Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1857-01-15
NO1.


negotiated at par. In such case new
loan would be attended with great peeunia-
ny loss.
1t is the part of wisdom to guard against
the occurrence of such an exigency, and /
therefore suggest the expediency of provid-
ing, by reasonable and suitable legislation
for the debt of six millions four hundred
and thirteen thousand three hundred and
twenty-five dollars, which will be payable
after 1860. To raise the whole amount
by taxation during the four years which
will intervene before it can be paid, would
impose too serious burden upon the peo-
people. l recommend, therefore, the sale
of such stocks and other property of the
State as can be disposed of for its real val
ne, and the aIpropratiar of the proceeds
of the sale, together with the proceeds of
such rate upon the grand list as will pro-
duce the needed sum, to the payment Of at
least one-halfthe debt; distributing the re-
mainder over so many of the follow
ing 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 Funds 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, directly, the OBJ
ject of the same, to which only it shall be
applied. The same instrument provides
for the creation of Sinking Fund, suffi-
eient to pay the accruing interest on the
State Debt, and to reduce the principal, an
nually, by sum not less than 100000
dollars, increased by six per cent COM
pounded annually. The act of March IA,
1858, designated the revenues which should :
constitute the Sinking Fund, and required
the Auditor of State to set apart, annually
as a specific fund for the payment of the
principal of the debt, one hundred thou
sand dollars, in 1853, and in each subse-
quent year, the same sum, increased by
compounding 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 ap-
piled to the payment of interest on the
debt; and a further levy of one mill on the
grand list Of 1855, for the same purpose.
Under these constitutional and legisla-
tive provisions, the sinking fund was erea-
ted an organized; but the revenues appri-
ated to it, have not been kept distinct from
other moneys in the Treasury, or reserved
from other applications. The act of May
l, 1854 provides for the transfer, in con-
tingency then appreheneded, of the sum of
SI3O,O0O from the Sinking Fund, to the
General Revenue; and the act of April IL,
1856, authorized similar transfers, to the
amount of 1854, 500 80. Under this last
act transfers have been made to the Gener-
al Revenue and to the Canal Fund, to the
amount of 100000. The natural conse-
quence 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 Nov.
1855, an apparent balance, to the credit of
the Sinking Fund of $685., ,499 06. But
it must be observed that this balance con-
stituted part of the general balance Of
s703,370 Os, said, BY the Auditor, to be
awaiting legislative appropriation" to the
discharge of temporary outstanding la
bilities," and ''to the necessary expendi-
lures" of 1866. l have already shown
that the payment Of the debts Of '54-5,
incurred for the current expenses, more
than absorbed all that was available of this
reported balance. In like manner the pre-
sent Auditor reports general balance, to
the credit of the Sinking Fund, on the 18th
of November, 1856, of S4S1,749 06;
while the same officer reports the total
general balance, on that day, including the
Sinking Fund balance, as S579,5I7 SO, of
which only the sum of S35O,950 So was
then available; and this sum constituted
the only fund for the payment of the cur
rent demands of every description upon
the Treasury. In view of these things
I think it my duty 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 in
crease it to the full extent of the constitu-
tional requirement. also recommend suck
legislation as will ensure the future reser-
vation of the entire fund from every use ex-
cept that of paying the interest and princi-
pal of the Public Debt, and the safe in
vestment of that part specially applicable
to the reduction of the principal, until
wanted for that purpose.
The chief sources of our public income
are the Grand Levy; Charter Taxes Of
Banks; Proceeds of Public Works; collec-
tions of Surplus Revenue loaned to Coun-
ties; sales of School and Ministerial Lands
held in Trust; sales of Lands granted to
the State in aid of improvements. and
otherwise acquired; dividends of Stocks;
Convict Labor; Payments by the General
Government on account of the three DER
cent. Fund; and Licences and Auction Du-
lies.
Some of these sources Of revenue are
nearly exhausted; Others were never pro-
luctive; and the receipts from Others are in
he nature of loans rather than of income.
Only about forty thousand acres of land
n Ohio vet remain the property of the
General Government. Very little more
an be expected, therefore, from the States
hree per cent. proportion of their sales.-
Not much land belonging to the State re-
mains unsold. The amount of Surplus
Revenue unpaid by Counties, is reduced
o s20e,s49,77. The proceeds of convict
abor are absorbed in the support of the.
oenitentiary, and avail nothing to the