The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-01-07

that object For this purpose two sinking funds were
canal debt the other for tho reduction and payment
Of the general fund debt concise statement Of the
provisions Of the constitution regulating the sppl
satsfactory exposition Of this subject The entire
venues Of the canals commencing the srst day OF
June ls4e are divided into Eve distinct parts fusds
lst. For paying the expenses Of collection, supsrin-
te1dsncs, no % and tans Ordinary repairs.
year until the first day Of June 1855 and from that
sinking fund to pay the interest and redeem the prn
cpal Of that part Of the State debt called the canal
debt as it existed the first day Of June 1S46 rhis
fund is denominated The Canal Debt Sinking Fund.-
:, Sd After complying with the foregoing provisions
there is appropriated and set apart out OF the canal
revenues commencing on the first day Of June. lS46
the tum of $35o0O0 in each fiscal year until the canal
debt .bal have been fully paid and after that period
sinking fund to pay the interest the prin
epa Of that part Of the State debt called the general
credit to railroad companies which have may be.
come charge on the treasury, until the same shall
General Fund Debt Sinking Fund"
4th After paying the expenses Of repairs and super
intendencs Of the canals and sums appropriated TO
the sinking funds as above stated there shall be paid
out Of the surplus Of the canals the
eury Of the State before the thirtieth day Of
September In each year. for the and benefit the
general fupd, such sum, not exceeding S20o,OOo as
may be required to deffsy the necessary expenses Of
sth The constitution directs that thu remainder Of
the revenues of the said canals tha in each fscal
year be applied in such manner as the Legislature
.hal direct, to the completion Of the Erie canal
lsrgement and the Genesee Valley and Black River
canals until the said canals shall be fully com petsd
This surplus Of the canal revenues thus Appropriated
to complete the unfinished canals will be designated
for the FAKE Of distinction Us The Canal Completion
Fund.-
These several provision. of the constitution con.
trolling the application Of the canal have
been sacredly observed and faithfully carried into
effect From the first day Of June, 1sl6 the expenses
Of collection. superintspdence and ordinary repairs
have been fret paid out OF the accruing canal
puss the sum Of 81 500 oco per annum has been paid
from the canal tolls to the sinking fund for the paw
ment Of the canal debt $3.50 600 per has been
paid to the sinking fund for the payment Of the
fund debt $500 GOO per aBnum bas been paid TO tue
general fund TO defray the necessary expenses of the
State and the entire surplus Of the
been expended on the unfinished works specified in the
1t was feen from the statement Of the State debt,
furnished BY the Comptroller to the Constitutional
Convention, (see Convention Documents No Az, that
pcrtiops of the debt would become paysSls more
rapidly or at earlier periods than the funds would be
realized from the appropriation OF canal revenues to
the sinking funds; and to meet this contingency ths
fifth section Of the article above referred authorizes
claims Of the creditors Of the State rs they become
payabe the credit Of the sinking funds either of
them u the ,sme prove ipsumcient. AS forth.
guarantee for the payment Of the debt it falls due
sufficient means for that purpose cannot be procured
on the credit Of the sinking funds IL is made the duty
Of the Legislature to increase the Of the said
funds, by equitable taxes. 20 as to make them, re-
.pctvsy, sufficient perfectly to preserve the public
The propriety Of these provisions has been already
eIsnpded In order to meet portions of the old debt
coming due in advance Of the contributions to the
sD king funds the Legislature have found h necessary
to authorize, and the financial officers Of the State
have contracted several loans the credit Of the
sin king funds Two loans of this character made
In ls45 for Ss26 C0 to meet portion OF ths canal
debt which fell due the first day Of July In that
year; npd for s4so,s1s 81, to repay the amount
sdvaneed from that portion Of the canal revenues be-
Longing to the Canal Completion Fund 20 pay portion
OF the sebt sheh became que the nrst day Of July
IA hall hat amin 0fr
oers report for ls47 and the facts presented In the
special report of the Comptroller, dsted March Is
siS, will sufficiently establish the prspriety OF this
loan, as the oply means Of repayipg moneys trans
sied from fund 10 another and thus plscing each
In the precise condition prescribed by the constitution
During the last 6scai year three additional Ioaus
have been made the credit Of the sinking Fun is in
Of the hfth section OF the financial article
Oh the fret day az July ls4g there due for prn
cral of the canal debt the OF So lao os Including
soo2 400 Of teyen cent stock issued In 1872 This
large amount exceeded the In IN. Canal sinking
Fund 81 73y O24 70 To provide for the deficiency the
tommifsonsrs Of the Canal Fund made loan OF that
amount the 22d Of June last, by Issuing ak per
2l0 Laws az lsiS. The large premiums given TO the
state BY the succesfui competitions for this loan
(smtcnurg 10 S207,N CO, or above Ill rs 100 per
cent? affords CRAFTY evidence of the financial pros
peiiy Of the county aud of the universal confidence
ieposea IN the public faith and credit Of the state.
