The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-11-17

We give place. sn our paper, 20 the TO-
Low ing communication. simply because We
think the -ubjfvf = one deserving full and fair
discussion. and We mean the HERALD shall b.
a medium for such discussion. TIE question
In the case j., what was the confraett IL tie
contract was. % pay a the end Of twenty
YEAR. that -sttles the question; n II was not.
that settles the question. The Governor says IL
wa not contract % pay 10 twenty YEAR,.
The communication l. from a political friend
u the Governor:
GOV. Morton and the state Debt.
| 70 the Editor u the Indianapolis Ially Herald:
There j. nothing in the world - easy a. for
man o. bluuser. ~ may D. a very gr,at
man. aud 20 the same time make some very
great biunder-. W are not disposed 10 attack
GOV. M0rton's Message on the state Debt, but
We do assert. that b. has committed gricyo Gus
blunder from beginning u end. and len out Of
his argument the most important feature
which ran through the whole compromise be-
tween the state and its creditors, in 1885,.
The very basis upon which that compro-
mise Wa effected, was one 81 dbftuy. The
creditors Of the state, in their first communica-
ton. through Mr.. Butler. % Gov. Whiteornb.
use the following language, In speaking 81 the
revenue 10 L. created by system Of agreed
taXati0n
{" And a. the creation and application Of such
revenue j. 20 b. controlled by and graduated
to the actual ability Of the people. present and
prospective. and a. the question resolves itself
into one Of ability. NV attention has been di-
recteti 10 an examination into the official dOcu-
ments annually submitted 10 the Legislature,
which exhibit the resources and progress Of the
state. and " hich il j. presumed NAV he relied
on a. furnishing the basis for intelligent action
This was the language used by Mr.. Butler
ON the 10th DAY Of December. 1915. and was
/ the first step taken in the compromise which
/ resulted in the Act, Of 1916 and 1877.
/ In the Act Of 49, IL wa- provided that poll
1 tax Of SeVenty-iife cents. and property tax
Of twenty-five cents on each hundred dollars
/ and the SnrBFHs erserfed 10 De derired from
/ the rereHues II tie Wabash Il Erie Canal
would be sufficient tO. pay the expenses Of the
] state, the annual interest, and the full amount
Of the principal in twenty years from the 18th
I day Of January, 1876. The tables prepared by
/ Mr.. Butler az the time prove this 60 be true,
| and GOV. Morton, when he says that "by these
table, the principal Of the debt could not be
| paid before lS12 or ISL" makes the mistake
in not taking into consideration this anticipa-
/ ted revenue 10 Dc derived from the W. x T..
/ Canal. If ne had looked little further at Mr..
Buffers tables he would have seen this. Even
| at the then supposed increase Of S6,OOO,OOO per
| annum Of the taNablcs Of the state. and the
surplus expected 10 be derived from the Canal,
the amount raised would heve been sufficient
to have paid the expenses Of the state govern
ment, the interest on the debt, and have secuT-
ed a sinking Fund ample 10 have liquidated
the entire principal Of the debt by the 10Th
day Of January. 1866.
In speaking Of the probable deicit Of this
personal and property tax to meet the princi-
pal of the public debt i'm twenty years, Mr..
Butler uses the following language:
Reliance may be had on the revenues Ofthe
W. 4 +. Canal when finished from the State
line 10 the Ohio river, 10 meet any deficiency,
having every reason 20 believe that the receipts
from that source will cover the amount in full
after that time" While this was then taken
into consideration i'm Mr.. Buffers calculations,
il seems TO have been entirely overlooked by
Gov. Morton.
Mr.. Butler. i'm concluding his communication
TO Governor Whitcomb on this subject of such
vital importance to the people of the State, and
a. the agent Of the creditors of the state, says
"a follows:
Il deem il proper TO add that have been in
fuenced 10y several considerations, among the
chief Of which l. the desire 10 secure the settle
ment of this great question. at this time, and
To accommodate its adjustment To the dbiiity
Of the people of Indiana"
Now, If the people Of Indiana had carried
out the system Of taxation agreed upon in the
act Of 1877, and which they said should remain
''eiectual and inyiOlate until the objects and
purposes of the said act shall be fully accom-
pli>hed." would there have been enough sur
plus thus raised to have paid the entire debt
by the 10Th day Of January, 1866? This is the
question that should be determined 10y the Leg
islature. 1t is the great question i'm the case.
Ii determines the ability Of the state TO pay.
Can there be any doubt about this ability:
Instead of the taXableS of the state increasing
| on an average of $1,000. 900. they have actually
increased over S2l 900, 0OO-mOre than three
times the supposed increase upon which Mr.
Butler made his tables and calculations. This
puts the question of ability TO pay at the eX-
piratiOn oftwenty years beyond cayil, and inn
poses an obligation upon the people Of the state
T from which they cannot, and should not, es-
cape.
our creditors have carried out. to the fullest
extent. the compromise they made with Us
twenty years ago. They have been faithful q
their pledges-have we been faithful TO ours!
The Governor Of the state SAYS, in his recent
message. in relation to this subject, THAT the
Legislature history 10 must be admitted. 4.
rather curious and contradictory. and comes
short of performing tie obligations trhich tht
State, IN 1916. entered into lrih her credit
orS.'
This i remarkable language. and should put
the Legislature on it, guard. that the people 81
the state do not continue To "come short O
their obligations" 10 their creditors. For il
the people of the State. bv want of proper
action the part of their representatives
should now further violate their obligations e
their creditors. in this most important respect
to-wit failing to pay or adjust the principa
of their public debt, when IL becomes due, ar,
there not fears that this part violation of IN,
agreement of 1916 and 1871 will De construed
&c be violation Of the irhOle agreement. anC
that, instead Of the state having 10 pay debt
of only about - 100000. it will be morally ant
legally bound to pay twice that. by having {,
assume the payment Of the Wabash and Fri,
Canal stock
The State Of Indiana cannot afford to viOlat,
moral or legal obligation. and the people O
the state do not desire she should. The sam,
moral obligations should exist between a Stat,
and it, creditors that bind the actions between
individuals. Yea. more. for where there is ne
legal remedy, the moral obligation is more i'm
perious. HOOsIER.