The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-07-09
Iowa state Bonds.

rye.
Iowa state Bonds.
TO TIE PUBLIC
At public meeting OF the ctizsns OF the city OF paven
port hold on the evening OF July 1884, Che uhdngpod
were appointed committee 10 prepare proper answer
TO tho article OF thu Nsw YoSK HSRAD the Iowa SIS
State noticed that this influential and widely circulated
shoot had, doubtless through igappfeheaBon, singled
out Iowa from her sister Stases being the DULY
bonds were unworthy of credit. mo article without bo-
INK designed to have that effect By the odtors Whatever
may have been ths design Of those who communicated
the Information IL OF character calculated upusty and
seouSy cripple the State Ia It's efforts to delend Itself
and 70 render pr0mpt aid TO Che general government
The 6rst objection which the BKRALD urges against
these bonds Is that they uncopsutonSily issued
The article In question: after speaking Of the dssrsbe
Investments offered by several Sales including Ohio
aud Illinois, staes Its legal objection 10 tho bonds fol-
We must, however, make exception 70 the general
rule In the case proposed OF the State Iowa
That State Ia IL the market for loan 10 order
TO borrow without violating the 6tate constitution the
State authorities are Obliged 10 act on this con that the
State Ia iu danger OF invasion.
This necesstslesa reference 70 the wise and salutary
provisions ofthe state constitution on the subject Of State
Section article of the constitution prohibits the
credit Of the State beog n any given OF loaned
70, or In aid OF any individual association or corpora
tion" and also nhibts the State from "assuming the
dsbs liabilities Of any individual, association cor
poiaon ualess Incurred In time az for the benodt Of
The State" Wequote the provision for two pqsposes:
First because II perpetuay assures tho people OF the
State aAnht any hazard Of the formation by the state,
Of any "sntaogpg alliances" with railroad companies, or
second because tends to show what the fourth section
makes entirely clear that IN times Of war there 10
sicton upon the power OF the State 70
Section two Of the article provides that tho agEre
gate snount Of the debts q the state drect and con-
Section three relates the auditing and fundng Of
tain ossss The schoo FUND.- Then follows section four
under which The bonds In question were issued This
ain addition TO the above limited power 70 contract
debts tho state may ocatract debts 70 repN 4nvsion
money arising from the debs 20 contracted shall DO ap.
piled 70 the purpose for which was raised or TO repay
suoh debt!, and % no other purpose whasever"
before spsoned no debt sha be hereafter contracted BY
or on behafof the STATE unless submitted to vote OF
the people a general election"
ton four expressly excepted from those which need
to DO submitted TO vote Of 4e people II an invasion
voved in war, 1t would be serious mpatason Of the
Of good the part OF the trainers Of the
constitution to suppose THAI Is WINS Intended BY them
that tho state should be without means 10 meet tho exgeu
cy until after vote Of the people was bad OF aYenef
election, which is holden but onoe year We do not
understand the HERALD 20 object 10 the bonds tho
have submitted TO vote Of the people at tho next
October election but on the ground solely that no such
of The constitution above quoted Is the HERALD ex
presses IT, the bonds issued on the c0n thas the
Now. who is 70 dsiermine whether Il il necessary to
put the s s tn eu q o. Ms " 70
whether there danger OF nvlsons Whether in osdsr
successfully repe It, the militia ought TO be casd out
put into camp, drilled and dsctpneds Evidently not
the courts the Executive but the General Assembly
aud alone; ana when 1t decides the question a. II has
decided In this instance there Ia tribunal power
TO revise ~ II will not seriously be conten5ed that
Invading army must be actually within the state before
debt can DO incurred FOR the purpose Of repeog tho
invssion"
ends the Illinois bonds as being safe and desirable In
ves,msnts The language OF the constitution OF Illinois
s sirar to- 10 fact identical WITH thai OF cen
s.ltut,on. Illinois issued her bonds in the same
precisely thai Iowa issued hethe two acts are in sub
stance the same The bonds OF tho two States stand
upon precisely the Bame footing II ths bonds Of Illinois
are, the herald comedies, legally unobectonabls.
those OF Iowa equally We subjon the following
letter from Chief Justice Cation as being just a. applicable
TO our bonts those OF Illinois.
This letter, expressing the unanimous opinion OF the
Supreme Bench OF that State, establishes, first, that
bones and second that the General Assembly is the
sole Judge whsther the exsences OF the State require tas
creation Of the debt.
To rHB CHAIRMAN or FINANCE CoaMiTrEK
rem Of the supreme Court upon power Legislature
under ns cons'G9n 70 S9nsS: m dso eIeee o, aiy
people all Of the opinion that If IN the Judgment OF
ss flo the or
State IN war hsy may such debt their judy
ss o s
law TO avote OF the people. r,,, c.,s ,,, =, r,,
We fall to ses how any valid reason be drawn
against the value of the State bonds because few
isolated cities and counties have, through utter ina
b,y accustomed By the pressure or the times, failed
to mes, certain bonds Issued by them in payment for
stock subscribed In railroad companies
But though IN instances the railroads
constructed, and In instance, so far know has
the stock for which the bonds subscribed been de-
vsred the Supreme Court OF this State have constantly
maintained aud held that the bonds valid in the
hands Of bona fde holders
In conclusion let express the arm belief that the
bonds OF this State safe aud desirable invest
ment az any YET offered Ther Of interest ID
per cent, payable semi annually, and the bonds are
exempt from ell kinds Of taxation We have bonded
debt OF only $500 COO and these bonds sold last week
the New York market at 81 OH. The bonds now pro-
posed to be issued equally good The entire present
debt Of the State, bonded aud otherwise (hough the
bonded debt 10 not due till 1881 could neces-
cary be paid in full out Of existing available resources,
including the taxes for the current year So that 10
point Of fact, the State In almost quite out OF debt
and except for purposes there IT, have SEEM
standing constitutional Inhibition agsnAt the creation Of
$500 900 Of bonds authorized by the late act issued
and eold the interest per would be only $56 600
This Ii really nothing for fourshing State ike Iowa.
with large resources and population already exceeding
TOO 000
rhs patriotic stand taken by the HERALD leads us to be-
Iieve that this matter will be examined by It, It may
be possible that the writer OF the article question
have been mised misinformed by persons who were
interested Tor soe reason In deprecAng the value or
bonds. co. express the confident hope that the
HKRND win JOIN with us in endeavong 70 secure at fair
rates. the which the wants and necessities Of The
State % urgently require.
RICHARD B. HILL, }Uo@mIttse.
GEORGE a. Q, D0N,)
RAYEeu, July ., 1891