The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-12-11

GA the Adiustsneut of the state De ne /.
powered IA tke House of Rcpre>en-
tntives. Drcem Der =. tsG5


NJ. SPf skER: I recognize m the hin TOW
i'eftr the House Tor discussion the most inn !
lNriluf financial question which will come be- .
fore This legislature this session. The qgles-
80" % t1f Pay mont ~ adjustment q the ~tate
debt j. tie question for which We were called f
t.rtei her 10 extra ~a~sion. If il was not netos-
~lry % adjust the debt q the state prior 10 the +
10th day q January next. then ask why was Z
the legislature called together. II the next /
regular session II the TS.rlslaftrrf II the state
could have adjusted thi~ debt. and AZ the same
time preserved inKi0lafe the faith 0f the state
then wis tlds extra session. Tn. conduct ~
thc Executive Il the state Of Indiana for the
lat three years clearly shows that in his opin-
ION no other question IT, of sufficient import i
auce O. warrant the converting Of the Iezi.ia-
iure % The state in extra session. Certainly
there b. no other legislation imperiousy de-
inardc,i that an extra session necessary.
10 was % adjust this debt that We were called
together. and ] am IN favor Of such an adjust
. ule4f AZ VIII b. honorable t. the people no
sent u- here, and ~ the same time DO jiis:iee u
oiir creditors.
But 10 not propose al this time Mr. speak
or. o. 20 into even a ~ucciuci history Of thi.
debt. From the Governors Message, | learn
that 10 wa. certainly the understanding Of the
parties % the compromi-e Of 1875 and 49,.
that the principal 0f tins debt would mature
Ia twenty years FROM that time and even the
honorable member from jefferson. in his ar
gument delivered 10 this House a few days
ago, admitted that had the state carried out
the conditions Of her contract made with her
creditors twenty years ago, this debt would
now have been paid in fun. DO not propose
J % violate that contract further | hope the
state will not, in the future, a. the Governor
lays in his Message. she has done in the past
come short VI her obligations 10 her cred-
I itors.'
J I am IN favor Of an honorable adjustment Of
this matter and would vote for the bill now
under consideration lid il in any way adjust
the state debt honorable % ourselves and lust
10 our creditors. But am unable To see any
adjustment in it. 1t neither pays the debt nor
/ does anything else that j. asked for, satlsfac-
tory or fair To our creditors. 1t is bill bung-
ling in its details, loose in its language. and i'm
pra, ucable ia it, operations. In fact, | am in
formed by persons familiar with the Office
workings Of the stocks of the state, that the
main conditions OF the bill can not DE put into
/ operation without great labor and expense
an entire change Of the present system of
managing the business connected with our
stocks, and running the hazard Of again hay-
ing frauds perpetrated upon the state
Take for instance the fourth section Of the
/ bill, which reads a. follows:
The Auditor. Treasurer and Agent OF state
shall meet in the City of indianapolis on the
first Wednesday of April, or rs soon thereafter
a practicable, IN the year one thousand eight
hundred and sixty-six and on the first We'd
nesday Of April, or as soon thereafter as pract-
cable, In every year thereafter, until the whole
Of the interest and principal of the debts men,
uOntu In the Hfrl SecllOn OF THIS act paid,
and proceed Immediately 10 ascertain. as near
A. may be, the amount Of money that will be
/ IN the Treasury on the fifteenth day of the sue
ceeding June, subject by the provisions of this
act to the payment Of the interest and principal
| of said debts. and after deducting therefrom an
amount sufficient TO pay the interest due on
said debts on the first day Of May, and the first
day of July, and on the first days of November
and January in such year. and the amount of
the principal of the War Loan Bonds offered
/ "a ha M, Il
act, if any, they shall carefully determine what
proportion or per centum of the principal of
the Certificates of stock mentioned in the first
section of this act, the balance Of the State Debt
sinking Fund in the Treasury will pay and
and they shall set apart seventy per cent. of
said balance 10 be applied on the Certificates
Of stock bearing five per cent. per annum in
terest, and the remaining thirty per cent of
said balance. shall be applied 10 the Certifi-
Gates Of stock bearing interest at the rate of
two and one half per cent per annum; and
said officers of State shall then Immediately
notify the holders Of such Certificates Of
stock 10y publication in two daily news
papers published in the CITY of New York
and two daily newspapers published in
the City Of indianapolis. for ten consecutive
