The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1859-01-13
STATE DIET.

The debt Of the State Is Of two classes
reImbursable and irreducible, the former EN-
braces the foreign and domestic liabilities
psvable after certain fixed periods; while th'
latter is constituted of the proceeds Of lands
granted By Congress for the support @
Schools and Religion, received into the 9fsa
eury upon sales BY the State, under pledge
to pay six per eeRtum on the amount for the
same purposes forever.
gThsreimburssble debt hss been sometimes
spoken Of % the whole debt OF the State
but the irSeducible differs from It 10 nothing
except that il is permanent, and incapable
of reduction, but, on the coptrsry, certain to
be gradually increased until the lsst proceeds
of school and ministerial land shall be re.
ceIyea. Il follows that no real reduction oI
the amount of the State debt can be effected
except BY payments exceeding In amount the
sums derived from these lands.
During the last year the reimbursable debt
was increased BY $700. 900 being the amount
Of the temporary loan authorized at your re.
cent session, and the irreducible by $50 609
90 being the amount Of proceeds of School
and Ministerial lands received into the Trea'
sury. II was diminished BY the payment OF
$4,000 90 of foreign debt. At the com.
mencement of the present year the aggre.
gate debt Of all descriptions was $l7,le9,
ga 81.
OF this, the sum Of $6.4ls,695 81 will be-
come payable after the slst Of December,
1890. have, heretofore, invoked the at,
tention of your predecessors, as well as your
own, to this maturing liability urged the
proprIety and necessity Of seusonable provi.
sion for it. and suggested what seemed to me
the best modes Of making that provision. II
10 to be regretted that no provision has been
made. It seems highly probable that, had
the necessary authority been conferred by
the Legislature on the Commissioners 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 a new loan at FIVE per
cent. or even q less rate. 1t may be that
such loan can yet be negotiated, and trust
that the magnitude Of the saving to be thu.
effected will command for this subject your
earliest attention.
Under the operation Of the very salutary
act Of the last session in relation to the Sink
ing Fund, the sums legtimately belonging
to II, but heretofore appropriated under leg.
islative sanction, to other State purposes,
will doubtless be replaced through the add.
tional levy required by the act, and future d.
versions to any other uses than those to
which the Fund is pledged, will be prevent.
ed. Under another act providing means for
reimbursing the temporary loan, over two
hundred thousand dollars will soon be paid
into this fund. II will not be required for
payment of the loan until July, 1860. Pro.
visions should be made for it's safe and pro-
ductve investment during the interval.
BANK TAXATION.
An act Of the last session prescribed rule
for the uniform taxation OF banks. The ius-
tice OF such rule cannot be successfully i'm.
peached, nor can it be denied that property
employed in banking should bear proper
tion OF the common burden equal to that i'm.
posed on other property. Upon the point
whether the rule prescribed Is in fact equal,
differences OF opinion may we'll exist but
repeated decisions Of the Supreme Court of
the State leave no room for question that
the rule OF the act is, substantially, the rule
of the Constitution or for expectation that
1t can be materially changed, while the Con-
siitution itself shall remain unchanged.
1t is claimed, however, by the Banks or.
ganized under the act Of lS45, incorporating
the State Bank Of Ohio and other Banking
Companies, that the section of that act, pre-.
scrlblng the rule of taxation for them, is a
contract, not liable to be impaired by subse.
quent legislative or constitutional provision,
and that they are, therefore, not liable to be
taxed by different rule, however warranted
by constitution or law in respect to institu.
tions not similarly protected. This claim,
originally asserted against the rule Of taxa.
fion established by the act of 1859, was de.
MED by the Supreme Court Of the State, but
sustained by the Supreme Court of the Uni
ted States. Notwithstanding the latter de.
cision, the Supreme Court of the State, in a
judgment Of December Term, 1857, has an.
nounced its adherence TO its original posi-
tlon. The claim of the Banks therefore can
not be recognized as valid by the officers Of
the State.
These institutions, however, relying upon
the decision OF the Supreme Court of the
United States, have placed to the credit of
the State, as heretofore, the taxes required
by the act of 1S45, and have made no returns
for taxation under the act OF last session. In |
some instances injunctions have been OBJ
tanned from the Federal Courts, restraining
the proper officers from the execution of the
law. These injunctions and some defects in
the act indicated in the Report of the State
Auditor, have prevented any collection of
taxes under it, while the law itself has pre-.
vented the collection of the sums set oft in
lieu Of taxes under the act of lS45.
These circumstances have caused some di.
mlnution OF the revenue, and present the
question whether the State will again con-
test in the Federal Courts the claim to ex-
emption, set up by the Banks, or so modify
the act of last session as to save the Banks
claiming it from its operation. Should the
first of these alternatives be preferred, some
amendment of the act may be found neces-
sory, and adequate provision for the unayoid
able litigation should be promptly made.
PEN1TENTrA1RY.
The acts of the last session, appointing
certain citizens to appoint Directors of the
Penitentiary and Commissioners of the State
House, having been declared unconstitution-
al BY the Supreme Court, the Board of Di-
rectors and Board of Commissioners organ.
lied under the oct Of 1856 have continued in
the discharge of their respective duties.
The increase of the number of convicts
beyond the nSmber OF cells renders it jndis.
pensable to provide for the enlargement of
the existing or the construction Of a new
Penitentiary. Considerations of economy
recommend the former alternative, Proyi
sion should also be made within the Peni.
fentiary enclosure for convict lunatics. The
General Assembly in lS45 directed such
- La Al