The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1860-01-11

the entire debt was SIS25I.l7O, of which
Reducible Debt was 1877 ,o57 dollars,
and the Irreducible l,455 ,l23. dollars
From that time the Rsducible Debt was
gradually diminished, until the dedication
and debts contracted in anticipation of rev.
enue created necessity for the Temporary
Loans Of 100000 dollars, which was au
thorized by your predecessors and negoli ted
in 1898, and is reimbursabIe on the rs,
July, 1860, and lst March, 1861.
At the close Of 1850 the entire debt was
thus constituted The Foreign Deb, was
Sl3 63l,s57 90; the Domestic Debt, 275,
385 dollars; masking the whole Reducible
Debt $l3 S97 242 90; the TrreducibIe Deot
was 2,534075 dollars 95 cents; and the
Temorary Loan 100000 dollars, making o
total OF l7l3l,3l9 dollars Is cents. From
this amount may properly be deducted 27s,-
154 dollars, alresdy collected for p1rt pay.
ment of the Temporary Loan,
IL will be seen that in sixteen wears the
Public Debt hiss been reduced only by the
sum Of 2.363GS0 dJllars IS cents. Tie
sums received in the same time frum Sur
plus Revenue, sales Of lands. from the Pub.
! lie Works, and few miscellaneous sources
other than taxes. were 6.657,937 dollars
Inc greater part, Of course, was applied in
payment of Interest, instead of reduc,iy IN O.
principal.
Provisions Of tho new Constitution pro
bibited the increase md required tho grad
ual extinction Of the debt. An act of the
last General Assembly was intended to Sc
cure that result. 1t authorizes whenever
any portion Of the debt shsI become paw.
abe, the Issuing of new bonds to the amount
sufficient to discharge it. Those new bonds
are to be made payable in such instolment
that the annual levy required by the Consti.
tuition will supply the means for their pay
ment in full at maturity /; and the act re.
tquires their payment accordingly, without
renewal and without delay.
This plan, il persstenty adhered to. will
certainly extnguish the whole Reducibe
Debt but the operation would require ,hr.
ty'one years, and many circumstances NAV
occur to suspend or Illustrate its result. NV
own Impression is, that the wishes of the
people would be better consulted by
provision for earlier payment and consequent
reliet from taxation or interest. Should
your opinion be otherwise, you will do no.
thing, 1 trust, to impair. but everything TO
secure the certainty of payment within the
time limited by the net.
| On the first Of January, 1861, If it be the
pleasure OF the State, 6 Alb 325 dollars g7
cents of the debt may be paid. The con-
tract OF loan, however, does not impose the
obligation of payment at that time. The
whole duty of the State will be performed
by puncIuol payment of interest, and such
provision for the discharge of the principal
as may be required by the interests end
wishes of the people.
Whether it be thought expedient or not tc
adopt the scheme Of payment proposed by the
act OF last year, some eh1nee will prohabl,
be 'oundnecessary in the description of bond
to be issu d. The act as originally framed
end as it passed the Senate by unanimou:
vote, contained provisions exemptinc from
taxation the bonds to be issued under it, ant
also ludIcous discrimination ia favor o.
loan takers within the State. TWAS amend
ed in the House by striking out the proyi-
sions for exemption and in that shape be-
came law. The discrimination in favor oil
domestic bondholders was thus converted
into a discrimination against them ; for, un..
der the law as it now stands, taxation oil
bonds will not reach foreign holders. sug-
gest the expedency, therefore, of authorz-
ing the Commissioners of the Sinking Fund
ii they shall be CT opinion that the interes,
OF the State require the payment of the deb,
upon the accrual Of the right OF payment, ia
provide for it either by new bonds, at any
rate OF interest not exceeding FIVE per cent,
reimbursable at pleasure, after term moi
exceeding ten years, or by bunds issued as
a. nIafo fod hu ha :.
est not exceeding ten per cent. In either
case, the bonds should bear upon their face
stipulation expressing their true character
as subject or not subject to reduction BY tax
alton or otherwise. If the bonds the State
are to be taxed at oil, there is far more rea-
son for their taxation in the hands of foreign
than OF the domestic holder. Neither should
be taxed. or both. Both should be taxed. il
al all, not by uncertain assessments, but by
t reserving from payments of interest sums
equal to the average taxes for oil purpose;
t on other property OF equal value. If il bt
, objected to this mode of taxation, that i
tukes back with one hand the interest pait
3 with the other, and is therefore equivalent t.
, a mere refusal to pay the full rate stipulated
the answer is obvious, TINT the same obi,c-
. ton applies. just as iorcibly, to every mod
; Of taxing bonds given for money loaned tt
the State. 1t is very serious, and, in m,
judgment, an insuperable objection, unles
the right OF tnR1tion be reserved on the fac
of the bonds when issued. Whether bond
} bearing such reservations will find takers
can only be determined by trial. That the
! will not, is more than probable, and if the
, will not. it is certain that the taxation @
t State bonds is alike impolitc and u,iu t.
, / recommend, therefore, such lesislatio
, as will give the suggested discretion to tn
Commissioners, fix beyond liability to alter
ation the rate of interest, and secure tn
control, reduction and final payment Of III
debt, at the earliest time and in the mo,
I economical mode.
The two great lines of canal, includin
i. the Wabash and Erie, with thsr feeder
cost l2,ll0,l20 dollars the other canal
i. with the Muskingum Improvement, and tn
Western Reserve and Maumee Road, CO
y 3,467,ll dollars, and the amount subscrit
S ed to turnpike and Railroad Companies W,
e 1926 $50 dollars, making an aggregate CO..
9 OF $500. .922 dollars.
i For number Of years, the net revenue
It derived from these works, though never sui
1t fcient to pay the cost of the investmen
Is were very considerable. The competition {
n Railroads, however, soon deprived them of
great part of the business on which relisnc
n had been placed for increase. and at lengt
u a marked decline took place. Within lh
}. last few years the outlay for repairs and i'm
10 provements has exceeded the income. Th
s real deficiency last year, after deducting th
II extraordinary disbursements directed by tn
y Legislature, was not Os lsrge but there
y little room for hope that il will be less here