The Portage County Democrat. [volume] (Ravenna, Ohio) 1854-1868, 1860-01-11


made for it. The responsibility of the neces
Isary taxation should have beea assumed by
the Legislature instead of being imposed upon
the Auditor a+
tabular statement appended to this communication,
and Numbered Iaxposes view the number of
of land on the Grand List their value the value of taxa
bic towr lots aud of State
county ad local eves, and the rates of levy for State
purposes each of tn last eight years. 1t will he seen
That the average rate Of taxation in the first half of that
time exceeded considerably that in the last hsf lille
The aggregate of The last half exceeded that of
the hrs TINS result was produced nv the larger average
basis of taxation in the last period. More the whole
of lve for school purposes the ment
of debts olt acted in The first period
Another tabular statement numbered IT. viii show the
yearly Disbursements for Legislative Judicial aud Exec
expenses for the expenses of the and
Reformaory Institutions, and of the Public
Works for three periods of four each-the first
imedistely preceding and Tie two others ;nred;ateIy
folio wing the adoption of tho existing Constitution.
Will he upon inspection of it, that the expenses
hugely increased after the adoption nf the const
tnton but that they have heen considerably during
The third than during the second of !hese periods The
yearly expenditure from 1919 1851 was $780,
IT'S from 1852 to 1855 inclusive, adding apparent
Enpunts the unauthorized debts within those
vears and Subsequently, paid S095 s24 from 1856
ns acrount Of debts previously contract ted $685.
533 When is remembered that during the last period
the Public Works have become charge upon the Cen
eral Revenue that two Reformatory Instituions
have been orGanized that large additions BEEN
it tie list of judges that the f.omptrolles Office
been created that four sessions Of the Legislature have
heH held; that nher Of salaries. especially of j1dg
and officers the Board of Public Works, have been
inc ease and that other expenditures have been
cd by the Legislature, il not be hoped thai the
results of those four years will be accepted evidence
at least of sincere desire and ensavor the part of
tn Executive ofeeEs to perform faithfully their duties
to the people:
Besides the advance from the Treasury for repnrs of
the )kng Canal which has been heretofore explained
Legislature snd viii bs again fully explained this
communication, aware of expenditures beyond
appropriations and debts incurred without authority
during the last biennial periols which will embqr-
rass finances oppress the of future years
Permit to invite your atiet.tion ohser
ons upon the Public Debt of the State The debt,
ne ID hardly repeat is descriuons the Rednchls
and The Irrelucibe former represents loans from
capitalists the latter represents the proceeds of School
Lanis granted by Congress The may reduced
by payments the latter continue to increase as
long the proceeds of school lanis and funded
as now directed y law under the existing pledge OF
six per cent to the purposes for which the School Lands
granted.
In january 1885, after the completion of the Public
to Public improvements by SIae subs :riptions to the
Stock of Railroad Canal and Turnpike Companies, the
entire debt a5 10; of which the Redctbe Debt
was Sl7,796057, and the Irreducibe $1455 ,l23.
At the close of 1889 the entire debt eonst;tu-
tel: The foreign debt was 1882 $50 20 the Domes
Debt S2T5.3s5 making the whole iteducihIe Da5t 3D.
s97 2i2 90 the Irreducihe Dsbt S253i0 07B
the Temporary Loln $1,000 o, making total Of ST.
1313l9 Il. this nay properly he .deted
already collected for part payment of the Tenn
porary Loan.
II will be seen Tint in sixteen years the PnIIe Debt
has hecn reduced only by the sum of So $50 The
sums received in the saIn3 time from Surplus Revenue,
sales of Lands from the Public Works and few miscel-
laneous other than taxes, Sc fS7 97 The
applied
est, insIeai OF reduction of priucinai
Provisions of Tie Constitution prohibited the in
and required the gradual extinction of the debt
An act of the last General Assembly was intended to
that result 1t authorizes, whenever any portion
the debt shall become payable. the issuing of bonds
lunt sufficient to discharge it, Those lie W bonds
are to be made PAYABLE in such instamens that the
nuA lew required by the Constitution will supply che
for their payment in full at maturity; and act
requires their payment accordingly without
without delay
This psn persistently adhered to- will certainly ex-
tinguisf the whole Reduch!e Debt; hut operation
will require hrty years, and many circumstances
may occur to suspend or Illustrate its result My own
IS that the wishes of the people will be bet
consulted by provision for earlier payment and con-
sequent relief from taxation for interest should your
opinion be otherwise you will do no hing trust to i'm
pair bu everything to the certainty of payment
within the tine limited by the act II
On the first of January 1861 if it be the pleasure of
the State Sc, ,413325 q of The debt may be paid The
contract of oan however, does not impose the obligation
of payment at that time. The whole duty of the Sate
will be performed by punctal payment of interest," and
such provision for the discha of the principal
be required by the interests and wishes of the people
Whether it be thought expedient not adopt the
scheme of payment proposed by the act of last
tion OF bonds be issued That act originally franz
ed, and il passed the Senate by votecon-
be issued under it, and judicious in
favor of loan takers within the State. mended
the House by striking the provision exemption
and in that shape became law. The discrimination in
fsyor of domestic bondholdsrs converted into
discrimination against them; for, Under the law ms it
stands, taxation of bonds will reach foreign ho.
