Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1860-01-04

The aggregate expenditure was 81 l4i GS4
and balance was left In the Treasury o
Sl2S,654.
Il will be seen that the revenue provided b,
law for the payment Of interest on the Public
Debt. not including the Temporary Loan, wal
insufficient for that purpose The amount
wanting was about Slll 000 There being
hoWeycr, ia the treasury large sum belonging
10 the Sinking Fund, derived from the lew fol
the Temporary Loan, but not needed for itl
payment until EeXt March, il was thought
better TO supply the deficient amount from that
source than 10 resort 10 the power TO impose
additional leves, vested by The last General
Assembly in the Auditor Of State. The public
interest was perhaps best consulted In this
action; but It involved departure from that
provision of the Temporary Loan Act, which
| requires the proceeds OF the levies for its pay.
ment TO hc absolutely reserved from all other
appllcaii'ns and it may well be questioned
whether any advantage gained by such depar-
tuTe ought 10 prevail over the considerations
which en- DIN strict compliance with the law -
II Is o5yiOus, however. that the additional evies
necessary 10 provide for the interest of the
debt should have been imposed by the General
! Assembly Itself fully advised as it was, az 20
the amount Of interest and the inadeqlacy of
the provision made for IT, The responsibility
] bean
assumed by the Legislature instead of being
imposed upon the Auditor.
! tabular statement appended TO this communi.
eaiion, ard numbered !, exposes at one view the
number Of acres Of land on the Grand List, their
value The va'ue Of taxable towu-Ots and chatt Is
the several aggregates Of State, unity and local
evlts, and the rates Of levy for State purposes in
The last eight yea twill b. seen that The aver.
age rate Of taxation IN the first half Of that time
exceeded considerably that in The last bali: while
the aggregate revenue OF The last haf exceeded
hat OF the first. This result was produced by the
larger average basis Of iaXation in tue last period
More than the whole excess Of levies was for
school purposes and the payment Of debts con-
tlacied in tie first period
Another tabular statement, numbered H. will
show the yearly disbursements for Legislative
Judicial aud Executive expenses for the expenses
of the Benevolent and EtfoTmatOry Ipstitutions
aud on account Of the Pub ic Works, for three
periods OF I0ur years each-the first Immediately
preceding. aud the TWO Others Immediately follow
ing the adoption Of the existing Constitution Il
Will be seen upon Inspection OF it, that The expenses
were largely increased after the adoption of the
Constitution; bnt that they have been cousidera-
bly, less dining the third than during the scc7nd of
these iods. The average yearly expenditure
from 1913 TO 1851 was S73S, T15 from lS52 TO 1855
inclusive, adding 20 the apparent amounts the un.
authorized debls contracted within those years
aud subst qUenty paid, 81 OBS a24; from 1856 10
payments on accOunt Of debts previously con
traCtef, $685. 533. WhtB it is remembered thai
during the last period the Public Works have
become charge upon the General Revenue
that two new Reionnatory Institutions have been
organized; that large additions have been made
to the list of judges; that the Comptroller's of
flee has been created; that four sessions of the
Legislature have been held; that number of
salaries, especially Of judges and officers on the
Board Of Public Words, have b. Ell increased,
and other new expenditures have been directed
by the Legislature, may it not be hoped that
the results Of these four years viii be accepted
as evidence at least of sincere desire and
eudeavor, on the part of the Executive OIL
GERS, to perform faithfully their duties to the
people?
Besides the advance from the Treasury for
repairs of the Hooking Caual, which has been
heretofore explained TO the Legislature and will
be again fully explained in this communication.
| am aware of no expenditures beyond appro-
priations and no debts incurred without au-
hOrity, during the last two biennial periods.
which will embarrass the finances, or oppress
the revenues for future years
Permit me now to invite your attention to
some observations upon the Public Debt of the
State. That debt need hardly repeat, is of
two descriptions; the Reducible and the IRE
uutluFs h' ioIihcE represents loans from
capitalists; the latter represents the proceeds
OF School Funds granted by Congress. The
former may be reduced by payments; the late
ermust continue to increase as long as the pro-
ceeds of school lands are used and funded as
now directed by law, and under the existing
pledge bf six per cent. to the purpose for which
the School Lands were granted
In January, 1915, after the completion Of the
Public Works, and after the aban lonment of
the policy OF aid to Public improvements by
State subscriptions 10 the Stock of Riroad,
Canal and Turnpike Companies, the entire debt
was S Is 25l,l ,l7O; OF which the Reducible Debt
was SI7, ,796 057, aud the Irreduciblc 81 ass
I23.
From that time the Reducible Debt was
gradually diminished, until the defilcation and
debts contracted in anticipation OF revenue Gre
ated a necessity for the Temporary Loan of
S70O,O0O, which was authorized by your pre-
decessors and negotiated 10 1858, and Is REIN
bursable on the lst July, 1850, and let March,
1861.
At The close of IS . the entire debt wss thus
constituted: The Foreign Debt was SI3.G2l-
s57 20; tue Domestic Debt, STE. 1855; making
the whole Reducible Debt Sl2.S97 242 20; The
IrTeducible Debt was So 535 O76 IS; and the
Temporary Loan S700,000, making a total Of
SIT, l3l, 3l9 10 From this amount may prop
erly be deducted S28s, ,l54. already collected for
part paymen. Of the Temporary Loan
Ii viii be seen that in sixteen years the Pub
lie Debt bas been reduced orly by the sum of
50, ,36s ESQ. Tie sums received in the same
lime from Surplus Revenue, sales of Lands,
from the Public Works, and few miscellaneous
sources other than taxes were Sc, ,6S7. .947.-
The greater part, of course, was applied in
payment OF in crest instead of reduction of
principle.
Provisions Of the new Constitution prohibited
the increase and required tue gradual extinction
ofthe debt. Anact OF the last General Assembly
was Intended to secure that result. 1t auihori-
zes, whenever any portion Of the debt shall be-
come pay able, the Issuing Of new bonds TO an
amount sufficient to discharge it. Those new
bonds are to be made payable ia such INSTALL
ments that the annual levy required by the
Constitution will supply the means for their
payment in full at maturity; and the eet re-
quires their payment accordingly without re-
-newa and without delay.
This plan h prrsstenily adhered to- will certainye ez
tingush the whole Rsducibe Debt; but the operation
will require thiity-One years. and many circumstances
may occur TO suspend Illustrate its result Ny own
impression IT, HAT the wishes Of the people will be bet
consulted BY provision Tor earlier payment and con-
sequent relief from taxation for interest should your
opinion be otherwise, you viii do nothing trust 10
impair, but everything 90 the certainty Of pay
,nent within The lime limited by the act.
On the lst Of January, 1851 il it be the pleasure Of
the State SG4l 32j % OF the debt may be paid The
contract Of loan, however does impose the obza-
tion Of payment at that time. The whole duty Of the
sta will Be pcinrmed by punetua payment Of inter
est and such ptuy-ion for discharge Of the prnc
pal may he required By the Interests aud wishes Of
ihe people.
Whether It be thought expedent or not 10 adopt the
scheme Of payment proposed by the act of its wear
change will probably be found necessary in the
description OF bonds to be issued That ue', origin
ally framed, and il passed the Senate by an unani-
nous vote, contained provisions eNempnp from taxa
tion the bonds To DO ssaed under IT, and also judi-
cOus dis Elimination in favor loan takers within the
State. 1t amended in the House BY striking out
The provision for exemption, and in that shape became
law. The discrimination In avoruF domestic bOudhold-
thus converted into discrimination against
them; for, under the law stands taxation OF