The Indianapolis daily herald., 1865-12-16
SPEECH


passed the senate: We hope it viii pa,- the
fIon-..
SPEECH
of senator bradley, OF Fioyd. ON his
Bill Adjusting the State Debt.
NR. PEH-IrrNT: propose. in the few re-
marks I shall now make on this bill, only 10
present iu - larid a manner as possible, IL
provisions. Tie bill has been drawn. after the
most careful examination OF all the cireum-
stances which .urround the debt Of the state.
repre- ntrd by the registered stocks Of the
state. Those stocks only which grew out q
The couip.omise entered into by the state and
her creditors ia 1916 and isis. | think this l.
the oniy part II the state debt we are now
cillcti apDn b. pay or adjust. The other por-
tin II tiie aebt Of the state, known a. the
..war ie-u. and the outstanding original
bond, 81 the state, j. not contemplated IN this
bin: no adjustment j. asked for by the holders
cf those bonds and in my Judgment none is
necessary. That portion OF the debt OF the
state j. in proper and satisfactory condition
a. can BE- made by any legislation al present.
OF tho registered stocks of the state bearing
nNr pr cent interest. there are now in the
hands q our creditors, and which. think,
ought L. be- satisfactorily adjusted by the nine
feenth day Of january, next, the sum Of II. lOI,
~ 53. The bill proposes 10 call in al Ofthose
stocks and issue in lieu thereof coupon bond.
rcdeemablc IN SAY twenty years, or 1t shorter
period, nj the pleasure If the state, and 10
draw the legal rate OF interest IL this state.
This i the only feature Of the bill which in
creaseS the interest the State pays on her debt
now, and il amounts To- S4l.U11 - per annum.
This Is the full amount which it will cost the
people Of this State. 10 fully and satisfactorily
adjust their debt, under the provisions Of this
bill. and even this amount j. reduced two
thirds by other reformatory sections Of the act
under consideration.
The bill also proposes to abolish AT the prop
time. the state Agency in the city Of New
! FORK, and the Board Of Sinking Fund Com
missioners, and all the officers connected there
with. and in the future have the simplfed
duties Of those two institutions performed by
the Auditor and Treasurer Of State.
In the abolition Of the Indiana State
Agency. the State will save an average ex-
pcnse of not less than $4,000 per annum: and
in tn abolition OF the Board Of Sinking Fund
commissioners. and all the offices connected
herewith when You take into consideration
it, expense - the State. the losses incurred on
it> loans. AMI thu greater losses by large pOr-
tinns u its funds not being loaned at all,
sum not les than S2l.tn) per annum. And
deduct this amount from the additional rate
~ interest proposed los this bill "a be paid on
the iite Per cent. portion Of the public debt
and you have the full balance SIiO11 -.
ihi- en- not De far from an exact statement q
few hundred dollars either way viii make il
mathemaiicaily true.
Now there are Si,9zs2ss ~ the registered
stocks of the State drawing bat ~ per cent
per annum, to be- provided FIR. The bill pro-
poses 10 take the money now in the hands Of
the Board Of Sinking Fund Commit sioners.
and which have not been loaned for some time
and invest 10 in these st0ck.. ut thcir market
value. and after these moneys are entrusted
90 redeem the remainder ei ia. ~ per cent.
stocks, with tire moneys accommodating from
the state Debt sinking Fund. under the law II
IL now stands. and az their market value. By
this system ali OF those stocks will bc paid oil
IN less than eighteen months from this
time. Now. | ask. does the school Fund of
the state lose anything by this investment.
This i question 70 be- considered. There j.
