The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-05-16

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any other mode of payment there can be no State deo
This is the argument, as understand IT,
IL NAV be that the bill framed with view 10 TINS
distinction in order. if possible. 10 escape the sonsa
ona restraints upon the creation OF State debt put
il The legislature really supposed there would be no ads
quae fund pay the certificates promptly and certainly
according TO their Terms the bill can hardly be regarded
as the result OF anything like elevated sa'esnahshp OF
manly attempt 10 obtain money for the pubc use Inc
State am sure, is proud 10 beg, and as rust 100
honest TO desire TO obtain money without makag ample
provision for its repayment Much less would the gooa
people OF this Stale be willing TO OBTAIN an advance o.
money for the public by holding out inducements
which not 10 be realized by those who conhde IN
them. -,
But let us see how far such design, If il existed.
would be carried out by this bill.
The constitution was framed and adopted on me as.
sumption that large amount OF money would each year
be brought into the treasury from tolls on the canals
and upon this assumption the money thus 70 DC col
ecied was charged by that instrument with divers sums
to pay State debts and for other pubic purposes eavs
" the remainder of said money to be applied 70 the com
pleon OF the Erie. Genesee Valley and Black luver
canals. In this anticipation OF large annual rs"a'n
der, no disappointment has been expeIieneea los eaoa
heavy surplus OF canal revenues appllcaDe 70 Tue unef
prosecution and completion OF the works referred 10,
Nor is there the least to look for falling on In
these annual rsmainders in the iuure but. on the con-
ray their great increase may be confidently anticipated
The amount OF tolls will doubtless be augmented as the
canals carried forward TO completion and by the ad
vance OF the country in population, production, and bust
ness Ere long, too the State debts now charged on the
canal revenues will be paid Of or fully provided i ,Si
the trainers OF the bill anticipated and 1t is adapted TO
such state OF things result Of which more doubt
NAV be entertained than that seedme and harvest with
the usual change of seasons, will occur as heretofore
The bill no looks for change IN the ordinary
results OF human affairs than it does to suspension OF
the laws of Nature but it is based on the assumption
that the canals will heretofore yield their annual sup.
ply to The treasury. and that fully equal to the burdens
which the bill seeks 10 cast upon it, Those whose work
the bill u.s. and those who might advance money on the
certificates TO be issued under il. would be alike dsap
pointed If these remanders should turn ou to be made
quae the purpose Tor which they are to be pledged oy
the bill.
AS framed this bill undertakes 10 do more than merely
pledge contingent and uncertain annual remanders OF
the canal for the repayment OF money TO be ad
vanced to the State 1t deals with these remanders
things certain, contingent and that basis provides
for the payment of the principal and interest OF said GER
| of the bill, at which we will look for moment
authorizes the issue Of what are denomnated "cana
certificates to ne a%oun, Of nine millions Oh
their face be issued by virtue OF this act and without
any other Liability obligation, or pledge on the par, OF
this State than such contained in this act Of the
surplus revenues Of the canals, and TO be redeemed and
the interest thereon TO be satisfied out OF the said surplus
revenues" Said certificates are to be 'made payable at
time OF their issue, as the comptroller shall designate
being the period when, ms judgment, the revenues
provided by this act will be sufficient for their redemp
ton and the payment Of the interest thereon the interest
being made payable annually, on such days and at
such places the comptroller shall direct" (Bi
By the third section Of the bill sufficient amout OF the
annual renanders OF said canal to pay the in
erest said certificates is to be transferred each year
until 1854 TO the credit of fund for the payment OF such
interest and the residue of said remdinders during the
timefor the bill assumes there will be such resi-
dueis to be applied 10 the completion OF said canals un
Ill the same same shall be completed Thus, until the
com eon of the canals, the full amount OF the annual
remdnders is made applicable, I, to the payment OF in
teres the certificates, and secondly to the completion
OF said canals; alter which, the Uhoe OF said rtmander
"shal constitute separate fund for and be applied TO-
the payment of interest the SAID certificates as the
same shall fall DUE and to their redemption as they be-
come Iedeemabe Upon this fund the comptroller Is TO
draw for the payment OF said interest and for the final
redemption OF said certificates and II balance oil said
fund shall remain, not required from time TO time for
these purposes the comptroller IS to invest the same
These extracts from the BILL and references to its pro.
visions show that the adequacy of the fund for the
meRt OF the certificates assumed thing entirely
certain But, if to make absolute assurance the more
sure, the canal board required by the bill to regulate
and arrange the tolls the canals each year Gin refer
the amount of articles transported thereon during
the preceding year, that the same amount OF articles
transported in the succeeding year shall produce a" surplus
annual 'remfndsr" OF al least eight hundred thousand
dollars until the completion OF the Erie canal enlarge
nent, aud beaceonh The sun OF one million OF dollars
until sufficient, sum for the redemption OF SAID cerih
caies shall have been collected and invested (Sec
| We have, hen in this bill an express engagement by
the State pay these certificates out OF the annual
na"de,s OF the canal revenues. which the bill not only
will be fully sufficient for the purpose, but II
carefully guards against said rennodsrs ever falling be
low VIA, would be an ample provision for the payment
of both principal and interest And no disappointment in
stutonal, need be apprehended. Business the
canals not TO fall Off but will greatly increase that
the income devoted TO the payment OF the certificates Is
about certain TO that "grass will grow aud
water run" That incone-the annual rsndndsrs OF the
canal revenuesis 10 be the property OF the State; and
the question arises whether engagement 10 pay certain
Of that part OF the property OF the State does
as much create State debt as would engagement TO
devote the whos OF the property OF the State to that OBJ
| lect, II that should become necessary
grant that, as between individuals, mere pledge OF
property for the payment OF OF money will create
debt on the part OF the person making the pledge No
action would lie against him to recover the amount for
which the pledge made and therefore there would
be individual debt. But that proves nothing to
State cannot be sued whatever engagement 1t may enter
into; and although lis engagements should be performed
with scTupulous eNactness and punctualiy, the only
mode OF obtaining redress where they violated is TO
petition the Legislature Ordinarily in the creation OF
State debt, there moral obligation 10 devote ii need
be- the entire property OF the State 10 ts payment here
the obligation may be TO devote only part Of the prop
eIy TO that object And this, in substance. the only
difference between the obligation which this bill assumes
TO create, and the ordinary engagements by which State
debts are contracted IL comes to this result al last, and
IN and morality there be difference between
them Both alike TO be paid OF the property of
the States and, in my judgment, Just honestly
and truly State debt as the other. The bill assumes
that the reminders out OF which the certificates made
payable, will certainly exist, and that they will be fully
adequate TO that purpose and, so Tar respects the
present question, that must be taken be indispuabe
We cannot in order TO uphold this bill cor stuonal
assume the contrary 10 be rse, and say there will be
debt because the State not TO guarantee the adequacy
OF the fund act apart for the payment OF the certificates
The bill and virtually asserts the absolute suHi
cheney OF the fund thing not TO be questioned and
a. AZ L. ,L.