The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1858-03-02
STATE FINANCES.
Report Of the Special. .COmmlttee.

LIE epecial cOtutntttce 10 Wuom wan rc-
fered the following resolutions:
Resolved, That committee Of fivc be
appointed to make such examination as
may be necessary to enable them to report
to this House a comparative statement OF
the expenses Of the State Government for
the past ten years, the causes of our State
Indebtedness and such other facts relating
to the subject matter Of this inquiry, rs
they may deem necessary for the informa-
tion of this House.
- REPORT:
That having the same under considera-
tion, aud made the examination required
by the resolution, they deem it desirable
to present the several subjects embraced
in the resolution, in the order Of time in
which they have occurred, and therefore
submit, first the following facts in rela-
ton TO the "causes Of our State indebted
ness"
Unfortunately for our State, it assumed
an independent organization in tho midst
fan inflated state of the currency, and Of
the most gigantic projects of speculation,
and its rulers, partaking of the general
spirit by which they Mero surrounded,
plunged at once into extrayagant legisla-
tion, for which folly the people have yet to
pay.
TO such an extent did the recklessness
of the times influence the action of the first
State Administration aud Legislature, that
the first act Of their organization, was to
authorize the Governor to contract loan
of 100000, to defray the current expen-
scs o. the government. =
This was Immediately followed by tho
projection Of q specimen of internal i'm
provenlents, entirely beyond the nccessi-
tics Of the State at The time, and 10 COLE
plcto which would have been beyond the
power of the most populous and wealthy
State in tho Union.
In pursuance of the policy above referred
to the authorities proceeded 10 authorize
and to issue State bonds as follows:
General Fund Bonds 100000
Detroit ant Pontiac n. r. Bonds 100000
Penitentiary Bonds $4,000
Uniyeisity Bonds 100, 900
Pa myra & JSeksonburg r. Bonds 10000
Internal Improvement Eonds e,Oooooo
Making total 9. ss,4OO,OOO
of State indie ttedIess incurred within
three years Of the first organization of the
government-and 10 means TO command
with which TO pay tho interest, except
by resort to direct taxation, and that up
on population Of less than 100000.
But the evil did rot stop here. So anx-
ious were they 10 obtain tho money, that
the whole Of the yfue millions of internal
improvement bonds were handed over TO
i,ro,Vnnsihlo rouios unon tbo ,oc.;nts of
less than onc--tcntl, of tho principal, and
their contract taken for the payment of
the balance at future dates. These pe-
rio,s Of payment not coming around
fast enough TO suit the purposes of those
who handled the money, subsequent un
authorized notifications Of the State lost
more than 100000, to enable II TO an
ticipaLe SC the Of the instalinents.
This money, thus easily obtained, in
stead of b, ing expended upon somc one
important work, until it was completed
and rendered productive, was literally sown
broadcast over the State, and sqiahdercd
both upon impraciicable local enterprises
and par izan favorites, until, by wasteful
expenditure, uufithful agents and the
failure Of the contractors who had improv-
identity, not to say dishonesty, been cntrus-
ted with our bonds, the State was left
without funds either TO prosecute its works
TO pay its current expenses, or the inter-
ests upon its outstanding liabilities of near
ly five and n half millions of dollars
with not one Of its works complete, and
without any source Of revenue, except di-
rect taxation.
On the first Of Japaury ls40, the
amount of principal received upon
our bonds, the accumulated unpaid
interest, outstanding warrants, and
other acknowledged liabilities Of tho
State amounted to S3,535,333 "a
To which should be added, $4,000
acres Of land received from the U.
s., worth per acres, 81 25, 100000