Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1857-02-26

We abstract from the Auditor of State S
Annual Report the following statement OF
the origin. progress and present condition OF
the debt of the State 1t will be read with
interest by all:
The nature of the public debt of the State
has been so often explained that it is pre-
sumei to be understood by all who take any
interest in public affairs: and therefore it is
deemed unnecessary, at this time, to do any,
thing more than to make very brief expla-
nation. The debt was created by the sale
of State Bonds. in the first place, for the
construction of the Wabash and Erie Ca
nal. and in the second place to raise means
to progress with the public works, the con-
struction of which was authorized by the
at of the Legislature, approved January
27, 1885, entitled, 'san act to provide for
general system ofinternal improvements" !"
The Fund Commissioners continued to sell
Bonds from year to year until some time in
1889, when, In consequence of the derange-
ment of the monetary affairs of the country,
no more would sell on the terms prescribed
by the General Assembly, and, as mat
ter Of course, operations on the Public
Works were soon after suspended. The
interest on the Bonds sold was regularly
paid up to lS4l, when. in consequence Of
the taxes being for the most part collected
in State Scrip, no means were in the Treas
ury to meet the demands for that purpose,
and it was therefore for several years .un-
paid. The holders Of the Bonds, becom-
ing somewhat impatient on account of the
non-payment of interest, 1.-THE nominal val
ne of our Bonds. as well as those ofall the
States upon which interest was not paid,
becoming in the meantime greatly deprecia-
ted, pctitioned the Legislature to take ac-
tion IN regard to the matter In 1S47, at
the instance of a large portion of the Bond
holders, the Legislature passed an act sup
Elementary to an act on the same subject,
approved Jan. 19, 1916, providing for an
adjustment of Indebtedness of the State.-
The object and effect of this arrangement
was to release the State from all lia5ility
for the payment Of the principal and inter-
est on e-half of the outstanding debt, the
Bond holders receiving in lieu of it the
Wabash and Erie Canal, its lands and rev.
enties. The cid Bonds were all to be SUR
rendered. and new Stocks issued for tho
other half of the debt as follows. viz:
1st, Five per cent. State Stock being
for one-half, Of the principal Of the Bonds
surrendered. -
2d Two and one-half per cent. State.
Stock" being for one-half the arcrued and
one per cent. of accruing interest on the
Bonds surrendered. -
For the paym snt Of these two Stocks only
is the State responsible. The Bonds is.
sued for the principal were to draw four
per cent. interest from the ecoasummation of
the arrangement to the lst Of january, 1858.
and afterward FIVE per cent. until redeemed.
which may be done at the pleasure of the
State after the expiration Of twenty years.
The Bonds issued for the accrued and one
per cent. accruing interest, being the 2 1-2
per cent. Stocks, requirde no interestto be
paid on them until 1858, and then only at
The rate OIL 1-2 per cent. per annum.
For the payment of the other half Of the
aebt, principal and interest. various kinds of