Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1860-01-12
[WH ,LE NO. 1896

Per cent to the pernoses for which tho School
Lands were granted. ~ 40 q.
Z IN Sanuary. Is45. sf,cr the compilation az ibs
Public Works, and after the abandonment on tho
policy Of aid to Pubiic improvements by stats
subscriptions TO the sioek ~ RaiIroad, Canal and
Turnpike .c'mpanies. the entire debt was Sl9,.
25l,t10; ofwhch the Reducible Dsbt was e.7.-
79s.057, and the Irreducibie si,456, ,f23 ffrs
From that tine the Reducible Debt vas grsi.
uaily diminished, until the defaicstion and
debts contracted in anticipation of revenue cru
sied necessity for tho Temporary Loan of
SfOo,OOO which was authorized by your prsJs-
cessOrs and negotiated 10 1858, AMI l. rsi,obnr-
.ablc on the lst Of July, 1880, aud let March,
1891.
AT ,he close oflsjo tho entire debt wa. thu,
constituted: This Foreign Dsbt was $t352t al, :
20, the Domestic Debt 8l15, ,3s5; making IN,
whole Reducible Debt 81 ,ss7 ,2i2 20; the Iry.d,
chile Debt was s2,534O O76 70; aud The Temt,orarv
Loan 800 900, making total Of Sl7.I3lsIe *
From this amount may properly be dodueted'
s2ss. .i5i, already collected for part payment al
the Temporary Loan. -.
IL will be seen that in six teon years the pub.
lie Debt has been reduced only by the snm of
Slr365,6S0: The sum received in the samo time
from Surplus Reyenne. Sales Of Lands. from tba
Public Works, and few miscellaneous so,rcs,
other than tares, were se,os7o.4f. The greater
part, of course, was applied in paynen, n IL.
terest, Instead OF reduttios Of principal.
Provisions of the new Constitution
prohibited the increase and required
the gradual extinction of the. debt. An
act of the last General Assembly was
intended to secure that result. Il au.
thorizes, whenever any portion Of The
debt shall become payable, the issuing
of new bonds to an amount suffieient n
discharge it. Those new bonds are 20
be male payable in such ins,allmeu,s
that the annu,l levy required by the
Constitution will apply the means for
their payment in full at maturity; and
the act requires their payment accor.
dingly without renewal and without
delay. .. b.. ... -... .,.s-.,.
This plan, if persistently adhered to.
will certainly extinguish the whole
Rcducible Debt; but the operation will
require thirty one years, and many eli.
cumstances may occur TO suspend or
frustrate its results. Ny own inpre..
sion is. that the wishes of the people
will be better consulted by provision for
earlier payment and con. equent relief
from taxation for interest. Should
gour opinion be otherwise, you will do
nothing, 81 trust, to impair but everything
to secure the certainty of. payment
within the time limited by the act.
On the LIST of January, 1891. If II b.
the pleasure ef the State, Se.4Ia,325 II
Of the debt may be paid. The con.
tract OF loan, however, does not impose
the obligation OF payment at that tiue.
The whole duty Of the State will be
performed by punctu,l payment Of in.
terest, and such provision for the dis.
charge OF the principal as NAV be re.
CURED by the interests and wishes of
the people aa.a.sl
Whether it be thought expedient Or
not to adopt The scheme of payment
proposed by the act OF last year. some
change will probably be found necessa.
ry ia the description Of bonds 10 be is.
sued. The act, as originally framed.
and as it passed the Senate by a unapi.
nous vote, contained provisions exemp,.
ing from taxation the bonds to be issued
under it, and also judic Ious discrimi.
, nation in favor OF loan takers within.
the State 1t was amended in the
House by striking out the provision for
exemption. and in that shape became a
law. The discrimination in favor of
domestic bondholders was thus conyer.
ted into discrimination against them:
tor, under the law al il now stands. tax.
alton Of bonds will not reach foreion
holders. | sueg st thei expediency,
+ therefore, OF authorizing the Commits.
sioners of the Sinking Fund, if they
shall be OF opinion that the interests of
, the State require the payment Of the
debt upon the accrual of the right OF
payment, to provide for il either nv
new bonds. or at any rste of interest
not exceedingi tive per cent, reimburss.
bic at pleasure after term not exceed.
ing ten years, or by bonds issued a,
contemplated by the act, and beariuc
interest not exceeding six per cent. lo
either case. the oonds should carrv
upon 'her face stipulation xpfessjng
their true character, as subject or no,
snnject to reduction by tsxalion.or 9th.
erwise. II the honds of the State are N
re taxed atali, there is far more. reason,
tor their taxation in the hands of the
loielgn than of the. domestic holder,
Neitner should be taxed, or both. Both
should be taxed, il at all mot by uncer.
tam assessments. but by ressrsing from
Payments Of interest sums equal N the
average taxes for all purposes on other
property Of equal value. n il be object.
ed. TO this mode of taxa, ion, ,hs, i, tsk es
back with oae hand the interes, maid
with the other, and is therefore e,uiv,-
lent to II mere refusal to pay the full
rate stipulated, the. answer is obvious
mat the same objection applies. 1,tas
forcibly, to every mode of taxing bouJs
given for money loaned to the State
II is very serious, and, in NV iudp.
ment, an insuperabe objection, ueless
the right OF taxation be reserved an ihs
face of the bonds when issued. Whe,h.
er bonds bearing such reservations will
lind tak"'s. can only be determined by.
tIml. That they will not, is more ,h,n
probable; and ii they will nor, il is Ger.
t,in that the taxation Of State bonds il
o alike impolI,ic aud unjust
e Recommend, there lore, such legislation
as VIII give the suggested discretion to the
- 1 n tZs e. NJ