The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1862-01-17

nearly fourteen years4ot State Government
at an average Of taxation for each year
equal to about the annual interest on one
million of dollars, which the example Of
olher States would have taua hit us to bor-
row for their construction at The start of
our existence as Il State.
Taking into account the times and the
extravaganza always characterizing the
outlay of borrowed means. especially Of
that borrow upon public credit, we
could not have obtained equal value BY the
loan supposed 10 that we have in possess
ion and free from debt.
On the other hand, We have buildings
for "A State University. more than one half
of The cost of which has been paid in the
way of interest, and yet the Indebtedness
OF the institution is yearly increasing,
Had our Constitution permitted the use
of the State credit for works of internal
improvements, we can al this day scarcely
form an adequate idea of the pressure of
interests, which would have combined to
plunge the State in debt.
In the past era of speculation our peo
pie were well nigh intoxicated with their
schemes of improvement in the way of
building railroads &c 1t being necessary
to supply with credit of some sort the alb
sence Of means for starting these projects,
the cities, towns, and land owners of the
State came in for the burdens which tue
State escaped.
Could our railroads have been built for
cash, and for the cost railroads can be
| constructed over the surface of our State,
no general disaster would have fallen up
on the corporations or their creditors-
But the very character of the credits fur
nished made necessity for large discounts
| extravaganza marked the large expendi
turs of the moneys obtained, as ever with
borrowed capital, while private specuIa-
ton among the managers completed the
bankruptcy of the railroad companies.
Orr principal corporations and thou
! sands Of our most valuable citizens have
become hopeles.lv involved through the
iallu'e Of these comTraau;v,, TO meet their
conditions upon which credit WAS loaned
| to them.
1t is idle to conclude all reasoning over
this condition of things, by repeating the
severe formulas of legal obligation. 1t is
not enough TO say that these men and these
municipalities were only cleverly caught
by artful though fallacious prospects OF
gain. The police regulations in all our
cities recognize different theory of the
Obligations Of Government. 1t answers not
to reproach the sufferers for illegal com>
binatons TO resist the laws or control the
! politics of the State. That honest men.
desperate in their fortunes, for which they
are scarcel y to be blamed. The whole
property in many of our cities is scarcely
worth the amount Of bonded debt and In
terest standing against them respectively,
and the entire desertion of some is bare
probable than the collection Of the entire
Indebtedness. Thousands ofslnalI farmers
through the State can never pay .heir OBJ
legations,
The prosperity the State is retarded
by this condition Of things. 1t is mani
testify unjust that the credit of the State
should be effected by the misfortunes of
her private citizens and minor municipal
ties. equal as if the general government
should be held resp ,nsibIe for the bank
| ruptcy Of private individual states But
The fact remains that the fair name of
| Wisconsin is furnished thereby, as your
state officers who attempted to negotiate
your issue of bonds for war purposes, al
know
The remedy IS not easily foun1-the
state cannot assume the payment of these
obligations The constitution interposes
and justice does not demand it. The con
1ition both with our cities and individuals
is one of insolvency to be settled by such
compromise as the circuns, ancel will per
nit. In arranging this the State might
properly provide agencies for negotiation
between the parties interested, saving both
from the charges and interested interfer,
ence Unemployed agencies
In all legislation demanded to facilitate
the transfer Of railroads 10 several credit
ors, every practical stipulation should be
made for the benefit of these more unfor-
tunate creditors. Pending the arrange
ment of these difficulties The State has
full power over the remedies upon these
contracts aud must in this, recogn re its
obligation TO promote the general welfare
This principle is plainly asserted in the
message ofGov. Seward, of New York to
the Legislature in speaking of the anti>
rent difficulties in that State. State laws
will ever be resorted to where public in
terests are in jeopardy and great nun
Der of people are threatened with ruin by
summary collections.
They are kindred in principle to sus
pension of specie payments by banks, and
other measures Wy which associate capita
protects Itself in extraordinary emergen-
cies. An amendment 10 our constitution
is i'm peraiveIv demanded depriving coun
ties cities, and towns of power to contract
debts in the future except in the arrange,
ment of existing mbarrassments
Our afersight in tas regard should ems
ulaie the foresight of the trainers of our
constitution when providing against state
indeb, edness Another amendment should
perhaps follow, expressly denying to cor>
porations the right to accept other than
cash subscriptions to their capital stock.
Trusting that the views have pre,ent-
ed Will not be without their influence upon