The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1860-01-11


Tour years will be accepted as evidence At least
of sincere desire and endeavor, on the part
of the Executive Officers, to perform faithfully
their duties to the peoplef
Besides the advance from the Treasury
Tor repairs of the Hooking Canal, which
has been heretofore explained to the
and will be again fully ex.
planned In this communication, am aware
Of no expenditures beyond appropriations,
and no debts incurred without authority,
during the last two biennial periods.
which will embarrass the finances, OF OPP
press the revenues of future years.
Permit me now to invite your attention |
to some observations upon the Public
Debt of the State. That debt, I need
hardly repeat. is Of two descriptions; the
Reducible and the Irreducible. The for
mer represents loans from capitalists; the
latter represents the proceeds from School
Lands granted by Congress. The former
may be reduced by payments; the latter
must continue to increase as long as the
proceeds of school lands are used and
founded as now directed by law, and un.
der the existing pledge of six per cent. to
the purposes for which the School Lands
were granted.
In January, l845, after the completion
of the Public Works, and after the aban-
donment of the policy of aid to public
improvements by State subscriptions to
the stock of railroad, canal and turnpike
companies, the entire debt was $l9,251,-
ITO; of which the Redncible Debt was.
SIT, ,696, ,o57, and the Irreducible 81, ,455..l
sl23. a.
From that time the Reducible debt was
gradually diminished, until the defalcation
and debts contracted in anticipation of
revenue created necessity for the Tenn
porary Loan of $700,e00, which was au.
|thorized by your predecessors and nego-
tiated in 1858. and is reimbursable on the
lst of July, 1856, and 1st March, 1851.
A. the close of $50 the entire debt was
thus constituted: The foreign debt was
$13,621,S57 90; the Domestic Debt
$275, 1856; making the whole Reducible
Debt $l3, 1897, 90; the Irreducible Debt
was $2.534,07e 95; and the Temporary
Loan 100000, making total of ST..
l4l,3lS Is. From this amount may
properly be deducted $2ss.l54, already
collected for part payment ofthe Tempo>
rary Loan.
1t will be seen that in sixteen years the
Public Debt has been reduced only by the
sum of $2,36s.6s0. The sums received
in the same time from surplus revenue,
sales Of lands, from the Public Works, and
few miscellaneous sources other than
taxes, were $6,6S1,947. The greater
part, cf course. was applied in paymen. of
interest, instead of reduction of principal.
Provisions of the new Constitution pro.
hibited the increase and required the
gradual extinction of the debt. An act
of the last General Assembly was intend
ed to secure that result. 1t authorizes,
whenever any portion of the debt shall
become payable, the issuing of new bonds
to an amount sufficient to discharge it.
Those new bonds are to be made paya-
BILE 10 such installments that the annual
levy required by the Constitution will sup
ply the means for their payment in full at
maturity, and the act requires their pay
ment accordingly without renewal and
without delay.
This plan, if persistently adhered to,
will certainly extinguish the whole redu.
chile debt: but the operation will require
thirty-one years, and many circumstances
may occur to suspend or frustrate its re-
suit. Ny own impression Is, that the
wishes of the people will be better consul.
ted by provision for earlier payment and
consequent relief from taxation for inter
est Should your opinion be otherwise
you will do nothing, trust, to impair, bu
everything to secure the certainty of pay
ment with the time limited by the act.
! On the FIRST of January, 1851, if it b
, the pleasure of the State, $6.4I3,325 q
, of the debt may be paid. The contrac
Of loan, however, does not impose the OBJ
legation of payment at that time. Th
. whole duty of the State will be performe'
by punctual payment of interest, and sue
! provision for the discharge of the princi
5 pal as may be required by the interest
t and wishes of the people.
u Whether it be thought expedient or no
! to adopt the scheme of payment proposes
t by the act of last year, some change wi
probably be found necessary in the des
cription of bonds to be issued. The ac
d as originally framed, and as it passed tn
t Senate by q unanimous vote. containe
provisions exempting from taxation th
J bonds to be issued under it, and also
!. judicious discrimination in favor of loa
y takers within the State. 1t was amended
C the House by striking out the provision fo
. exemption, and in that shape became Law
# The discrimination in favor Of Gomesti
a, bondholders was thus converted into
g discrimination against them; for, unde
q the law as it now stands, taxation of bono
: will not reach foreign holders. l sus
y gest the expediency, therefore. of autho
5; lizing the Commissioners of the Sinkn
} Fund, if they shall be of opinion that tt
!, interests of the State require the paymel
= of the debt upon the accrual of the rigl