BY the act Of April g. 1sis, tobspter 232) the Com
mifsioners ~ the anal FuDd TO borrow
eXce,ong 10000, IS msy be sufficient 20 TO supply
any Deficiencies In the ssid sinking Fund to pay the
Awards of the Canal Appraisers Gnd the Canal Board
and the sllt by the Canal tom sicners aud
the Con issouers of the Canal Fund made In pursu-
snce of Law, for damages other Gains, sccruing
prior To June l. lst6 in p,rsusnc. ot this sct the
Commissioners OF the Cspsi Fupd the 3oth day of
Nay last, borrowed 500 600, six per cent stock
tsysble In lsti which was negotiated ct a prsmium
perfectly obvious tha. this loan created no in
crsae a the public debt, but fimply provided the
existed on he ist oi june isas The estimates sub
mited TO the constitute nal convention Of Is86 a.
tUued that $500 600, for which loan bad been pre-
vously sutborzsd would be sufficient to pay the out.
standing claims fer lard damsges and work already
peIiormes, but then unquidsied by the dual susfds
81 the Csnsl Appraisers or tbs Cshal Board That
there claims regarded by the convention ss part
Of the debt exciting at that time apparent froE the
fact that they made what believed to be sui ent
provision for them, in express terms.
Ihis conclusion Is sus,aised ey the prinspi' laid
pg the amount of debt paid under the suspension lav
of lsi2 be MADE the following statement -
The following ums have teen paid fr ,he otj.ei,spes
fed hse ths Issssse o. tie suTenson law aud up 70 he
Tor sIen,sss oecn,ra,,ors snsis.,rs se s2s.1 - IS
isr breaches u canal contracts. ........ sgii i5
tSk5l6,0 -
Tie hIs, and se.crd items, although fuy
qucsted belonged TO the dcst actually exstng at the
tine tie suspension sw passed"
without the aid Of these satisfactory proof. that
there claims were 60 regarded by the convention and
tie former financial ocers OF the State IL would
In ttssible TO aveid the conc usiCn that due
Tor sri.arsEes TO contractors end lsrd damsges in-
sc-rtsined aud Hquidstsd forpsd part OF the public
debt Al that time. The pscub,ary oeieatioo existed
In lite full force ard the hsue n stock for tts pay
m.pt created no debt but changed the form o
old and substituted one creditor fOr another
A different construction would deprive the Lsgiss-
ture Of all 20 provide for the payment of this
Glars a debts from the canal tolls. These revenues
fpecisesly iet apart and applied 20 ave aiftuct
funde objects under none of shish the uu "a.
dated claims be satisfied unless tsey recorniSsd
debts All doubt this tuhject is put At rest by well
settlsd principles Of Law. N individual makes
srierntnt Of property creates trust Tor the pay
rsut a he debts. ubliqUidsted claims outstsnaibg
sesrst lin, vbethsr for work done property taken
must be oischsfgsd ss veil other classes OF dsets
distinctly recognized END atcertsned No reasoa Is
perceived WY the legal doctrine u not equaily
applicable TO the claims Of individuals against the
State In giving construction 10 provisions witch
we're cesiPnsd TO create unususl guarantees for the
pressr,suon ~ the public faith invSiste.
BY the act Tass,s April 1892 u made the duty
Of the cor ptfoller, on the first day OF May last,
ITO stue 60 the Treasurer for the q the Canal
Fund his Dor DE- for the sum of three hundred sns
eighty I've uoussnd dollars, bearing interest st the
of sik cent Per anbu, payable quarterly and
atle the fret DAY July thousapd eight