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

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canal debt, and 30 0oo, 900 the internal improve
ment debt. The latter is now in the process of
being funded or registered, and the arrears of
interest up to July I, l647, placed in bonds bear
ing interest after 1857, at the rate of six per
cent per annum. The canal scrip issued to
contractors for work done ON the canal in
its earliest stages, is being placed in canal bonds
and added to the canal debt. When all these
operations are closed, we shall be able to
tell what the actual Indebtedness of the State
is. The tax of one and half mills on the State
valuation Of property taxable, yields sufficient to
pay about one and half per cent per annrm
on the whole debt, but the constitutional con-
vention recently held in Illinois have attached an
article to the constitution, authorising tax of
two mills on every dollars worth of real estate
in the State, for the payment of the principal of
the intern | improvement debt, leaving the canal
debt to beprovided for, both principal and interest,"
by the canal and canal lands. For this distinction
between these debts, the canal bondholders may
thank themselves, and such friends as Lord Pal
merston and the London Times They will see
by this that it is useless to attempt to intimidate
US, or accuse US Of Reputation in cases where we
do not acknowledge it ourselves. We are not
backward in casting censure where it belongs,
and if English politicians and the English press
imagine they can bring about a more speedy re-
sumption by such abuse than would otherwise
tke place, such movements as that made in the
Illinois convention will teach them better.
A poll tax of one dollar per head has been pro-
vided Tor by the new constitution, for the pay
ment of interest a the internal improvement
debt. This tax will give revenue of about one
hundred and twenty-five thousand dollars per
annum, which, with the tax now levied for the
payment Of interest ON the whole debt, will give
an income of nearly three hundred thousand
dollars, (S3OO, 000) sufficient to pay the one and
a-half per cent on the canal bonds, and three
and a-half on the internal improvement bonds.
The Illinois and Michigan canal will be mac
tive operation next year, and the State will then,
for the first time, realize some revenue from its
public works The canal and State lands, wilt then
be in more active demand, and command better
prices. The proceeds of these sales will form the
nucleus of sinking fund for the liquidation of
the State debt, which it will ultimately accom-
plish. From present appearances, we should
Judge that this State will be able, in less than
FIVE years, to pay the full interest on its debt
promptly
MICHIGAN, MISSISSIPPI, ETC.
The debt of this State, at the close Of the
last fiscal year, January l, lS47, was 1884,
65l the revenue for the year, 1927, 697, and the
expenditures $165, l25, leaving balance of $685.,
ST.. There was a balance, at that time, due on
the sale of the Central and Southern railroad OF
1856, $40, which, deducted from the public debt,
would reduce it to 81 1887, l4l. The total amount
of internal Improvement debt discharged by pay
ments on the sale of the Central railroad, is ST..
634, 489 7S. This State will probably wheel into
the rank of solvents in the course Of another year,
and the interest on her acknowledged debt ever
after, will be promptly paid She will not, how
ever, get rid of the odium of republication until
the interest on her whole debt is promptly and
fully paid. That will eventually be done, and
the credit of Michigan will stand as high as any
other in the Union.
Mississippi, Arkansas and Florida, are at pre-
sent in hopeless condition. Something may
turn up one of these days, that will place their
affairs in more favorable position.
SO far as we can arrive at a result, from the
imperfect data furnished by many States, 1t APP
pears that the total Indebtedness of the States,
amounts to $2O7, 241 1893; the aggregate revenue
for the year 1916. .56S and the aggregate
expenditures, 2,64O, $50; showing an excess
of revenue of 81, 34O. 033. We give this as the
most accurate statement that we can make out,
but wish it to be understood that it Is not entire
ly correct.