True American. [volume] (Steubenville [Ohio]) 1855-1861, 1857-01-07

payable at the pleasure OF the State after
the 18th inst. Proposals for this new |
loan, fixed by the Commissioners at 81 |
400, 900, were invited by advertisement
in the leading journals Of Europe and
America, and, on the last Of October,
1856, it Wasawarded to the highest bid
der for the whole amount, at premium
Of three and half per cent. All the
bonds Of the old loan which have been
presented for payment, hare been prompt
| " redeemed aud the debt payable after
| 1855, will soon be entirely extinguished.
The experience of the State, in this
transaction, however, indicates the danger
Of relyingapon new loans for the payment
Of maturing debts.--It was confidently
anticipated that this loan would command
premium of OF least nine or ten per
cent; while the premium actually realized
was only three and half. Iii not diff
fcult to conceive Of state of the money
market in which the Bonds Of the State
could not be negotiated at par. In such
case resort to 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 i therefore suggest the expedien-
cy of providing, by seasonable 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 duringthe four
years which will intervene before it can
be paid, would impose too serious burdens
upon the people. ! recommend, there
fore, the sale of such stocks and other
property Of the State as can be disposed
Of for its real value, and the appropriation
Of the proceeds of the sale, together with
the proceeds Of such rate upon the grand
list as will produce the Deeded sum,
to the payment of at least ono half
the debt; distributing 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 pleasure of the State after
1860, the right to do this seems unqucs.
tionable.
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
imposing tax, shall state, distinctly, the
object of the same, to which only it shall
be applied. Tho same instrument pro-
vides for the creation Of Sinking Fund,
sufficient to pay the accruing interest on
the State Debt, and to reduce the princi.
pal, annually, by sum not less thar
one hundred thousand dollars, increased
by six per cent. compounded annually
The act of March l4,lS53, designated the
revenues which should constitute the
Sinking Fund, and required the Auditor
Of State to set apart annually, as speci
fc fund for the payment of the principa
of the debt, one hundred thousand dollar
in 1858, and in each subsequent year
the same sum, increased by compromising
annually at six per cent. Theac of Ma.
l, 1854, directed the levy of one and
90 quarter mills on each dollar of the gram
list of that year., to be applied to the pay
= ment of interest on the debt; and furthe
O, levy of one mill on the grand list of 1856
for the same purpose
- Under these constitutional and legisli
tive provisions, the Sinking Fund wa
% created and organized; but the revenue
% appropriated to it, have not been keI
distinct from other moneys in the treas'
ry, or reserved from other application
% The act of May |, 1854, provided for II
transfer, in Il. contingency then apprehel
ded, of the sum of Sl30,O0O from tt
Sinking Fund to the General Revenue
O. and the act # April IL, 1856, authoiz,
:. similar transfers. to the amount of S554
90 S09,32. Under this last act transfc
., have been made to- the General Re
- enue and to the Canal Fund, to Il
!" amount of S160,000. The natural co
sequence of this legislation, and this pra
tice, has been the absorption of the Sin
ing Fund balances in the general expe
diiuFcs, Thus, according to the report
is the late Auditor, there was, on the 10
November 1855, an apparent balan'
y! to the credit of the Sinking Fund,
mai S537 1906. But it must be observ
sion non that this balance constituted part of
,Jprs- general balance of O3,370,0S, said,
a to the Auditor, to be awaiting lcgislati
plies plies appropriation" othe discharge of "te
own own. porary outstanding liabilities" and I"
U the necessary expenditures" of 1852
= I haze already shown that the payne
,S !, Gao of the debts of 1851. 5, incurred for C
sl,1 rent expenses, more than absorbed all Il
$3.50 $3.50 was available of this reported balance.
, 90; like manner the present Auditor repc
- general balance, to the credit of
- Sinking Fund, on the 18th Noveml
;, q 1856, Of S4Sl, ,749,O6; while the sa
SO officer reports the tptal general balar
@ 1870 on that day, including the Sinking Fl
- :. : balance, as s579,5l7,59, of which o
% = the. sum Of S350,950, SO was then ava
- bic; and this sum constituted the Q
fund for the payment of current dema
81 os every description uponthe Treasury
!, g In view Of these things, | think it
70 / duty to recommend the levy Of a
10 fcicnt rate upon the grand list to res
! 90 to the Sinking Fund, the sums wi
have been transferred from it, or In
& way diverted to other uses, and to incr
o. Q it TO the full extent of the constl.uti
! 81 81 requirement. And | also ,recomu
sSss such legislation as will ensure tho fu
Il reservation of the entire fund from g
,-, !, = use except that Of paying the interest