Tri-weekly journal., 1848-01-19


travelling and returning, over nearly or quite
the same ground in making thei. returns TO the
Secretary of State And If it should become
necessary to employ one or more special mes
sengers for the performance of that service,
some provision should also be made by law,
settling the amount and pointing out the mode
of their compensation.
By reference TO the Auditors report, il ap-
pears that the principal of the late suspended
debt of Indiana, now amour Tor rather at the
commencement of the operation under its late
arrangement it did amount) to Sll ,065, 900, in
the shape of outstanding bonds. On this
amount, no interest had been paid (until that
arrangement since in the year 1S4l when the
credit of the State was Frustrated. This amount
of the annual interest on that debt, is over half
a million of dollars, 554, 770l payable half
yearly. This debt, large in itself, was there
fore increasing at rapid and fearful rate, and
in view of that and of our limited resources,
many Of our best citizens, involved in despair,
and anxious to leave their property unincumber-
ed to their children, were sacrificing their homes
for far less than their value, and leaving the
State. The same causes were preventing men
of capital and industry from coming among US
to purchase property, improve the country, and
add TO our wealth. All this, it is evident had
tendency TO increase the gloom and despon-
dency that pervaded our business affairs gener-
ally, and to diminish the ability of the people
| 1.-THE great mass OF whom were also involved in
debt) to meet their individual engagements.-
Add to these considerations the example al
ready set by other indebted States in resuming
payment OF their obligations, and it is not sur
prising that ageneral ankle ty should have exist
ed in Indiana, that its character, If possible,
should also be vindicated. The great obstacle
that presented itself to so desirable result was
the great disparity between the amount of the
debt and the ability of The State for its discharge
by means of taxation.
1t was under this conviction, generally, If
not, universally entertained, that favored the
principle of disposing of the profits Of the Wa
bash and Erie canal in satisfaction of so large
a portion OF the debt, as to leave the balance
within the ability of the State to pay from the
treasury, the only practicable means left the
State whereby TO avoid the evils enumerated
and to wipe off the reproach of Reputation;
and earnestly recommended that the PROPOSE
tionshoud be respectfully considered in thehope
that ii might eventuate In en- arrangement hon.
orable TO the State and satisfactory to its cred
itors. The result was the passage at the same
session Of the bill, which received my approval
on the 18th of January, 1916, 10 provide forth
funded debt of the State, and for the compile
ton Of the Wabash and Erie Canal to Evans
vile.
| tu tuC AOttONthS a tCAtCl WIS du-
dressed TO my department on the part OF the
committee of bondbolders, (under whose au-
thority the proposition had been made which
had resulted in the passage of the bill referred
I to, )enclosing resolutions adopted by the COM
mittee, in which an opinion was expressed ia
vorabe to the principle of that bill, namely,
''the payment of one half of the principal and
interest BY taxation, and the other half by the
property and tolls of the canal from the state
Vt 10 be assigned TO three trustees, and theState
to be freed from responsibility on that por-
ton of the debt and interest so TO be secur
ed"
In my next annual message, that oflast ses-
sion, in communicating the fact that the prin-
!, ciple of the arrangement offered by the bill,
had received the assent of the committee, oc-
casion was taken to state that within the sphere
of my own observation, and so far as my infor-
nation extended, the expression of the great
majority of our own citizens was also decided
" in its favor. 1t was further stated that the
bondholders desired some notifications Of the
bill by the Legislature, which was informed
would not conflict with the principles of the
BILL and yet weredeemed essential for carrying
into full effect its fair and obvious intent and
that any such notifications If they add nothing
TO the burdens of the people, would il was be-
lieved, be responsive TO their will, and, II was
also trusted, would receive the favorable ac-
ton of the Legislature.
The action on the proposed notifications re-
suited in the passage Of the supplementary bill,
which received my approval January "a, 1917.
Both of these bills contemplated that on the
surrender of any of the State bonds, they should
be cancelled, and new certificates issued to the
holders in lieu of them, and that only one-half
of the interest due on them (which is fixed at
the uniform rate of 3 per cent per annum,l
should be paid from the treasury, and the other
half exclusively from the profits Of the canal.
Both of the bills also contemplated that the
bondholders who should come into the arrange
J ment, should finish the canal to Evansville, at
their own expense, aided by the proceeds Of
the lands, &C., which were granted to the State
for that purpose, and they were to look to the
profits of the canal alone, TO repay them the
cost fits construction and management.
} But while the original bill gave the State the
!, option Of afterDards throwing one-half of the
principal also, upon the canal for payment, in
the supplementary bill land consequently by
the law as il now stands) that object is at once
effected by one-half of the surrendered debt,
both principal and interest resting exclusively
upon the canal for payment, the State being
released from all further responsibility in rela-
tion to it.
The great and leading principle therefore Of
the first bill, namely the satisfying OF one half