Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1857-01-16


Debt, and TO reduce the principal, annually
by a sum not less than one hundred thous-
and dollars, increased by six per cent, com
pounded annually. Tho act Of March II,
1853, designated the revenues which should
constitute tho Sinking Fund, and requied
the Auditor of State to set apart, as spc-
cific fund for the payment of the principle
of the debt ono hundred thousand dollars,
in 1853 and in each subsequent year. the
same sum, increased by compounding annu-
ally at six per cent. The act of May l, 49,
81, directed the levy ofonc 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 on one
mill on the grand list of 1855, for the same
purpose.
Under these constitutional and Legislative
provisions, the Sinking Fund was created
and organized; but the revenus appropria-
ted 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 contin-
gency then apprehended, of the sum OF
$13O,000 from the Sinking Fund to the
General Revenue; and the act of April IL,
1855. authorized similar transfers, to the
amount of $554,909 32. Under this last
act transfers, have been made to the Gener-
nj Revenue and to tho Canal Funl, TO the
amount of 100000. The natural conse-
qucnce of this legislation, and this practice,
has been the absorption of the sinking Fund
balances in the general expenditures. Thus
according to tho Report of the late Auditor,
there was, on the 18th of November, 1855,
an apparent balance, 10 the credit, of the
Sinking Fund, of 537, 400 06. But it must
be observed that this balance constituted
part of the general balance of S703,370 oS,
said, by the Auditor, to be awaiting lcgs-
lative appropriation to the discharge OF
"temporary outstanding liabilities" and "to
the necessary expenditures of 1866. |
have already shown that the payment ofthe
debts of lS54-5, incurred for current cX-
penses, more than absorbed all that was
available of this reported balance. In like
manner the present Auditor reports gen
eral balance to the credit of the Sinking
Fund, on the 18th November, 1856, of
4sl,749 06; while the same officer reports
the total general balance, on that day, in
Guiding the Sinking Fund balance, as 1919
5l7 59,of which only the sum of S350,950-
SO was then available; and this sum con.
stituted the only fund for the payment OF
current demands of every description upon
the Treasury.
In view of these things l think it my du.
ty to recommend the levy of sufficient
rate upon the grand list to restore to the
Sinking Fund the sums which have been
transferred from it, or in any way diverted
to other uses, and to increase it to the full
extent of the constitutional requirement
And | also recommend such Legislation a,
will ensure the future reservation of the en-
tire fund from every use except that of pay.
ing the interest and principal of the Public
Debt, and the safe investment of that part
specially applicable to the reduction of the
principal, until wanted for that purpose.
SOURCES OF REVENUE.
The chief sources of our Public Income
are tho Grand levy; Charter Taxes of Bank,
Proceeds of Public Works; Collections oI
Surplus Revenue loaned to Counties; Sale:
of School and Ministerial Lands held il
Trust, Sales of Lands granted TO the STATE
IN aid of Improvements, and otherwise ac
auircd: Dividends of Stocks; Convict Labor
Payments by the General Government OIL
account of the Three per cent Fund; anC
Licenses and Auction Duties.
Some of these sources of revenue ar,
nearly exhausted; others were never pro
ductive; and the receipts from others are il
the nature of loans rather than of income
Only about forty thousand acres of lane
in Ohio vet remain the property of tn
General Government. Very little NOR
can be expected therefore from the State
three per cent. proportion Of their sales. No
much land belonging to the State remain
unsold. The amount Of Surplus Revenu
unpaid by Counties, is reduced to S2O6, ,349
n. The proceeds of convict labor are al
sorbed in the support Of the Penitentiary
and avail nothing to the General RevonuC
And the proceeds of the School and Mini.
terial Lands, as they accrue, become part {
the Irreducible Debt, upon which the Stat
is bound to pay six per cent. interest to tn
use for which they were granted.
These facts admonish us that for the G,
penses of the State Government, of ii
Public Institutions, and for the payment {
the State Debt, our main reliance mu
hereafter be upon the contributions of th
people, in the form of Taxes. They rcqui
us to husband every remaining resouce, an
demand the strictest economy in every d
partmcnt of expenditure.
No means exist of aScertaiung the quar-
tity of lands remaining unsold, whether b.
longing to the State, or held in trust.
recommend the provision of such means.
SUGGESTION.
suggest, also, the cxpedcncy of su,
legislation rs will expedite and ensure Il
reimbursement TO the State of the unpa
balances of Surplus Revenue, yet rcmainir
with the Counties.
When Ohio came into the Union, she +
linquished the right to tax the lands of Il
United States, within her limits, in consi
Grafton, among other things, that not le
than three per cent of the proceeds of {
sales, past or future, should be paid to d
State to be applied ia laying ont roads,
This is the origin of what is known as Il
Three per cent. Fund The General Go
sernment has only accounted for the Stat,
proportion Of lands sold since the compa,
and sold for money. In my judcmer
the spiyit if not the letter of the cOmpal