The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1865-01-19

penttures have made since the adjournment Of the
last Legislature, and g examine tie vouchers for the
file nv Department, and tina. the Leclsia-
ture viii make prompt provision for the repay o
the money have borrowed for public purposes II
advanced from patriotic motives, with inil re-
lance upon the good faith OF the state tor ITS re-
endorsement, and without it the machinery OF thu
state Government could not have been kept N mo-
appointed the Hon. W H. H. Terrell as Financial
SecretIry. and pllcci under Lis and manage
the examination aud settlement at all accounts
lie deserves great credit for the ability and success
with which be has conducted the business, AMI de-
sire in this public manner to express t. him my
tianks for his services HIS report is herewith sub
mittel accompanying document
1SrEREsr OF THE STATE DEBT.
shorty after the Legislature adiouraci tie question
was sprung f. the exist nrs Of legal appropriations
for m. pvu.ut If tls interest upon the pu5lc lsbs,
ani tac opinion of Mr.. Hori, Attorney General, was
publ slct, dcnyng their existence AMI any power to
withiraS the money from tn treasury t. pay the III
tere.t which opinion endorsed AMI acted upon By
Mr Ri-tine Auditor Of State. Believing that the
question had its origin IN political considerations, AMI
that here was litle room u doubt as to the legal
right and duty Of the Treasurer u remit the money %
New York to pay the interest, | ~ once took issue
with these ys tlemen. The State hIi tailed 70 pay
the interest upon her bonds from 1872 to l5i5 during
which time She acquired reputation for reputation
and bankruptcy, from which she only recovered after
years of faithful discharge Of her obligations
The dark cloud which had thus BEEN placei upon her
financial character had seriously retarded her growth
in wealth and population, by deterring emigration
from her borders. In 1915 she eifscte compromise
with most Of her creditors by the transfer ot the
Wabas AMI Erie Canal for one-half of the debt, and
the issuing Of stocks for the other half upon
which she soem1y pledged TO pay the interest
semi -anuually This pledge, AMI the legislation had
in pursuance Of the compromise, was treated by Gov
ernor Whitcomh an the various officers of state,
valid appropriation Of the money necessary to pay the
interest under the old constitution, which, upon this
subject is like the present. In 1880, the trainers OF
the Constitution BY the 20td Section Of the 10th
article, soemny ratified this contract with the bant
holders by appropriatng all the Of the state
derived from taxation for general purposes after de
frayng the ordinary expenses OF the State Govern
ment, the payment OF the interest and the liquid
alton Of the principal of the public debt. 1t was
clearly the purpose of the Constitution TO place
the credit Of the State beyond the contingency Of dis
honor by acts Of omission prohibition on the part OF
the Legislature. Under the new Constitution further
legislation 10 pay the interest not deemed neces-
.arv AMI this construction acted upon by all ad
ministrations down TO 1858 although, perhaps, in
formal appropriation was made, without
any definite purpose. An action for mandamas
against the Auditor WAS commenced by Mr. W. H.
Talbot President Of the Sinking Fund Board, for the
purpose Of having the question settled, which was
ca rried through the Circuit e~d |lo- Courts and
resulted in decision by the latter against the ex
istenee of appropriation. Without intending any
dsrespect to the eminent tribunal by which this case
decided, must be permitted to observe that tue
history OF its origin, progress and corclua sion,
such 70 deprive It Of any moral influence, ant that
the principles upon which the decision was made
hsy. been since openly disregariei by the Auditor
and Treasurer of state IN the payment OF large sums
of money to the Public Printer.