no reason To suppose that the 2lS per cent
~to-'k~- under the influence Of this
bitl, VIII advance over ciehfv-fiNc cents,
their market value now beng eighty cents j
They Will not be worth more than that on
any market, and hence conclude they will not
sell for any more than they are worth. But
for the sake Of argument. will admit. that IL
this bill becomes the law. the school fund will
have 10 pay % cents for all she i able 10 pur-
chase. The Treasurer Of state reports To the
Governor that 10y the first daY OF Nav next
there viii be- Of the state Debt sinking Fund
for the purpoSe of purchasing The stocks Of the
i state. Sl.iuO.hR. The present law creating
this fund. makes an assessment Of ter cents on
each one hundred dollars valuation Of the tax
able property Of the state. and there i near
$4,000 900 Of taxable property in the state. II
shown 10y the reports Of the proper officer
This places into that fund To he used for the
purpose of liquidating the public debt. at least
-5h.ooO per annum. In something less. then
than two years from the first DAY Of next May
there will have accumulated enough Of this
fund 10 redeem all the two and half per cent
-tocks, calculating them at par, including those
held Nv the school fund. III the school fund is
paid back in two years the stocks will have
drawn nee per cent in that time: and the ten
per cent. added made on the purchase admit
ting the stocks 10 have cost ninety cents. and
then YOU have an increase 20 the fund Of fifteen
per cent, being one-half per cent per annum
more than is received by this und under the
most ftS orablc circumst snces.
Mr.. President. such are the principal fea-
lures Of the bill propose for the =" adjustment
81 the debt OF the STATE" or rather that portion
Of IL maturing on the 10Th day Of January
next. Thi, adjustment, | am informed. will
be satisfactory 10 the creditors Of the State. |
only regret We are not able 10 do better than
this. Had the state strictly complied with
the conditions Of the contract made twenty
Years ago. this debt would have been liqui-
dated 10y this time. In my Judgment. Of all
Of the creditors OF the state. there are none
who have more justice in their behalf than
those who hold. and have Tor a long time held
the two AMI half per cent bonds NJ our state.
There i no Justice. no equity nothing that i
fair AMI right. in asking these men to carry
thi> kiad Of our paper longer. Ii the state had
the funds ! would checriully vote 10 pay this
debt on iiir 18Th day of January ncSt. She
ha~ not the funds. however. hut She /, able.
amply So % DO what this bil proposes.
Ii this bill should become the law. 1t e.; ll,-
fishes the financial affairs Of the stale upon a
more secure and permanent basis than hereto
fore enacted 10y law. Ii proposes no additional
tax on the people 10 effect the adjustment con-
templltrd hy the act under consideration.
the present tax creating State debt sinking
fund. being amply sufficient 20 pay or the state
debt IN few years. For all future time the
interest which the people has heretofore paid
on their registered stocks in New York. will
he paid at their state Treasury in the city Of
Indianapolis, thereby avoiding what NAV oc-
cur IN the future. A. it has in the past, a high
rate Of exchange.
But above all other considerations. Mr..
President. towering above every consideration
II party or Of finance. this hill. if il becomes
the law, preserves inyiolate the credit and
faith II the State-doe> that which i fair and
honorable 10 our constituents. and mctes ont
Justice % the creditors Of the state Of Indiana.
Il also protects the credit Of the State both Al
home and abroad. IL brings 10 IA par standard
IN money circles Of the world. the credit Of our
state. aud c,itbl>hc, a nuancia! reputation.
which ain sorry 10 Say has had a blight cs,t
upon IL in the history II The past.
neither the debt is absolutely due on the
lgth day II January or not and / think II il
NJ it la ALWAYS been 80 considered bv the
parties 20 the contract 81 lsl6 and fSi-. II
Wa - thought hy the agent IT our bond
holders. and the prominent men In our Legi,la-
tuI 4; the time The compromise was made i'm
SO AMI -. IL was so thought rs the Con.f,-
tuttonal convention. which met three wear,
after this legislation. and IL i - thought hv
every creditor Of the state to-day.
But whether IL l. absolutely DUO or not il
j. better FOR all the great interests II the state
that thi> bin become law. II ahaN>he. ana
Winds up two Institutions that ought o. De-
aheli sized aud wound up. AMI 70 iuau-lirates
hnafei a system which i both economical and
>'cure o. Co. state. and may adl. simple ina
M, arr iu-rments and requirements
IN conclusion. then. would az senators n
~ doe- not bccomc IL Ia act with the same
tatii1 ana prnmpine,- iu public matters when
% nrcuilc> necessary. that we would in pri. STE
unt~- That believing that an adjustment ~
cur state oehi J. due o. cur creators. doe> II
MT hftamc our Imperative duty o. RESPOND L.
it w4th an alaerity and s,hscrtuinr~. that viii
IL L =. l.