The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-01-26

Balance of fund hand Goth Sept, 1882. 1852 Sss 10
The miscellaneous receipts include the sum Of
sllo4l0 80. the proceeds Of tax of one-tenth Of
MILL assessed for the purpose OF the canals, in the
years 1915 and ls46. Of s207 95i 06, premiums on
six per cent stock issued in lS49 to procure the
means to pay debt thon due, for which the sinking
fund was not sufficient; OF 81 $50 20 premiums on
loan Of 800 00G made in lsi9 to procure the means
topay claims prior to June l, 1916 and OF the sum
of 1863 %. the unexpended balance Of the said
loan. The second and third sums, amounting to
S2l5,6l0 &C. were recommended by the Governor
in his message, and by the Comptroller and
Commissioners Of the Canal Fund, in their an
nua reports of 1850, to be used for such objects
may be deemed most beneficial to the State" The
Legislature Of that year however, Act chap. 370)
directed the amount to be transferred directly to the
canal debt sinking fund, probably for the reason
that at the time the loan made at interest Of
six per cent, it could have been made at five and
that as the sinking fund was thereby charged with
one per cent extra interest for sixteen years, on
Sl,739024 &c, the sum borrowed, the fund should
have credit for the premium which the State had re-
ceived, equivalent for the difference in inter
est with which it had been charged. The $42, 500 49,
an unexpended balance Of the 800 900 borrowed, as
before stated, was transferred to the sinking fund
the passage Of Act chap 375 Of 1850, sec. 2, here
after quoted; the said act having directed certain
charges originating prior to June 1916, and for the
payment Of which the 900 loan made, to
be paid directly from the sinking fund. The only
one Of the sums named which was an actual contri-
button and aid to the sinking fund was the $ll9,-
4l0 20 derived from taxes. The other sums being
the principal Of and premium on loans charged upon
the sinking fund, simply counervail, in part, such
charge.
Among the payments charged upon the sinking
fund l. the item OF Sll9,545 o. for claims prior to
June !, 1886" The ground upon which this charge
Is made is understood to be this that section Of
article CT the constitution, which sets apart from
the canal revenues, firstly 81 300 900 annually, to
the lst June, l6J5 and thereafter 81 200 900 annual
ly.as sinking fund to pay the interest and redeem
the principal oil that part OF the State debt called the
ILL., IL
s300,0OO thereafter to be borrowed" did not mean
simply the stock debt which the constitution called
upon the Comptroller to furnish and which that Of
cer reported to the convention as it existed on that
day: but that it was intended to embrace any unad.
justed and unliquidated claims for work performed
for damages sustained prior to that date and that
such claims, when adjusted not to be paid. with
other current expenses from the remainder appro-
prated annually by section to the completion of
the canals but to be considered as portion Of
the "debt az it existed June ], 1885, and to be a
charge upon the sinking fund created TO pay such
debt Under this construction of section l, chapter
232, of l649, was passed.
The act directs the Commissioners Of the Canal
Fund to borrow on The credit Of the sinking fund.-
provided by the first section Of Article Of the Con-
sttution such sum not exceeding 5000 0O0 as may
be sufficient to supply any deficiency in the mixing
fund to pay for damages or other claims accruing
prior to June !, lS46 from which time the canal
enues are specifically appropriated by the Constitu
ton and the act declares that such stock shall be
a charge on the sinking fund in the same manner "
if such debts had hcen ascertained and adndicated
and the stock Issued prior to June 1, 1916" The
sum Of 100000 only has been borrowed under
this act for which six per cent stock was issued in
lS49 redeemable in 1864, and the interest on IL is
paid annually from the canal debt sinking fund
premium Of 81 $3.50 10 realized the sale Of the
stock making the avails Of the loan Sl07 $3.50 TO- OF
this amount the sum Of only Sj713 OF was used for
the purpose for which il borrowed, and in 1860,
(see Report Of 1851 p. 32) the balance $50 526 49,
was Transferred directly to the canal debt sinking
fund In the sans year act chapter 375 was passed,
which contains the following provisions
~ The canal debt, II existed o. the first day Of
June 1913 Is hereby declared to include all canal debts
which existed prior TO that day arising contracts
for and appropriated and used previous 10 said day
Of june 1916 which debts shall be ward
cd ~ the manner required by law and such debts when
thus asoertsined and awarded fha be paid from the
nal debt sinking fund in The same manner ~ other por
tons Of the cana iebl,