cordially accepa-
BILE TO them, but also within the ability Of the State
should fail in my duty those whose interests
present. if did not in the explicit manner, aud
at the earliest moment to any impressions
which be INDUCED the subject that the holders OF
your foreign bonds have contemplated authorized
any proposals being submitted their behalf which should
embrace less than the eventual payment Of their just claims
Tor the entire amount oil principal and interest Of the bonds
in their possession, which they hold with firm reliance
the credit Of the State Of Indiana
II the State cannot make immediate provision the
ment OF the interest on bonds full without too
great buhen Of taxation upon her citizens then it de-
srsbe that arrangement be made for the payment Of
the interest," part and according the present ability OF
the State; and the hereafter to be increased accord
ing to its growing ability.
that the Domestic Debt" called existing
in the fJm Of treasury notes. scrip receivable for State
revenue and that it regarded By FIRST lien
the Of the State, and to be first paid, before any
application Of be made to the payment Of the
interest on the foreign bonds, so called.
Ii might not be becoming in me, either TO question this
application of revenue, the good faith of the State Civ
ing TO subsequent creditors if may speak prior and
exclusive lien upon all the revenues OF the State and post
ponng its prior and equally bona de creditors from all par
tiepaton and share them, for indefinite period On
the contrary, satisfied that the referred to was
prompted by considerations Of the puest chaace and de-
TO relieve large number Of the citizens Of the State
who had toed her public works, and whose claims
pressing enlist the sympatheS Of the Legislature
and although in the estimation Of foreign bOndhoder
the State would have been partial to her domestic cred
ors extent that would have justified apprehension
their part If she had given TO them her bonds obligations
in precisely the FORM she had previously given Ia
who had advanced her their money; land surely this
all they could have exlced and she had the
tent Of the interest such bonds, allowed higher rate
and provided for lis puncnal payment full out of the
of the State before any application of those
should be made TO the payment Of the interest The othe
bond-yet they would doubtless have submitted 10 it with
complaints and they cannot but regret that such paT
not adopted it would have protected the State itsel
om great embarrassment, and enabled the history
finances for the last four years abuudany prove not
y TO have paid the interest in full its domestic debt
to have paid some portion Of the interest on her public
have been II could have many from unous sacrifices
and contributed to the relief Of Others, who during pc
Rod have been raened in their circumstances, in
quence Of not receiving their just dues from the Sa.e
il would have been such earnest Of intention and eor
part of the State to maintain its faith, and it,
liabilities, 10 the exteat Of its ability, as would at the SAM
time have encouraged and relieved its creditors.
desire in these remarks TO call the attention of you
Exceency and the Legislature strongly, 10 this part
the case, with the view Of disturbing in the least tn
existing arrangement respect to the domestic debt
of holder OF off Int 70
the purpose Of showing that your bondholders
scios of their rights and of the injurious discrimination
which has been made in respect TO the public creditors
and which they have submitted 10 with an abiding conf
dence that Indiana would the earliest practicable mo
ment far possible the either of ega
ton finance, affecting her honor, and the rights of
portion of her creditors, when their injurious and paria
effects detected. IL is obvious however, that
plan should be devised, by the wisdom OF the Legsla
ture, whereby portion of the interest may be pai
the public debt, either by the application of some pan
of the levied, to that purpose, by in
crease OF the tax be apart and appropriated for TIN
specific purpose and that the foreign bond holders shou
not of course be excluded from all relief
Ill the entire domestic debt be fully paid.
In Pennsy lvania the domestic debt postponed b
the Legislature enable the State do Justice and
tend relief its public creditors, and in Illinois, wher
they have domestic scrip receivable Tor the State as
es additional specific OF one mill and half o
the dollar (which added TO the existing tax of two MILL
makes their State three and half mIlls has bee
levied receivable only in specie its equivalent,
the avss of il to be applied towards the interest
her public debt L. both cases. the object TO be aaine
the maintenance of public faith, and relief TO i
public creditors; and in the accomplishment of this gre;
end all local and domestic interests were deemed subo
dinste.
| In Of my conversations with citizens Of you
State this subject urged that the State scrip is
the face of il made receivable for all State revenues,
that any interference with il would be in violation of III
pledge on the faith Of which it issued. In reply,
would respectfully ssk, whether the present holders
State scrip have any higher claim the equity OF Oh
State than the holders Of Internal Improvement bond
who purchased them more than years ago, and whe
the credit of the untarnished and its pledge
/ and rhrh