Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1857-01-15

hundred and twenty-fve dollars which will be
pa yable after 1860. To raise the whole amount
by taxation during the four years which will in
tervene before it be paid, would impose too
serious burdens upon the people. 1 recommend,
therefore, the sale of such stocks and other prop
erty of the State be disposed of for its real
value, and the appropriation of the proceeds of
the sale, together with the proceeds of such rate
upon the grand list as will produce the needed
sum, to the payment of at least half the debt;
distributing the remainder over many of the
following years as will bring its payment within
the reach of moderate taxation. As every bond
is payable at the pleasure of the State after 1860,
the right to do this seems unquestionable.
The condition of the Sinking Fund demands
your attention. The Constitution provides that
tax shall be levied except in pursuance of law,
and that every law imposing tax shall state dis
tinctly the object of the same, to which only it
shall be applied. The same instrument provides
for the creation of Sinking Fund, sufficient to
pay the accruing interest on the State debt, and
to reduce the principal annually by a sum not
less than one hundred thousand dollars, increased
by six FER cent compounded annually. Tho act
of Mack IA, 1853, designated the revenues which
should Constitute the Sinking Fund, and required
the Audita~ Of State to set apart annually spec-
fc fund for the payment of the principal of the
debt, one hundred thousand dollars in 1853, and
in each subsequent year the same sum increased
by compromising annually at six per cent. The
act of May, l. 1854, directed the levy of one and
quarter mills on each dollar of the grand list of
that year, to be applied to the payment of interest
on the debt; and further levy of mill on the
grand list of 1855, for the same purpose.
Under these Constitutional and legislative pro-
visions, the Sinking Fund was created and organ
lied; but the revenues appropriated to it, have
not been kept distinct from other moneys in the
Treasury, or reserved from other applications.
The act of May l, 1854, provided for the transfer
in fhau dad nf he nf
$780, 900 from the Sinking Fund to the General
Revenue, and the act fApril IL, 1856, authorized
similar transfers to this amount of S554.S09 30.
Under this late act, transfers have been made to
General Revenue and to the Canal Fund to the
amount of SIO0,OO0 The natural consequence of
this legislation and this practice, has been the ab
sorption of the Sinking Fund balances in the gen.
eral expenditures. Thus, according to the Re-
port OF the late Auditor, there was on the 18th
Nov, 1855, an apparent balance, to the credit of
the Sinking Fund Of S537 ,499 06: BUTT must be
observed that this balance constituted part of the
General Balance of S103,310 O8, said, by the Au-
ditor, to be 'awaiting Legislative appropriation,
to the discharge of Temporary outstanding lia-
biities,'' and "to the necessary expenditures" of
1866. have already shown that the payment of
the debts of 1884, incurred for current expenses,
more than absorbed all that available of this
reputed balance. In like manner the prSAent Au-
dior reports general balance to the credit of tho
749 O6; while the same officer reoprts the total
general balance, on that day, including the Sink
ing Fund balance, US S570, 5l7, of which only the
sum of $3.50 $50 SO was then available; and this
sum constituted the only fund for the payment of
current demands of every description upon the
Treasury.
In view of these things think it my duty to
recommend the levy of sufficient rate upon the
grand list restore to the Sinking Fund the sums
which have been transferred from it or in any way
devoted to other uses and to increase it to the full
extent of the constitutional requirement And I
also recommend such legislation as will ensure
the future reservation of the entire fund from ev
cry use except that of paying the interest and
principa. of the Public Debt, and the safe invest
ment of that part speedily applicable to the redue-
ton of the principal until wanted for that purpose
The chief sources of our Public Income are the
Grand Levies; Charter Taxes of Banks; Proceeds
of Public Works. Collections of Surplus Revenue
loaned to counties; Sales of School and Ministerial
Lands held in Trust Sales Of Lands granted &c the
State in aid of Improvements, and otherwise ac-
ouired; Diyidsnds OF Stocks; Convict Labor; Pay
ments by The sisneral Government on account Of
the three per cent Fund; and Licenses and Auc-
tion Duties.
Some of these sources of revenue nearly
hausted; others were never productive, and the re-
ceipts from others in the nature of loans rather
than of income.
Only about forty thousand scres Of land in
Ohio yet remain the property of the General
Very little more can be ex-
pected therefore, from the Stat Is three per
cent. proportion Of their sales. Not much
land belonging to the State remains unsold.
The amount OF surplus Revenue unpaid by
Counties rs rsdaced to 6,349,77 The
proceeds Of convict labor are absorbed in
the support Of the Penitentiary, and avail
IL sol nd 70
proreeds Of the School aud Ministerial lands
as they accrue, become part Of the irreduci-
BILE Debt upon which the Suite is bound to
pay SIX per cent. interest to the use for which
they were groDted.
These facts admonish us that Ior the ex-
penses OF the State Government, of the Pub
lac Institutions, and tor the payment OF the
State Debt, our main reliance must hereHf-
ter be upon the contributions of the peopl'
10 the form Of taxes. They require US 10
husband every remuining resource, and de-
mund the strictes, economy in every depart
ment OF expenditure.
No means exist of ascertaining the guam.
tity OF lands remaining unsold, whether be-
longing TO the Slste, or held in trust. re-
commend the provision OF such means.
suggest,alsu, the expediency OF such leg
isIa ion us will expedite and ensure the re-
endorsement TO the State Of the unpaid bal
snces { surplus revenue yet etrsmaining with
the couRlies,
When Ohio came into the Upion, she re.
linquished the right to tax the lands Of ,be
United States within her limits, in consider.
alton, among other things. that not less than
three per cent. OF the proceeds OF all sales,
past or future. should be paid TO the State,
to be applied in laying out roads, This Is
the origin Of what is known as the three per
cent. fund. The General Government has