The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1860-03-13

Th-- loan has hjcly excited much attention
from the public mind, aud especially has the
propricty OF it been severely criticised by the
pro-.lavery press. We propose to place before
our readers a candid and succinct statement OF
the facts upon this subject, for tha purpose OF
ascertainiug the truth or faschood of the charges
made by the pro-slavery party. These charges
are-Figst Ii is unconstitutional. Second. IL
has increased the State debt. Third. Il was a
useless .qnandering OF the public funds.
Let us consider, first, il constiutiorh'ty. No
person who has investigated the subeci care
fully, and Cor the sole purpose ct arriving at the
truth, can come - any other conclusion than
that it is constitutional. The act OF Congress
granting the State Of Michigan 5000 acres OF
land, "for the purpose OF aiding said State in
constructing and completing" the -. Mary
Canal, contemplated the probability that the
State would find it necessary to make advances,
in order fully to complete the work, and accord
ingly made provision applicable to that necessity.
The act says
"The Legislature of said State shall cause to
be kept an accurate account ct all eX-
p
rating Of said Canal and of the earnings thereof;
l. and whenever said State shall be fully
reimbursed for all G{c0rccS made for the con-
struction, repairs and operating Of said Canal,
with legal interest or al dt(rapccs, III"
said State shall be allowed to tax for the use Of
said Canal, only such tolls as shall he sufficient
t. pay all necessary expenses tor the care ciarC,
and repairs of the same"
| Now il is evident that the State could not &C.
cePt the grant without obligatinS herself to make
all Advances necessary TO complete this great
| international work, and render it durable aud
useful This was done in the following words,
| mo 80, Laws 1853, -" All conditions expressed
| IN said act (of Congrcss) are hereby agreed to
and made obligatory upon the State Of Michigan. y
| This obligation, be il remembered, was taken By
Democratic Legislature, and the responsibility,
therefore, of any violation OF the constitution
necessary to discharge the obligation, would
rest upon the Democratic party. Article XIV,
Section ., OF the constitution, says;
The State shall not be party to, Or inter
ested in, any work Of internal improvement, nor
engage in carrying on any such work, escept in
tie expenditure of grants TO the State Of lend or
other property"
! Il is plain that this section was intended to,
and does permit, the State TO be "party to, y
and interested in and to "engage in carrying
on such work as tie Saul ST. Mary's Canal,
''in the expenditure" of the grant of land made
| by Congress to the State for that purpose. ].
this be not true, then the Democratic members
! of Congress frcm this State who voted for the
graft were guilty of culpable misconduct An
other section of the constitution, tArtice XIV,
Section ~ said to contlic, with this loan, is as
ollows
''No scrip, certificate, or other evidence OF
State indebtedness shall be issued, except for the
redemption of stock previously Issued, or for
such debts as are expressly authorized in this
constitution"
The answer to this is that the Saul Canal loan
is not State Indebtedness. The State has pledged
lis faith that the proceeds of the Canal, over
which il has exclusive control, shall be applied
to the payment of The loan, and the State is only
responsible, in case such proceeds shall be mad
equate. The following section of the act author
zing the loan is embodied in the bonds, as the
condition of their issue, no. lis, Laws 1859,
Section 80
"All the tolls and other income from the st.
Mary's Falls Ship Canal after paying the actual
and necessary expenses for the care ana Operat-
ing of the same, are hereby pledged and devoted
to the payment of said bonds, principal and in
terest, as the same shall fall due, and the State
hereby guarantees the payment of the principal
and interest OF such bonds, and each and every
of them, out of such tolls and income, and
pledges lis faith that in default of such payment
il will Internationally pay the same without
delay"
Were two things to happen, which are not
likely to occur, namely, that at the time when
the bonds will fall due Twenty years. the pro-
ceeds of the Canal should be insufficient to paw
the loan, and Democratic Legislature should
be in power it would be only necessary for them
TO follow their old precedents, and repudate the
loan.
We take from the Report for the last wear.
OF the Superintendent Of the Canal. the following
statement, showing the receipts of the Canal
from its opening, june 18th, 1855, to its closing,
Nov. S0th, 1859:
'o.a' feee pts Tor %.o4f &c
. Icoo.-. syst0 -
A,Ss,---. S--F1 -
leS>, -------- --.---.- 10 SIS -
iSSSi.--. -.--..--- $50 -
The Superintendent reports the entire expen-
ses for the year 1889 to have been $3.50 -,
and that a balance of the receipts, amounting TO