Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1865-11-23


The first section of the Act Of 1916 concludes in
these words:
"And prorided further, That il the revenues oi
the State up to the first day of January, 1859, =,
be derived from properly tax OF twenty five cents
on every one hundred dollars OF value, and poll
tax of seventy FIVE cents, shall not, by reason OF
the taxes being paid in SIX per ceRtum treasury
notes, from other ceases, be sufficient, after de-
fraying the current expenses of the Government,
to pay said rate of interest Of two per centum,
then and IN that case, the State shall only be re.
qured pay, up to said first day OF January, 1853
such rate Of interest the par funds in her treas
ury, derived from the taxation aforesaid, shall en-
able her to do; which shall be paid and distributed
pro rata. the principal specified in such certif-
cate of stock, and the deficit, with six per centum
interest per annum from the time il became due,
the State shall and will make up and pay TO the
holders of such certificates on or by the first day OF
January, 1853.
1t will be perceived that this section docs not
in direct terms make levy of twenty FIVE cents
every one hun dred dollars of value. and of sew.
enty five cents on each poll, but it evidently pro-
ceeds upon the hypothesis that such tax shall be
levied and continued for a series of years. The
act Of which this section is part was reported to
the Legislature by Hon. Henry Secrest, Chairman q
of a Special Joint Committee to whom the subject
had been referred. He accompanied the bill with
n report from the Committee, from which I extract
the following passage:
"By reference to the tables appended to the
second proposition of Mr.. Butler, it will be seen
that, if the taxabes in the State shall increase at
the rate of $4,000, 900 wear in value which is
moderate estimate,) n tax of twenty FIVE cents on
the hundred dollars. and seventy-fye cents
poll, will afford the means of paying the State
pcnses, absorbing all the six per cent. treasury
notes, and paying two per cent. interest upon the
public debt mp 10 the year 1883; and from and af-
| ter that time paving the State expenses at two
and half per cent. upon the entire funded debt OF
/ the State, including back interest and DEFICIENCIES
OF interest; and not only so, but that the proceeds
OF the same tax would, in addition, produce an.
nually increasing surplus, to be set apart for the
absorption of the principal of the public debt
which surplus for the single year. 1850, would be
about $4,000
I From this 1t clearly appears to have been con-
templated by the committee that continuing tax
OF twenty five cents on every hundred dollars and
seventy five cents poll, was to be assessed for the
payment OF the principal and interest Of the debt,
and reference Is made to certain tables which had
been prepared by Mr. Butler. going to show what
would be accomplished by such tax, estimating
the increase of the polls to be 6000jper year. and
the increase of taxable property at 600 900 per
year and carrying the calculation as far down as
/ 1860. Mr.. Buffers calculation, however, turned
out to be greatly erroneous, irasmuch as the ordi-
nary expenses of the State Government were esti-
top io" aud the Increase OF taXADle proper
ty from 1876 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 in pursuance OF its provisions,
the Legislature passed an Act making general
levy, for State purposes Of seventy five cents roll
aud twenty cents on each ono hundred dollars
worth OF property.
In the supplementary act Of the next year, iS47
the following provision will be found contained in
! the l4th section:
"And whereas, doubts have been suggest d on
the parts OF some such last mentioned persons
| foreigners holding bonds, in respect of the mat
tiers hereinafter mentioned or referred to- which
doubts may operate prejudcially to the operations
contemplated by the said rccited act, and il is
! therefore eIpedent that the same be removed
Now, to demonstrate the good faith of the State
OF indiana, and for the removal of all such doubts
rs a.oresaid, and with the view to create general
confidence in the arrangement made in the said re-
cited act by the State for the liquidation Of its
/ debt:
BE Il enacfed, That the tolls. revenues, and
profits ssaid Canal and its appurtenauces, present
and future and the moneys to arise and be collect
ed by and from the sales of the land and premises
contiguous thereto, and in the said act more par
ticulary entioned and described, and the person
al fores to be levied towards the payment of the
said debt, as in the said act also mentioned, and
the receipt and application thereof for that purpose,
rs in the same act is also provided, shall remain
and be nvolate and in full force, and the payment
OF the principal moneys and interest on the ccrti-
hcatcs and stock intended TO be created pursuant
to the said act, and this act and all certificates
and evidences of the title thereof respectively,
shall be and continue efectual and inviolate by the
means aforesaid. until the objects and purposes of
the said act, and this present act shall be fully ac-
compshed''
! The only taxes referred to in the act of 1916
i fhn Hx.n r,s,D o,l
| five cents on the one hundred dollars worth OF
property, and by this scction the good faith Of the
State is solemnly pledged that the said taxes
shall be maintained nviolate and in full force, and
the probceds thereof faithfully applied to the pay
ment of the principal and interest Of the stocks
| a,ed in pursuance of the act Of 1916. The sub.
stance of this pledge, and Of the understanding
entertained by the Legislature on the one hand
and the bondholders on the other, may be briefly
stated as this: That tax OF seventy Eve cents on
each poll, and twenty-five cents each one hun
drad dollars Of property, should be continuously
levied, and that after defraying the ordinary ex
! penses OF the State Government. and paying the
interest on the debt, the Surplus proceeds should
/ be applied to the liquidation of the principal sum.
The new Constitution, which was framed in
1850, three years after the passage Of this act,
contains the following provision:
Section 9, Article X: "Al the revenues derived
from TIE 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 re-
main in the Treasury derived from 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 direc-
tien of the General Assembly, to the payment OF
the principal ofthe public debt
| "This provision evidently contemplatcs the
/ speedy payment of the public debt, and the exis
tence Of an annual surplus to arise from general
taxation for State purposes, nd imperatively CON-
/ liquidation of the public debt. ba
who prepared the section. will present in iuii the
report by which il was accompanied when it was
laid before the Convention: = ,.s-rrs.
"The Committee on State Debt and Public
Works, to whom was referred sundry resolutions
directing them TO inquire into the expediency oi
| appropriating all the revenues derived from the
sale Of any Of the public works belonging 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 general State
! purposes, after the payment Of the ordinary ex-
| penditures, have had the same under considera.
ton, and having come to the conclusion that the
entire debt OF the State will be paid within fifteen
/ years, BY a continuation Of the rate Of taxation
prescribed by law, have directed me to report the
accompanying section, to be sngrafted in the new
4, Constitution, and ask to 10 discharged from the
further confederation Of the subjects embraced in
/. said resolutions SRI sfof hsfl1.
This report was submitted by Judge Hall, oil
Gibson county, one of the most eminent LAWYERS In