Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-08-17

The court organ has had a good deal to say
lately about the Sinking Fund Commissioners
In relation to the distribution Of that fund, and
urging the duty of a strict compliance with the
law in that regard without reference 10 the inter
ests involved. We propose to apply its argu-
ment to the war loan debt Of the State. In May,
1861. the Legislature authorized the borrowing
of two millions of dollars for war purposes. and
to secure the payment Of the interest semi annu
ally and the final payment of the principal at
maturity, an annual tax of five cents on each
hundred dollars was levied. For the purpose of
increasing the security Of these bonds and to give
them credit with capitalists. an act was passed at
the extra. session ofls6I. and which was approved
by Governor MoRTOS June 4, 1861, which pro-
vided as follows:
Sections. Should the Federal Government at
any time hereafter assume the Indebtedness in
Cured by the State of Indiana in providing sup
plies and men to aid said Government in putting
down the present rebellion. the money so paid or
the securities so given in such assumption, shall
enure to the benefit of the holders OF the bonds for
payment of which provisions Is herein made, and
the State Debt Sinking Fund Commissioners are
hereby directed to apply the funds or securities
so given. as in this section is contemplated, to
the liquidation of the debt. with the payment of
which said State Debt Sinking Fund Commits
sioners are charged. and that said securities shall
neither be loaned or otherwise disposed of than in
this section is provided
SEC 4. In case the holders Of the bonds Of the
loan herein provided for should refuse to ex
change the same for the Federal Government Sc
c%urities, or in case the said bonds could not be
redeemed by said Commissioners at a rate not
~L@.- - A. H. - = a. -
the said State Debt Sinking Fund Commissioners
are hereby empowered and directed to invest the
funds arising from the tax to be levied for the ex
tinguishment of the said loan, and the securities
contemplated in section three of this act in the
two and one half and FIVE per cent. stocks of the
State.
The law of 1861. page. 100, makes the State
Debt Sinking Fund Commissioners to consist of
the Auditor, Treasurer and Agent of State.
The Governor, in his letter to JAMES WINS
LOW, Esq, upon the debt of the State, has a
great deal to say about the sacred character of
the pledges made by the State to her creditors.
and urges the high Importance and moral obi
CATION upon the part of the people to faithfully
redeem those pledges. To give credit to the war
bonds. in the New York market. the Loan Com
missioners set forth. in an elaborate letter, the
pledges Of the State for their redemption. and
gave the solemn assurance that tie State
would faithfully apply all accrning taxes and
securities which had been set apart for that pur-
pose and in the way provided. in the payment OF
the interest and in the extinguishment of the debt.
The Federal Government has assumed a portion
of the Indebtedness incurred by Indi ma. in pro-
viding men and supplies TO aid said Government
in putting down the rebellion. Does not
good faith to her creditors require that
al the moneys and securities received from
the Federal Government OH account of the nd
vances made BY the State shall be applied just
as set forth in the sections of the law we have
quoted, and which in fact is nothing less than a
solemn contract between the State and the pur
chasers of the war bondsf JUG
Ii has been stated that Governor MORTON,
without any authority whatever and in direct
violation of the law, is drawing the money
placed to the credit of Irdiana by the Federal
Government for advances made by the former in
providing supplies and men to aid the latter in
putting down the rebellion. and Is appropriatiue
il to carry on his revolutionary government
Whether this be 50 or not, it is clearly the duty
of the State Debt Sinking Fund Commissioners
to settle with the Federal Government for thu
advances made by the State, and apply all the
means placed to the credit of the State by the
Federal Governmen. in the extinguishment o
the war loan, as provided BY Law and as the good
faith of the State to her creditors demands.