The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1845-01-24
TIE FREE TRADER.
Ottawa, ALL, Friday, Ianuury -, 1915
State Fin n ncinI a sairo,

The following plan upon which to complete
from one Of our Springfield correspondents, and
was omitted las, week for want of time and room.
We give it place here, approving itin the main, and
believing that something like it mus, be adopted
by our state, or VIC may as well turn regulators
at once.
My plan would be as follows. First fund the
whole debt, and issue new stock, without any
coupons. Second, levy a mill tax TO be appropri-
atcd exclusively for the payment oiln,erest. ms
would secure the money already subscribed Tor
the completion Of the ranal. Third, provide that
in 1913, when the canal should be finished, the
bondholIers should rely entirely upon the canal
for the payment of the canal debt. This would
work no injustice TO the bondhoderS, and would
relieve the state Of that debt. Fourth, provide
that, in lS4S, an additional tax of one mill should
be levied for the payment of the interest upon me
Improvement debt, Assuming that our taxable
property will be Sl00000O 600 in ls4S, and oil TINS
think there can be no doubt, the mill tax now
levied, and the additional mill tax to be levied IN
lS4S, would produce 100000. This would pay
one half of the interest upon the internal i'm
provement debt. To meet the other half, would
provemeut lands which remain unsold. 100000
acres OF these lands stlIl belong to the state The
appraisal fixed by the agents who selected these
lands averages about five dollars per acre. which
would make the $50 600 acres worth Sll5OOOO
Now, allowing that our taxable property Will
double in ten wears, and think this sale con-
cluslon, the two mills tax proposed to he levied
would, allowing that produces S2OO,OOoln 1918,
produce $500 90 in 1858, which would meet the
whole interest upon the internal improvement
debt. The average yearly increase IN the amount
raised by taxation would he 10 per cent, or $780,
600. Then, If we should begin in lS4' paying
5000, 900 Of the accruing interest in money, and
s2OO,OOO in interest scrip, IN lS49 wc should pay
s22O,O interest in money and $3.50 COO IN lnte-
rest scrip; in 1850 we should pay S24OO0O inte-
TEST in money and Sl60 coo in interest scrip; and
SO on, each year pas ing more money and Issuing
less interest scrip, until 1853, when the amount
raised by taxation would meet the whole interest,
and then, Of course, we would cease to issue intc
rest scrip. The whole amount of interest scrip
issued up to 1883 would be 81 100 coo. The
land, as already shown, would he worth Lib
Geo, leaving an excess over and above rcdtemIng
the scrip of $4,000. The only question about
this plan would he, whether the bondhoIders
would he willing to receive part OF their inter-
est Until 1893 IN land scrip. In answer to tins, |
can say that have not the least doubt OF IT. The
bondholdcrs expect to make a compromise, and
the only question with them will be, the best COM
promise that can be made under the cifcums,an-
ccs The interest scrip they would receive un-
dec the foregoing plan, could be readily transfer
red to cmierants, who are coming to the United
States. The large banking houses il Europe are
daily applied to for information IN relation to the
purchase Of lands, by those wishing TO cmigratc,
and they would find no difficulty in disposine
Of their interest scrip. After 1858, when the
whole interest should ac paid, the excess which
would be each year received over and above pay
ing the interest, might be applied to the rcdemp'
ton Of the principal.