Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1865-11-23
GOVERNORS MESSAGE.
Gentlemen Of The Senate md House Of Rcpresenta
fires:

tires: B1
The Constitution provides that, IL in the opinion
OF the Governor the public welfare shall require 1t.
he may ut any time, by proclamation, cal: special
session OF the General Assembly. The provision
OF the organic law Of the State rendering the reg
ular sessions OF the Legislature biennial, and lin
ting them to the term of sixty one da' s, the con-
dtion of parties in this State during the last four
years, and the public excitement incident to state
of war, uniting as it did, to some extent, the
minds Of men for the calm consideration OF sub
jects of ordinary Legislation, have all contributed
TO prevent the adoption Of legislative measures
which the progress OF the State and the welfare OF
the people would seem TO demand
AT the last session Of the General Assemb ly
many important bills were introduced, but failed
in the different stages of their progress for want of
time to perfect and pass them. That the time
spent on these unprotected measures might hot be
lost to the public, an act was passed providing that
the business of any regular or special session OF
the General Assembly, on the calendar or files OF
either House, and remaining unfinished at the ex
pration of such session, SHALL at the next succeed
ing special session Of the same General Assembly,
be transferred to the calendar of the house in
which il vas pending, in the same order in which
such business stood ut the termination of such
regular special session, and shall be taken up
and disposed OF in the same manner it might have
been taken up and disposed OF at such regular or
/ special session. The considerations before men
tened the fact that the unfinished business OF the
last session upon which much intelligent labor had
been bestowed, could only be saved by rcconven
ing the General Assembly in special session, and
the belief that measures OF vital importance dc.
manded legislative action before the time fixed
for the next regular session, have caused me to is
sue thd PTo:lamation, in pursuance of which you
are now assembled.
THE PUBLIC DEBr.
The amount OF the public debt OF the State con
sisting OF two and half and FIVE per cent. regis
| tered stocks is seven million four hundred and
eighteen thousand nine hundred and sixty dollars
and fifty cents ($7.4lS. $50 SOY. OF this amount
| the sum OF five million three hundred and forty
two thousand FIVE hundred dollars (5,42 500 is
five per cent, and the sum Of two millions seven
six thousand four hundred and sixty dollars and
fifty cents 80 .075 AGO 50) is two and half per-
cent stock that is stocks upon which interest is
paid at these rates.
OF these stocks tho board Of commissioners Of
the sinking fund have purchased and now hold the
sum OF 10 Ut hundred and forty-sx thoussnd six
hundred and seventy two dollars and sixty-scycn
cents (S446,61 61) OF the five per cents, and the
sum OF fifty -one thousand two hundred and seven
ty two dollars and fifty cents ISL ,272 5O) Of the
two and a hafper cents.
The State Debt Sinking Fund has purchased
and now holds $7ee ,035 of the FIVE per cents, and
$4,000 OF the two and half per cents.
The aggregate amount of what the State holds,
through these two funds, is 81 ,934 101 81 Of the
five per cent. stocks, and $l4e,l72 so of the two
and half per cents; in all 81 ,3:2,sS II, leaving
outstanding in the hands Of the creditors of
the State the amount of $6.O3o,0s0 80. of
which i,lOI,1 1872 SO. are five per cents, and 81,
92s PCS are two and half per cents
! The face oil the stock or the certificates Of in
debteiness provide that "this stock is redeemable
at any time after twenty years from the 18th dsv
OF Janusry 1876 at the pleasure of the State and
4 rcdee ,lo-,
the city oil New York, in books provided for that
purpose BY the Agent OF State there rcsidsu,, by
Endorsement thereon. and according to such other
rules and forms as are may be prescribed for
that purpose. And for thepayment Of the interest
and redemption of the principal aforesaid the faith
Of the State of Indiana is irrcvocably pledged
The twenty years referred TO will expire on the
18th day Of January next, and the question first to
be considered is whether these stocks fall due at
that time, and whether the contract made by the
State requires that payment shall be made on that
day. By some il has been urged that the words,
Eat the pleasure Of the State" to be treated as
surplusage, and the money held to fall due pre-.
cisely at the end of the twenty years. In support
OF this view it is argued that because State can
not he compelled to pay her debts by legal process,
the payment will in all cases be lat the
pleasure Of the State" | fail to perceive the
force of this, and must hold that the language in
question means Just what it says, that the State
may consult her own convenience rs to the time
OF making payment. unless there is something in
the history ofi the transaction, out of which this
iorm OF Indebtedness sprang, or something con-
tanned IN the law creating il, which requires that
different construction should be put upon the Ian
gusge. The naked legal effect of the instrument,
1t not modified by history or provisions Of the
statute creating it. take be this: that until the
emo OF the twenty years the State has no
right to require the creditors to take their money.
and thus stop the payment Of the interest but that
the money was to be paid at some time after the
twenty years. according to the pleasure and con-
veniencc Of the State But this pleasure Of the
State must be reasonably exercised, as not to
defeat the payment of the principal sum absolute
ly. The construction have heard contended for,
that the State may defer the payment of the prin-
c'pal twenty five, fifty, or one hundred years in
fact forever, provided the interest is promptly
paid, can not be maintained: for that would be to
defeat the operation Of the concluding sentence of
the instrument, above quoted, which soemnlv
pledges the good faith of the State for the pay ment
OF the principal as well as the interest. This SOL
emn pledge would be nullity il the State wa. at
liberty to defer the payment Of the principal for
ever or indefinitely, by the prompt payment ofthe
interest.
The next question to be considered is whether
there anything in the statutes creating this stock
or in the whole history of the transaction, showing
the intention Of the paIties as to the time when
the principal should be paid, or pointing to peri
Cd beyond which the State would have no right to
defer its payment.
On the lst of July, 1876, the State was indebt.
ed upon bonds issued and sold for purposes of in
ternal improvement in the sum of 81 | .090 ,000-
On these bonds the interest had not been paid
since l64l. The interest due and in arrears
amounted to 43,055. .43o.
/ These bonds we're issued between the years
1892 and lo42, were of different denominations,
and we're to run for twenty five and thirty years.
and bore interest at the rate OF FIVE, six, and seven
per centum per annum, payable semi-annually, for
which there were coupons signed and attached to
the bonds The State fnding herself unable to
pay the interest on her Indebtedness accepted of
proposition made bJ her creditors, the details of
which will be found embodied in the Act of jan
uary. lo46, and the supplementary Act Of anuary,
l647, which taken together, constitute what is
generally known the "Butler Bill" By the
compromise and scttlemont as finally concluded in
the supglemen! Act of l647. the Wabash and Erie
Canal, together with the lands which had been
I granted to the State to aid in its construction,
were transferred, the canal in perpctuty, and the
lands in fee simple, to certain trustees In trust for
the bondhoders, in absolute payment and dis
charge Of one half the principal and accrued inter
est Of the debt. which half thenceforward and for
ever ceased to be liability against the State
charge upon her revenues. The bohdholders upon
their part agrsed to- make sach additional ubscrip
tons as might be necessary to complete the canal
to Evansville, estimated at $500, 900, which con-
diton was complied with on their part, and the ca.