The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1859-01-12
TERMS. $2,OD

tody, rendered absolutely secure by your judi
ciouS legislation, of the State officers; it would
be useful, for il would promote sound circula-
tion OF specie and specie notes; and it would not
be inconyenent notes; and it would not be
inconvenient, for the circulation, obeyins well
known principles, would increase and diminish
with the demand.
The debt Of the State is of two classes, reim-
hursabe and irTeducible; the former embraces
the oreign and domestic liabilities payable af-
ter certain fixed periods; while the latter is con-
stituted Of the proceeds lands, granted by
Congress for the support of Schools and Religion
received into the Treasury upon sales by the
STATE, under pledge 10 pay six per sentnmOn
III amount, for the same purpose, forever.
The rembursable debt has been sometimes
spoken Of as the whole debt Of the State, but
the irrcducible differs from it in nothing except
that il is permanent, and incapable OF reduction
but, on the contrary, certain to be gradually
increased until the last proceeds of school and
ministerial lands shall be received. 1t follows
that no real reduction OF the amount o the State
debt can be effected except by payments exceed
ing in amount the sums derived from these
lands. .r i,aIg
During the last yeas the rembursable debt
was increased by 100000 dolls, being the
amount of the temporary loan authorized at your
recent session, and the irreducible by G9, ,602SS,
being the amount of proceeds of School and
Ministerial lands received into the Treasury
1t was diminished by the payment Of l2,CO4l0
OF toregn. AT the commencement OF the pies
ent year the aggregate debt Of all descriptions
was IL, lG0, ,9726 ST.
OF this, the sum Of 6 ,413, ,525 q will become
payable fter the 3lst of December, 1860 L
have heretofore invoked the attention of your
predecessors, as well as your own, to this matur-
ing liabilities; urged the propriety aud necessi-
ty OF seasonable provision forit, and suggested
what seemed to me the best modes Of making
that provision. 1t is TO be regretted that no pro-
vision has been made. 1t seems highly proba-
ble that, had the necessary authority been con-
9rred by the legislature on tho Commissioners
otthe 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. even
less rate. 1t may be that such loan can yet
be negotiated and trust that the magnitude Of
the saving to be thus effected will command for
this subject your earliest attention. ....,.....
Uuder the operation Of the very salutary act
of the last session in relation to the Sinking
Fund, the sum lcstlmately belonging to it, bus
heretofore appropriated under legislative sane
ton, to other State purposes, will doubtless be
replaced through the additional levy required
by the act, the future diversions TO any other
uses than those to which the Fund is pledged,
will be prevented. Under another act provid-
ing means for rei,nbursing the temporary loan,
over two hundred thousand dollars will soon be
paid into this fund. 1t will not be required
for payment OF the loan until July, 1860. Pro-
vision should be made for its safe and produc.
tive investment during the interval. .. fs....
An act Of the last session prescribeda rule for
the Uniform taxation Of banks. The Justice of
such rule connot be successfully impeached,
nor cam it be denied that property employed an
banking should bear proportion ofthe common
burden equal to that imposed on property 9th,
erwise used. Upon the point whether the rule
prescribed is in fact equal, differences Of opinion
may well 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 it can be materially changed, while the
constitution itself shall remain unchanged.
1t is claimed, however, by the Banks organi-
Zcd under the act of 1915, Incorporating the
State Bank OF Ohio and other banking coinpa.
nies that the section Of that act prescribing tho
The rule oftaXation for them, is contract, not
liable to be impaired by subsequent 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 institutions not similarly pro.
tected. This claim, originally asserted against
the rule o. taxation established by the act of IS.
81, was denied by the Supreme Court Of the State
but sustained by the Supreme Court o the Uni.
ted States. Notwithstanding the later decision,
the Supreme Court OF the State, in judgements
of December Term, 1851 has announced its ad-
herence to its original position. The claim 0
the Banks therefore cannot 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 1916
and have made no ruturn for taxation under the
act of last session. In some instances niunc-
tions have been obtained from tho Federal
Courts restraining the proper officers from the
execution of the law. These injunctions and
some defects in the act ind icated in the report of
the State Auditor, have prevented any cellec-
ton OF taxes under it, while the laws itself has
prevented the collection OF taxes under it, whiIo
the law itself has prevented the collection OF the
sums set oil in lieu OF taxes under the act OF
1915
These circumstances have caused some dnnin-
ution Of the revenue, and present The question
whether the States will again contest in the
Federal Courts the claim to exemption set up by
the Banks. or so modify the act of last session
as to save the Banks claiming it from its opera
ton. Should The first Of these alternatives be
preferred some amendment OF the act may be
found necessary, and adequate provision for the
unavoidable tigation should be promptly made
The acts Of the last session, appointing GER
ia; ct;ynrc tO nirootorc of D.