Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1858-01-08
s1s,sea,o67 81 s2s,5si IS
2,5O3, ,O27 10 14i,4O2 u


The irreducable debt is composed Of the
proceeds Of lands granted by congress for
educational aud religious purposes, which
have from time to time beeu paid over TO
the state and invested in public improve
Inents or otherwise, under pledge OF faith
that six per cent. upon the sums received
shall he annually appropriated to the OBJ
.jects of the several grants. As thero yet
remains a considerable sum 10 be derived /
from these sources this itreducable debt
must be gradually augmented, The gen.
oral assembly has heretofore wisely directed
that all moneys thus received shall he oaid
into the sinking fund to be applied to the
reduction of the foreign and domestic debt;
and there is no probability that this policy
will be changed,
1t is TO be regretted that prior 10 the act
of April y, 1851, no provision was made for
Keeping tbs sinking fund separate from 9th
'er morey in the treasury, or effectually Sc
curing its exclusive application to its intend
cd uso; on the contrary the general assem-
bly, had in several instances directed trans
fers Of this fund to general revenue, and thus
required its application to ordinary expend-
itures. In my judgment this practice
is not to be approved or even justified, OK
cept in case of absolute necessity.
recommend that provision be made for
tho restoration to the sinking fund of the
amounts withdrawn from it, in order that
the entire balance properly belonging to that
fund may be safely invested and reserved
for its legitimate objects.
The principal of the state debt has been
reduced during the past year by tho pay
ment of $l00,207 90, derived chiefly from
the premium Of the loan of 50. 100000 ne
gotiated to discharge the amount which be-
came payable after 1885, OF the remain
ing debt, the sum of 1885 27, vii be-
como payable at tho pleasure of the state,
at any time after the 3lst of December,
1860. The terms of the contract exclude
the idea Of obligation to pay at that time,
but it will doubtless be the pleasure Of the
state to pay very large part if not the
whole of this debt as soon as the right TO
pay shall accrue. The proceeds of all pub
lie property which may be sold, should be
exclusively devoted to this purpose, and
provisions should be made, if a moderate ad-
ditional levy will effect the object, of a suf-
ficicnt sum to discharge at least one-third
of the amount. The residue may be dis
trbuted over so many Of the following years
as will bring its payment within the reach
of moderate taxation; or, immediate pay
ment if preferred by the creditors, may be
made in new bonds bearing less rate of in.
terest and payable at such times as the gen.
eral assembly may see fit to direct. UnleI
all circumstances the interest on the entire
debt must be punctually paid, and the credit
of the state maintained inviolate. do moi
doubt that the people of Ohio will cheer
fully submit To any not excessive rate o
taxation, if assured beyond peradvcnture
that the proceeds will be honestly and pune
tually applied in discharge Of debt, the
interest of which constitutes so large an an
nua draft upon their resources.
Existing laws require the appointment O
u transfer agent and.rcgistrar at New York
and regulate the transfer of stocks and til,
payment of interest and debt through thi
agency. Experience has shown the dange
of eonfiding powers such as are necessarily
vested in these officers, to persons beyonC
the jurisdiction of the state, and not amena
BILE to its laws. If obligations assumed q
the creation of the debt and part of its con
sldcration, require their appointment anC
maintenance, these obligations must be ful
filled in good faith If it be otherwise, tho
Offices should be abolished, and all transfer
should be made within the state, and unde
the direction of its executive officers.
commend this subject to legislative iuvesti
cation and consideration
| earnestly recommend the repeal of th'
act allowing contracts for interest at ten pc
cent. The lcgaization Of such y rate of in
terest enables the money ed capitalists TO alb
sorb far too large a share of the earnings o
the farmer, the mechanic and the merchant
1t often takes the whole and sometime
moro than the whole. Ii may be, as som,
think, that the law as it stood prior to tha
act woull be improved by the substitution
of the rate of seven pcr cent. in place of tn,
old rate of six per ceut Whatever ratio o
interest may be approved, | respectfully sug
gest that it should be uniform, and be al
lowed to all persons whether natural or arti
fetal, alike, and that all contracts for high
er rate, BY whomsoever made, should b.
deemed and held alike null and void un
less enforced with simple interest, for th
benefit Of educational or benevolent institu
tions. Determinations between classes O
lenders, tempt to fraud and almost unitorml,
fail of beneficial results. In this connection
your attention may also be usefully given tC
the various devices by which banking insti
tutions seek to evade statuary limitations q
interest, and to the provision of more effect
ua guards against such evasion.
OF the several amendments of tho consti
tuition, proposed by the last general assem-
bly,. and submitted to the people at the la,
general election, mono received the suffrage
of majority of all the electors. | do no
regard this result, under all the circumstan
ces, as decisive verdict, and still, believing
for reasons heretofore fully assigned tina
annual sessions are necessary to the proper
care and security of the public interest; anC
that single senatorial and representative dis
'tricts are indispensable to true expression
of the popular will in legislative action,
respectfully recommend another submission
to the people of amendments providing fol
these important objects. confine this rec
.-ommendation to these amendments because
/ regard them as most desirable, and be-
cause experience seems to teach that when
more numerous separate propositions are