Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1856-09-19
STATE DEBT.

Il Will succeed IN Smelllng out ana exposing
to the public
! STATE DEBT.
Persons who were present say that Mr..
Greene in his Wolf Creek speech stated
that the Republican Legislature had excmp-
ted from taxation S2O,OOo,ooO of Ohio
State Bonds. 1t is strange that Mr.. Greene
should make such statement, when, accor-
ding to the last report of the democratic
sinking fund commissioners, which he had
before him last winter, the entire foreign
and domestic debt of the State on the first
of January last amounting to only $l4, ,OO8,-
295.O7. That report gives the names and
| places of residence of every holder of these
bonds. No one claimed that any of these
bonds ought to be taxed except such as are
held in Ohio, (which only amountto $2O93,-
OO8; of this sum only S64,489 are held by
individuals, the balance being held by the
banks and mostly pledged for the redemp-
ton of their bills. In my opinion there
are several very good reasons why the State
of Ohio ought not to levy taxes upon what
she owes.
l. A large proportion of this debt was
created by virtue of law expressly pledg-
ing the faith of the State that the bonds is
sued therefrom never should be taxed, and
the balance were supposed to come under
the same provision.
2. The State would gain nothing by tax
ing her own bonds even if there was no 9th
objection to it. These bonds draw only 5
and per cent interest. The taxes would
average II percent, leaving the holders only
81 and A per cent. They can be sold in
New York at a large premium and the
money brought back to Ohio and loaned
upon bond mortgage at 10 per cent; con-
sequently taxing them would soon drive
them mostly out of the State. On the lst
of January next two and half millions of
this debt becomes due. Democrats urged
the levying of a tax this year to pay this
large sum of money, but the Republicans
thought it better to renew a considerable
portion of it by issuing new bonds payable
in 20 or 80 years, at which time the popu-
lation and wealth of the State will be much
greater than at present. 1t will therefore
be much easier for the State to pay it then
than at this time. These bonds will sell in
New York from 10 to Is per cent premium
amounting to flom 100000 to 100000,
so that every time the debt is renewed the
premiums will reduce it, provided the State
keeps her pledge and docs not reduce the
value Of her bonds by taxing them. For
these reasons the Republicans of the legis-
lature were not willing to levy so large a
tax upon the people, as would have been
necessary to pay this debt at time when
there has been failure of crops for two
years in succession, although recommended
by Gov. MedilI. There was one democrat
in the legislature, Judge Matthews of Ham
ilton county, who had the independence to
differ with his party upon this subject. In
a speech upon the tax law he said: at
exempts from taxation the stocks of the
State. This, Sir, in my judgment is right.
The State has made contract with the
holders of her stock, by which she agreed
to pay them aspecifed interest every year.
Good faith requires her to fulfill it. If she
withholds part under pretext of taxation,
she has taken the first step towards repudia-
ton. For one, cannot consent to it."
TAXING BANKS.
The act of 1845 creating the State bank