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

/ OI OlDklQE II una OOmm lSSlO0efS II
trust for the, Common School Fund
when that Board ceased to exist, and
its effects were passed into the hands
of the Auditor Of State under the
| legislation adopted at the special ses.
sion of 1865.
These eight bonds had been held
by the Sinking Fu8da Commissioners
for more than twenty FIVE years, and
no interest had been paid thereon
subsequently to the year 1841. By
the act of March z, 1867, entitled 'sAu
act to consolidate certain bonds, stocks
and accounts of the School Fund into
one non negotiable bond, aud makin2
/ other provisions Ia relation thereto. /"
the validity of these eight bonds was
recognized. and the principal and all
the accrued interest thereon was in
cluded In the new nom negotiable
bond given by the State to the School
Fund, in pursuance of tie provision
of that act. This reduced the number
of these old bonds to 345. Afterwards,
In 1868, eight others of these bonds
were surrendered to the Agent of
State. and new per cent. State stocks
were issued to the holders under the
Butler Bill" for one half of the
principal of the bonds so surrendered,
and new q per cents were issued for
One-half of the interest which had
accrued up to the date Of the surren-
der, thereby reducing the number of
these bonds outstanding to 337.
AT the time the State suspended the
payment of interest on her indebted :
ness in 1S41, the General Govern
ment held .2ll of these bonds In trust
for certain Indian tribes. The State
! failed to pay any interest on the
bonds so held by the Government af-
ter the year 1841; but the latter, at
different subsequent periods. applied
moneys to which the State became
entitled from the sales Of public lands
within her limits, Commonly called
the three per cent. fund, amounting
In the aggregate to $108, ,208 SO. This
application of the three per cent.
fund paid the interest on 141 bonds
so held by the Government, up TO
July l 1885, and on the remaining 20
up to July LIST, 1855. nlsM aHz d
In April, 1863, one of our Senators
in Congress, Hon. O. 2. Morton,
wrote to me that bill had been in
would be pressed to an early consid-
eration, directing the Secretary of the
Treasury to deduct from the amount
that may be due to any, State Oh ac-
count of War claims. the principal
and interest of all bonds issued by
State and held by the Government /;
that this bill was especially intended
to cover the old bonds of Indiana,
which were purchased by the Govern
ment for Indian annuities. Senator
i Morton, in the same communication,
desired me to state In reply what
objection, if any, ] had or be-
half of the State to tho pas
sage of the bill. [ promptly
replied that, if any objections. legal
/ or moral, could be urged to a PROPOSE
ton that the Government should re-
tain out of adjusted claims which 1t
owed to the State. sum sufficient to
liquidate the principal aud interest
due on any bonds held by tue United
States against the State. was igao-
rant of the existance or nature OF
such objection. subsequently, In
July, 1867, the Secretary of the To-
terror, in whose custody those bonds
were held, filed two caveats with the
Secret tary.0f the Treasury, one in re-
lation to 141 of these bonds, which
had matured in 1889, requesting that
payment be withheld from the State
out of the balance found to be due to
her for expenses incurred in the sup
preston of the rebellion, of such
sum as. would cover the face OF
the bonds, and such interest al
might have accrued thereon: the
other caveat was in relation to the re-
naming seventy bonds rot matured
and requesting that the interest &C.
crued thereOa might be withheld il
!. like manner Copies of the caveat:
were communicated to me by the Sec
retary of the Treasury, and In eonse.
quence thereof, I directed the Adju
tant General of the State, who hac
| previously been especially charged
{ with the adjustment of our wal
claims against the Government, tt
proceed to Washington to obtain in,
! formation as to these bends, and alsC
: In regard to the amount of the thre,
per cent. fund due to the State fIou
the United States. The Adiutan
: General proceeded to the Capital an,
: performed the duty assigned him in
? highly satisfactory manner, obtaininl
: full information on both subjects
which was duly reported to me on hi
( return.
t Subsequently, on the 8th day o
: September, 1868, by my direction, tn
Adjutant General wrote to the Sec
i retary of the Interior requesting tha
t the proper steps might be taken 70
5 the settlement of the principal an
s interest due on these bonds, by tn
y application OF sufficient amount @
e the allowed war claims of the STAT
e against the Government to that pur
t pose. This letter remaining unan
f sWered, l wrote myself to the As
a sistant Secretary OF the luterio
n on the 18th day of October, 1868, t
= the same effect.
d Copies of these letters are efnbodie
# In the Adjutant Generals Repor
It herewith submitted. The result wa
n that the Secretary of the Interio
d sent an agent to this city with th
n bonds so held by the Government, an
r on the fifth day of November, 1866
2, the 141 bonds past due. the principa
thereof being $141, 600, and the ac
y crued interest thereon being $136, ,30(
q were surrendered to me, with tn
o attached coupons, and [ deposite
Il them in the vault Of the Treasurer Z
n State The principal and interest %
It these al bonds amounted to $277, ,30(
q OF the 20 remaining bonds not ma
tured, the Secretary of the Interio
b could only produce sixty nine, on
d having been lost or mislaid, but h
il had two of the coupons of the los
z bond. The coupons Of these last-men
" 4fonod hands reDraSaUfinsy infaroct :
r the amount of $45, ,625, we detached an
! surrendered to me and deposited wit
a the Treasury of the State. The tots