Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1849-10-18
The Stale Debt Intere.


The State Debt Interest.
Governor Cumming politely furnishes to the
following letter from the State Agent, the subject
Of The payment of the interest on the State Debt 1t
is an important NATTER and will be subjrct for the
consideration of the next Legislature. We have no
space for comment. but it is hardly needed as the
letter fully explains itself.
INDIANA AGEEcY,2
NeU York, Oct. S, lSs9 :
To His EreeIsucy p c. Dunning Governor of Indiana:
SRAs the period approaches for the preparation Of the
material for your annual communication TO the Legislature
Of State, have thought that might be OF
ynu together such and suggestions,
neced with the public debt Of The States present condi
ton and pro>pecis-as will enable you speak in detail
upon that interesting branch of the public service
In IS47 when the arrangement Of the States debt
made with her eTeditO the debt exclusive Of interest,"
There has been surrendered and con-
verted into new stock TO lsi July
last, S953OOOO
Since July LIST, $1,000 563 900
Leaving vet to come in. 14ss bonds, or lass, 900
These bonds Europe and in this country,
coming in gradually have little doubt that all will
be surrendered arrangements be made by the
holders TO obtain the Of the parties interested in them
The interest paid in July las, at this $685. oo
being per cent 0o0 the debt at that time,
der the arrangement In January shall probably
pay 500 000 235 bonds coming in from July
January will make up that amount
We commenced ing interest with July 1S47 and TO the
present time have made FIVE semannual payments
ig in the aggregate TO half million Of dollars Mean
Stock gradually rising value until
il has advanced to 10 the dosrts full value,
taking six cent interest the standard This
fact must gratifying the friend State
nhes uumisakabe evidence of increasing confidence in
her resources well firm reliance upoh her integrity.
The large amount Of treasury notes which have he'eofore
paid for somewhat embarrassed the State
treasury. We have consequently al times, been with
the TO pay interest became DUE For
the dividends this deficiency has been supplied by Dor
rowing the necessary amounts from Bank To US
the necessity Of borrowing aud TO make drdend both
Of payable after the annual raid into the
State Treasury the Legislature by joint resolution last win
ter instructed negotiate extension Of the January
payment March In June last prepared circular upon
the subject and sent the stockholders In this circular
proposed that January dividend should be postponed
til frs, Monday in Mach when should be paid with six
per per interest from LIST Of January. To the
present from 20S holders,
shown by our July div ideod book.
They far, almost unanimously agree 10 the postpone
ment; however, condition that all the 9TH
do the same, whilst several have refused positively
into the Others expressing unwingness
refuse 10 do thing that the State may des
reluctantly yield their assent
The proportion Withholding their consent-though ample
time has been aOrded-raes fear in my mind that the
proposition will agreed majority of them
Such state Of things would not only be troublesome but
perpexng II the money should not be ready pay the
dividend in January this agency would have 10 issue certh
for interest those who declined the
postpone would be prepared March the
dividend TO those who had their assent and each
one Of these payments interest would run against State
from the first of January thereby greatly increasing the
eompext of the dividend and interest accounts To avoid
these evils would be better for the State 10 borrow Of
the Bank enough for that and the Janu
dividend in cash the day il maiures BY doing
The State will meet the expectations of her friends which
have been that she would make all her payments under this
arrangement promptly in cash. Other consideraons also,
would seem to make this course preferable. As
The State stock is at price which places il by
the side Of the stock of the regular dividend paying States
10 withhold or postpone dividend would inevitably depre-
ciae it, and impair the re-esabished credit OF the State
The State is deeply interested in the completion of
the Wabash and Erie canal The funds available for
that purpose will hardly accomplish H. If bondholdes
by conduct assured Of the stability and Of
the State by having their interest regularly paid ihem they
will only better prepared better disposed make
up The necessary under the law bring that valuable
work in complete connection with the Ohio river at early
day.
interested in line Of railroad contemplation. These
roads wanting aid and seek it from home The
certain method of securing this aid will be- to establish
TO the world that the Strife rich IN and prompt in
payment
4 In borrowing the money from bank pay interest
institution owned almost entirely within the Stately
the State herself and her citizens who make all the profits
aeeuing from The osnwhen by paying interest the
cates, the Of time, send money ont Of
the State to persons abroad.
s. By paying n money the State avoids the expense and
many Of them for ten dollars and twenty doas-,nd Of
keeping complex interest accounts.
am not that feeling Of indifference towards this
debt exists part OF the State The debt being
arranged would be unfortunate such the fact The
bOudboldes have taken the Wabash and Erie canal for
half their debt the stock Of which, with three Of
interest accumulated upon it, now worth but Ia cents on
the dollar. They have advanced $500 900 finish the
nal and look 10 the stale iO but the DINER nall OF the og
nal debt. This debt, may say Of compromise. Fa
voIable to this State for il enables her stand firmly
under ell her liabilities. We ALL citizens parties to this
compromises for the Stale imposes share Of her liabilities
she sheds portion Of her character upon each citizen
The world looks stock being clear Of all
questions which hung about The old bonds indeed the State
has authorized them be REGARDED As the debt with
out question, and the State equally without question able,
respectfully submit whether would be the better policy
10 provide the The interest becomes dus
rather than 10 postpone il in part issue certificates for part
aud the end foot heavy bill of interest and
When began did not intend TO in such length
but being familiar with the subject have ventued to
pass upon attention. under hope that shall incur
the charge Of obtIusiveness.
What have said here is in spirit Of anxiety for
States welfare and entirely service, be used
you may deem most proper.
lam your very obi serv't
JAMES COLLINS, Jr.