The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1860-01-11

~ ny tue SUN OI SZ,AOc,Oeu. Inc SullS
received in the same time from Surplus
Revenue, sales Of Lands, from the Pub b.
lie Works, and few miscellaneous sour.
ces other than taxes, were S6,6eT,S47:
The greater part, Of course, vas appl;-
ed in payment ofinterest, instead Off
duction Of principle.
Provisions OF the new Constitution
prohibited the increase and required the
gradual extinction lthe debt, An act
of the last General Assembly was inten-
ded TO secure that result. It authori-
ICES, whenever any portion of the debt
shall become payable, the issuing of new
bonds to an amount sufficient to dis
charge it. Those new bonds are to be
made payable in such installments that
the annual levy required by the Cousti-
tuition 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 persistcntly adhered to,
will certainly eXtingnish the whole Re r
ducible Debt; bat the operation will re-
quTc thlrty-one years, and many cir .
cunstanceS may occur to suspend or
Illustrate its result Ny own impress
sion is, that the wishes Of the people
will be better consulted by provision
for earlier payment and consequent re-.
lief from taxation for interest. Should
your opinion be otherwise, YOU will do
nothing, trust, to impair, but every.
thing to secure the certainty of pay
ment within the time limited by the act.
On the ist Of January, 1861, if it be
the pleasure Of the State, s6,4I3,32
Of the debt may be paid. The contract
OF loan, however, does not impose the
obligation of payment at that time
The whole duty of the State will be
performed by punctual payment of in ,..
terest, and such provision for the dis
charge OF the principal as may be re-
quired by the interests and wishes Of
the people. f
Whetherit It be thought expedent or not to
adopt the scheme Of payment proposed by the
act OF last year, some change will probably
be iound necessary in the description OF bonds
to be issued. The act, as originally framed,
and as ii passed the Senate bv an unanimous.
vote, contained provisions eyempting from
taxation the bonds to be issued under it, and
also JudcIous discrimination in favor Of
loan takers within the State. 1t was amen
ded IN the House by striking out the provis.
ION Tor exemption, and in that shape became
law. The discrimination in favor Of domes
tic bondholders was thus converted into dis. 81
elimination against them; for, under the law q,
as 1t now stands, taxation Of bonds will not
reach foreign holders. | suggest the exnc. VI
diency, therefore, OF authorizing the Com
missoners OF the Sinking Fund, IL thev shall
be Of opinion that the interests of the State
require the payment OF the debt upon the ac.
crua Of the right Of Payment to provide Tor
It either by new bonds, at any rate Of inter
est not exceeding five per cent, reirnbursa-
BILE at pleasure after term not exceeding ten
years, or by bonds issued as contemplated by
the act and bearing interest not exceeding
SIX per cent In either case, the bonds shod
carry upon their face stipulation expressing
their true character, as subject or not subject
to reduction By taxation or otherwise. Ifthe
/ bonds oil the State are to be taxed at all ,
there is lar more reason for their taxation in
the hands OF the foreign than of the domes-
tic holder. Neither should be taxed, or both. 90
Both should be taxed, If at all, not bv un-
certain assessments, but by reserYinr from q
payments of interest sums equal to the aver
age taxes for all purposes on other pronertv
OF equal value. II it be objected to this mode -
Of taxation, that it takes back with one band1.o
the interest paid with the otherand is there p,
lore equivalent to mere refusal to pav the
full rate stipulated, the answer is obvious.
that the same objection applies, Just as forri- 10
bly, to every mode of taxing bonds given, for Il.
money loaned to the State. 1t is a very se- !,
rious, and, in my Judgment, an ipsuperable
objection, unless the right of taxation be re- =
served on the face of the bonds when issued. "a
Whether bonds bearing such reservations "a
will find takers, can only be determined by
trial That they will not is more than prob
able; and II they viii not, it is certain that %
the taxation of State bonds is alike impolitic
and unjust.
recommend, therefore, such legislation as
will give the suggested discretion to the Com s.,
missioners, fix beyond liability to alteration 4
the rate Of interest, and secure the control, +.
reduction and final payment of the debt. at
the earliest time and in the most economical
mode. @ ai fliu'
The two great lines of canal including II q /.
Wabash anu Erie, with their feeders cost
1z,llO, l20; the other canals, with tho Mus
kingum Improvement, and the Western Ro
serve and Maumee road cost So, ,467, l12 and
the amount subscribed to turnpike and rail-
q
aggregate cost Of $l8803 922 .4.a
For number Of years, the net reyen,,es Z
derived from these works though never suE
flcieut to pay the cost the Investment wers
very considerable The competition of raii.
roads, however, soon deprived them of a ereat
part Of the business on which reliance has
been placed for increase, and at length Al
marked decline took place, within the last
lew years the outlay for repairs and improve
ments has exceeded the income. The real
deficiency last year, after deductine the ex-
traordinary disbursements directed by the ef
Legislature, was not large; but there is little
room Tor hope that it will be less hereafter.
while there is much ground for apprehension
that it will be greater. It will certainly Be-
greater, unless the introduction Of steam n
navigation, or other circumstances iow un. q,
forseen, Shall enable the canals to sustain at
less disadvantage, the railroad competition.
The cost OF those works however, has doubt
less been repaid to the State in the ncreas-
ed value OF lands in the counties through
which they extend. And this consideration
may we'll abate the censures which the debt
contracted for their construction is ant to
provokei while it suggests caution and pru-F :
dence in dealing with interests SO Important
as are involved in their disposal
have heretofore expressed the opinion
that they should not be retained under State
management, il sale can be effected Ut
reasonable price, and under such restrictions
and guarantees as well secure to the people
the benefits Of transportation originally con-
templated. That opinion remains unchan-
ged. With economical management in pri- Y
vate hands, the canals can probably be made
sufficiently productive to warrant the IN
yestment of a considerable sum il thar, NM