But leaving out OF view wholly who was right or
wrong upon the legal question, it a matter of the
importance that the obligations Of the State should
be promptly met and her credit rescued from the dis
aster. of a dishonor. IL had received shock IN
the discovery and exposure of the Stover forgery of
State stocks, amounting TO nearly three mtliions
of dollars from the evil consequences Of which 1t was
relieved only by determined effort the part of the
State authorities bring the criminals to justice. No
argument required TO prove that should 1t again
of the state meet her engagements. it could not be
restored during this generation, and the progress OF
the State in wealth and population would receive
serious check. Determined, If possible to avert the
threatened calamity, ! went New York and laid the
whole matter before the house OF Aessrs. Winslow,
Laner Coz with the request that they should ad-
the amount necessary pay the interest, until
such time the Treasury might be unlocked, and the
money obtained therefrom. Ny request was generous
ly et. and after fun consideration, acceicd to- pro-
vidcd correct list of the stockholders list could be
obtained. Ii is proper to state that in making this
mt stipulation asked tor or gwen, IN
regard 10 the compensan they should recere Tor the
Use of their money, and the risk AMI trouble they
should incur but the whole matter referred to
the future action and good faith of the State. They
,-n.I from, hs b,t. , list of the stookIIoIrr for
the making out Of which they offered to pay This he
peremptorlv refused ami denied access to his books
from which they desired to copy the list. Iaey then
proposed that he should pay the interest IN tha usual
way, upon bis books agreeing to honor his checks
il sued therefor At the time exhonordtInly him
from all personal liabilities for moneys 81 pad.-
This offer likewise refus si The CORES ponie
between Winsluw Laner Il Co.. and Walker upon this
subject IS herewith submitted for your consideration.
As M,ssrs Winslow, Laner 4 Co., would not take the
res possibility of paying. in the absence Of correct
hst owing t. the existence OF large amount OF
spurious stocks, which otherwise they had no means
of detecting, the interest. which fell due on the first
dav OF July. 1853, went unpaid
Determined not to be defeated if possible, in the
effort preserve the credit ot the state attempted
TO secure from other list of the stock
holers and in this attempt succeeded in November
In the maintms the necessity for action had become
more manifest and Imperative than before While the
American stockholders haj correct knowledge Of tie
state Of affairs, aui but few stocks was changing
hands or beng offered in the market, the
quite different with stockholders iu Europe. In
Europe, American politics are always badly under
stood and the principal fact which they clearly
pretended that they did receive their intersst.
They associated this failure with that of 1871 AMI be
ran to saw that there strange fatality attend
ing Indiana securities and declared their intention OF
scn.ing them hack to America and getting clear OF
them at and forever. Such measure would
have given the state a bad name abroad, seriously
shectinC emigration to her borders, and would have
been followed by great depreciation and loss Of credit
throughout the United States,
Having presented the list to Messrs. Winslow, Lancr
4 Co., they promptly renewed their otter, and gave
public notice that they would paw the back interest
which fell due in July, and sftorward gave further
tice that they would pay the interest accrued the
lst day Of January 1851. the lss day of July 1854
Of November last am advised, had paid out s4l6,
6.7 o. How much they have paid since the LIST Of
January, ts65, am not advised but presume il viii
make the aggregate much S55S 900. The Eab,e
and generous conduct Of this house should ana will be
appreciated by the people Of Indian, and Mr.. Lsnier
in his clear comprehension and able mInagenrent Of
the affair has displayed not only financial ability. but
broad tesmanship no; often exhibited in financial
afflirs.
trust that the generous confidence which be has
repo.ei in the good faith OF the people If In1is will
act disappointed snd that the Legislature will hasten
to reimhurse him for the money he has expended aud
icuinify him for the Of u, and for the trouble nc
has incurred.
In conclusion upon this subject, am glad 70 be
able @ SAY that the credit Of the State ha. bccn fully
p-sseryei sni that her stocks command higher
price relatively in she market hen compared with the
stocks other States hesriaS like interest, than at
any former period In hcr history.
John X. Gapin Esq, who wEs Clerk in ihc Office
Of The state Agent durnS the insumbercv cf Col.
x. y. Euisoa was appointed BY ne 10 prepare The
book- and u,sss the payment # the interest the
stat debt at the barking house Of Ncs.rs. Wirslor,
Lsnier Co, and under their general direction and
supery.an. He hs. performed that duty with ability,
ard 20 lhe satisfaction nf all parties and thus far
without compensation, ] recommend :h-. provision
sS made . pay him hbsrsily for HI, vslnsbja services.
sr.rs DIST ASr sfS.iS5 rrsr
The ,atccts &C tre Slate Test ART Sinking r--a
vii &c reservei frr srsctsl n IN.
legislature 81 su0thsr srlr,