Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-01-23

The mterest auc.tion.

pay the interest Upon the public deot, Witn inter
est from The time he advances we're maze
Mr. LASirn claims 81 the rate Of seven per
cent per anum Tor the use Of the money advanced
By bis house, -hIie the bonds only call for 6 per
cent. usleh i. also. the legal rate OF mites, nnder
the Law Of the state. 4 brief history Of this IN
teres, matter may not prove aninierss.ins A. the
presen, tine.
The appropriations bills faiIed..at the session Of
the Legislature in 1863. owing the boiling or Sc
cession Of the republican members OF the House.
They cosld have returned ia time TO pass ne
ccssay laws, but this course would have defeat
since verified, their object was to place the di
rec.ion Of the rate government as nearly under
the control Of Governor MoKros, as possible.
On the 81 Of April, 1863. the Auditor of State
addressed q note TO the Att'y Gen. requesting his
opinion as to whether the proper officers Of State
had the power to draw from the State Treasury
the amount necessary to pay the interest upon
the funded debt Of the State. the Legislature. by
dereliction Of duty. having failed to make 90 ap-
preparation for that purpose. On the eth Of
April the Attorney General, in an elaborate re-
ply. expressed the opinion that there was no le
gal authority for drawing a warran, upon the
State Treasury to pay the interes; falling due on
the ist Of July following. To remove all doub'
as to the power Of the officers Of State. a suit
was brought in the Circuit Court Of this county
for a judicial determination OF the question. This
case was appealed to the Supreme Court, and
al. o~.o.r- q ~. Esh. - T,.. lAE1 tho
Judges filed an opinion unanimously deciding
that toe Auditor and Treasurer Of State had no
snthority for the payment of the interest upon,
the public debt without an appropriation havingl
first been made by the Legislature specifically
for tia. purpose. The case was ably argued:
before the court and the decision was made 10,
ample time to give the governor the opportunity
10 apply the remedy az his control--the assembling
OF the Legislature in extra session 10 make the
necessary appropriation or to assume the respon-
sibiIity of failing to pay the just obligations OF
the state. Instead of taking this course His
raDgements. He opened negotiations with WIS
Low, LASnR l. Co to advance The money Tor
the purpose. This house was fully advised OF
the exact condition of affairs. They we're ia
formed that If the governor would convene an
extra session ample assurances would be fur
Dished him from democratic members OF the
Legislature. written pledges 10 fact. and OF sufti-
cient number TO control its action. that no Oh
noxious measures TO his party friends, Or which
they so regarded. should be pressed upon the Lee
~islature until appropriation had first been made to
meet the payment of the interest upon the
funded debt of TIE state. and TO carry
on the state government. The Governor
was present in the office OF Winslow, Lanier /
Co. when this conversation took place. The
Indianapolis journal admitted ia December
1863, that 'in New York, last June, ME. Audi
tor RIsrryE said TO Governor MoaroS that such
assurances had been made, aud he (Nir. R had
letters to show It." la fact he also knew and ad-
mitted that there was abundance OF money in
the Treasury TO meet all the Indebtedness OF
this State. There il a little secre, history about
the negotiation with Lapier 4 Co. which should
no, be forgotten. The Governor. in considera-
ton Of that firm proposing TO the Agent oil State
to pay the interest due on the lst OF July, 1863,
1ktIIQ ~ u NJ Skaa "a 49,
to provide for the reimbursement OF the money.
if the offer should be accepted. The Governor
also stated about the same time that he would
have called an extra session If the State officers
had. in violation of law, Withdrawn the money
from the State Treasury for that purpose.
- The interest due July LIST. 1863, was not PAID.
On the lOih of Dec. 1863. Gov MORON announ-
through cards in the papers that he had conclu
ded an arrangement to pay. lin the City OF New
York. interest on the Indiana FIVE and two and a
half per cent. stocks. which fell due on the first
day of July last. and that which will fall due on
the frs, day Of January next" In this connec-
ton the organ of His E1cellency stated that ="
agreement has been made with Messrs wISsLow,
LaSiEa SC for the payment Of any interest or
compensation for The use OF the money to be al
vanced by them in paying the interest on our
State stocks The whole matter is by them re
ferred to the GOOD faith Of The Stc'e, and there Is
no danger of their being allowed to suffer"
These are briefly The facts ia the case. One
argument used agains, calling an extra session
was the expense. Yet His EIcellency is now
calling upon the Legislature to pay Messrs WIN
SLOW, LASIER sc the sum OF SIS ,527 81 for
the interest upon the advances they have made,
when the monev was lying idle in the Treasury
ard the Legislature could have been assembled
at a much less cos, 20 have appropriated ii-snd
he had the assurance IL would have been prompt
ly done anu in time to have paid TIE interest due
on the first OF July.
The Governor aud his peculiar friends have az
guei from the beginning that no special sppro-
pTiation by the Legislature was necessary 20 su-
thosize tue Auditor and Treasurer Of State TO pay
the interest upon the funded debt Of the state
that The laws compromising With her creditors
we're ample authority. Yet We see, s., the sug-
gestion of the Governor too. that his appologists
in the present general Assembly. have offered
and voted for a bill specifically spropristipg out
of the public treasury the amount necessary TO
pay the advance made WISsLoN. LaSIER 4 Co..
for that purpose This action oanno. be regard
cd otherwise than 4 complete ,iadicaiion Of the
course OF the Auditor and Treasurer Of State IN
the premises-
The iuseros. upon The public deo, should he
paid. All the indcb;etaess Of the STATE both iu
her foreign a~ndaoucstic creditors should be pAf