Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1859-01-07

the notes Of specie paying banks organized
and regulated by State laws. The act of
last session makes no provision in relation
to this very important matter, and, by the
omission, seems virtually to require the re-
ceipt, for taxes and other State dues, of
whatever may be current as money in the
several localities where payments are made.
Such has, I understand, been in fact the
general if not universal construction of the
act by the County Treasures and other
public officers.
Thus construed, the oct fails wholly of
it's intent. 1t allows the Treasures to re-
ceive. and under it the Treasurers have ac-
tuslly received a large proportion of the tax
es in the notes of numerous banks of other
States. 1t has thus virtually encouraged the
circulation within our limits of a currency
subject in no respect to the control of our
legislation, and, 10 this extent, has promo
ted deterioration rather than improvement
of the circulating medium. The paper thus
paid into the different Treasures is, at best,
only the representative Of money in the
possession Of the banks which issue it; and
thus, to the extent of its reception, foreign
banks and not the Treasurers have been the
real repositories Of the public funds. In.
stead OF increasing the security, it has thus
increased the insecurity of custody.
I respectfully recommend the correction
of these defects. II it shall be decided that
the County Treas urers shall be continued
as depositnries aud agents for the transfer
of State revenues, they should be subjected
al least IN respect to these funds, TO the
supervision OF State officers, and required
TO give ample bonds, to be deposited with
the State Treasurer, for the performance
of these duties. Nor is it less Important
that the medium in which axes may be
paid, be ascertained by positive legislation.
A provision requiring such, payments 10 be
made in coin or specie notes of orr own
Banks would, in nay %opiuion, be safe, useful,
and not inconvenient, 1t would be safe, for
every dollar in the Treasury, would either
be specie or the equivalent Of specie, made
such, not merely by the solvency of the
Bank issuing it, but BY the guaranty of all
the Branches of the State Bank, or by State
and Federal Stocks in the actual custody,
rendered absolutely secure by judicious leg
%islation, Of the State officers; il would be
useful, forit would promote q sound ~circula-
ton of specie and specie notes; and it
would not be i~nconvenient, for the %circula-
ton. obeying well known principles, would
increase and diniin ish with the demand.
The deb, of the State is of two classes,
reimbursable and irreducible;; the former
embraces the foreign and domestic liabili-
ties payable after certain fixed periods;
while the latter il constituted of the pro-
ceeds OF lands, granted by Congress for the
support Of Schools and Religion, received
into the Treasury upon sales by the State,
under a pledge to pay six per centum on the
amount, for the same purpose, forever.
The reimburaable debt has been some-
times spoken of as the whole debt of the
State, but the irreducible differs from il in
nothing except that it is permanent, and
| incapable of reduction, but, on the contrary
certain to be gradually increased until the
Inst proceeds of school and ministerial la nds
shall be received. 1t follows that no re II
reduction of the amount of the State debt
can be effected except by payments ex>
ceeding in amount the sums derived from
these lands.
During the last year the reimbursable
debt vas increased by $40 900, being the
amount of the temporary loan authorized at
your recent session, and the irreducibIe by
S69, 500 SO, being the amount of proceeds
Of School and Ministerial lands received into
the Treasury. It wns diminished by the
payment of $4,000 co of foreign debt
At the -mencem of the present year
the aggregate debt of all descriptions vas
ST., l69,972 u.
or this, the sum of $6,4l3, 1852 will
ofko~ H. o - F
1860. l have heretofore invoked the aiten-
ton of your predecessors, MS well us your
own, to this maturing liability; urged the
propriety and necessity of seasonable pro-
vision for it, and suggested what seemed to
me the best modes of making that provision.
It is to be regretted that no provision has
been made. 1t seems highly probable that,
had the necessary authority been conferred
by the Legislature on the Commissioner OF
the Sinking Fund, the means to pay SO much
OF this debt as vii; not be discharged by 9TH
err resources, might have been obtained du-
ring Your recess, through u new loan at five
per cent. or even a less rate. It may be
that such a loan can yet be negotiated, and
| trust that the magnitude of the saving TO
be thus effected will command for this sub
ject your earliest attention.
Under the operation of the very s~alutary
act of the last session in relation to the sink
ing Fund, the sums legitimately belonging
to it, but heretofore appropriated under leg
islative sanction, to other State purposes,
will doubtless be replaced through the addi-
tional levy required by the act, and future
diversions to any other uses than those TO
which the Fund is pledged, will be prevent
ed. Under another act providing means for
rcimbursing 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 pro-
ductive investment during the interval.
An act OF the last session prescribed a rule
for the uniform taxation OF banks. The
justice of such a rule cannot be successful
ly impeuched, nor can it be denied that prop
erty employed in banking should bear a pro-
portion of the common burden equal to that
imposed on property otherwise 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 ques-
ton that the rule OF the act is, substantially,
the rule of the Constitution; or for expects
ton that it can be materially changed, W bile
the Constitution itself shull remain unchan-
ged.
Il is claimed, however, by the Banks or
ganized under the act Of 1s45, Incorporating
the State Bank Of Ohio and other Banking
Companies, that the section Of that act, pre-
scribing the rnle Of taxation for them, is a
contract. not liable to be impaired by subse-
quent Legislative or constitutions provision;
and that they are, therefore, not liable to be
taxed by a different rule, however warranted