The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-04-17

and Black River Canals The Of $4,000 is appre-
prated for the Of the r~t yeas nssrss the
Canal Revenue certificates issued this act $3.50
the payment Of interest the year to
paid out Of the avai Of said certificates In each ysss
after the present one the Canal Board is authorized
regulate arrange the tolls the State canals
produce sufficient TO pay expenses Of collection,
other expenses OF the canals and to satisfy specific appro
prations the payment Of the Canal debt and General
Fund debt and for necessary expenses ofgoyernmen and
to produce surplus fat $4,000 in each year until
the completion Of the Erie Canal Enlargement and wher
the same shall be completed sufficient to produce
plus of least II 100000 in each year, until sufficient
for the redemption Of the canal revenue certificates
ha have been collected and safely invested The Canal
Commissioners authorized to make such contracts
will insure the completion of the Erie Canal Enlarge
ment by the opening Of navigation in 1854,
The certificates to be denominated Canal Revenue
Certificates to be issued in not less than $50
shall purport their face 10 be issued by virtue Of this
act without any other liability obligation OF pledge on
the part Of the State than such is contained in the
act of the surplus of the canals The eertid
Gates to be made payable such times not exceeding
twenty years from the time of ISSUE the Comp
roer may designate and to bear interest not exceed
ing six per cent per annum, payable semannuay, on
such days and at such places the Comptroller may
direct.
The Compr6lcr is authorized to invest part of the
fund created for the redemption of these certificates in
any stocks for the payment OF which the faith Of Thu
State is pledged or in the provided for investing
the capital Of the Common School fund he may pur
chase any Of these certificates such terms the Com
missioners Of the Canal Fund shall judge be most ad
yantageous the fund created by this act he shall i'm
like manner invest any income interest arising from.
any investment made by him. These Canal Revenue
certificates shall be received for the purpose Of banking
operations under the laws of this State foe circulating
notes, to be delivered Ia he upon tae
terms and to The ome extent to person assoca
ton OF persons rs now provided by law in respect to the
public stocks Issued by this State; certificates
may also be received from any insurance company
ganized in any other state in compliance with any law
requiring depostes Of stock security for proper per-
Torrance of contracts.
This is the gst of the Canal Enlargement BILL which
win be found in full in another part this days paper
1t adds nine millions Of dollars to the public indebtedness
OF this State and appropriates portion Of the
OF our public works to purposes not provided by the
stitution The advantages likely TO be derived from the
expenditure Of such large amount Of money part
Of the question to be considered the legal right
Of the Legislature to contract debt of this nature is
the most important matter for disposal and will with
out doubt for long time agate the two political par
ties Of the State This movement affords another illus
tration Of the weakness and imperfection OF all Laws
There never was law made yet, that could not be
evaded; and constitutions, which are considered the
regulators of all lay, be nstrued any way and
made to mean anything and everything. The diff. :.
ference in opinions entertained by the best lawyers of
the country in relation to the consttuonaity Of this
Canal BILL is sufficiently striking to convince any one
that the whole thing is farce from beginning to
end. i. is well known that anything in science
can be proved by scientific and it is equally true
that any kind Of an opinion be obtained from lawyers
The Canal bill has passed in the face of the constitution
and OF all the opposition made and shall have
the certificates in the market Notwith nding the
grave doubts which may be entertained relative the
legality Of the ue, have doubt the certificates
will meet with immediate sale at a premium Anything
in the shape Of State bond, State certificate Railroad
bond or in fact any public incorporated security OF
any kind can be easily negotiated and tie demand is
not easily satisfied.
The public mind at this moment is in a state
most favorable for expansion Of credits and .
the imitation is progressing with frghtfui rapidity
Nine millions f dollars will be afoat in this
ket. new issue Of certificates will absorb that amount
OF capital which is actively employed in other chan
nels, and which forms doubt the basis credits
four or five times that To fill the vacuum created
ty this drain Of capital issue of paper credits in
some shape must be made and the aggregate expansion
increased. probably much beyond the sum withdrawn
This is only item Nearly every State tie Union
has added more or less TO Its indebtedncs and the
HaLla sxends IRON states through all the Qualifications
Of governments-couniy, city. town and v.age-down
TO all kinds Of incorporated institutions compaIics
individuals. One universal feeling anirna:cs every
member Of the community; and speculation, cxtrava-
gance and expenditure, in every way IL pracsed appa
renty with IMMUNITY. The manufacture Of paper pro-
misses TO pay has already been carried to cx
tent and the supply is increasing at mos. rapid rate
II has obtained such impetus and little thought I.
given TO the future, that It l. impossible arrest IL
but in the ufua way The mania pass through all
its stages, and end in collapse that viii sweep away
every vesge Of Thousands who have been affected
There ia 80 much excitement in the public mind caused
by the large receipts Of gold from California by the
expectation that the supply from that only
nsahaustibie but that the production annually will
tinue as large already realized that 1t l. useless to at
tempt to stem the tide which setting many power
fully and rapidly to the lowest depths Of bankruptcy Like
fever In the human system must to course what
ever may be the result. When consider what weak
foundation this and rapidly Increasing expan
sion publc and private credits rests upon alarm
ed and wonder at the extraordinary inf Itaation with
which men, possessing apparently moderate quantity OF
ordinary common rush headong into ruin Ind dis
tres The entire structure Of credits bull. upon quick
sands and should not b. surprised any momat TO see IL
tumble to the ground with crash greater than that OF
any former period within financial commercial
history For the purpose Of showing wha: condition
are in at this moment-of lustratinihc truth Of
remarks. and the force Of our predctions-we annex
table exhibiting the indebtedness Of each state in the
Union and Of the General Government AT the latest date
FrssScrs OF rir GrsEnaL AND srArr oosSASsryrs-
Prpifc DrHrs
United state. . SCI a2s, 23s Arkansas ase2l72
Maine ......... $4,000 Tennessee. 33GsJG
Massachusetts,. 6o9loi7 Kentucky. t53l el5
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