The Cass County Republican. [volume] (Dowagiac, Mich.) 18??-1880, 1860-10-04
Payment of IntefestAsPart-Paid Bond
Debt. ir't
Ann ARBoR, Sept, IA, 1860.
ditor of the Detroit Trihuna.

Debt. trft
To the Editor of the Detroit Tribune:
Will you do me and many Republi-
cans in this vicinity the favor to give
an official statement, from State docu-
ments, of the amount of the part-paid
bond debt in 1888, and from I64e to
1854 also In 1855, SO '57 '58 and '59:
also the amount of interest paid on
those bonds in each year from ls4s to
1859 inclusive; also explain, as plainly
as possible, the nature, Character, or
what is meant by "the part-paid bond
debt" or the difference between it and
other parts of the public bonded debt.
| think brief clear statement, from
the official reports, giving date and
page, will give many voters better
understanding of the whole subject in
volved, and correct much misunder-
standing in relation to it, especially in
regard to the increased taxation neces.
sary to meet the payment of interest
by the Republican administration.
Respectfully yours, A.BC.
We cheerfully comply with the re-
quest Of our esteemed correspondent
First, then, the "part-paid bond
debit is that portion of the SIS ,OOO, 900
loan, or State debt, on the bonds issued
for aolaich the State neUer received only
part-pay on the amount on which the
bonds scere originally issued, which
was S3,8l3,000. This character or
part of the State debt grew out of the
failure of the Morris Canal Co.," with
whom Gov. Mason, negotiated the
bonds, and the subsequent failure of
the U. S. Bank. The State after these
failures, having received a part of the
| full amount of the bonds delivered. re-
| fused to recognize her obligation to
pay to bond holders more than she had
received, and, at a subsequent period,
estimating the amount of principal re-
ceived and the interest accrued to that
time, agreed to pay specified amount
on the dollar equal to the amount re-
ceived and interest up to that time) and
interest at seven per cent, from that
time until new, adjusted" full bonds
should be issued for them, bearing the
|
bonds were originally issued. The
bonds due this account of that transac-
tion from that portion of the State debt
denominated "adjusted" and "part-
paid" bond debt
This part-paid bond" debt, in 1888,
was officially reported to be 1855, $780,
25. But, the democratic administra+
tions, including those of John s. Barry,
having fixed or recognized the interest
to be paid upon it at seven per cent,
while the original bonds, and the !" ad-
ljusted" to be paid for the part-paid
bonds, "were fixed at only sac per cent,
without adopting lat that time or since)
any compulsory measures to induce the
surrender of the old bonds and receive
adjusted" bonds for them, the bond
holders, of course, held on to the old
bonds, on which they were to receive
seven per cent. for the amount due,
rather than to surrender them and re-
ceive adjusted bonds for the amount
at sac per cent-a plain, common-sense,
business operation on their part, but
very short-sighted and impolitic on the
part of (then Senator, afterwards Gov
ernor,) Barry and his Administration
friends. The result of the short sighted
policy was, that, through all the Adj
ministration of John S Barry and his
party, and, until the accession of the
Republicans in 1856, the interest on
nearly all of that part of the State
debt, was allowed to remain unpaid,
and interest and compound interest al
lowed to accumulate and increase the
State debt year after year.
The Republican Legislature Of 1855,
however, stopped that policy, and
passed law to stop this accumulation
of interest. and require the part paid
bond-holders to surrender their bonds
for adjustments. The result was Just
what the following official figures indi-
cate:
| AS stated, the original part-paid
bond'' debt was 1866, ,960.25.
t In ls43, State Treasurer Adam, re-
| ported (page 14) the " interest for same
to July l, ls45 is s253, ,520.66'-,ohich
, interest aods neyer paid or adjusted m,a-
y til the Republicans came into poacer.
I But, we will proceed to "A categorical
answer to our correspondents request;
and give the following table, taken from
the documents cited, of amount of part
paid debt and interest paid thereon, for
: each of the years named, viz:
PART PAID BOND DEBT.
e Interest paid
Amount Of debt. on it,
1888.
\ 1t was reported 1856, ,960.25
1848
II was renorted s1 asa 55A 09x Nofhfuo