The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-02-03
LeRisIative Financing.

Legislative Financing.
We have endeavored to arouse public at
tention to the important question of what
shall be done with the Sinking Fund. The
public voice, we believe, is unanimous, in
the Southern portion of the State, that the
as fast as it is collected. There are other
projects at Indianapolis, some of which are
likely to succeed, if popular opinion does
not defeat them. The State journal of Mon
day, says:
What should be done with the So, 900, 900
which the winding up of the Sinking Fund
will put into the hands of the State for the
use of the school fund, is a question OF great
Importance. Two plans are proposed
FIRST, to invest it in State bonds, which was
recommended by Gov. Wright four or five
years ago. Second, to distribute it among
the counties to be loaned as is now done
with the Congressional Township fund
We have already several times expressed
our opinion in favor of the first of these
plans as the safest. and most likely to yield
the most serviceable income for the use of
the schools. Senator Bobbs, of this county,
some time ago introduced n bill providing
for such disposition of the funds, and it
was referred to the Committees on Educa-
tion whihc few days since reported at
length in its favor. This action we hope
makes the passage of the bill safe.
The first of these projects is very objec-
tionable. If the State bonds arc to be taken
which are held abroad, and at the East
-, nha
they can't be bought at rate that will af-
ford the fund more than five per cent inter
est; for the moment the commissioners go
into the market to buy up So, 1000 900 of the
State five per cent bonds, they will raise
their price, as has been the case in the at
tempt to purchase the Bank bonds, up to
par-consequently the fund could realize not
more than five per cent interest. The U.
9. five per cent stock has just been sold by
the government at four or five per cent pre-
MUM. The bidders expect to make profit
on that price, and it is probable that it can
not be purchased in the market short of c
or per cent premium. To give Sl07 foi
stock that will pay but So per annum, will
yield less than A per cent interest; and what
egregious folly and impolitic financierine
will it be to send the peoples own money
out of the State where ready capital is Sc
people at home are themselves paying ter
or twelve per cent. Such an absurd scheme
will not BIO tolerated in q community tina
has any practically sound notions of its owl
interest. Nor would it be preached or sus
tanned by any but those who have som,
hidden sinister design in urging it upon thu
people of the State.
But the loss of interest in such an invest
ment is of very trivial consideration com
pared with the disastrous effect of sendin!
that portion of money out of the State
Sent abroad we lose the use of it forever
but, retained, and used at home, every tim
it shall be invested, it will create its owl
value. If loaned to our farmers they woul
use it in the Improvement of their farms an
buildings. When one had used it, tn
same money would be gathered up by til
community and used over again; each tim
it would reproduce its own value in othe
property, and still be held by us. In thi
way the $4,000, 900 expended three times
year in labor would create $9,000,000 {
property, and the money still remain III
consumed itself. If invested six times
year, it would produce to the State SIS, oo0
900 of taxables.
If sent abroad and invested in our ow
bonds, we should save $3.50, 600 in interes
which we now pay in New York by sellin
cur -four, pork and grain to that market
But by the time the money for the purchas
of the bonds had reached there, our shipper
merchants, and bankers would be in Wa
street borrowing the same money from Ne,
York capitalists, in the discount of bills an
advances on shipments, at the rate of II
ID per cent. per annum, which intere
would be charge on the business of I'll
State, and ultimately tax on the produc
oflabor. We should gain $50, 900 for Ii
school fund, and by the same operation ia
our productive business to the amount
S3e0,oeo; the difference of the two sun