The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-10-27
ILLINOIS sTATIs DEBT.

tempting some years ago to construct several inn
portant railroads. and its fine canal from the Illinois
river to Lake Michigan, created debt the interest
and principal of which it unable to pay as it
matured. The legislature, therefore, passed several
remedial acts One act provided for placing the
canal and the canal lands in the hands of trustees
the holders Of ''canal bonds to advance 81 100000
for the completion of the canal in consideration of
having the entire proceeds of the sales of canal
lands and tolls applied to the payment Of the prin-
cipal and interest Of their bonds until fully paid.
Another act was passed in l847, which provided for
the funding of the nernalimproyemen debt I'M
der this act new bonds issued in exchange for
the old ones bearing the rate of interest, and
the back interest provided for as follows, viz
bonds for the amount of interest due were TO be is
sued bearing the date of July l, 1s47 payable July
l, 1877, bearing per cent interest after July l,
1857 thus running ten years without interest
In 1857 the State was able to pay its annual inter-
est in full on all its indebtedness This it had not
been able to do during the whole of the ten years
which had elapsed since issuing its new bonds in
l847, and hence there another of back inter-
est unprovided for. An act was therefore, passed
which had accrued between the years 1S47 and
1857; these bonds were not to bear interest until
January l, 1860, but at that date they We're to be
deemed to be principal, and bear per cent interest
There are, hence, three kinds of State indebted
ness for which internal Improvement bonds have
been ssuedthe first class, for principal, redeema-
bic in l870 the second, for interest which accrued
prior to July l, 1s47, and which become due July /,
1877; and the third for interest which accrued be-
tween 1S47 and 1857, and which are redeemable at
the pleasure of the State after January l, 1860.
The canal lands aud tolls yielded far larger sums
than were anticipated, ard hence the canal bonds
were long since admirably secured To pay the Gin
ernal-improvement bonds tax was laid upon the
people Not long afterwards the constitution ITSELF
when amended, levied tacomW tar, irrepealable by
the Legislature to be applied in payment, exclusively
on the first Of january Of each year. of the principal
of the State debt until it should be totally extn-
guished. By law the proceeds Of certain State
lands were to be applied to the same end and sub
sequeny sevenper cent of the gross earnings of the
Illinois Central railroad was ordered to be applied
to the payment of that same kind of Indebtedness
So great has been the prosperity of the State, and
SO large its annual payments, the internalimprove-
ment bonds have risen to 1O3 los the holders,
therefore, will longer continue to present their
bonds and receive payment The State will have,
on the first of January next some 100000 to
100000 in its treasury to apply to the payment of
the principal after having paid its current interest
for this no one will apply, as bondholders can sell
their bonds for larger sum than that called for
upon their face.
To provide for such an emergency the legislature
passed the following act
[Ac Of February TO- 1851
That any surplus funds which shall remain in the
treasury out of the proceeds arising from the two-m
tax, authorized under article fifteenth of the constu
ton, after the payment of the amount due the prn-
cipal OF such bonds may be presented the first
January annually from any other of revenue,
from the funds authorized invested in the
purchase of State Indebtedness except such amount as
may be required to meet interest shall be applied and
used in the purchase of Indebtedness of the State bear
ing interest in the purchase of Indebtedness bear
interest," the may deem for the interest of
the State in the manner and upon the terms provided
for in the act entitled An act to provide for reducing
the State debt, approved February H. 1853 and an
act entitled An act to regulate payments of interest
the public debt and the purchase of State bonds
approved February Is, 1868.
This act explains how Il has happened that hold
ers eff bonds which bear no interest until January
1860, ask SO o. for them. In January next the
best the State do will be to discount them at o.
For one year thereafter the interest bonds of 1860
can be presented at the treasury and claim payment
ct par And, besides, such is the high credit of the
State, no considerable amount Of its twenty-year
bonds could probably be obtained for less sum
than is generally paid for Ohio State bonds.
Each year the governor viii come into market with
larger sums Of money with which to buy Illinois
State bonds, and the greater his ability, and the
stronger his desire to pay, the more valuable will
the bonds become.
Such is the proud result Of an honest tax-paying
policy, rgidly adhered to during the last eleven
years The State il rich, prosperous, and respected
Yet no one has been oppressed seriously injured
by the taxation imposed the contrary, the pres
ervation Of the honor ofe State has becn Of immense
pccuniary advantage to its citizens. The honest
payment Of the State debt has been an unmistakabIe
blessing.
A word as to The future pecuniary condition Of