Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-10-15
The state Debt Advancement.

Our friend ADRIAN y. COLEMAN OF New Orleans,
who is in New York, has kindly forwarded usa
copy of the Daily Coarier and Enquirer of October
5th- In letter Of its London correspondent dated
Sept 18th, we find the following interesting matter
relative to State Debt arrangement. 1t will be
that, while the plan has been substantially agreed
to by the principal bondholders that there are some
minor difficulties in the way Of the new advance of
money for the completion of the canal, which it is
proposed to remedy by further legislation This il now
seems to US, can easily be done-the principal amend
ment being 10 give to subscribers of the new advance
priority of payment of their bonds, principal we'll
as interest The following is an extract from the let
ter;
The State Of Indiana stands very fair chance Of
having the loan raised, to finish her canal. That is
to say, Mr.. Butler has substantially succeeded in
arising 100000 dollars, which is all the money re-
quired leaving the land given by Congress to furnish
the remainder. Although Mr.. Butler will not carry
with him the loan completed and in his pocket, still
he will be certain Of the money; it being now under
stood that the six leading American-London houses
who have supported his views, have engaged in the
event Of the larger holders subscribing to find the re-
naming capital; and experience has always shown,
that where any enterprise is guaranteed by such
houses there is never any want Of persons who are
willing to follow them.
In the event of the loan of $500, 900 being sub
scrbed in the Of the ensuing fortnight the I'M
desandng that the steamer Of the 4h of October
will convey to the Legislature, through Mr.. Butler
the acquIeScence Of such number of bondholders in
the terms proposed by the State will justify the
carrying out by the legislature, of the proposed
In consequence of the inability of the agents of
the six houses to discover all Of the bondholders
will be requisite that several portions Of the should
be amended and would suggest that the clause COM
pelng the three trustees to be American citizens should
be omitted Ii has been much eensured, and although
there is no intention to nominate Engshaan sIill
1t IS very ungracous to deny to those who are called
upon to subscribe more money, Ito prevent their for
Iner advance from being total loss,) the power of
appointing whom they please, to carry on their work
and to take care Of their money. There would be no
objection to clause requiring the trustees reside
IN the State after their appointment. This would be
fair towards all parties.
The following copies of the documents, embody-
ing Mr. Buffers proposition, amended; and
they are this moment In the hands Of every banking
firm IN London, for the consideration of the owners
OF the stock, when the aforesaid bankers shall have
forwarded their papers to them.
The first point to remark in these documents is
that whoever subscrbes, shall receive payment first
OF the amount of his subscription and secondly of the
bonds IN his hands, according hs-pro rata allow
ance. Much bitterness has been expressed by those
who are willing 10 assist the State against those who
unwilling to advance another hundred pounds and
who assume the ground that if the canal is finished
by the energy of the other bondhoders then they will
still derive the benefit of the although they
90 not JeoPardlze any more of their money. Ii was
TO prevent these very parties from sharing the profits
while they did not share the risk, that many persons
refused TO subscribe, unless was distinctly under
stood that the subscribers should have priority of paw
meni- There is many slip between the cup and
the lp,-and should this be the case with this loan
then it will be well if Indiana does not give up her
case IN despair. But let her try TO open nego-
tlation, through MIR. Butler, with her bondholders
She has done much to pave the way towards reconci
iatlon with them. The offer of her canal the recog-
milton OF her bank bonds, and other bonds, to the
amount of 50 100000, of the proceeds of which she
defrauded, have done wonders towards restoring
her credit and allaying the unkind feeling which she
experienced in common with the other defaulting
States. Mr.. Butler and Col. Blake have assured and
conrHced the London bondholders that Indiana is not
reyeng in the money raised from the Sl1 900 900
OF bonds and that the offer made by the State is as
good as would be required, if the bondhoders them
selves could vsit the State and see with their own
eyes, the actual condition Of things there
The annexed are the documents alluded to in the
letter:
LosDos, September 10, 1876.
We beg 10 submit copy Of Mr.. Buffers communica-
ton, with an accompanying statement, dated the 10Th
September instant addressed u.s. and to be informed
OUT for the stated you willing become par
ties to subscription for $500 OOO upon the principle laid
down by Mr. Butler, pro with other subscribers, up
on the bonds we understand you to hold, viz -
Sterling Bonds &
And also 10 change these bonds into certificates in the
proposed in Mr. Buffers letter. You will like.
wise lie pleased TO say whether you will be ready pay
deposit OF per cent OF the time proposed.
The favor of your reply is requested your earliest
convenience not later than the 10Th September
that the necessary instructions may be given Mr. But
Ter by the Of the 4th October conformity with
The accompanying statement, provided adequate subscp
lions be obtained.
We are, your obeasient servants,
N. NJ. RoTHscHILD * Sous PALMER, MAcKnLoP,
DEsr e Co; BARIsc, BRoTHERs IL Co.; f. fiurH 4
CO.; MoRRrsoss, Sons & Co.; MAGxIAe, JARDIsE &
Co.
LosDos, September 10, 1896
Gentlsmea-As you have not been able to obtain ac-
bonds 10 obtain their the Act Of the Leg
islate in January last for adjustment OF the State
debt, and upon consideration it will appear quite
that the object OF the State complete the Canal
the Ohio river may be effected by cash subscription
$5OOOOO provided, The Of the canal and por-
ton Of the proceeds OF the canal lands including the
standing contracts, be also applied the completion o
the wok therefore beg leave suggest that f bond
holders IN Europe, holding less than four millions oil
dollars, will accept the Of the Legislature npon the
principle contained in IT, and subscribe 90 per cent
said amount, payable by insaImens in four years or
proporiIonabiy reduced subscription the
exceeds four Millions inclined believe the ess
legislature would IT, feel satisfied that the
iesisature and people OF the State generally will
be DESTROYS TO have this debt adjusted on the
srms proposed, and this arrangement would not con