The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1864-03-09

Z beneNOienL IHSlllulIOns, alu ScHt away
the deaf and dumb, the blind and the in
sane. This suspension took place in the
month of May, but on the 20th day OF
! the November following, after the State
| elections had taken place, they were re-
/ opened, the inmates sent fOr-such as
could be found-and the money taken
from the Treasury for their support
In the meantime no legislation had been
had and no appropriations made. II 1t
was lawful to take money from the Trea-
+ surv to carry on these Institutions after
+ the October election, it was lawful to do
/ it beforehand their operations should
never have been suspended, and the fact
/ that after the election had passed and
/ the time had gone by for making party
capital out of their suspension; they were
reopened and supported from the Trea-
sury in the ordinary way-proves that
the original act of suspension was not a
a necessity, but partizan measure of
= the most reprehensible character. The
Benevolent Institutions of the State are
provided for in the Constitution of the
State, and are regularly organized by
statute-the people of the State have
been taxed for their support, and have
paid their money into the Treasury,
where it now is. Whether these consti-
tutional and legal provisions, and the
collection of the money, constitute an
authority for its application, l will not
undertake to determine. / can only say
that in % they were held to be a sufficient
warrant-after the October election
Whatever might be the true aspect of the
legal question. determined to procure If
possible, sufficient money to carry on all
the institutions of the State, and keep
the machinery of the government in mo-
ton. This would devolve upon me great
and novel responsibilities, but they were
as nothing compared with those l should
have assumed by suspension and failure.
Money was procured from various sour
ces-from the proceeds of the Arsenal,
from various counties-private persons
from one bank and one railroad com
pany, until, believe, sufficient funds
have been secured to carry forward the
State Government until the 1st of Feb
1868. l am gratified to state that when
the increased cost of all articles of food
clothing and materials of every kind con
sumed in the benevolent institutions shall
have been considered, it will be found
that they have been carried on at a di-
ninished cost of from ten to fifteen per
cent, as contrasted with the expendi-
l.
debted to the vigilance and economy of
the superintendents of the institutions,
the members of the Board of Trustees,
and especially to Andrew Wallace, Pres
ident of the Board.
INTEREST on THE STATE DEBT.
/ now approach the history of trans
action the most remarkable in the finan-
cial records of the State. and one which
will be read hereafter with ming led in
dignation and astonishment
Shortly after the adjournment of the
Legislature it was bruited about that Mr..
Ristine, the State Auditor, would decide
that there was no existing appropriation
by which the money could be drawn from
the Treasury to pay the interest on the
State debt, and shortly afterwards the
opinion of Mr.. Hord. the Attorney Cen
eral, to that effect, purporting to be adj
dressed to Mr.. Ristine, was published in
the papers. This grand discovery was a
surprise to everybody, and the purpose
of it could not he mistaken-which was
to drive me to call an extra session of
the Legislature. The proposition itself
was insult to the public morals and good
faith, and in utter disregard of the usage
and practice of the State for many years.
In 1S41, the State having contracted
a large debt for the purpose of internal
Improvement, and the system having
proved disastrous, failed to pay the in
terest upon her bonds, the credit of the
State was at once prostrated in the
money markets of the world, her hitherto
good name everywhere affected, and her
fair prospects for future prosperity and
greatness blighted Her reputation for
f,,. e.,
caused the current of immigration to
sweep around her and over her to States
in the north and west, and for series of
years her growth in population and
wealth was retarded In 1916 the peo-
pie of the State declared imperatively
that measures must be adopted to restore
her credit and do justice to her creditors.
Accordingly q compromise was finally
agreed upon and adopted by which her
creditors surrendered and cancelled one
half of their debt, amounting to over
seven millions of dollars, in considera-
ton ofwhich the State transferred to them
the Wabash IL Erie Canal and issued new
stocks to them for the other half, upon
which she solmnly pledged herself to
pay the interest semi annually on the
first days of January and July in each
year, until the principal of the debt
should be paid. The arrangement was
highly advantageous to the State and did
much for the Immediate restoration OF
her credit For the creditors it was a
bad one, for the W abash & Erie canal in
a few years became worthless, and has
since been practically abandoned. and
they had surrendered and lost one half
of their entire claim. Legislation had
I in 1916 and 1S41 in completion of the
arrangement was regarded as perfect
and continuing appropriation from the
Treasury of an amount of money suf-
fcient to pay the interest from time to
time, according to the terms of the
new agreement. Itwas so regarded and
acted upon throughout the remainder of
the administration of Gov. Whitcomb.
throughout the two administrations of
Governor Wright. and the late admins
tration of Governor Willard In 1887.
the Legislature having failed to make the
usual appropriations for the support of
the State Government, the Hon Joseph
f. Mcdonald. then Attorney General of
the State. give it as his official opinion
that while there were no appropriations
authorizing the payment Of money from
the Treasury for the support of benevo-