Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-09-03
From the Goshen Democrat.
Indiana Stlfe Debt.
LetLer from w. q. BrigM. ESQ

ect should be brought before the people and their re-
representatives., to enable them to take intelligent
ton on the matter. We concur heartily in the views
OF the letter, and in the propriety Of issuing % in
stead OF per cent stock, the principle that it
right for the State to avail herself of every honorable
advantage given her by the bill In event should
more be conceded to the Bondhoders, whatever their
camor, than they have already obtained. If they
cept the terms Of the arrangement, it will be duty
faithfully to carry them into effect; If they reject
them, let them abide by the consequences.
New YORK; August TO- 1916.
HoS. S. t. CLYAER-My dear SIR Would you like to
know what IS doing in reference 10 our Public Debt take
4 for granted that would from the interest you mani
Tested in the subject last winter; and though you and diff
fer in our views, il honest difference, and forms
s0GH GT %1g S which 90 with pleasure
acceded to. Mr. Butler has gone to Europe, the
special invitation Of bOndhOde and is expected back
about the FIRST of October. We shall know after
return, the fate Of the In the meantime have
little doubt, that the terms have proposed will be sub
is better than bread!
say substaniaLy-my opinion that our creditors will
take the act just as is if they do better; but
have reason TO suppose from "CrcuaT" of Mr. Buffers
current necs, copy Of which send you.) that they will
come to next session. asking amendments and modihca
tons So far as these may be necessary out the
principles Of the measure there be for with
holding them but the bondhoders should desire change
Of the the act so as 10 add one ioa 10 the
responsibilities Of the State themselves in
any way, any greater advantages than already given
them, their propositions should be promptly, and would
ready as much under all the oircum tances justice
quires-as much have the ability 10 perform and
more ought not either TO be asked granted.
In this Circular Of Mr. Butler is taken for granted that
the debt will be dirded in the first instance into tpO equal
parts and that the State assuming g. will throw
the canal the other part the Of
do not understand the law. The LIST section Of act
requires that, the surrender of bond certificate shall
issued for the principal at % per cent redcema
bic at pleasure, TeserUng the State by the $780, the
right at time afterwards Of changing this certificate
as by assuming half the principal 5, throw
hall into the canal But the stock TO be issued in the first
instance must be in conformity with the first section Of the
the entire principal at p cent, and
changed without the subsequent and Of
Legislatures the act as 1t passed, contemplating that the
State should for the least continue responsible
for the entire principal Of the debt p cent? and
the bondhOders haying finished their canal, &c. should
look it for the other o. with reservation favor of
the State Of the right whenever she may choose
m Of changing the character Of the debt so as TO be
liable for only half by agreeing pay per upon
H the canal becoming responsible FOR the other half at the
same rate of interest.
OF form, the question would be unimpOran but il is
ter of substance affecting think the very vals of the
measure and II the State permit it to be done, in my opin
ION, very decided advantage The time may come posi-
bly,, when it will be unmpOtant il money GETS on this
continent, TO be worth nominal per long
as IL Is worth D. and per cent, as at present, II is
tally for the interest Of the State % per cent stock
for the whole instead Of per cent for half the debt This
/ will endeavOr to explain.
Under this act the debt, being demandable Though
always Tedeemable) the value Of the depend not
at all the principal sum named in the certificate
does, cannot certainly be worth any
than half as much cent stock Of the
ter Now, if we issue per cent stock for half the
debt that stock will always be wolhsay par double
what p cent stock would be- and will require par
70 redeem it, whereas if issue p per
the h0 this STOCK producing income Of only half the
other, will be worth ony half much oT say per cent
OF its and could buy per cent or half what
would require redeem the other So far as dollars and
cents concerned then would be the same thing TO the
State, whether issue per stock for half or "a
stock for the chOI but here would be the difference and
gain TO the State By issuing p per cent stock when
have bought all in a-say per cent as we will be able
10 do and have the right do the created by this act
will become extnguhed and the canal appur
tenances will revert back to and become again the absolute
property Of the State; whereas, If issue 5 per cent
stock for half will eOstsay redeem it, 1.-THE same
money that would have bought the chOe il it had been
D per cent stock and after have redeemed it, we shall
be as far from the ownership of the canal again.
first commenced paying After that il we should want the
control Of the canal land ought have though ever
so unprecedented we shall have to buy 1.-THE canal
the best way we and all may have pay for it
will be just much than would necessary
had we issued q per cent stock This is the SUPPOSE
ton that the canal unprOductve of revenue and that il
will be is opinion believe, and that kn of very
many intelligent men 10 our State. not of any
similar work in the Western States doing only the business
Of the country along its borders that yields than de-
trays the current Of repair aud attendance
often referred in argument to the great Hud and
Erie Canal; but that work occupied to its utmost capac
~. doing the carrying trade, not only Of the adjacent
but of northern Pennsylvania, Ohio, Indiana Illinois
and Michigan and the CaDada to boot The same attend
and repairs would be necessary il only did the BUSH
that IS, to its revenues, so much clear gain There will
nothing in canal 10 attract distant trade The trade
along lis line will be forced into it, nOeas rOIeas but
distant trade will be free to choose the
lnois Canal the Ohio Canal and the Pennsylvania Canals
and there be little doubt where it will CO. II will GER
tainy avoid that which longest and of course the
most tardy, and at the same time, most expensive.
would not have you understand from this that am op-
posed to the canals far from it. Iconsider great
importance involving the growth prosperity State
BY cheapenng the cost Of transportation and thereby en-
hancng the value Of our products must facilitate the set
uement and add very greatly to the wealth of the State
Though not one dollar OF be derived
from IT, still II should be finished II never undertaken
with direct reference TO but for the purpose
encouraging the labor fastening settlement and deve
opng the resources Of the country by opening cheap
for its surplus products
the main subject-shOud the canal con-
sry to expectations turn out to be productive land
is to he hoped it may indicating the prosperity of the
country) still ii would be best issue a two and half
per cent stock for the whole interest instead of per
cent stock foE half the debt There could be nothing
and would be time enough change it, at some future
PERIOD when should be found by the cheapness money
from other causes that 1t was for the interest
nieBce Of the State to do So
have thus far assumed that stock if FIVE per
cent. will be worth Par-f two and half per cent half
par. But this will not be the Money, this
nent is and always has BEEN and for long peod-longer
you and shall livewill continue to be WORTH
less per cent, and from that The stocks Of
most Of the States all around us-Ohio, Kentucky Illinois
and Michigan mostly six and per cent and though
Of them, Kentucky for example, undoubted they
do got command par Kentucky has some few i've per
cent bat they only worth 10 per cent Of their par
Even stocks Of the great State Of New York. whose
credit public be- mostly
six per cent and Of them 1t
and then instance occurs, where money borrowed for
short periods less than six per cent this very
and only when the loan upon such terms be about
the thing to the lender ii he still had the money in
his pockets.
You aware that many of stocks in the
NTH Of credit, sold at IS per cent This be-
cause arithmecsl calculation it asceained that al
that price, the per which the bonds would draw,
taking into the time they had to would be just