New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1845-01-08

rule OF actiun. The existing revenues were looked
upon merely as Z fund 70 meet Inc interest upon
further loans; 1t being assumed as sac 10 oePeho
Upon sntic p4ted Improvements OF those revenues
fir the payment OF the pInc pai OF t1o deots-
Iedeed !: Is believed tn, r-;nclP!e was earned
even farther. aed that anticipated revenues Weie
dcpenGed upon, TO meet sccuraulatlons Of inter-
eat. b:voad the power of the existing revenues, az
well as to coFer the payments OF principal.
The reflection Goes 30. seem 20 have occurred
to the authors Of this new .in-ncial policy, taa1
any disappointment in their aHticipations OF I'M
proved rereauas must gre their system achock
Il could got survive, By imposing tax upon the
pe,uIe or disappointment and loss apon the
public creditors, either of which alternatives
could not fail 10 arrest the further accumulation
OF deb. uron such basis. Il would seem also
10 have been overlooked ihgt the money !ender
could draw as accurate q distinction as them
salvas b4tTsen tne:- means aud their antci?a-
tons, and that when the means should have been
exhausted, the-ant;c;paiions might not command
the required capital even to tes thelr scundness,
or thsir ialllcy.
In any event, loana wee obtained in unexam-
oled amounts, until The limit Of the existing
revenues was reached, when the pubic credit
wholly failed them Works Of internal improve
rlent were prosecuted upon scale so extc7sire
as - b5ing Tie State into competition with itseii
and the wages Of labor and Se cost OF snesst-
ence up,n one contract were enhanced by the
dem and for sb5T and subsistence upon another
An arrest II the means by q failure of the credit
Of the State put an end to this strife and TO the
| new public works together, and when return to
the old and safe policy was attempted, It vas
found that a large proportion o! TIE moneys,
which had been accumulated 10 meet the od
CAM. debt, were rendered unavailable b. having
been loaned TO banks which could not pay ,; that
| TIE accruing surplus OF the Canal revenues, be.
You'd The current annual expenses, was covered
by claims Tor interest; that the general iund
must sink un er the accumulated and eccunu-
| latinG demands upon il for interest upon pubic
stocks loaned 10 rail road companies, winch had
failed, or were in failing condition; that tenn.
porarY loans had been made to the amount OF
more than million and half which were lnl-
pending over the Treasury, without the means
CT payment, and cha. Contractors ana la5ofers
upon the public works were wlthcnt pay. or with
the unmalketabe stocks of the State IN the place
Of the money TO which thsl- contracts enhued
| Them.
The issue was therefore present and Gnavoida-
BILE. The people mus; be taxed, or the public Gre
di,ors must suffer loss, and the pubic stocks be
dishonored. A resort to the credit OF the State
was made unavoidable, to meet these urgent and
instant demands, the accrulng interest upon the
enlarged debt, and to pa. the Canals IN repair Tor
the approaching season OF navigation. Public
distrust had taken the place Of public confidence,
and substitution OF the paying for the borrowing
policy WAS made Indispensable, before g resort to
credit could command aresponseln capital.
This WAS done By the act Of 1912. The effect
oftbis measure was almOs. electric. and was eit
not merely throughout the State, but throughout
! tic Union. Under It's solemn assurances money
was obtained upon loan 10 relieve the pressing
necessities of the public Treasury. and 10 preserve
the public faith and honor or by q prompt pay
ment, at the specie value, OF the instruments OF
interest upon the public securities. From this
time the credit OF the Statevose rapidly, and soon
attained the par ofmoney ;aad by the sc'upu!ons
adherence to the policy and the pledges of that
law, which has characterized our subsequent c-
gislation, it has now reached its accustomed
honorable elevation.
Wemustnut blind ourselves 10 the fact, how
ever, that the recent disasters IN the affairs of
public and private credits, and especially con-
nectcd with the credits Of several States of the
Union, have caused distru5, wGtchfuness, a
will no. permit of hazardous experiments Our
practice has been to pay az the day, both princi-
pal and interest, nd such IS iho theory Of finance
upon which we have restored tire credit OF the
State. Ii that theory shall be abandoned in prac-
tce, and the appropriate funds to pay the p:inci-
pal OF the existing canal debt, as it falls due shal
be diverted 10 ether objects Of expenditure, and
those payments be indefinitely postponed, can We
! hope that the credit OF the State will remain uu-
shaken? Have we ony right 10 expect that the
effect will be other than that so recently witness
ed, when the attempt was made to substitute
anticipated revenues for real means and dis
position to apply them, to MAINTAIN the public
| faith
am well aware that objects Of expenditure, of
great and extended public interest, will be pressed
upon your attsntioB, ard viii press Themselves
upon the mines and feelings OF those whose I'M
mediate constituencies have a more direct H.
terest in their resumption and completion. The
| Erie Canal Enlargement, the Genssee Valley
! Canal, aud tt. Bi4ck River Canal, are promr-
nent among these objects, aud deeply enlist the
feelings and Interests OF large ard worthy por-
tions Of our fdlow citizens. 1t would certainly
! De i more era iul task to recommend com
| pllanCe with these earnest wishes, than TO feel
nnpclled, bv asense Of public duty, 20 point out
the necessity Of their present Disappointment
Yet we mast no: forget, when acting uoon these
great question: that The interests Of the citizens
OF the whole State are committed to our charge,
and thar a MEASURE when would be wrong to-
ward them, d: mass caDDo, be right, because
portions of the mass would be benefited by it,
Aud it would certainly be wrong 10 our citizens
as whole, again to depre:s, or even to hazard,
- a.. - ,,-C g, ,,f
portion Of ,hs Canal revenues required 10 pay
the existing d.bt, and preserve the public faith.
1t would Be wong to them to disregard the let-
ter or spirit OF me pledges OF the law OF 1912,
and thus ine,r tae risk oil a necessity Tor H.
creased, OF logger continued, taxation.
Would sue, policy be wise even IN regard 10
these improvements, and The citizens more imme-
diately intere.,ed in them? The surplus, which,
as yc., can be so diverted, withou. an express IN
fraction OF the provisions CT the law Of 1912, is
entirely 400 mconsiderable 10 make any useful
progress with the works, and especially 50 il it
must be divided among them And it is not
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