The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1869-01-09

In making an exhibit of the amOun
of the Foreign State Debt in the re,
port alluded TO, no two and hal.
per cent. certificates were reported a:
then outstanding.
As the holders Of these had beer
notified to present them at the State
Agency in New York for payment
and. as the money was there for the
REDEEM ption of all of them, they were
treated by that report as redeemed
There was in point of fact, however
at the date of that report, and still is,
aswill hereafter be explained, small
balance of these two and half pei
cent. certificates outstanding, but
they have ceased co bear interest, as
the money is In the treasury of the
agency wherewith to redeem them,
and the holders have been duly mott
fed to present them.
La the Report of the Auditor oi
State for the fiscal year ending Octo-
ber 81, 1868, herewith respectfully
submitted, the Foreign Debt of the
State is thus stated, viz:
Five per cent. Certificates out
standing at the iast-named
SIX ner cent Wal Loan onds s16S6a S16S6a q q
Two and half per cent. Certi-
ncateS 7,26O IL
Total SAC, ,IS4 70
lo This exhibit shows that there was
a reduction during the fiscal year
1858 of the amount of the five per
cent. certificates and war loan bonds
outstanding Of $458, 81 66, or deduct
ing the two and half per cent. GER
tiicates, amounting to $3.50 Is, not
stated in the report Of 1867, net re-
duetion of the foreign debt during the
fiscal year of 1868 of $45I, ,05I 53.
Since the end of the fiscal year (Oc-
tober 81, 1868, five per cent. stocks
have been redeemed at par to the
amount of $455, ,795 and war loan bonds
have been redeemed in like manner
to the amount of $1,000, making to-
gsther 1858, 795. a
The foreign debt of the State, as it
now stands, exclusive Of the old 10.
ternal Improvement bonds, which will
be subsequently, mentioEed, may be
stated as follows, viz.
Five per cent. certificates s., ,867, ,I29 81
Two and half per cent. eert's 1920 d
War loan bonds...... 100000 GO
FW Total ,OsI, 1893 rs
Towards the payment Of this we
have in the general treasury, belong
ing to the State Debt Sinking Fund,
and exclusively applicable to that
purpose, the sum of $247 ,09i 72, and
IN the treasury of the agency at New
York $43, 200 81, making together
1920, ,292 SO, and leaving the amount
of five and two and a half per cent
certificates and war loan bonds un-
provided for $2,791 ,107 10, and being
equivalent to a reduction of our for
eign debt, since the commencement
of the fiscal year 1868, of$1 200, ,139 20
all of which was accomplished with.
out contracting any new debt or liza
bility By the process.
The domestic debt Of the State, as
stated in the Auditors Report for
the fiscal year ending October 81
1868, is as follows, viz:
Non negotiable bonds held by
School SCI BIG L
University Bonds.....-............ 1885, o.
Total 654, ,90l
This shows an Increase in the do
mestic debt of the State during the
fiscal year of 1922. .234 90. This in
crease was occasioned by the ISSUING
of the two non-negotiable bonds Il
the School Fund.
One, dated May L. 1868, for............sI8 90 o
Another, of same date, ior--.-.-...... 4O,UO0 o
Making together .................. .....S224, 900
But from this gross increase is {,
be deducted 81 900 on account of thi
reduction of the University bond
during the year, which leaves the ne
| increase ofthe domestic debt at 1922,
234, as before stated
In his last message to the Genera
Assembly, Governor Wright, In 1857
in recommending an abandonment O
the old system by which the trus
funds were leaned to individuals o.
! mortgage security, and urging th
/ ried out, of investing these trus
funds In the purchase of the FIVE an
two and a half per cent. certificates. Q
\ stock, used the following language
/ viz
| 1.-The present mode of investin
/ the Sinking Fund IS chiefly in mori
! cages upon real estate to our citizen,
| The facilities thus afforded for boz
rowing money, create spirit of specu
lation, often terminating in bank
Tuptcy and ruin to the borrower. Th
long lists of lands forfeited to tn
Fund for non-payment OF princip;
and interest, admonishes US to see
for some other mode of investmer
which shall be equally safe and pro
! duetive.
4 i have repeatedly suggested, an
now renew the recommendation, tn;
the Sinking Fund Commissioners
| should be authorized to invest tn
fund, from time to time, as it ma
accumulate in their hands, in IL
i bonds of the State, under appropria
limitations as to principal and mark
value, thus changing the character
our obligations from q foreign to
domestic debt; the interest upo
which, when collected from cur PEI
pie. shall be Immediately reim burse
to them IN the accomplishment
that high and most ennobling obje
of human government, the edueatio
Of our youth. 1t is high trust, an
will be most truly performed wht
we shall connect the education of OF
Fl children with the character, integrit
{ and honor of the State"
} What Governor Wright so forcib
recommended has. to considerab
: extent, been accomplished under I'll
: legislation inaugurated at the speci
} session of the General Assembly
1865; and it is hoped that it will n
) be abandoned to return to a syste
: which experience has condemned.
The non-negotiable bonds whiC
T have been issued to the School Fur
should be considered as perpetu
} loan to the State. Instead of taxit
z the people to pay debt which tn,
7 virtually owe to themselves, in ord
r that it may be lent on mortgage s
curity to a chosen few, let it remain
!, L.. = Ill Co. tha hnnnHA e III