The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1858-12-16
The Sinking Fund.

The Indianapolis Journal of Saturday morn
ing publishes summary of the report OF the
Sinking Fund Commissioners, showing balance
of 81 90 GOA 30 in their hands over all debts a
result says that paper that deserves something
more than passing notice. When the State
Bank was chartered the Canal Commissioners were
authorized to borrow 81, 100000 on the credit
Of the State to pay the State S subscription OF
Bank stock, and TO lend 10 other subscribers, Oh
interest, the amount necessary to pay portion OF
theirs For this loan bonds were Issued AT five
per cent. due twenty-five or thirty years after
date, at the option of the State. These are known
as Bank Bonds. After the payment Of the
States subscription Of Bank stock, and lending to
borro.iug subscribers, the unexpended balance
on the Sl.390000 was to go into the fund called
the Sinking Fund, and to it 10 be added the
interest due from subscribers who had borrowed
of the State to pay for their stock the money paid
in discharge Of the borrowed sums the dividends
paid by the banks on the States stock, AID the
dividends belonging TO such borrowed sabscrib-
ers failed to pay back their loans. This fund
was first to be charged with the payment of the
Bank bonds out Of which it had taken its start,
and the balance left to be permanent fund
appropriated to the support of schools. The sum
mary shows that the earnings of the Fund and Of
the Bank have been over 50 365,600 and in max
ing this handsome profit it must be remembered
tina. the interest Of the Back Bonds was regular
II paid so that there is no deduction from it on
that account, and that over 500 GEO of the bonds
have been redeemed at different times, as they
could be obtained a. favorable rates leaving no.
\ 81. ;. =. 50 la,1 rTfrt
nal 81 290 600. after deducting the 100000 al
ready redeemed. This shows balance of near
81, 500 900, already stated, after adding IN
terest on the money borrowed By the State Of
the Fund
This little exhibit tells story OF integrity and
financial skill that few other States can boast of
Nearly So 100000 have been made clear for the
State by the caution, sagacity and honesty Of the
Old State Bank. We hold up the record with
uaalloyed qualification, not only as a witness Of
the Integrity OF the bank managers and Fund
Commissioner, but as an evidence that our needy
school fund will sooner or later come into the
possession of u handsome estate, aud be enabled
to uork instead Of barely living a. it now does.
In the carelessness, extravaganza and demorali-
cation Of the management Of public trusts in this
day both State and National, it is a cause Of just
pride to US that Indiana can show one fund man
anaged not only honestly, but with most consu-
mate skill
When compared with the results of similar ex-
periments in other States additional cause
to admire the management Of this Fund and of
the Bank. Many States have lost heavily. Ar
kansas, the Governor of that State says in his
recent MESSAGE will not lose more than ! Il lU0-
600 by her connection with the State Bank. We
should have heard fine flourish Oft the Democrat
ic trumpeis the fact If be could have said
as we can say. that the State has gained So,
poe coo by her connection with the State Bank