The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1857-01-14

The attention of the legislature was earnestly
invoked by my predecessor to the large excess o.
County, Municipal and ether local taxes over the
taxes for State purposes. That dispropoltio tion
has ben in some measure corrected by the pru-
dent legislation of the last session; but it is
worth Your consideration whether some further
legislation may not be usctully directed to the
same end.
TIE Report of the Commissioners Of the Sink
ing Fund is not yet completed but will soon be
laid before you 1t will contain full information
in relation to their proceedings under the act Of
April s, 1856 authorising new loan for the pay
mcnt of the debt of 81, 423, ,259, ~, payable al
the pleasures Of the State after the 18th inst
Proposals for this new loan fixed by the com.
missioners at So, 100000, were advertised in the
leading journals of Europe and America, and
on the 1st Of October, 1856, it was awarded te
the highest bidder for the whole amount at a
premium of three and half per cent. All the
Bonds of the old loan which have been presen'
ted Cor:paymcnt have been promptly redeemed
and the debt payable alter 1856 will soon be ell
tirely eXtinguished.
The experience of the State in this transac-
tion however, indicates the danger Of relying up
on new loans for the payment OF maturing debts
1t was confidently anticipated that tins loan wo'd
command premium Of at least, ten per cent;
while the premium actually realized was only
three AMI half 1t is not difficult to conceive
Of state of the money market in which the
Bonds of the State could not be negOtiOted at
par In such case, resort to a new loan Wo q
be attended with great pecuniary loss.
1t is the part Of wisdom to guard against the
occurrence Of such an eX:gency, and | therefore
suggest the expedjency providing, by seasona'
bic and suitable legislation, for the debt Of sA
millions four hundred and thirteen thousand
three hundred and twenty-five dollars Which will
be PAYABLE after 1860. TO raise the whole amt
by taxation during the four years which will in
tervene before it can be paid would impose toe
serious burdens upon the people. recommend
therefore, the sale Of such stocks and other prop
crty of the State as can be disposed of for its rea
value and the appropriation of the proceeds o
the sale, together with the proceeds of such q
rate upon the grand list as will produce the sun
needed to the payment Of at least one-half tho
debt; distributing the remainder over so many
Of the following years as will bring its payment
within the reach Of moderate taxation. As eve
ry bond is payablsat the pleasure Of the State
after 1850, the right to do this seems unques
tionabe.
The condition of the Sinking Fund demands
your attention. The Constitution provides that
no tax shall be levied except in pursuance Of law
and that every law imposinga 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 a Sinking Fund, sutfi
cient to pay the accrulng interest on the State
debt, and to reduce the principal annually by &
sum not less than one hundred thousand dollars
increased by six per cent, compounded annually
The act of March II, 1853 designated the reve
nueS which should continue the Sinking Fund
and required the Auditor Of State to set apart
annually specific fund for the payment of Tho
principle Of the debt, one hundred thousand dol
lars in 1858, and in each subsequent year thu
same sum increased by compoundng annually a
six per cent. The act of May l, 1854, directed ;
levy of one and quarter on each dollar of thC
grand list OF that year, to be applied to the pay
ment of interest on the debt; and a further levy
cf one mill on the grand list Of 1855, for the SAINT
purpose.
Under the Constitutional and Legislative pro
visions, the Sinking Fund was created and or
ganized; but the revenues appropriated to it, have
not been kept distinct from other moneys in thu
Treasury, or reserved from other applications
IuS dCb VI hdy !, lOOt, pIONluCo lOl IIlc tlllole
in contingency then apprehended, of the sum o
$4,000 from the Sinking Fund to to the Gen
eral Revenue; and the act Of April IL, 1856, au
thorized similar transfers to the amount of$554,
809,32 Under this late act, transfers have beer
made to the General Revenue and to the Cana
Fund to the amount of Sl60,00O. The natufa
consequence Of this legislation and this practice
has been the absorption of the Sinking Fund
balances in the general expenditures. Thus
according to the Report OF the late Auditor
there was on the 18th Of Novhmber 1866, al
an apparent balance to the credit Of the Sinking
Fund of $3.50, ,49906. But it must be observed
that this balance constituted part of the Genera
Balance Of $703,37o,09, said, by the Auditor
to be awaiting legislative appropriation, to thu
discharge of"temporary outstanding liabilities,
and ito the necessary expenditures Of 1866
have already shown that the payment o
the debts Of lS54-5, incurred for crruent ex-
penses, more than absorbed all that was a7aila-
BILE of this reputed balance. In like manner
the present Auditor reports general balance to
the credit of the Sinking Fund, on the 18th Of
November, 1856, of $481, 1906; while the
same officer reports the total general balance
on that day, including the Sinking Fund bal
ance, as S579,517 3d. of which only the sum o
S35O,950 63 was then available; and this sun
constituted the only fund for the payment Of cur
rent demands of every description Upon the
Treasury.
In view Of those things / think it my duty Il