The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-09-05
Kelley-Sale of State
Stocks in lS42.

AlIfed helley threatened lne euitoi
of the "Ohlo Statesman" with libel
suit, in March last, for saying that the
tax law 'was devised TO wiring from the
hard earnings of the people additional
taxes to pay the interest on the state
debt, which the author of the tax bill
contributed largely 10 swell by pluder-
ing the state through fraudulent sales
of her stocks.' From the Statesman's
article, in reply, we make the following
extracts. Ifany of our readers are de-
sirous to see any of the documents re-
ferred to in this article, they will please
call on us and we will crafty them:
On the 7th of March, 1912, an act
was passed by the Legislature of Ohio,
entitled An act to provide for paying
the temporary liabilities Of the State,
the interest on the State debt, and for
other purposes" The first and second
sections of the act, are appended, as
containing the gist OF the charge against
Mr.. KELLEY, a charge often made, and
more than once, we will venture to
say, in language quite as strong as any
that we have used, but never before
followed by tie threat of libel suit
from that gentleman. against the person
making it. Here are the sections:
"SEc ]. Be it enacted by the General Assem-
bly of the State of Ohio, That the commissioners
of the canal fund shall be, and they are hereby,
authorized 10 issue and SELL on the best terms prac-
ticabe for and on behalf of this state stock OF the
state, bearing an interest of six per cent per an
mum, payable semi-annualIy in the city Of New
York, and redeemable in said city, at the pleasure
of the state after the year one thousand eight hum
dred and seventy, to the amount, and for the pur-
pose following that is 10 say, for the purpose OF
paving the temporary loans contracted OIL behalf
of This state by said commissioners, in the city of
New York, and ia this state, and now remaining
unpaid, so much stock as will produce net sum,
not exceeding five hundred thousand dollars, the
avails thereof to be applied to the payments afore
said, at the places where borrowed and no more
stock, redecmable at any place out of the state Of
Ohio. or stock which the interest is payable out
of the state, shall be issued or sold.
"SEC. g. That the commissioners of the canal
quired, Immediately upon the passage of this act,
to borrow, the credit of the state, sum or sums
of money, not exceeding one million and three
hundred thousand dollars, for the purpose Of pay
ing balances now due to the contractors upon the
public works, and for the completion ofthe Wabash
and Erie canal and the loans, SO made, shall bear
rate ofinteres, to be named upon the face of the
bonds at the discretion of the commissioners, not
exceeding six per cent per annum, payable semi
tha elako
shall be redeemable at the pleasure of the state, at
the state treasury, and for the tinal redemption of
said loans, and the puncual payment of the inter.
est thereon the faith of the state is hereby pledg-
ed; provided that no certificate Of canal stock, or
other evidence of debt, issued By the said commits
sioners for the loans herein authorized to be made
shall be sold, or other,cise disposed Of, at rate
less than par. J"
The provisions of the above sections
are clear and explicit. By the first,
the Fund Commissioners, at the head
of which stood Mr.. KELLEY, were arl-
thorized TO sell sufficient stock to pro-
duce the net sum of $5OO,0Oo. Of
their action under this section, we say
nothing. BY the second section. they
were authorized to effect the sale Of
one million three hundred thousand
dollars, of six per cent. stock, redeem
able at the pleasure of the state, at the
State Treasury, and the interest pay
able there; and the faith of the state
was pledged for the final redemption Of
the loans, and the punctual payment Of
the interest, "prorided that no certif-
cate of canal stock, or other evidence of
debt, issued by the Commissioners for
the loans herein authorized TO be made,
shall be Sold, or other,oise disposed of,
dta rate less than par" Now, did
Mr.. KELLEY actu to the requirements
ofthis plain and explicit lawi No, he