ders suggest the expediency therefore,
of opinion that the interests of the State require the
of the debt upon the accrua of the right of paw
ment to provide for it either by bonds at auy rate
of interest not exceeding five per cent, reimbursabe
pleasure after term not exceeding BY
issued cUntem plated by the and bearin interest
not exceeding six per cent In either case the bonds
should upon their face stipulation expressing their
true character, subject not subject reduction by
taxation or otherwise If the bonds of the State
be taxed at ALL there far for taxation
in the hands of tine foreign than of the domestic
Neither should he taxed or BOTH Both should be taxed
nj ALL by uncertain assessments by reserving
from payments of interest equal the
es for all purposes on other property of equal value If
ba objected to this mode of taxation takes back
with hand the interest paid with the other and is
equivalent to mere refusal TO pay the full
stipulated, the answer is Obvos that the objection
applies just fociby, TO every of taxing bonds
given for money loaned to the State very serious
and, in my judgment, asuL objection une
the right of taxation he reserved the face of the bonds
when issued Whether bonds bearing such reservations
will find takers, only be determined by trial. That
they will not is more than probable and if they will
not certain that the taxation of State bonds is alike
impolitic and unjust. .I
recommend. therefore, such legislation as will give
the suggested discrimination to the Commissioners fr
beyond liability alteration the rate of interest and
the CONTROL reduction and fual PAYMENT of the
debt at the earliest time and in the most economical
mode. i % F. ..-T .....s. -..#-- s7-.
The two great lines of including the wabash aud
Erie with their leeders cost I2 no It fb other
ais, with the Muskngum improve MT the Western
Reserve and Mauinee Road, cost $34e7 112, aud the
So 22s $780, making aggregate SI6 SO3 922
For number of years. the net revenues derived from
these works though never SUFFICIENT TO nav the cost Of
inyestmet were yerv consiersbIe The com,nat;; U
of railroads. however, deprived them of great part
of the business which reliance had been placed for
increase, and al length marked decline took place.
Within the last few years the outlay for repairs
proyements has exceeded the The real defcen-
cy last year. after dedueting the extraordinary dsnrse
ents directed by the Legislature, not large but
there is little for hope that will be hereafter
while there is much ground for apprehension that will
be greater 1t will certainly be greater unless the intro
ducton of steam navigation other circumstances now
unforeseen shall enable the canals to sustain less dis
advantage the railroad competition The cost of these
works. however, has doubtless been repaid to the State
in the increased value of lands in he counties through
which they extend And this consideratior NAV we'll
abate the which the debt contracted for their
construction apt to proVoke while suggests caution
and prudence in dealing with interests important
are involved in their disposal
Ihave heretofore expressed the opinion that they should
be reained under State management if can be
effected reasonable price, and under such
and guarantees will secure to the people the benefits of
transportation originally contemplated. That opinion
remains unchanged. With economical management in
private hands the canals obably be made sufficient
y productive to warrant the investment of considerable
their purchase. The reduction of the debt by
the amount and relief from taxation for interest,"
recommend the sale to the people at large; while the
suggested restrictions and guarantees will prevent any
loss Inconvenience to the inhabitants of the canal
counties.
The stocks Iurnpkes and railroads should not
be included in any SALE unless the interest the price
will equal the revenue now derived from them. rec
ommend authority be given the Governor to ap-
point agent with ample powers to ascertain the c0nd
on of ali companies in which the State holds stock
The produe Of these investments would have
doubt, be greatly enhanced by such investigation
Should regard sale of the Canals inexp dent,
and in any so long they remain under man.
agement the proprety of strict compliance in their ad
minsration with the directions of the Constitution will
not be questioned The separation of them into
divisions and the assignment of each division the
control of single member of the Board Public Works.
independent in most important respects, of the Board
ITSELF to not only inexpeden but of more than
doubtful constitutionslity recommend, therefore such
notifications of the act of the last General Assembly on
subject as will secure TO the whole Board the control
of the Public Works which the Constitution commits to
It's superintendent: also recommend the restoration
of TINT provision of the act of 1854 which the Cover
nor with the advice aud consent of the Senate author.
ized to appoint collectors and inspectors and re lew
tn