Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-02-22

herein provided for should refuse to exchange the
for the Federal Gown securities, in the
said bonds could be redeemed by ad Commissioners
a exceeding their par value then and in that
case the State Debt Sinking Fund Commissioners
hereby empowered and directed invest the funds as
ing the be levied The extinguishmcnt Of
the said loan and the securities contemplated in section
three Of this act, in the two and onehalf and hve per
cent. stocks of this State.
''SEc 5 An emergency declared existfor the i'm
mediate taking effect Of this aet it shall therefore, be in
force from and after its passage
In this il will be seen that there is no Law pro
vidiug fund tor the payment OF the funded debt,
until this newly created debt of two millions
shall have been paid-except that provision of
the law whereby the State Deb, Sinking Fund
Commissioners are required To apply all the
money in the Treasury not appropriated in the
purchase of the stocks of the State. when the
war loan bonds cannot be purchased ION reason
able terms"
INTEREST uPOx THE FUNDED DEBT OF THE STATE
REASONS WHY 1T WAS NOT PAID. -
The interest on the funded debt of the State is
not separate item of indebtedness, known TO
the law in such manner as would allow the Com
missioners of The State Debt Sinking Fund to
pay the same
So much sOIcitude was felt upon this subject,
and such opposite views entertained rs to the
powers Of the Officers of State. to pay the inter-
est or the funded debt of the State, this officer
entertaining the opinion that there was no law
authorizing the issue of warrant upon the
Treasurer for its payment. with the deepest re
greet that the fair honor of Indiana should be
furnished by an apparent reputation Of her
pliChted faith, chose to maintain what it con-
ceivei to he the law fixed by the legislature for
its government and refused 70 issue warrants for
such purpose This refusal superin,ended an
action in the Marion-Circuit Court 20 compel the
issue of such warrant from this Office for the
payment of the interest on the funded debt of
fh.o oh
Supreme Court of the State this office was sus-
tanned in its views. which opinion will be at
full length in Vol. 81 Indians Reports, and as
these decisions (as there two) fully explain
the causes which led theiitgation, | make them
part of this report.
Here follows the opinions OF the Court. which
on account OF their length We omit.
UNLIQUIDATED CLANS AeAIN~T THE STATE.
This office has. to the fullest extent, endeavOr-
ell to meet and discharge all claims, whether to
resident or non resident claimants having on all
occasions a strict regard to the laws regulating
the duties of this office, and the decisions of the
Supreme Court rendered in relation thereto.
1t is greatly to be regretted that there are so
many claims of meritoriOus character due to
own citizens, whose payment has to be
postponed until provision is made by legislation
to relieve them.
1t is also to be regretted that the old creditors
of the State. the holders of the fuded debt, who.
when the State burdened by debt upon
which she was unable TO paw the interest. came
forward to relieve her from the foul stain of re
pudiation, to which she seemed inevitably driven.
and made sacrifices which enabled the State to
maintain her stand along side her sister States.
should now be put of. aud all the available reve
nues OF the State applied fret to the Oxtinsuish
ment of newly contracted Gebts-
THE ARSENAL.
The Arsenal. which appears from various
sources TO have been the offspring OF the $500,
600 appropriation made by the Legislature at its
special session in 1861, for the purpose of supply
ing arms and munitions OF war, seems TO have
acquired status owing 40 responsibility to the
authority OF the State No reports of either re-
ceipts or expenditures, OF The operations of the
same have been IN lde to this department since
the adjournment of the last Legislature
This department would respectfully request
your Excelency, whose ana cement that
fund was entrusted. to furnish the necessary in
formation. so that AN adjustment ofihe interes,
of the State (if any, in the Arsenal may be had,
and relieve the public anxiety in relation there
to- Et
CONTINGENT FUND
The Legislative Acts of Special Session 1861.
page 5. by Al act approved May 6. 1861. appro
priated SlO1,000 u military contingent fund.
providing "that tile same should be drawn on the
order of the Governor specifying the articles aud
from whum purchased. the services rendered and
l.bywhom" etc Afterwards by the first section
of an act approved May 81. 1861 Acts Of
special Session 1861. page 81 the Legislature
appropriated 81 .000000 for military purposes,
aud by the same act created an auditing commt-
tee to supervise its expenditure. The act pro
vided that the Auditor of State is expressly pro
hibired from paying any claim. of any description
whatever except for legislative expenses, out of
the Appropriation made in the first section of the
act. until said claim has beeii audited and certi-
fed by said committee. or majority of them. -
In the report OF your Excellehcy TO the l.egis
la,ure of 1868. dated january 90, 1863, showing
the disposition of the military contingent fund. 1
6Bd the following:
."On the lst day of June, 1861, in answer to a
resolution of the Senate iDquiriDg what disburse-
ments have been made under the military con
tingent fund, / reported 10 that BODY that had
examined and passed vouchers TO the amount of
Sl33.l27 1S. for the subsistence. clothing. equip
ment and transportation of troops raised in this
State for State and Federal purposes, from which
il would appear that the military contingent fund
was exhausted. This report Was made from my
own books. and not from those OF the Auditor OF
State Some time afterwsrd was nototied by
the Auditor of State. Mr.. Lange, that my state
hient that the fund was exhausted was an error,
inasmuch as the vouchers composing the above
amount OF sl33, III 7s had been by him charged
tn the military and other proper funds. all OF
which appeared BY an examination of bis books.
excepting the sum of $50 900, of which sum I
had drawn from the Treasury $4,000 ms the
Governor Of the State
e0fGlis latter amount Sc. 900 was pai.ito John
/ II Vaien a. Quarterula ster General Of the State
for which he properly accounted by ilipg in the
Auditors office vouchers and receipts The re
maiuing S40n0 deposited in bank in my oifIcial
character, for special purpose. but il not hav-
ing been required. ! returned the money to the
/ Treasury with the interest which bad accrued
upon Il IN bank. The sum Of s6i6 So, alluded
to in my former report as having been paid for
telegraphing. was paid by check, and turned out
70 have been charged 10 my private account in
bank, leaving the official deposit of "a 900 un
broken4 This sum of S6l6 63 was repaid to me
from The military fund
Tie FIRST item in The report is 40. p. Morton.
so 0bf. Nav a 1851 : = = = -
Your Excellency informed the Legislature on
the first day Of June. 1861, thst YOU had drawn
from the appropriation Of 500 900 the sum of
Sl33, l711S. aud this was,the day after the ap-
prevail of the act creating the military fund
| Yaur ExrelIency also sho vs. BY yoaf contin
| gent fund report, that you had, up to its date.
expended between the 4th of May. 1861. and the
date Of the report, the sum of S5f ,2O2 go. II
is also known to your ExcelIency that sipee he
present incn mbent has been in Office you have
drawn from the centingent fund an amount
which, added 70 said So, POP ~, makes very
nearly 800. 900. s. s. ...5 +. 81 s, ,.,.si,-
This statement Of facts shows the account OF
your Excellency with tbS contingent fund to be
in a condition that does the State Treasury. or
your Bxcellency. great injustice. and call your
attention to it tor adjustment. 1stssl ~
On the 3lst NAV, 1861, your ExcelIcncy had