The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-11-15
GOVERNORS MESSAGE.
Genfiemsn Of n, Seaafe and Hoase q RTrs
sentafiress

sfHtatttfss
The Constitution provides that Il In the OPT
on Of the Governor the public welfare shall re-
qsire IL. be may at any time. by proclamation,
call . special secession Of the General Assembly
/ The provision Of the organic lav Of the State
rendering the regular sessions % the Iegisls-
ture biennial. and limiting them % the term OF
.irt,-one days, the condition OF parties 10 tbs
state during the last -four years. and the public
/ excitement incident 20 state Of var, uuttting
a. IL did. 10 some extent, The minds Of men for
the calm consideration OF subjects Of ordinary
Legislation, have all contributed 70 prevent the
adoption Of legislative measures Which TIE Pre-
xress Of the State and the welfare OF the people
would seem 70 demand.
At TIE last session OF the General Assembly
many important bills we're introduced. but failed
"a the different stages Of their progress for ~ant
Of time 70 perfect aud pass them That the
time spent on those unprotected measures n ght
not be lost TO the public. an act Wa passed pro
Vding that the business OF any regular or special
session Of the General Assembly. on the calen-
dar or 6les OF either House. and remaining
/ finished ST the expiration OF such session, shall.
| az the next succeeding special session OF the
same General Assembly, be transferred 10 the
calendar Of the House IN which il was pending.
| in the same order 10 which such business stood
at the termination Of such regular or special
session, and shall be taken up vnd disposed OF
10 the same manner il might have been taken
up and disposed Of at such preceding regular or
| special session. The considerations before men
| toned, the fact that the unfinished business OF
the last session upon which much intelligent la
Dor has been bestowed, could only be saved BY
RECOMMENDING the General Assembly in special
session, and the belief that measures OF vital
importance demanded legislative action before
the time ired for the mex, regular session, have
caused me TO issue the proclamation, IN pursu.
ancc Of which you now assembled.
The amount Of the public debt Of the State
consisting OF two aud half and five per cent
registered stocks il seven million four hundred
| and eighteen thousand nine hundred and sixty
dollars and fifty cents ls7,4le96O 5Ol OF
this amount the sum of five millions three hun
dred and fortv-two thousand five hundred dol
lars rs ,3I2 500 is five per cent, aud the sum
Of two millions seventy six thousand four hun
bred and sixty dollars and fifty cents 80 .O76.-
400 50) il two and half per cent stock; that
- stocks upon which interest Is paid at these
rates.
or these stocks the board OF commissioners
Of the sinking fund have purchased and nov
hold the sum of four hundred and forty Elk
thousand SIX hundred and seventy-twO dollars
and sixty.seyen cents tx4iC,612 81 OF the FIVE
per cents, and the sum OF fifty lone thousand two
hundred and seventy two dollars and fifty cents
]
The State Debt Sinking Fund has purchased
aud nov holds seven hundred and eighty eight
thousand aud thirty FIVE dollars (2Icc. O35) OF
the FIVE per cents and ninety-six thousand nine
hundred dollars 1896. 300 of the two and hall
per cents.
The aggregate amount OF what the State
holds, through these two funds, - one million
Two hundred and thirty -four thousand seven hun
dred and seven dollars and sixty-seven cents
/ 2 81 I'M E-N nf 6va Ia apd
aud one hundred and forty eight thousand one
hundred aud seventy-two dollars and fifty cents
tSI4o l72 so of the two and half per cents
10 all one million three hundred and eighty two
thousand eight hundred and eighty dollars and
seventeen cents 81 .3o2, $50 ~ leaving out
standing in the hands OF the creditors OF the
State the amount OF SIX millions thifty-six
thousand and eighty dollars aud thirty three
cents (S6, O36, $50 80, OF which four millions
one handred and seven thousand seven hundred
and ninety-two dollars and thirty three cents
"a lO7 1872 33) are five per cents. and one mil
} ZION nine hundred and tsenty-eght thousand
wo hundred and eighty eight dollars 81 ,92S.-
2ss) are two and a half per cents.
