Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-01-14
s7ls.s7O os s57g.a5s 81

nine or ten per cent; while the premium
actually realized was only three and
half. 1t is not difficult to conceive of
state Of the money market in which the
Bonds Of the State could not be negoti
ated at par In such case resort to a
new loan would be attended with great
pecuniary loss.
1t is the part of wisdom TO guard
against the occurrence of such an exigen-
cy. and | therefore suggest the expe-
diency of providing, by seasonable and
suitable legislation. for the debt Of six
millions four hundred and thirteen thou
sand.three hundred and twenty FIVE dol
lars. which will be payable after 1860.
To raise the whole amount by taxation
during the. four years which will inter-
vene before it can be pail, would impose
too serious burdens upon the people.
recommend, therefore, the sale of such
stocks and other property Of the State
rs can he disposed Of for its real value.
and the appropriation of the proceeds Of
the sale, together with the proceeds Of
such a rate upon the grand list as will
produce the needed sum, 10 the payment
Of at least one-half the debt. distribut-
ing the remainder over so many of the
following years as will bring its payment
within the reach of moderate taxation.
As every bond is payable at the pleas
ure Of the State after 1860. the right to
do this seems unquestinnable.
The condition OF the Sinking Fund de-
mands your attention. The Constitution
provides that no tax shall be levied ex
Gepl in pursuance of law. and that every
law imposing tax. shall state, distinct
", the object of the same, to which
only it shall be applied. The same in
s'rument provides for the creation of a
Sinking Fund. sufficient to pay the ac-
cruing interest on the Sac Debt,
and to reduce the principal. annually. By
sum not less than one hundred thou
sand dollars, increased by six per cent.
compounded annually. The act OF March
IA. 1>53 designated the revenues which
should constitute the Sinking Fund, and
required the Auditor of State 10 set
apart, annually, as a specific fund tor
the payment Of the principal of the debt.
one hundred thousand dollars, in 1858,
and each subsequent year. the same sum.
increased by compounding annually at
SIX per cent. The act Of May ], 1854.
directed the levy Of one and quarter
mills on each dollar of the grand lis: of
that year, TO be applied to the payment
of interest on the debt. and further
lew Of one mill on the grand list Of
1856. for the same purpose.
Under these constitutional and legis-
lave provisions, the Sinking Fund was
created and organized; bu: the revenues
appropriated to it, have not been kept
distinct from other moneys in the Treas
ury. or reserved from other applications.
The act Of May !, 1854. provided for
the transfer, in a contingency then ap
of the sum OF Sl3J. 900 from
Ihe Sinking Fund TO the General Reve-
nue.; and the act Of April IL, 1856. au
Ihorized similar transfers. TO the amount !
of S554 500 So Under this last act (
transfers have been made TO the General 4
Revenue and TO the Canal Fund, to the
amount of 100000. The natural con
sequence OF this legislation. AMI this
practice. has been the absorption Of the
Sinking Fund balances in the general ex
oendiIures- Thus. according to the Re
port of the late Auditor. there WIS, on
he 8 h November. 1856, an spparant
balance, to the credit of the Sinking
Fund, of S537, 1906. But il must be
observed that this balance, constituted
part of the general balance of sos. &c.,
)8. said. by the Auditor, to be ''await-
ng legislative appropriation" to the dis
,harge of Temporary outstanding la
,ililies," and "to the necessary expen-
litures" of 1866. l have already
hown that the payment of the debts of
54-5, incurred for current expenses,
more than absorbed all ihat-was available
# this reported balance. In like manner
he present Auditor reports a general
balance, 10 the credit of the Shaking
fund. on the 15,h November. 1856. Of
s491 749, ,O5; while the same officer re
,orls the total general balance, on that
lay, including the Sinking Fund balance,
Is S579. SIT SO. of which only the sum
If $35J, $50. .63 Vas then available; and
his sum constituted the only fund for
payment of current demands of every
description upon the Treasury. In view