The Evansville journal. (Evansville, Ind.) 1834-184?, 1846-01-08
Hon. JosEPH LANE, Chairman of the john
Committee on lie Public Debt.

SIR-In accordance with The resolutions
adopted by the honorable the committee on
the 25th inslant-copfes of which have lie
honor TO acknowledge proceed 10 submit
farther proposition in relation TO the infes-
est on The Bonds of the State of Indiana
held by the parties represented by ne. |
deem il proper to say that the suggestion
contained in my ffsi proposition, that il might
be subject 10 modification if found to be in
admissible in any respect, had regard to the
| amount OF revenue 10 be at present secured
by taxation aud 10 the details OF the arrange
ment, and not TO the reduction of the rate of
interest 10 be eventually provided for.
l do not feel myself at liberty TO make
any proposals or consent to any arrangement
which shall embrace less than the eventual
payment of the just claims oflheBond- holders
for the entire amount Of the principle and IN
tereSt Of the Bonds IN their possession and
as have reason TO believe that your COM
mittee are disposed to go as far towards
meeting these. just expectations as in their
judgement The circumstances OF the People
| of Indiana will justify at this time - am de-
| sirous cheerlully to meet them ON that basis,
and withsuch views now lay before you a
proposition which hope may be found ac-
ceptable.
1. Five per cent interest be paid--one half
out of the revenues to be derived from
taxation, and the other halfout of the reven-
nes of the Canal, as follows, viz
From revenue derived from taxation, the
State 10 pay two per cent. upon the principal
/ Of the Bonds from the frsi ofJanuary l641,
to The first of January, 1858, when one half
Of the arrearages of-inlerest from first Janu-
airy, 1871, to first January, l947, and halt
per cent. from first of January. IS47, to first
January, 1853, shall be added on the prnci-
pal and interest thus added, two and hall
per cent.
I'd. The remaining two and half per
cent. on The principal of The Bonds, comput-
ing from first January, 1871 shall be charg-
cable against, and paid out of, the revenues
/ of the Canal, and shall not be chargeable a.
galnst the State.
This proposition proceeds upon the
ground that the Canal shall be speedy
completed in lis full extent TO the Ohio Riv-
er.
As such reliance is proposed TO be placed
on the Wabash and Erie Canal, by the Bond
holders, for the payment Of one-half of the
back and accruing interest, it is proper 10
say that its completion is deemed essential
TO the plan of liquidation contemplated, and
although neither the Bond-holders nor others
would desire 10 make further advances to
the State; yet to aid her in affecting a res
toraton OF credit, and in completing the Ca
nal through to the Ohio River in the shortest
Iproctlcable time, so as to ensure the result as
aforesaid, it might be provided in the law
providing for the payment of interest afore-
sad,that the subscribers TO further advance
OR loan to the State, not exceeding one-third
of the entire amount required for such pur-
pose (using the lands for the deficiency, J
should be entitled 10 receive out OF the rev.
enues of the canal and the canal lands, after
first repayng said advance, principal and in
terest, the full amount of interest on Bonds
held by them, in preference any other; land
also thatthe principal OF Internal Improvement
Bonds held by them, should be first paid :-fol
which loan, SIX per cent. stock shall beiissu-
ed, payable in short datesj and for the secufi
of which loan, and also Tor the security o.
the two and half per cent. interest afore
sara, mere snail pc speclhc pledge OF the
Canal from the Stale line TO the Ohio River
with aUits lands and revenues (subectIalwayl
F., TO prior pedges,) end no pied e whatever o
the faith ofthe State which pledge O f ths
Canal and its lands and revenues, shall be
vested 10 the satisfaction Off Bond holders
so as 10 ensure the application of the pro
} ceeds TO the purposes specified.
feel assured that this proposition, would
now be accepted by the Bond-holders bu
circumstances may occur to change this dis
: position on their part if the question be de
iefred. All ofwhich is respectfully submit
ted. CHARLES BUTLER.
INDIANAPOLIS, Dec. 26, 1915.
ON DITS.-The Washington correspond
! " IT 4 n.