he face of the stock or the certificates Of 10
iebtedness provide that "this stock is redeem
,ble at any time after twenty years from tho
18th day of January. 1876, at the pleasure oil
(, the State, and until redeemed is transfersbl,
( provided for that purpose by the Agent oil
r State there resident. by endorsement thereon
t, md according TO such other rules and forms a.
ire or may be prescribed Tor that purpose. AnC
: | Tor the payment of the interest and redemption
Of the principal aforesaid the faith of the State
I of Indiana is irrevocably pledged
/. The twenty years referred to will expire on III,
= 18th day of January next, aud the question frs
o be considered is whether these stocks fi
4. - ...A xhAfkA h..
made by the State requires that pay ment shall
? be made on tina, day. BY some it has beel
urged that the words. lat the pleasure of the
: State" are to be treated as surplusage, and th
money held TO fall due precisely at the end o
| the twenty years. In support of this view il j
. argued that because State cannot be compel
ed to paw her debts by legal process. the pay
mcnt will in all cases be at 1.-THE pleasure of IN,
2 | State" fail TO perceive the force of this anC
I must hold that the language in question means
: just what il says, that the State may consul
her own convenience TO the time of making
payment unless there is something in the histor,
of the transaction, out of which this form o
l Indebtedness sprang. or something contained IN
D the law creating il, which requires that differ
ent construction should be put upon the Ian.
gusge. The naked legal effect of the instru.
ment il not modified by history or provisions o
the statute creating it, | take to be this Tha
no right TO require the creditors TO take the
money. and thus stop the pay ment of the inter
est, but that the money was to be paid at som,
time after the end OF the twenty years according
to the pleasure and convenience of the State Bu
this pleasure of the State must be REASONABLE,
> exercised, so as not TO defeat the payment o
: the principal sum absolutely The construction
have heard coniended for that the State ma,
defer the payment of the principal twenty five
| Lun ral in fact in,a
provided the interest il promptly paid. cannot b.
maintsned for that would be to defeat the ope
ration of the concluding sentence of the nstru'
I ment, above quoted. which solemnly pledges tn
: good faith OF the State for the payment OF tn
principal as we'll as the interest. This solemn
pledge would be a nudity il the State was a
liberty TO deter the payment OF the principal for
ever. or indefinitely. by the prompt payment o
the interest
The next question TO he considered il whethe
1 there is anything in the statues creating thi
stock OF in the history OF the whole transaction
: showing the intention of the parties as TO tn,
D time when the principal should be paid. point
, ing to a period beyond which the State wOu,
have no right to defer its payment.
On tbs lst of july. 1876. the State was 10
E deb,ed upon bonds issued and sold for purpose
: of internal Improvement IN the sum of clever
millions aud ninety thousand dollars (Sll .O9O.
, O00) On these bonds the interest had not beer
paid since ls4l. The interest due and in ar
rears amounted TO three millions fifty fiv
thousand four hundred and thirty dollars 81,
: 055 400
/. These bonds were Issued between the year
: 1892 and 1872. were Of different denominations
and were 10 run for twenty FIVE and thirty wears
!. and bore interest at the rate of FIVE. SIX ant
seven per centum per annum, payable semi an
. nually. for which there were coupons signe,
D and attached 10 the bonds. The state finding
D herself unable to pay the interest on her in
G debtedness accepted of q proposition made b,
her creditors the details of which will be foun,
embodied in the Act OF January, 1876 and IN,
supplementary Act of January, lei7, which
taken together. constitute what is general,
! known the % Butler Bill" By the compromis,
! and settlement az finally concluded in the sup
a plemeutil Act Of 5iI. the Wabash and Fri,
r canal. together with the lands which had beer
\ granted to the State TO aid in its construction
were transferred. the canal in perpetuity. anC
The lands IN Tee simple, TO certain trustees il
. { trust for the bODdhpliers in ah-olute naxuen