The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1857-01-14


taxation. AS every bond is payable at
the pleasure of the State after 1850, the
right to do this seems unquestionable.
The condition of the Sinking Fund de-
mands your attention. The Constitution
provides that no tax shall be levied except
in pursuance Of law, and that every law
imposing tax shall state distinctly the
object of the same, to which only it shall
be applied The same instrument pro-
vides for the creation of Sinking Fund,
sufficient to pay the accruing interest on
the State debt, and to reduce the princi
pal annually by sum not less than one
hundred thousand, increased by six per
cent, compounded annually. The act Of
March IA, 1853, designated the revenues
which should constitute the Sinking Fund,
and required the Auditor of State to set
apart annually specific fund for the pay
ment of the principal of the debt, one hun
dred thousand dollars in 1853, and in
each subsequent year the same sum in
creased by compounding annually at six
per cent The act of May l, 1854, di-
rected the levy of one and quarter mills
on each dollar of the grand list of that
year, to be applied to the payment ofinter-
est on the deht;aud a further levy Of one mill
on the grand list of 1855, for the same
purpose.
Under these Constitutional and legis-
lative provisions, the Sinking Fund was
created aud organized; but the revenue
appropriated to it, has not been kept dis
tinct from other moneys in the Treasury,
or reserved from other applications. The
act of May l, 1854, provided for the trans
fer in contingency then apprehended. Of
the sum of $4,000 from the Sinking
Fund to the General Revenue; and the
act of April l l, 1856, authorized similar
tran ,fers to the amount of $554,SO9.32
/ Under this late act, transfers have been
made to the General Revenue and to the
Canal Fund to the amount of 100000
The natural consequence Of this legisla.
tion and this practice, has been the alb
sorption of the Sinking Fund balances in
the general expenditures Thus. accord
ing to the Report of the late Auditor
there was on the 18th November, 1855
an apparent balance, to the credit of the
Sinking Fund of $531, ,499.O6. But i,
must be observed that this balance con.
stituted part of the General Balance o.
,370.0S, said, by the Auditor, to be
"awaiting legislative appropriation, tc
+bo II .hor of lin
liabilities" and "to the necessary expen.
ditures of 1866. / have already
shown that the payment of the debts O
1S54-5, incurred for current expenses
more than absorbed all that was available
of this reputed balance. In like manner
the present Auditor reports genera
balance to the credit of the Sinking Fund
on the l 5th November, 1856, of $48l,.
749.06; while the same officer reports the
total general balance, on that day, in
Guiding the Sinking Fund balance, as
$579,5l7.59 of which only the sum O
$35O,O5O.63 was then available; and this
sum constituted the only fund for the pay
ment of current demands of every de-
scription upon the Treasury.
In view of these things I think it my
duty to recommend the levy of suffi
cient rate upon the grand list to restore
to the Sinking Fund the sums which have
been transferred from it or in any way de-
voted to other uses, and to increase it te
the full extent of the constitutional re-
quirement. And / also recommend sucf
legislation as will ensure the future reser
vation of the entire fund from every us,
except that of paying the interest ant
principal of the Public Debt, and the safi
investment Of that part speedily applica
ble to the reduction of the principal unit
wanted for that purpose.
The chief sources of our Public Incom
are the Grand Levies; Charter Taxes o
;. Banks; Proceeds of Public Works; Col
leetions of Surplus Revenue loaned t,
counties; Sales of School and Ministerial
Lands held iE Trust; Sales of Lands grant
!, ed to the State in aid of Improvements
ard otherwise acquired; Dividends O
Stocks; Convict Labor; Payments by tn