Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1857-01-23

The charter confers ample power, an,
defines the particular mode in which th'
affairs Of the Bank shall be closed. IL
capital Is TO be converted into cash, an,
the part belonging to the state, paid to th'
Sinking Fund Commissioners-oflicsrs o
your own creation. selected from the whole
people, and having no connection with The
Bank, either as stockholders or borrow
ers, to be by them invested, as the law ma,
direct for purposes Of Common Schoo
Education. A fund so sacred, aud fol
purposes so beneficial to the people Of the
state, should be forever, preserved invio'
late. 1t should not be permitted to temp
the cupidity of individuals, or used tc
augment the powers, or swell tho cofferI
Of any corporate monopoly.
The present mode OF investment oI
the Sinking Fund is, chiefly, in mortga.
gcs upon tho real estate Of our citizens.-
The facilities thus afforded for borrowing
money, create a spirit Of speculation, Of
ten terminating in bankruptcy and ruin to
the borrower. Tho long lists Of land.
forfeited to the Fund, for the non-paymont
Of principal and interest, admonishcs us
TO seek for some other mode Of invest
ment, which shall bo equally safe and pro-
ductive. Ihave repeatedly suggested, and
now renew the recommendation, that the
Sinking Fund Commissioners should be
authorized TO invest this Fund, from time
to time, as it may accumulate in theil
hands, in the Bonds Of the State, undel
appropriate limitations, as to principal and
market value; thus changing tho charac-
ter OF our obligations. from foreign to O
domestic debt; the interest upon which,
when collected from our own people, shall
be Immediately reimbursed to them. in
the accomplishment Of that high and
most ennobling object Of human govern
ment the education Of our youth. II is a
high trust, and will be most truly perform
ed, when we shall connect the education
Of our childred with the character, integ-
rity, and honor Of the state. Tn this man.
ner, at least one-third Of our whole for
eign indebtedness may be absorbed; thus
lessening the burdens Of the people, and
tho financial character OF the
state.
The entire amount OF tho Funded
Debt Of the state. outstanding. is stated
by the Auditor Of State, as follows:
0f5 per cent State Stock, 80, 500
OF a per cent. State Stock, I,sl9.t7G
Total S6,969,077
Tho market valuo Of which, cstima-
ting the 3 per cent. at elghty-four cents,
and the q per cent. at sixty cents, upon
the dollar, would be tho sum Of S5,6lo,-
COG.
To show the praticability Of converting
this foreign debt into q domestic one, the
following table Is complied from tho re-
port Of tho Superintendent Of Public In.
struction. and from tho communication oI
the President Of the State Bank:
ExInBir on COMMON SCHOOL FUND.
Amount OF Special Fund SI,6s, 574,oo
Amount OF Common Fund SS94 ,o40, IA
Bank Tax Fund, on hand In State Treas.
ury, 6,020,s5. Bank Tax Fund, on hand
In State Treasury. io,6o7,s3. Saline
Fund on loan. 9,6s6.22. Saline hand IN
State Treasury. io63i,ss. Estimated
valued Of Sinking Fund In State Bank,
to date, i,s55,4oi,5o. Total, s4.oia,oia
~.
Tho Sinking Fund Commissioner
should be directed, by law, to invest these
funds, ms they ray accumulate In theIl
hands. In the stock Of tho state; and they
would, alone. be sufficient to absorb near.
ly our entire Indebtedness. The policy
however, Of continuing tho annual Sink
ing Fund Tax, for the liquidation Of ON
debt, should not be abandoned. On the
contrary, as every interest Of the State Is
buoyant and prosperous, 1t shouli in my
bc increased to five cents on the
hundred dollars, per annum. II practi.
cable, tho first investment Of either oul
Sinking Fund or School Fund, should b
made in tho 2 per cent. Stocks. Will
this annual dimiuution Of our indebted
ness, and the investment Of the Schoo
Fund as indicated, IN less than eigh
years We shall convert our foreign deb
into homo debt; the interest upon which
when drawn from our taxpayers, would
Immediately be returned to them, in I
thousand streams Of intelligence, blessing
with their benign influence, parent ant
child, and clevating to the highest pima
clio Of honor the character Of our belovct
state.
On reference 10 the report OF the Audi
tor OF State, II will be seen that, under
the restrictions Of tho amended Statute
the currency Of the Free Banks Is ampI,
secured, and fully entitled to public con
fdence. II Banks Of issue DO necessar,
at all, they should be as free as possible
from the feature Of monopoly; and. In thi
respect, therefore, tho system Of Fre
Banking is entitled to our appreciation
To perfect the system, however, Bank
ing Department should be created, sepa
rate and distinct from all others, but sub
ject to the inspection and supervision o
the Executive Officers and tho Legisla
turo. The concise and the able report 0
the Auditor Of State, and his valuabl
suggestions. in this department., are com
msnded to your consideration.
While to other subjects wo apply tn
rigid test Of sound. practical. commo
sense. upon thc subject OF currency, W
cherish the shadow and reject the sui
stance. Not content with such issues q