The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-05-19

= ELECTORS STATE y
The undersigned, who members OF the Constitu-
tional Convention Of 1896 who concurred with the
majority Of that body IN maturing and adopting the
cent events affecting tho construction Of that article to
address you on this occasion
Without arrogatng ourselves any peculiar Authority
in relation 10 questions arising under the constitution
we may be permitted to say that were placed in
situation OF some advantage in respect to the objects
prepared.
The history of the agitation which led to the call of
convention and Knowledge OF the design Of the
friends Of the constitution concur with the entire nan
sal article both in its general scope and in ts details
pointing out the evils i was intended to remedy and the
objects 1t was intended TO accomplish
Its design to secure the payment Of the existing
State debt out OF the canal revenues, and to insure
thereafter prosperous financial condition by placing at
the disposal OF each succeeding Legislature the
of its fiscal unincu0bered BY the debts Of
vious legislation to permit no anticipation and ex-
pendte by the Legislature, Of future revenues and
allow it to contract no public debt without the sanction
Of direct vote by the people except for certain specified
emergencies and to q limited amount.
These designs 10 not hesitate to say carried
out in the constitution It approprates the Of
To paw annually toward, the Canal debt 81 800 900
To pay interest on the General Fund debt a5OoOO
For the supper. Of government ............ 2ooooo
si.ssoOoo
These appropriations continued until the year 1855
when the sum 20 be annually applied to the Canal debt
increased 10 soS 90 making annual aggreg ste after
that time of 81 $50 oo0 until the Canal debt Is paid or
sufficient sum set apart for that purpose and after that
",
extinguish the General Fund debt, until that shall be
paid
Having thus provided for the payment Of the existing
state debts the constitution declares that the remain
der Of the revenues Of the shall in each fiscal year
be sppied in such manner the Legislature shall direct
10 the completion OF the Erie Canal enlargement and Of
the Genesee Valley and Black River canals until such
canals shall be completed"
Another section provides that the canals shall not be
sold leased otherwise disposed but shall remain the
property Of the State, and under its management
forever
paid out Of the treasury Of the State any OF its funds
any funds under its management. except pursuance
Of an appropriation by law, unless such payment
shall be made within two years after the passage
the appropriation act J"
And finally it prohibits the creation Of any debt by or
behalf the State except to the extent in the whole
Of Zone million Of dollars and except repel
press nsurrectien and defend the State in war without
first submitting the question people and obtaining
their approval by direct vote upon it. at general cleo
ton
These are the provisions Of the constitution.
The measure lately pending in the Legislature known
as the Canal bill directs the pleon Of the Erie Canal
enlargement. and the Genesee Valley aud Black River
Canals, within three years.
1t provides receiving money for that purpose by
issuing canal revenue certificates to the amount Of nine
nine millions OF dollars the principal payable in twenty
one ears and interest at six per cent semi annually
out Of the surplus canal not specially appropr
ated by the const uou to tbs public debt and the sup
port of government.
1t requires ,he Cana Board to regulate the tolls
canals in such manner as to produce at least $SOOo0
year above appropriations by the constitution the
public debt and for the support of for three
years; and $1,000 900 thereafter for the
Of the ad yxnces upon these canal revenue certificates
The last provision being part Of the law under which
the canal certificates to be issued and sold constitutes
Of the contract of the State with the lender and
in effect guaranty the part Of the State that $500
COO annually for three 81 10000 afterwards snail
be raised by the State out Of tbs remainder Of the cansl
revenues to the principal and interest the money
advanced the certificates
The bill further provides that these certificates shall
be received IN security for bank bills in the same man
a. State stocss
Such the principal provisions of the Canal BILL
and feel il to be our duty 10 declare that in
judgment violates the entire spirit and object Of the
financial article Of the constitution and Is inconsistent
with several Of its express provisions.
The bill in effect proposes Ia create State debt to the
extent Of nine millions Of dollars without the sanction
q direct vote Of the people required by section Il
Of the financial article of the constitution
BY spproprating in advance for twenty years the
surplus OF the canals for the repayment of
money raised in anticipation Of those the bill
violates section Of the article which requires the
remainder OF the Of the canals be applied in
each fiscal year ia such the Legislature shall
direct. to the completion Of the canals.
BY appropriating moneys more than two years in adj
Il the time of their payment violates the spirit
If not the letter Of section Of the same article.
The transaction Ia not sale OF the surplus of
the canals by which the State l. released from all fur
ther responsibility 1t Is mere pledge Of them to secure
the reimbursement OF advances to the State treasury
The lender takes risk Of loss IL the fall short
the State guarantees that they shall be kept up TO
given sufficient to reimburse the loan. The lender
gains nothing the surplus is larger than anticipated
for be is limited 70 the principal and interest Of his ad
vanccs
The bin proposes to raise money upon the prospective
a the canals enhanced by immediate improve
IL certain that the amount proposed
be raised will be sufficient TO complete the canals and
hazards failure to complete them. II the amount should
prove nsuficient- pledges to the lenders the
uGcstes that the canal tolls shall be regulated by fixed
rule which takes from the government the power TO
modify them 10 meet the public wants and the competi
ton Of rival channels Of communication In these re-
spects violates the policy and contavenes the objects
the constitution established TO secure.
In expressing opinion Of the proposed measure 10
it, relation the stitution have purposely avoid
cd referring other provisions contained in IT, Of
traordnary character but which referabe TO ques
tons 0. public policy distinct from those Of constitution
atty.
We appeal TO you preserve nviolate these most
lutary restraints upon the power u the Legislature to
create public debt. They founded in the wisdom
II experiencemany other States have followed our ex
ample and inserted similar restraining provisions IN
their organic laws III these restraints sometimes ope
prevent desirable investments Of anticipated re-
they also against the hazards OF i'm
proyident expenditures and constitute our only safety
against the greatest Of public evils In free government
AN over burtheusomc public debt.