The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-11-15

cause. be suibciecti alter deifailrg tie cgffcLf
expenses Of the Govern eut. to pay sid rate
Of interest OF tso per csntum. then and in that
case toe stl,e shall only be required 10 paw. up
20 sad first day OF January. loS3. such rate OF
iu,eres; the par funds 10 her treasury. derived
from the taxation Aforesaid, shall elAble her 10
DO. which shall be paid and distributed. pro
rata, On the principal specified in such cerui-
cate Of stock sni the deficit, with ST per
centum interest per anBum from the time i be
came due. the safe shsll sad will make up and
pay 20 ihe tOldefs Of such certificates on or BY
he frst day Of JanuAry. 1853"
L uill De perceived thst this section does not,
10 direct terms, make levy oftWenty- five cents
on every one hundred dollars Of value. and Of
seventy ive cents on each poll. but IL evidently
proceeds upsn The hypothesis that such tax shall
be levlei and continued for series Of years
The act. q Which this section Il part. was
reported % tie Legislature by the Hon. Henry
Secrest. Chairman Of Special Joint Committee
20 whom the sutject bad been referred He
compinied tie bHl Eiih a report from the Com
mitlee. from which extract the folloHiDg pas
sage:
by reference to tie tables appended to the
second proposition Of Mr Boiler, L will be seen
that. IL the taxable ~ tie Safe shall increase
At the rate OF $4,000 600 a year IN value (which
ia moderate estimate = tx Of twenty-five cents
on the hundred dollars, and seventy five cents
poll sIll af0ri the means Of paying the State
expenses absorbing all the SIX per cent. treas
ury notes, and paying two per cent interest
upon the public debt, up to the year 1883: aud
from and after that time paying the State ex-
peuse- aud two aud halt per cent upon the en-
tire funded dett Of the state. including back III
tefest and dehcien les OF interest; and not only
80, but that the proceeds Of the same tax would
10 addition, produce an annually increasing sur
plus, 10 be set apart for the absorption of the
principal OF the public debt--Which surplus for
the single year. 1850. would be about { / 40 900 ("
From this IL clearly appears to have been con-
iemplated by the Committee that a continuing
tax OF twenty five cents on every one hundred
dollars. and seventy five cents poll, was to be
assessed for the payment of the principal and
intefes, OF the debt. and reference is made to
certain tables which had been prepared by Mr
Butler, going to show what would be accom-.
Dlished by such tax, estimating the increase of
the polls 10 be six thousand per year, aud
the increase OF taxable property at six
millions oil dollars per year, and carrying
the calculation as far down as 1850. Mr..
Buffers calculation, however, turned out to be
greatly erroneous, nasmuch as the ordinary er-
penses of the State Government were estimated
too low. and the increase of taxable property
from 1916 TO 1864, averaged nearly twenty one
million of dollars, Instead of only six millions
per annum On the next day after the passage
Of this bill, and apparently 10 pursuance Of is
provisions, the Legislature passed an Act max
ing general levy, for state purposes, of seven
~ FIVE cents poll. aud twenty-five cents on each
one hundred dollars worth of property.
