Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1860-01-07

mediaiely following the adoption OF the exist
ing Constitution. 1t will be seen upon inspee-
tion Of H. that the expenses we're largely H.
creased after the adoption OF the Constitution;
but that they have been considerably less
during the third than during the sec
oopd of these periods. The average wear.
/ " expenditures from ls4S TO 1851 was
| S73S,775 from 1852 TO 1865 inclusive adding
to the apparent amounts the unauthorized debts
contracted within those gears aud subsequently
paid, 81 Og5, ,624 from 1856 TO 1859 inclusive,
dedueting from apparent amounts payments on
account Of debts previously contracted, $685..
533. When it is remembered that during the 1
period the Public Works have become chnrpe
upon the General Revenue that two new
Rerormaiory Institutions have been organized ;
that large additions have been made to the list
of judges that the Comptroller's Office has
been created that four sessions OF the Legisla-
ture have been held that a number Of sala-
ries especially Of Judges aud officers on the
Board Of Public Works have been increased,
aud other new expenditures have been directed
by the Legislature, may il not be hoped that
the results of those four years will be accepted
as evidence at least OF a sincere desire and en-
deavor, on the part Of the Executive Officers
to perform faithfully their duties to the peoplel
Besides the advance from the Treasury for re-
pairs Of the Hooking Canal which has been
heretofore explained to the Legislature at will
be again fully explained in this communication,
l am aware OF no expenditures beyond appro-
priations and no debts Incurred without authOr-
ty, during the last two biennial periods which
will embarr0ss the .,es or oppress the rev.
euues for future years.
! Permit me now to invite your attention to
some observations upon the Public Debt Of the
State. That debt l need hardly repeat, is of
two descriptions the Reducibe and the Irre-
ducibe. The former represents loans from cap
talists the latter represents the proceeds of
School Lands granted by Congress The for
mer may be reduced by payments the latter
must continue to increase as long as the pro-
ceeds Of school lands are used and funded as
now directed by law and under the existing
pledge oisix per cent. to the purposes for which
the School Lands were granted
In January ls45, after the completion Of the
Public w orks, and after the abandonment ol
the policy of aid to Public Improvements by
State subscriptions to the Stock of Railroad
Canal and Turnpike Companies, the entire deb,
was Sl925ll70; of which the ReducibIe Deb,
was l7,796O57, and the Irreducibe SI455,.
1873.
From that time the Reducible Debt was
gradually diminished until the defalcation and
debts contracted in anticipation of revenue
created q necessity for the Temporary Loan Of
100000, which was authorized by your prede.
cessprs and negotiated in 1858, and is reimburs.
able on the st July 1860 aud lst March 1861
AT the close OF 1859 the entire debt was thus
constituted The Foreign Debt was SI3,62l,.
857 20 the Domestic Debt, S2T5. 1886; making
the whole Reducible Debt Sl3.897, ,242 20; the
Irreducible Debt was $2,534,065 95; and tho
Temporary Loan 100000, making total o
F Sl7,l3l3l9 Is. From this amount NAV prop
erly be deducted S2S8,l54, already collected
for part payment of the Temporary Loan
1t will be seen that in sixteen years the Pub
lie Debt has been reduced only by the sum OIL
$2,36S $50. The sums received 10 the same
, time from Surplus Revenue, sales of Lands
from Public Works, and a few miscellaneous
sources other than taxes were S6697,94 The
greater part Of course was applied 10 payment
of interest, instead Of reduction Of principle
Provisions Of the new Constitution prohibit
ed the increase and required the gradual ex
tincton of the debt An act of the last Gen
eral Assembly was intended to secure that re
suit. 1t authorizes, Whenever any portion Of
the debt shall become payable, the issuing o.
new bonds to an amount sufficient to discharge
it. Those new bonds are to be made payable
in such installGentS that the annual lew reuuir
ed by the Constitution will supply the means
for their payment in full at maturity and the
act requires their payment accordingly without
renewal and without delay.
This plan, if persstently adhered to- will Ger
taiUly extingush the whole ReducibIe Debt
but the operation will require thirty-one years
and many circumstances may occur to suspend
or Illustrate its result. My own impression i:
that the wishes Of the people will be better con
suited by provision for earlier payment and con
sequent relief from taxation for interest ShUulC
your opinion be otherwise, you will do nothing
trust, to impair but everything TO secure thC
certainty OF payment within the time limited b.
the act.
On the first Of January, 1861, if it be thC
{ pleasure of the State S6,4l3325 27 of the
debt may he paid. The contract of loan, how
ever does not impose the oligation of payment
at that time. The whole duty of the Stat,
will be performed by punctual payment of in
terest, and such provision for the discharge O
the principle as may be required by the inter
, ests and wishes of the people,
Whether it be thought expedient or not t.
! adopt the scheme Of payment proposed by thu
act Of last year, some change will probably bt
found necessary in the description Of the bond:
E to be issued That act, as originally framed
and as it passed the Senate by an unanimous
Votei contained provisions eXemptlng from taxa
tiOn the bonds to be issued under it, and also
discrimination in favor of loan takers within
the State it was amended in The House by strik
| ing out the provision for exemption, and IN tina
e shape became law. The discrimination in ia
' vor Of domestic bondholdres was thus convert
p ed into discrimination against them for un
der the law as it now stands, taxation Of bond
will not reach foreign holders
= ] suggest the expedieOcy, therefore, of author
izing the Commissioners Uf the Sinking Fund
If they shall he Of opinion that the interests O
, the State require the payment of the debt, up
t on the accrual Of the aght of payment, to pro
D vide for it, either by new bonds, at any rate O
/ interest not exceeding five per cent, reimburse
BILE at pleasure, after term not exceeding tel
years. or by bonds issued as contemplated b.
! the act, aud bearing interest not exceeding siI
per cent In either case the bonds should car
ry on their face a stipulation expressing thei
s true character as subject or not subject to re
t duction by taxation or otherwise II the bond
+ Of the State are to be taxed at all, there is ia
4 more reason for their taxation in the hands Q
the foreign than of the domestic holder. Ne
ther should be taxed, or both. Both shoul
be taxed if at all, not by uncertain assessment
: but by reserving from payments Of interest sum
equal TO the average taxes for all on other proE