Iowa capitol reporter. [volume] (Iowa City, Iowa) 1841-1855, 1848-01-19
ss'sae State loan.

Is il not the intention of our General
Assembly to inquire into the manner in
which the important trust confided to
their loan agent has been discharged
We have before expressed our views as
to the provisions Of the loan law. 1t is
doubtless bad law in many particulars,
and well worthy its whig pareltage; but
lis worst feature, perhaps-at all events,
The most unfortunate part OF the whole
matter lis in the selection of tie agent
with the extraordinary latitude given
! hun. -.,...,..- .,.-. g. ....--
We repeat that, had one Of our State
officers or members Of Congress been
commissioned TO negotiate this loan, it
| would In all probability have been pro-
cured with less than half the delay sui
tered, and at a lower rate Of interes. By
two or three per cent,-,hus making an
aggregate saving 10 The State offrom s 10,
| 600 to j $4,000. Aside from the well
| known abundance OF money seeking in
! yestment at the time on easy terms, We
have ample authority, including the stale
ment OF our congressman, Tor saying that
the money was in market to be had al
that rate. Ii is well known 10 the member,
OF the legislature, that they had the assn
rance from the author of the bill, baseu
upon Information purportng to come from
HE agent, that under the provisions oi
such law as that enacted. the loan could
be had at a reasonable interest, " hen il
could not be procured al any rate under
the one first pissed; and that on that as
surallce alol.e the first one was repealed
and the second enacted. .-.4s
Thirty thousand dollars OF the loan was
negotiated at lOper cent, and The balance
at per cent, payable semi annually III
advance. This makes the pretty little
sum OF sol 900 10 be paid for the use Oh
| ,553 600 for ten years. Computing the in,
terest on the semi, annual instruments Of
| interest, at the Same rate, and adding the
$500 paid the agent, with other expenses
and it wall bring the amount up to within
a fraction Of 100 per cent. on the princi
pal. The grossest violence has thus been
done to our public credit, and though i,
may be too late to apply the remedy, the
people demand IF their servants a strict
| account OF their stewardship.
The General Assembly owe it to them
selves and to their constituents, to inves-
iigatesand set forth the whole matter in its
true light, SO as to show On whose shoul-
ders the possibility rests. 1t cannot be
permitted to sleep in quiet. As the peo
pie are required TO pay over the money II
pay this enormous usance and keep up the
credit of the State, thus trltled with, they
Will demand light upon the subject; and
should the present Legislature overlook
the matter, it must and Will eventually be
!Lyts i,ated.
Tiers is another circumstance connect
ed wit! the negotiation of this loan which
should not lie permitted to 60 unuolced.
We allude 10 the kind Of funds rait! into
the treasury. OF the So coo, only SO
600 were paid over in specie fuuds. Tie
balauce, $4,000, was paid in deprecated
western bank bills, which are at dis
count Of irom one TO one AID a half per
cent III Philadelphia, where the loan was
obtained though they might have pass
ed current here, that makes no difference
as to the nature c. the transaction al Phi
Ii de!phia, or wherever the deprecated
funds were obtained. Missouri and Ken
lucky bank bills are 10 more current in
Pn!ladslpAia, than are county orders her, !;
and Capitalist would no sooner think OF
receiving or pay ius out $50 OC0 Of those
bills as SO mu.h money, without payin.
the difference between their cnrrsnt value
and specie o: EASTERN funds, than would a
merchant here think Of paying fer load
OF wheat in county orders at their E,cr.-
There is something wrong here. Where
Is the discount on Ills $4,000, which
justly belongs to the State?