The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1866-01-10
VOL, II.

SI1te, uuuef ~ 0ie0 our cams were oilOWeO
and paid. Failing in thiA l presented the
matterto the PreSident, who readily perceived
their Injustice, and gave his opinion 70 the
circumstances, they should not be vigorously
applied in the examination fthe Iews claims.
Although this opinion Was freely expressed BY
the President, yet he declined 70 make auy
positive order for the modification of thess
rules, on the ground that the subject was
within the province Of the Secretary Of the
Treasury. Repeated efforts have been made
by myself and others for the suspension OF
change of the regulations mentioned, 30 as te
procure a favorable examination Of our claims
but so far the labor has been unayailinr. -.
On the lst of Octobef last was advised b.
the Third Auditor that the preliminary exam.
ination of the Iowa claims had been concluded
and q Statement Of differences forwarded.
From this statement, now in the Executive
Office, it appears that the total amount Of Iows
claims ON file in the Treasury Department Il
about $6l6, ,739 OF. OF this amount, $50. .S2a
have been allowed; $3.50, ,326 on suspended,
and Sl65, ,5s9 23 disallowed.
To have full understanding Of the subject
il will be necessary to besr in mind that this
total of S6l6, 739 OF embraces the entire
amount of military expenditures for . given
period, including expenses Of the Adiutan,
Generals Utice, Governor Aids, interest on
money borrowed, State Agents, duplicate
payments to troops, &c., which do not come
within the provisions Of the Acts Of Congreas,
and for which Va cannot reasonably expect
in the aggregate to $l65, $50 %, stated IS dis
allowed The sum of $3.50, 326 20, stated as
Suspended, is money lekitimately paid on be-
hall Of the United states in recruiting and
getting troops iuto the field. This sum has
been merely suspended for want Of the tech
ncal proofs required by the Treasury regLla-
tons above referred to, and is subject to re-
examination and allowance. This is the en-,
tire amount in dispute between the State and
the General Government under the acts oi
July, 1861.
Upon this claim the United States is enti
tied to credit for 1884, z74 80, being the quots
Of the direct Federal tax approuoned for the
year 1861, to this State by the Act of Congress
approved August s, 1861, the assessment and
collection of which the State ASSUME ed by Act
of the General Assembly, approved January
81, 1862, and also to the further sum Of $780,
900 paid the State from the United States
Treasury in advance of settlement ON our mil.
itary disbursements specified aboye-making
total credit Of S4S4, ,274 80.
Subsequent levies Of this drec, tax upon
the States were abolished by act of Congress,
approved June 30, 1854, but leaving them
still liable for the apportionment of 1851.
Section SO of the Act Of August 5, 1861, aud
the Act anendstory thereto, approved May
l3, 1862 provide in substance for allowing
such portions of this tax due from any State,
to be paid and satisfied in whole or in par,
bv the release of such State duly executed to
the United States of any liquidated and deter
mined claim of such State for reimbursement
of expenses incurred in enrolling. subsisting,
Transporting, &C.. troops employed in aiding
to suppress the rebellion, rs should be filed
with the proper officers Of the United States
before the 30th of July, 1862 The bulk OF
the military claims Of this State was duly filed
in the Treasury Department within the time
thus limited. but not having been ''liquidsted
and determined by its accounting officers nc
release has or could have been executed.
All the money derived to the State Treas
ury from the levy imposed BY the Act of Jan.
Slst 1862, has been absorbed in the redemp.
ton Of warrants issued upon these War and
Defense claims, and was therefore, . virtual
payment of them out of funds belonging to ths
United States. being sufficient as will be per
ceived with the 100000 advanced to the
State TO more than cover the entire amount o.
our suspended demands against them.
Under these circumstances | have deter
mined to hold the unadjusted claims as an of
set to this direct tax, unless otherwise direct
ed by the General Assembly. This course
have considered necessary to protect the in
terests of the State from what am constrain
ed to regard as exceedingly disingenious con
towards us. By pursuing this course, but lit
tie detriment can result to the State froai the
suspension of our claims. But as final ad
justment is desirable for both parties step,
should be taken to procure it without unnec
essary delay; and therefore recommend the
appointment of a special committee to inves
tigate the subject and report . definite anc
practicable plan for securing settlement.
FIxAScE AND REvESUE.
Our financial affairs were never in sound
er condition. During the entire period of tn,
war we have levied but two mills on the dol
lar for State purposes and have incurred al
Indebtedness Of only $500, 900, which was fo
military expenditures during the 6rst year o
the war. The total amount received in th'
Treasury during the fiscal two years endinj
November 4, 1865, vas $977 ,625 10, and tn,
amount expended for all purposes for the
same period il 1852, 78e AZ, leaving bslanc.
in the treasury Of $25,0 6S.
The total amount of State revenue deriva
bic from general levy at two mills and othe
sources for the ensuing biennial period, excu
ding the estimated balance due from the Uni
ted States Government, may be calculated a
| $l,811, ,002 81. @@4 s*
The total disbursements required for tn,
same period for ordinary purposes, includin,
payment of bonds $500, ,0OO) due in 1868
kn &n1
IT $T94, 923 IS leavineA balance Of S6l6, ,O7s 2:
in favor of RESOURCES, from which to make sucl
special appropriations as the General Assem-
bly, shall deem expedient
The entire debt of the State is only 1922,
295 75, consisting Of $l22,29 rs loaned
from the permanent School Fund, Novembe
18th, 1864, loan Of $200, coo, payable Janua
ry, 1868, and $300,000 War and Defens.
The amount loaned from the School Funs
| is, practically, so much borrowed from our
selves and Is only method resoftsdsto fo
the permanent investment Of that fund. Tn.
interest on this loan is due semi-annually; bu
the principal is payable at the pleasure Of thu
General Assembly; leaving only $500, 900 q
the actual Indebtedness Of the State. Tn,
500, 900 due January 1st, 1868, may b,
promptly met from present reSources Thl
remaining $500, 600 are not due until 1881.
This record Of economy and exemption
from Indebtedness is subject Of profound
satisfaction to our people.
The annual interest on the bonds Of 1855
amoasts to $l4, 4,000; and, 70 curtail this ex
pendture as far - possible, recommend thu
passage of an act suthorisine the State Treas
ursr 70 redeem these boeds - hs may b. sbl
70 secure them out Of money in the Treasur,
not required for other purposes.
Our laws regulating the assessment aad col
lection Of taxes, thoash possibly defective j,
some respects, have IN the main been emf