In the supplementary act of the next year
lo4I, the following provihion will be found con-
tanned in the 18th section
A nd whereas, doubts have been suggested
on the part Of some such last mentioned persons
Foreigners holding bOnds.) ia respec. of the mat
tiers hereinafter mentioned or referred to. which
doubts may operate prejudicially to the opera
tons contemplated by the said recited act, and
II ia therefore expedient that the same be re-
moved. Now. to demonstrate the good faith oil
the State OF Indiana, and for the removal OF all
such doubts "a aforesaid. and with the view to
create general confidence ia the arrangement
made 10 the said recited act by the State for the
I liquidation of its debt:
BE enacted. That the tolls revenues anc
profits OF the said Canal and its appurtenances
present and future and the moneys to arise anC
be collected by aud from the sale of the lane
and premises contiguous thereto, aud 10 the sale
act more particularly mentioned and described
aud the personal fGxes to be levied toward
the payment OF the said debt, as in the saiC
act also mentioned. and the receipt AM
application thereof for that purpose, a
ia the same act Is also provided, shall
remain and be invioate aud in full force
and the payment OF the principal moneys and in
terest, on the certificates and stock intended {,
be created pursuant to the said act. and this act
and all certificates and evidences Of the it'll
thereof respectively, shall be and continue effec
tual and inyOlaie by the means aforesaid, unit
the objects and purposes of the said act, an,
this present act shall be fully accomplished"
JThe only taxes referred to in the act of lSil
were the seventy-hye cent poll and TWENTY-FIVE
cents on the one hundred dollars worth of prop
erty, and by this section the good faith OF th
State is soemny pledged that the said take
shall be maintained inyiolate and in full force
and the proceeds thereof faithfully applied .
the payment OF the principal and interest Of tn
stocks created in pursuance to the act of 1876
The substance OF this pledge. and of the under
standing entertained by the Legislature on tn
one hand and the boEd-h0defs on the other MAJ
be briefly stated as this : That tar of seventy
i've cents on each poll and twenty FIVE cents OF
each one hundred dollars of property, should b.
continuously levied, and that aitefI lefrsying tn
ordinary expenses of the State Government, an,
paying the interest on the debt, the surplus pro
ceeds should be applied to the liquidation OF tn
principal sum
The new Constitution. which was framed il
contains the following provision
Section =. Article Y: "All the revenues de
rived from the sale of any of the public work
belonging TO the State. aud from the net annua
income thereof, and any surplus that may at an
time remain IN the Treasury derived from taxa
alton for general State purposes after the pay
ment of the ordinary expenses of The govern
meni, and OF the interest on bonds of the State
other than bank bonds, shall be annually ap
Piled under the direction of the General Assem-
bly, to the payment of the principal Of the pub
lie debt
This provision evidently contemplates tn
speedy payment of the public debt, aud the ex
istence of an annual surplus to arise from gen
eral taxation for State purposes. and impera
lively commands the annual application of sue
surplus to the liquidation of the public debt
To show the views entertained by the Com
mittee who prepared the section, j will presen
in full the report by which it was accompanie,
when il was laid before the Convention:
" The Committee On State Debt and Publ
Works, 10 whom referred suudry resolution
directing them to enquire into the expedieucy o
appropfiaiiag all the revenues derived from tn
sale OF any OF the public works belonging TO tn
State. and from the net income thereof, and ais,
any surplus that may at any time remain in th
treasury derived from taxation for general Stat
purposes. alter the payment of the ordinary ex
penditures, have bad the same under considera
tion. snd having come to the conclusion that tn
entire debt of the State will be paid within
fifteen years by continuation of thu rate o
taxation prescribed by law. have directed me {,
report the accompanying section. to be engraftel
IN the new Constitution, and ask to be dscharg
Cd from the further consideration of the subject
embraced in said resolutions"
This report was submitted by Judge Hall, o
Gibson county, one OF the most eminent lawyer
of the State. and is so explicit in regard to tn
understanding OF the Committee that the IA,
was TO be continued. and that it would pay th
debt by 1868. that il leaves 40 room TO doubt a
TO the purpose tor which the Constitutional pro
vision was introduced
Afterwards. on the 25.h of January, 1851 thi
provision came up in the Convention for con
sideratiou. when Mr.. Howe, OF Lagrange. offereS
to amend by adding the following clause, not a
substitute, but additional:
That specific tax of fifty thousand dollars
with an annual increase Of five per cent, b.
levied for twenty five wears, and expended eacl
year ia the purchase OF our State bonds, unles
the State Debt l. sooner paid off"
Ia support of his amendment be used the fol-
lowing language:
lit is very probable that the present rate anC
method of taxation guaranteed in what is com