Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1859-01-07

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dicious legislation, Of tho State officers; it
would be useful, for il would promote
sound circulation Of specie and specie notes;
sud il would not be inconvenient for the
circulation, obeying we'll known principles,
would increase and diminish with the de-
mand,
state Debt.
Tho debt Of the State is Of two classes,
rsimbursable and irroducable; the former
embraces the foreign and domestic liabili-
ties payable aftor certain Fixed periods
while the latter is constituted Of the pro-
cecds Of lands, granted by Congress for the
support Of Schools and Religion, received in
to the Treasury upon the sales by the State
under pledge TO pay six per centum on tho
amount, for the same purposes, forever.
The reimbursabls debt has been somo-
times spoken Of as the whole debt of the
State, but the irrcducabe differs from it in
nothing except that it is permanent, and in-
capable Of reduction, but OH the contrary,
certain to be gradually increased until the
last proceeds OF school and ministerial lands
shall be received. It follows that no real
reduction of the amount of the State debt
can be effected except by payments exceed
ing in amount the sums derived from these
lands.
During the last year tho reimbursable
debt was increased by 100000, being the
amount of tho temporary loan authorized
at your recent session, aud tho rreducable
by $69,6o2.8s, being tho amount of pro-
ceeds of school and ministerial lands receiv-
ed into the Treasury. 1t was diminished
by the payment Of S12,o04.00 Of foreign
debt. AT the commencement Of the pres
ent yoar the aggregate debt Of all descrp-
tions was Sl7, ,l69,072S4.
OF this, the sum of $G,413,552 27 will
become payable after the 9lst of Decem-
Der, 1860. have heretofore invoked the
attention Of your prodecess as we'll as your
own, to this maturing liability; urged the
propriOty and necessity of scasonaGle pro.
vision for it, and suggested what seemed to
me the best modes of making that provis-
ion. 1t is to be regretted that no provis-
ion has been made. 1t seems highly prob
able that, had tho necessary authority been
conferred by the Legislature on the Com
missionerS Of the Sinking Fund, the means
to pay SO much Of this debt as will not be
discharged by other resources, might have
been obtained during your recess, through
new loan at five per cent. or even a less
rate 1t may DO that such loan can vel
be negotiated, and l trust that tho magni
tude Of the saving to bo thus effected viii
command for this subject your earliest at
tOntion.
Under tho operation Of the very salrtary
act Of the last session in relation to tht
Sinking Fund, the sums Icgitimatcly be
longing to it, but heretofore appropriated
under legislative sanction, to other Stat,
purposes, will doubtless bo replaced through
the additional levy required by the act,auc
future diversions to any other uses than
those to which the Fund is pledged, will bc
prevented. Under another act providing
means for reimbsrsing the temporary loan
over two hundred thousand dollars will soor
be paid into this fund. 1t viii not be ro
quirsd for payment Of the loan until July
1860. Provision shca,d be made for il
safe and productive investment during th'
interval
Bank Taxation.
An act of tho last session prescribed
rule for the uniform taxation Of banks
Tho justice of such a rule cannot be success
fully impcschod, nor can it be denied tha
property employed in banking should bea
a proportion Of the common burden equa
to that imposed on other property. Upcl
the point whether tic rule prescribed is il
fact equal, differences Of opinion may vel
exist; but repeated decisions of the Su
premo Court Of tho State leave 20 room
for question that the rulo of the act is. sub
stantially, tho rule Of tho Constitution; o
for expectation that it cAu be materiall
changed, while the Constitution itself shal
remain unchanged.
1t is claimed, however, by the Banks OIL
ganlzed under the act of lS45, incorpora
ting tho State Bank of Ohio, and othe
banking companies, that the section of tha
act prescribing the rule of taxation for then
is contract, not liable to be impaired b
subsequent legislative or constitutional pre-
vision and that they are, therefore, not Ii
able to be taxed by different rule, howey
er warranted by constitution or law in re
spect to institutions not similarly protected
This claim originally asserted against tn
rule of taxation established in 1852, wa
denied by the Supreme court of the STATE
but sustained by the Supreme Court of tn
United States. Notwithstanding tho lat
ter decision, tho Supreme Court of tn
State in judgment of December Term
1857, has announced lis adherence to it
original position. The claim of the Banks
therefore, cannot be recognized as valid b,
the officers Of the State.
These institutions, however, relying upol
the decision of the Suprcme Court Of tn
United States, have placed to tho credit Q
tho State, rs heretofore, the taxes requires
by the act of l845, and have made no re
turns for taxation lndor the act Of last ses
sion. In some instances injunctions hav
been obtained from the Federal Courts, re
straining the proper officers from the exc
cution of the law. These injunctions, an,
some defects in tho act indicated in the re
port ofthc State Auditor, have prevente
any collection Of taxes under it, while tn
law itclf has prevented the collection of th
sums set off in lieu Of taxos under the ac
of ls45.
These circumstances have caused som
diminution Of tho revenue, and present tn
question whether the State will again con
test in tho Federal Courts the claim to e,
emption set up by the Banks, or so modif