days. that the proportion or per centum so de-
termined upon, setting ii forth, will be paid TO
the holders on the principal Of such Certificates
Of stock. on and after the first day of July then
next; that seventy per cent. of the money on
hand for the payment Of said per centum. will
he applied on the Certificates OF stock bearing
five per cent. interest per annum. and the re-
naming thirty per cent. of the money on hand
for the payment of said per ccntum will be ap-
piled on the Certificates of stock bearing two
and one half per cent. per annum interest on
the presentation and surrender at the Office OF
the Agent Of state in the city of New York. of
/ an amount Of the Certificates of Stock equal 10
the proportion or per centum 20 to be paid, and
require all holders Of such certificates of stock
who desire 10 accept said proposition or per
centum Of the principal thereof, 10 notify the
Agent Of state of Indiana. at his Office i'm the
city Of New York of such desire to accept on
or before the 10th day of June then next, and
that on failure 10 give such notice. the money
will be apportioned and paid over to such hold
eTs n do give the Agent of State the required
notice. In ease there j. not a sufficient amount
of the Certificates Of Stock offered for rcdemp-
ton 10 absorb such balance of the state Debt
sinking Fund then on hand and set apart for
such redemption Of the principal Of the Ger
tihcates of stock, then, the Auditor, Treasurer
and Agent Of State, shall redeem any Certifi-
Gates Of Stock that may be offered until the
state Debt Sinking Fund set apart Is aiore-
said shall be exhausted.
Ii will be seen that the section provides that
there shall be pro rata payment on each GER
tifcate Of stock in accordance with the moneys
On hand in the State Debt Sinking Fund. OF
course this payment can not be credited on the
stocks. for that would render the Agent of
state unable to make up his interest books so
that he could, with any degree of eXactness,
pay the semi-annual interest But this section
imposes the surrendering once each wear. per.
haps the whole amount of the certificates of
stocks OF the State, deducting from them the
pro rata payment, and then issuing new stocks
for the balance due the holder. This i
objectionable feature Of the bill, attended with
much labor and liable TO innumerabe mis-
takes. Ii is piece Of expensive folly. which
l. lmpracticable in every view can take of IT,
But the bill proposes 10 levy tax on each
one hundred dollars of the taxabes of the State
and thus create a Sinking Fund for the Iqui-
dation of the principal OF the State debt, and
the mode OF using this money, as set forth in
this 18th section of the bill, is as singular rs it
i unparalleled. The taXables OF the State are
over S50o.OOOo 0o tax Of fifteen cents on
each one hundred dollars will throw into the
treasury of the State $3.50 900 per annum. De
duct from this alnonnt the semi annual interest
to be paid upon the public debt. which is per-
hap>. in round numbers S3iO,OO0, thus leaving
10 be paid pro rata under the bill. and on near
~GooOV00 worth Of stock. $4,000 for the
first year. This sum, of course, will increase
each year a the principal Of the debt grows
smaller. For the year 1850 grant there will
be pretty large payment on the principal,
from the fact that there viii De accumulated
in the state Debt Sinking Fund Sl,0O0.0O0. by
the 1t Of May. next. But for the first year
after this period there will only be about $40
olo 10 pay pro rata on the principal. This see
tion Of the bill proposes 10 eXpena this money
by paving seventy per cent. thereof TO the hold
err Of the i've per cent. stocks. and the remain
ing thirty per cent. 10 the holders Of the two
and One-half per cent. stocks. Thus paving.
i'm the leOs. about six and one-half cents on
the dollar 10 the lN per cent. holder, and three
and one-fourth cents on the dollar to the two
and onc-half per cent. holder. This will in
crease each year. say from three-fOlrths 10 one
per cent, rs the principal Of the debt + ab-
s0Tbed.
But thi, section further provides. that after
the officers have determined each wear how
much m0neyis left in the State Debt Sinking
Fund L. be Used in this pro-rata payment.
notice shall be- given through portion Of the
public press Of New York and the CITY of In
annapolis 10 the holders Of the stocks, TO sur
render the same and get their pro-rata pay
mcnt This notice must read about a. fol-
lows.
Notice % Credit0yS.-The creditors Of the
STATE of Indiana. those holding the registered
stocks thereof. are hereby notified that ON and
after the first day Of July next the State of
Indiana, AZ her agency in the City Of New
York. " III proceed 10 di>burse among her cred
itor> al the moneys she now has on hand.