Evansville daily journal. (Evansville, Ind.) 1863-1866, 1865-11-17


ing provisions:
Section 2, Article X: Gall the rev.
enues derived from the sale of any of
the public works belonging to the State,
and from the net annual income thereof,
and any surplus that may at any time
remain In the Treasury derived from the
taxation for general State purposes after
the payment of the ordinary expenses OF
the government, and of the interest on
bonds of the State, other than bank
bonds. shall be annually applied under
the direction of the General Assembly,
to the payment of the principal of the
public debt"
This provision evidently contemplates
the speedy payment of the public debt,
and the existence OF an annual surplus
to-arise from gen eral taxation for State
purposes, and imperatively commands
the annual application of such surplus
to the liquidation of the public debt
To show the views entertained by the
com nittee who prepared the section, L
will present il. full the report by which
it was accompanied when it was laid
before the Convention.
"The Committee on State Debt and
Public Works, TO whom was referred
suudry resolutions directing them to
inquire into the expediency of appro-
priating all the revenues derived from
the sale of any of the public works be-
longing to the State, and from the net
income thereof, and also any surplus
that may at any time remain in the
Treasury derived from taxation for gen.
| eral State purposes, after the payment
of the ordinary expenditures, have had
the same under consideration, and hav-
| ing come to the conclusion that the en-
tire debt of the State will be paid within
| fifteen years, by continuation of the
rate of taxation prescribed by law, have
directed me to report the accompanying
section, to be engrafted in the new Con-
stitution, and ask to be discharged from
the further consideration of the subjects
embraced in said resolutions"
This report was submitted by Judge
Hall, OF Gibson county, one of the most
eminent lawyers in the State, and is SO
explicit in regard to the understanding
| of the committee that the tax was to be
continued, and that it would pay the
debt by 1865, that it leaves no room tc
doubt as to the purpose for which the
i constitutional provision was introduced
Afterwards, on the 18th day of Janu
airy, 1851, this provision came mp in the
Convention for consideration, whenN Mr.
Howe, of Lagrange, offered to amend BY
adding the following clause, not as 6
substitute, but additional:
fThat specific tax of fifty Thousand
1 dollars, with an annual increase of five
per cent, be levied for twenty-five years
and expended each year in the purchase
of our State bonds, unless the State deb
is sooner paid of"
In support of his amendment he HseC
the following language:
sit is very probable that the presen
Z, rate and method of taxation guaranteed
in what's commonly called the Butlel
Bill viii be observed; but even if tina
taxation affords fund for the paymen
Of the debt, this will enable US to pay i
4 off sooner. Besides our public debt wal
contracted chiefly for the benefit o
property, and property should pay il"
! Mr.. Burden then said:
| II desire to make an inquiry of m,
friend from Gibson (Mr. HalD, whethel
the section now under consideration
provides that any overplus of the take
arising from the imposition of twenty
| five cents tax on the hundred dollar
valuation, shall be applied to the definite
object of liquidating the principal of GU
Outstanding State debt after the paymen
Of the interest on the debt n
In answer to this question Judge Hal
i said:
4 "The arrangement, and only arrange
ment, with our bondholders, was unde
! the acts of 1916 and 1S47, by whicl
4 twenty-five cents on every hundred dol
\ lars worth of taxable property, and sew
enty FIVE cents poll tax, were pledged TO
tae payment of the principal and inter
est of the public debt until it shall
be entirely paid According to calcu.
lation made, if this system of taxation
4 shall be continued, in eighteen years tn,
entire public debt will be paid off Tn,
committee of which l am chairman
having charge of the subject, believing
that there was proprety in placing i
beyond the power of the Legislature t.
violate the pledged faith of the State
instructed me to introduce section pro
viding that the twenty-five cents ON eacl
one hundred dollars of taxable property
and .seventy-fve cents poll tax, should
be annually assessed until the debt wa
paid. This section was lain upon the
table, and, think, inconsiderately.
think the matter should be placed beyond
the power Of change by the Legisla-
ture."
| Mr.. Borden then replied as follows:
! Sir, ON previous occasion desired
that this should be done; because
know that this is the wish of the people
/ have been sent here to represent
They.d do not want the subject to be Jeff
with the Legislature. They are willing
to carry out in good faith the arrange
ment made with the bondholders of The
State, and 70 pay twenty-five cents tax
upon every one hundred dollars valua.
ton, until the State debt is extinguished
and they desire that a clause shall be
inserted in the Constitution which will
secure the application of this over-plus
10 the extinguishment of the State debt. u
Mr.. Stevenson then followed, opposing
Mr.. Howe's amendment, on the ground
that taxes should not be levied in the
Constitution, and in conclusion be used
these words:
Sir this attempt to levy an add.
tional tax upon the people by us is all
wrong. / believe there Is virtue enough
in the people to settle this matter
Through their Representatives. in the
Legislature, and much prefer to leave
it with that body" e3,as Ase
Mr.. Walpole followed, in q speech op,
posing the adoption of the original sec.
ton reported by the committee; for the
reason that he would do nothing to con.
firm the contract made by the State with
the bondholders, unless there was also a
provision requiring the bondholders to
perform their part of the contract.
Mr.. Mcguire followed in support oil
the original section as reported by the
| Committee, and referred with approba.
ton to the calculation, showing that the
pthen existing rate of taxation would
pay the debt in fifteen or sixteen years,
if the surplus was properly applied from
year to year in the purchase of our
stocks at the marketvalue.
Mr.. Richie then moved to re-commit
the section, with instructions to insert
and strike out that, "the present rate of
taxation, twenty-five cents on taxable
property, and seEenty-fve cents on each
poll, shall be continued until the indebt-
edness of the State is fully liquidated. F"
Mr.. Richie then said: e {
81 would remark that this is a trans-
cript of the report of the Committee on
the subject, and have no doubt if this
| .,.,.-- 4, ,Jo1tad fbof in soma 6ftaa, -