The Jeffersonian Democrat. [volume] (Chardon, Ohio) 1854-1865, 1860-01-13
WHOLE NO., 522.

81, 1,455,l 1873.
From that time the Reducible Deb. was
gradually diminished, until the defalcation
and debts contracted in anticipation Of rev.
enue created necessity for the Tempo
rary Loan Of 100000, which was au-
thorized by your predecessors and negoti.
Ated in 1858, and is reimbursable on the
lst July, 1860, and lst March, 1861.
At The close Of 1859 the entire debt
was thus constituted: The Foreign Debt
was Sl3.62l ,957, 20; the Domestic Debt.
1915, 385; making the whole neducible
Debt Sl2,997, ,242, 20: the Irreducible
Debt was SO, 535, ,O76, ,95; and the Tenn.
porary Loan S70O, 600, making total Of
! iSl7,i3l,3l9,l5. From this amount may
properly be deducted S2s8,154, already
collected for part payment Of the Tempo
rary Loan.
/: will be seen that in sixteen years the
Public Debt has been reduced only
T by the sum Of 1868, $50. The sums
received in the same time from Surplus
Revenue, sales Of Lands, from Public
Works, and few miscellaneous sources
other than taxes were 6,687,9 The
greater part, Of course, was applied in pay.
ment of interest, instead Of reduction Of
principle.
Provisions Of the new Constitution pro.
hibited the increase and required the
Gradual ertinction Of the debt. An act Of
the last General Assembly was intended
to secure that result. 1t authorises,
whenever any portion Of The debt shall be-
come payable, The issuing Of new bonds
10 an amount sufficient to discharge it.
/ Those new bonds are to be made payable
/ in such installments that the annual levy
,, required by the Constitution will supply
the means for their payment in full at ma
turity, and the act requires their payment
i accordingly without renewal and without
/. delay.
b. This plan, if persistently adhered to,
0 will certainly extinguish the whole Redu-
!. chile Debit but the operation will require
+ thirty .one years, and many circumstances
may occur to suspend or Illustrate its re-
> suit. My own impression is that the
1 wishes of the people will be better consul
/ ted by provision Tor earlier payment and
Y consequent relief from taxation for interest.
Should your opinion be otherwise, you
d will do nothing, l trust, 10 impair, but
!. everything to secure the certainty Of pay.
mert within the time limited by the act.
), y On the first Of January. 1861, il it be
= the pleasure the State, 6,4l3, ,322,27 Of
s the debt may be paid. The contract OF
IS loan, however, does not impose the obli-
n CATION of payment at that time. The
# whole duty OF the State will be performed
n BY punctual payment OF interest, and such
s. provision for the discharge Of the princi-
n n pal as may be required by the interests
It and wishes Of the people.
n Whether it be thought expedieDt or not
70 to adopt the scheme of payment proposed
I Ly the act of last year, some change Will
,r probably be found necessary in the descrip-
4 ton of tho bonds to be issued. That act,
,r as originally framed, and as ii passed the
is Senate by an unanimous vote contained pro-
visions exempting from taxation the honda
n to bo issued under it, and also judlcious
- discrimination in favor of loan takers within
~ tho State 1t was amended in the House
x By striking out the provision for exemption,
O. and in that shape became law. The dis
on elimination in favor Of domestic household
ee ers was thus converted into determination
n against them; for, under the law as it now
rs stands, taxation OF bonds will not reach for
he eign holders.
~ I suggest the expediency, therefore, oi
I" authorizing the Commissioners of the Sink
eS ing Fund, ii they shall DO of the opinion that
on tho interests of the State require tho pay
We ment of the debt, upon tho nccrual of tht
rd right of payment to provide Cor ii, either bI
Is, new bonds, at any rate Of interest not ex
m, ccedna five per cent reimbursable at pleas
10 ure, after torn not exceeding ten years
~, or by bonds issued as contemplated by tht
,"' act, and bearing interest not exceeding 81,
ic- per cent. In either case, the bonds sboulC
Ily carry on their face stipulation expressing
10 their true character, as subject or not sub
1s iect to reduction By taxation or otherwise
,ly II the bonds Of the State are to be taxed d
M. all, there is far more reason for their taxa
h. ton in the hands of the foreign than Of the
~ domestic holder. Neither should be taxed
Oh or both. Both should be taxed, if at all, moi
w by uncertain assessments, but by reservint
or' from payments of interest sumo equal Il
en- the average taxes for all purposes on othe
ID property of equal value. lift be objected
mr. to this mode of taxation, that il takes bacl
IA. with one hand the interest paid with th'
of other, and is therefore equivalent TO mer'
i refusal to pay tho full rate stipulated, tn
~ answer is obvious, that the same objection
ler applies Just as forcibly to every mode of tax
by ing bonds given for money loaned to tn
lat State. 1t is a very serious, and in my opiu
lc- ion, an insuperable objection, unless To
IRE right OF taxation be reserved on the tace
bo tho bonds when issued. Whether bond
H., bearing such reservations will find taker
"! can only be determined by trial. That the
will not is moro than probable; and If the
lry will not, it is certain that the taxation I
ich State Bonds is alike impoliIic and unjust.
eg- recommend, therefore, such legslatio
ned as will give the suggested discretion to Il
no Commissioners, fix beyond liability to alte
nd alton the ratio of interest, and secure Il
M ,"u control, reduction and final payment Of Il
vi debt, at the earliest time and in tho mo
~ iiI" economical mode.
The Tho two great lines of canal, including Il
Wabash end Erie, with their feeders, CO
lion lilo, l20; the other canals with the Mu
bic kingum improvement aud the Western X
eed sorVe and Maumee Road cost 3,467,l ll2 al
,bo the amount subscribed to turnpike and ra
tnn road Companies was 3.226,9oo, making
'o' aggregate cost of ls,s03,922.
"" For a number of years, the not revenu
Ioo' r derived from these works though mover 81
lor' fcient to pay the cost of the investme
the were very considerable. The oompetiti
the of railroads, however, soon deprived the
ard of great part of tho business on which
nder lance had been placed for increase, and
the length a marked decline took place. Wi
,oro in the last few years the outlay for repa
WV and improve ments has exceeded the incon