Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1848-01-13

/ aud pointing the mode of their compensation.
BY reference the Auditors report, it appears that
the principal of the late suspended debt of Indiana,
now amounts Cor rather at the commencement of the
operations under its late arrangement 1t did amount
10 gil 900 coo, in the shape of outstanding bonds.
On this amount no interest had been paid until that
arrangement since in the year lS4l, when the credit
of the State Frustrated. The amount OF the an
nual interest on that debt is over half million of
dollars, 1854, no, payable half yearly This debt,
large IN ITSELF was therefore increasing a rapid and
fearful rate, and in of that and of our limited
resources many of best citizens, involved in des
pair, and anxions TO leave their property unlncumber
ed to their children. were sacrificing their homes for
far less than their value. and leaving the State The
same causes were preventing meiI OF capital and In
dnStry from coming among us to purchase property,
improve the country, and add TO wealth. All this
it is evident had tendency To increase the gloom
and dependency that pervaded business affairs
generally and To diminish the ability of the people
(the great of whom also involved in deht)
lo meet their individual engagements. Add To- these
considerations the example already set by other in
debted States in resumng payment Of their obliga
liUns, and it is not surprising that general anxiety
should have existed in Indiana, that It's character If
possible. should also be indicated. The great obsa
Gle that presented itself Ia desirable result
the great disparity between the amount of the debt
aud the ability of the State for It's discharge by
of taxation.
~
versaly entertained, that tavored the principle of
dsposlng of the profits of the Wabash and Eric canal
In satisfaction of large portion of the debt, as
TO leave the balance within the ability of the State 10
pay from the treasury, the only practicable means
left the State whereby avoid the evils enumerated,
and TO wipe off the reproach OF reputation; and
earnestly recommended that the proposition should be
respectfully considered, in the hope that it might
eventuate in an arrangement honorable to the State
and satisfactory lis creditors The result the
passage at the same session of the BILL which re-
ccved nv approval the 10Th of January, 1916, TO
provide for the funded debt of the State, and for the
completion of the Wabash and Erie canal TO Evans
vile.
Early in the following July, letter was addressed
20 my department on the part OF the committee OF
bondhulders, (under whose authority the proposition
had been made which had resulted in the passage OF
the bill referred to- enclosing resolutions adopted by
the committee, in which opinion was expressed
favorable to the principle of that bill, namely, "the
payment of one half of the principal and interest by
taxation and the other hi If by the property and tolls
of the canal from the State line adjoining Ohio t.
Evansville; such property to be assigned to three
trustees and the State to be freed from responsibility
that portion of the debt and interest so to be Sc
cured"
In my next annual message that of last session, il
communicating the fact that the principle OF the arrange
ment offered by the BILL had received the assent OF The
committee, occasion taken to state that within the
sphere of my observation, and far as my niora
ton extended the expression of the great majority oil ou
citizens also decidedly in its favor 1t was ur
ther stated that the bondhoders desired some modlcaiol
of the bill by the legislature which was informed wou
not conflict with the principles of the bill, and yet wer
deemed essential for carrying into full effect Its far ant
obvious intent, and that any such notifications the!
added nothing TO the burdens OF the people, would wa
believed, be responsive their WILL and it was also trust
ed would receive the favorable action Of the Legislature
The action the proposed notifications resulted IN tn
passage Of the supplementary bill which received my dP
proval January 81, le47 Both of these bills contemPa
ted that the surrender of any of the State bonds the
should be cancelled, and certificates issued to tn
holders in lieu of them, and that only onehaf of the IN
teres due them which is fixed at the uniform rate
five per cent per annum, should be paid from the trea
sury and the other half exclusively from the profits
the canal. Both of the bills also contemplated that tn
bondholders who should come into the arrangement
should finish the canal to Evansville at their own expense
aided by the proceeds of the lands, &c, which wer
granted to the State for that purpose, and they were
look TO the profits of the canal Alone to repay them IN
costs of its construction and management.
But while the original bill gave the State the option
ateriuards throwing half Of the principal also, upo
the canal for payments, in the supplementary bill ian
consequently by the law it stands) that object
effected by half of the surrendered debt bot
principal and interest resting exclusively upon the cana
for payment the State being released from all further re
sponsiblity in relation to it
The great and leading principle therefore of tl
first BILL namely the satisfying of one half of tn
surrendered debt from the canal, remains unchanged
nor does the supplementary bill involve the State an
further debt The main difference between the bills
consists in the latter giving to the bondholders VIII
should finish the canal, priority in the payment {
their claims and expenses about its construction,
of the tolls and profits, over those who would nc
ioin In its construction The latter class however,
surrendering their bonds would still have the interes
on one half Of their debt equal to two and half pc
cent ON the whole) satisfied from the treasury, as
the case of the Others and they would also be paid
whole part the interest on tie other hall, Iroi
the profits of the canal if any remained, after payln
those entitled to priority. as before stated. Even
they received nothing from the canal therefore, tn
amount of the interest paid to them by their accedn
to the present arrangement would be only one slxt
less, than they would have received under the rivi
plan introduced into the legislature which propose
give but three of the five per cent which their bono
called for. By the rival plan too, the canal woul
not have been finished, the credit OF the State wa
broken down. and she could ha rdy have been expecte
to construct ii. with only the lands granted by Cor
gress for that purpose.
This muu6cent grant then, amounting to abol
100000 of land would III that case by the tern
of the grant, have reverted to the United States, an
thus have been forever lost TO Indiana.
By the supplementary bill, all bondholders are a
lowed to subscribe towards the completion OF the CT
raj until late period as the first OF Novembt
last and to surrender their bonds at any time befo
the first Of the following month. 1t was also PROVE
ed that unless the subscription towards the canal
made, and bonds TO the amount of S4OOO,OOO PriT
cipal surrendered by the times limited In the bill Il
those purposes respectively, the arrangements shou
cease and be void Apprehensions were expressed @
the part of opposed to the measure, that con
paratively few wealthy persons controlling bonds
that Cor u little larger) amount, would get possessio
of the canal TO the exclusion of the residue OF Ii