The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-10-02

Balance to be carried to sinking fund. $26l 4sa 80
1t is further estimated that the sale of canal
lands and other sources of revenue will amount
to SI69, 479, which, added to the surplus from
the ordinary revenues of the State, will make
$4l9, 479 GA, to be applied to the payment Of the
principal of the State debt The State tax this
year is q mills last year 1t was mills.
INDIANA.
At the close of the last fiscal year, Octo-
Der 81, 1876, the debt of this State was
Sl3, loo, 900, the revenue for the year $293, $751;
and the expenditures 1888, l36, leaving balance
of $224,725 A portion Of the revenue Of Indi-
ana has for many years past been paid in State
scrip, treasury notes, and such stuff, which the
State issued in previous years IN making its
own payments the surplus revenue exhibited
above was composed OF these obligations, which
were cancelled upon receipt. The State has yet
floating debt of this kind, which will be receiv-
ed for payments due the State until the whole is
liquidated. This State has recently made an ar
rangement with its creditors, by which partial
resumption of the payment of interest has been
made. 1t must be admitted by all that the terms of
the compromise are very ambiguous, and difficult
of comprehension. About half dozen different
kinds of stocks have been issued, and the whole
matter remains in a very confused condition.
The substance of the compromise is as follows.
The original funded debt of the State is equally
divided; one-half is surrendered to the State,
for which the creditors take canal bonds, depend
ing upon that work for interest, and releasing
the State from all responsibility, both for princ-
pal and interest; the other half is provided for
by the State, ard new bonds are issued bearing
interest at the rate of four per cent per annum.
leaving one per cent to be funded at the end of
six years The whole ef the interest in arrears.
up to July 1, 1S47, and the one per cent on the
State bonds, and FIVE per cent on the canal bonds,
up to July i, 1853, will at that time be funded,
and an annual interest of two and half per cent
paid upon it. This arrangement places the
finances of the State in a much better position
than they were; but we are informed that much
better arrangement might have been made, and a
much clearer exposition of it given to the credi-
tors The most Objectionable part of the com.
promise is, the payment Of only two and half
per cent interest on the funded arrears of inter-
est, after 1853. The surrender Of half of the
amount of each bond to the State, by which the
responsibility Of the State is given up, is not
compulsatory, and is not, therefore, reputation.
The creditors Of the State can, il they please,
preserve their bonds as they now stand, and
claim the accumulation of interest, but they do
not receive. the benefits Of the cash payments
semi-annually made upon the part, the interest
on which the State has resumed the payment Of
1t is our impression that ultimately the full inte-
rest will be paid upon the funded arrears.
ILLINOIS.
The debt of this State has never been sa-
tisfactorily ascertained. 1t is estimated to
be about $4,000, 900, of which SO, 900 is the