New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1859-08-22
TIE CANALS AID STATE PJHdNcES
LETTER PROM AUDITOR BENTON.

., ,b sor, ,.iucta1 &c: not that have any lea 10
sD.,l the homes, convictions Of my Judgment on mat
,srs Of general interest whenever toe puohc welfare
nav seem 70 require il, but have strong eouo'S
whether. even now. any discussion, oo"e'ei GNU
crate and pointed 10 questions OF toe nr7S ini
can or viii the attention of our people 20 III,
examination Of the subject upon which you have asked
ny views.
The .dy.rsities which have been Intentionally pre-
,.,ed pnou IN. mo-, use fu and beneficial enterprise
ever undertaken by the State, both as respects It's
internal political economy, and s relations WIN W
terminons States has involved rs IN series oil hhan'
eisi con plca,ions that viii eventually bnDg upon Us
ma, only foul Disgrace but iniermioaele puoic our
dens unless some radical ard per naLeh1 measures "
sCnr adopted 10 avert t1em
The more we cheaper, without some good reasou'
the transit of property and pIooncts on our os"',
produced ana contributed by thirteen States OF the
Union, the heavier wii be the burdens tnse"h nee.
lesslv up the people, The legitimate traffic oet Seen
the Atlantic and Western States which cannot he d.
va,t.d By fair ard remunereiv competition from our
caIa;s. will be fully adequa.e with reasonable ana
nror4 v.adius,ed tolls 10 yield annual income, II
properv ard fairly administered, 20 meet every Gen.
stitntiona demand upon canal revenues SO "a ef-
fecuslly TO shield the public from any burden IN re-
gard 10 them.
The rec. Mt measures of the contracting Board IN re-
dncr the expenses of superintsndence and repairs,
Wa s. en- taken 10 the right direction and VIII, 1t
reidly adhered to and enforced, produce an annual
saving TO the State eli more than sioOOOO without any
deprecatien in the Qsefuness of our proud Imperial
An unsparirg hand must be laid upon the expenses
Of collection when $3O, 900 a year may peter pe
saved than wasted Why shonld the people Oe taxed
10 make up deficiencies so Deedlessly AMI causeessv
created What we now require, and soon must nave,
is well dgested plan of public finance; OF ways anu
means TO meet the present and fntue E&h's VI cue
State until the annual canal revenues, under any clr
cunst4nce will produce an income suticlent 10 meet
the iuss claims OF the pubic creditors tor Canal
edness The plan must embrace, or should be passed
mon eoutabfe taxes. l. s not now proposed 10
omen or discuss what that plan should be, but there
car be no doubt judging from past eXperiepce that
nroposiior which would be strictly equitable aud emf
Deny Just would encounter very serious corporate OPP
pOsitlOn. r: :,L,
adm * should be fixed certain aud permanent and It's
income or revenue drawn from available ano unaulng
eourees not liable TO be Interrupted or subject To III
verson, nor dependent upon the opinion OF any one
10 defeat tue very objects which the creation aud es
tsblshment Of the fund were intended 10 secure.
There caunot be any doubt of the constitutional
y Of deficiency loan upon the credit OF either OF the
sinking funds named in the seventh article oil tne
Cor suton to satisfy the claims OF the public credit
ors peyabe ont of those funds than there can be OF
the legality of the original debt. The debt 10 THIS
Gaze IS contracted upon The credit OF the iund u Is IN
facs bond provided Tor by the hith sec
tion II the article, and hence the limitation ana re-
strctions N the twelfth section a. 10 the creation Of
debts or other objects have application whatever
The expediency and policy Of making such debts Is an
entirely different mstter.
These debts have heretofore been contracted, snd
the same must and will be repeated, or the claims OF
the credi ors of the Stste will be repudiated.
Waving any further discussion OF theories, Will
enter at once upon the man design oil tns letter Inc
Accommodations Of the Sinking Fond under section OF
article Of the Constitution, from the lst day OF Janu'
ary 1856 to the let day of July 1875, enabled the State
on the latter day TO pay of 55o 90 "a OF the canal
stock cebl of 1876 and IN 1861 and 1901 81 l2oOi -
of that debt falls due and cso not and will not be paid
without the aid of deficiency loans on the credit of the
fund. The available surplus of this fund on the 10Th
September last only SSl9OSo ID aud after pay
ing the interest the debt for the current year the
balance applicable to the principal will not much ex-
coed $500 eco. small contribution toward extin-
gushing debt Of So the course of two years.
With the constitutional surplus OF 81 a0O, 900 year,
this fund would pay more than 81 ,0OOO0O annually OF
the old debt 1916 and the whole of that debt would
be quidated by the canal tos before any part of the
principal of the debt, contracted under Section
Of Article for the enlargement AMI completion oil the
pubic works, would fall due. After which, the canal
revenues would be applicable to the liquidation Of the
new debt. With proper adjustment of the tolls, a
rigid and economical enforcement of the collection of
Them sh let adherence TO reduction in the expenses
OF supei ntendence and repairs; and though last not
the least important, the enactment OF Judicious and
proper laws TO protect the State against an injurious,
unwise and incOnsderate competition, we can have but
little doubt that surplus OF Si.'OO OOO year can be
secured and maintained.
The characteristics of this competition are peculiar
II dcmonstraye. l. is destructive to the interests Of
those who promote and carry it on; is directly hos
tile To the welfare Of the State, and ruinous to the
indusr rial pursuits and business connected with the
canals. II pays bounty on the products OF the
Western States over thOse Of Our own State, and
offers premium on all flour manufactured beyond our
borders injurious TO milling interests. These
some of the particular benefits, family portrayed,
Of this lauded competition.
What The people Of Pennsy lvania have achieved by
the sale of their public works which cost nearly
100000, for g., 800 900 70 railway corporation
will become !" fixed fact " in own State, when
our canals are%truck off TO the Lghest corporation
bidder. IL is thls permanent direct tax to pay the
principal and interest OK our canal debt, and the levy
Of increased tolls the agricultural and other products
the State, equal TO of and half mills upon
the dollar annually, while the increased tolls
char disc would materially enhance the burden upon
our own State, and tend materially to cripple the COM
merce OF New-l0rk. While we feel very -ensbly the
effects Of unrestraned and inconsiderate competition
can see clearly the consequences OF committing the
commerce and carrying trade in and through the State
to corporate monopoly.
The present Indebtedness of the State-I mean that
which is called the Floating debt, arising out OF the
construction of the public works-is bet ween two
and halt and three millions OF dollars Other obiga-
tons, at present contingent may arise that will re-
qure liquidation at future time. This amount is
Uncertain to be eetma.ed. will not suppose
the people Of the State capable of repudating any fair
obIgatiO incurred their behalf, and it may there
tore justly be assumed that the existing Indebtedness
viii be met by direct tax for the whole amount due,
that It's payment Will be provided for in the way In.
dcsted by recent legislative action.
If the loan of g. 900 shall be approved by the
people at the election it will require the levy of
annual tax Of one fifth OF mill on the dollar upon
the Valuations of 1853 to pay the annual interest
the debt and provide the constituent part Of the fund
to redeem the principal of 1T in eighteen years The
Constitution requires, ent the law imposes annual
tax sufficient to pay the interest on the loen as it falls
due, and 10 discharge the principal within the above
period.
There is no probability, however that the payment