The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1857-01-15

ment OF ut least one half the debt: distribu
Ting the remainder over so many of the fol
lowing years as will bring its payment within
the reach of moderate taxation. As ever,
bond is paynble at the pleasure Of the Stat
alter 1860, the right TO do this seems un
questionable.
The condition Of the Sinking Fund de
mands your attention. The Constitution
provides that no tox shall be levied excep
IN pursuance Of law, Bnd that every law i'm
posing tax, shall state distinctly, the obiec
OF the same, to which only il shall be ap
Piled, The same instrument provides fol
the creation OF Sinking Fund, sufficient t
pay the nccrui1g interest on the State Debt
and to reduce the principal, annually, by
sum not less than one hundred thousand dol
lars, increased by six per cent. compounded
annually. The act of March IA, 1858, de,
slgnated the revenues which should cOnsti.
tute the Sinking Fund, and required the
! Auditor Of State to set apart annually as
specific fund for the payment OF the principal
ot the debt, one hundred thousand dollars,
IN 1858, ana in each subsequent year, the
same sum, increased by cOmpounding annu.
ally at six per cent. Tne act of Muy |, '54,
directed the levy Of one and quarter mills
on each dollar of the grand list Of that year,
to be applied 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 Legislative
provisions, the Sinking Fund was created
aud organized; but the revenues rcpr-
atcd to it, have not been kept distinct from
other moneys in the Treasury, or reserved
for other applications. The act of May /,
1854, provided for the transfer, in a contin-
gency then apprehended, of the sum of
$l3O,O00 from the Sinking Fund to the
General Revenue; and the act of April IL,
1856, authorized similar transfers, to the
amount of S554.S09 80. Under this last
act transfers have been made to the General
Revenue and to the Canal Fond, to the
amount Of $l60,000. The natural conse.
quence of this legislation and this practice,
has deem 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 November, 1855, an
apparent balance, to the credit of the Sink.
ing Fund. OF $537, ,499 06. But it must be
observed that this balance constituted part
of the general balance OF $S703 $40 O8, said,
by the Auditor, TO be "awating legislative
appropriation" to the discharge of "tempo-
rary outstanding liabilities" and "to ths
necessary expenditures" of 1856. have
already shown that the payment of the debts
OF lS54-5, incurred for current expenses,
more than absorbed all that was available of
this reported balance. In like manner the
present Auditor reports general balance,
to the credit Of the Sinking Fund, on ihe
18th November, 1856, of $48l,7 ,749 06;
while the same officer reports the total gen
eral balance. on that day, including the
Sinking Fund balance, as S579,5l7 SO, of
which only the sum Of $350,95O 63 was then
available; and this sum constituted the-only
fund for the payment of current demands Of
every description upon the Treasury. .~
In view OF these things think it my duty
to recommend the levy of a sufficient rate
upon the grand list to restore to the Sinking
Fund the sums which hive been transferred
from it, or in any way diverted to other uses,
and to increase it to the full extent of the
constitutional requirement. And | also
recommend such leg islaton as will ensure
the future reservation o { the entire fund from
every use except that of paying the interest
and principal of the Public Debt, and the
safe investment of that part specially appli-
cable 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 Bauks;
Proceeds Of Public Works; Collections Of
Surplus Revenue loaned to Counties; Sales
of School and Ministerial Lands held in
Trust; Sales of Lands granted to the State
in aid Of Improvements, and otherwise ac-
quired; Dividends oil Stocks; Convict Lnbor;
Payments by the General Government on
account of The Three per cent. Fund; and
Licenses and Auction Duties. ea
Some of these sources Of revenue are
nearly exhausted; others were never pro.
ductive; aud the receipts from others are in
nature Of loans rather than of income.
Only about forty thousand acres of land
in Ohio yet remain the property of the Gen.
eral Government. Very little more can be
expected therefore from the States three
per cent. proportion of their sales. Not
much land belonging to the State remains
unsold. The amount of Surplus Revenue
unpaid by Counties, is reduced to $2O6, ,S49-
II. The proceeds of convict labor are ub-
sorbed in the support of the Penitentiary.
and avail nothing to the General Revenue.
And the proceeds of the School and Ministe.
rial Lands, as they accrue, become part OF
the 'lreducible Debt, upon which the State
is bound to pay six per cent. interestto the
use for which they were granted. a
/ These facts admonish US that for the ex-
penses of the State Government, Of the Pub
lie Institutions, and for the payment of the
State Debt, our main reliance must hereaf-
ter be upon the contributions of the people,
in the form of Taxes. They require Us to
husband every remaining resource, and de.
mand the strictest economy in every depart.
ment Of expenditure.
No means exist OF ascertaining the guam.
tity Of lands remaining unsold, whether be-
longing TO the State, or held in trust. Ire.
commend the provision of such means.
I.suggest, also. the expediepcy OF such
Legislation as will expedite and insure the
reimbursement to the State of the unpaid
balances Of Surplus Revenue, yet remaining
with The COUNTIES. aosd S93 ~ sTt4
When Ohio came into the Union, she re.
linqulshedthe right 10 tag the lands of the
United States within her limits, in conside.
ration, among other things, that not less
Ethan three per cent OF the proceeds Of all
sales, past or future, should be paid to the
State, to be applied in laying out roads.
This is the origin Of what is known as the
Three per cent, Fund. The General Gov.
ernment has only accounted for the States
proportion Of lands sold since the compact
and sold for money. In my judgment, the
spirit, il not the letter Of the compact, emit,
tjaa tho State IN tho samp Dronnrtion nf the