The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-08-05
STATE FINAN CEs,
Republican Economy and Hore ty
vs..
DEMOCRATIC EXIRAYAGAKGE AND
RAnUALlTf,
Facts for the People.

Facts Tor the People
By ]. @. Burnett, Deputy Auditor OF
Stale.
The General Assembly of the State
of Indiana, at Its session com menclng
on the first Monday of December,
1885. passed an act entitled IAN act
TO provide for a General System of
Internal Improvements" The i'm
provements contemplated were, the ex-
tension Of the Wabash and Erie
Canal; the construction of the Central
Canal; the White Water Canal; the
Madison and indianapolis and Lafay-
cite Railroad; a Macadamized road
from New Albany to Vincennes; a
turnpike from j Jacksonville TO Craw-
louisville; the removal Of obstruc-
tions to navigation in the Wabash
River, and works of minor import
ance.
For the prosecution of these works
an appropriation of ten millions of
dollars was made, the money to be
obtained by the sale of bonds of the
State, bearing five per cent. interest,
and falling due 10 twenty-five years.
After great expense aud much
| financial tribulation, the bonds were
disposed of, State Board of Inter
nal Improvements was appointed
| engineers were employed, the great
work was pushed vigorously. and the
millions of dollars promptly ex-
pended.
Out of this act, and others relating
| to the Wabash and Erie Canal, and
the State Bank, and the peculiar de-
viations and irregularities of Demo
cratic officials, grew the State debt of
| Indiana.
For the benefit of the holders of
the bonds of the State, the interest
coupons on some were made payable
in London, England. and on others
in jersey City and New York; and
there is evidence that the interest was
paid each half year until January,
1871, when as one of the results of the
great financial disaster of 1887, the
credit of the State was prostrated,
and the interest falling due at that
and subsequent dates remained I'M
paid.
In 1916 the opportunities of bond
holders, aud the efforts Of prominent
citizens, In official and private life,
| directed serious attention to the fact
that the State was in debt over twelve
million of dollars; that unpaid inter-
est was accumGl alipg at fearful rate
that the prosperity of the State was
checked By the burden of great debt;
that immigration, and the assistance
Of men OF capital, had also ceased ;
and that citizens were outspoken In
| their deter mination to abandon their
property and seek homes in other
States.
At the session Of the Legislature.
enIItled AN act to provide for the
Funded Debt Of the State of In
diana" &C., we'll known as the But
dictated by Charles Butler, the agent
and representative of the holders OF
the internal Improvement Bonds
was placed upon the statute book and
in 1917 amended and completed Dy a
supplemental act.
BY virtue Of the provisions Of these
acts, the State agreed to issue certIi-
Gates of stock, principal aud interest
payable by taxation, for one half of
the principal and one-half of the IN
paid interest of the Internal Improve
ment Bonds, and to surrender the
canal, aud large donations CT land
| from the General Government to aid
in its construction, for the other half
Of principal and interest.
To accomplish this, certificates Of
stock were issued as follows:
"a 81
stock for one-half of the principal OF
the bonds surrendered, and two and
one half per cent. certificate OF State
stock for one-half of the unpaid in
terest. For the other half of princi-
pal five per cent. certificates OF Canal
stock-the same that the Democratic
canal ring and their coadjutors are
now endeavoring to saddle upon the
State-were issued, and Canal stocks
for the moiety of unpaid Interest.
For the payment OF the principal
and interest of the State, the faith of
the State stock was irreyocably pie dg:.
ed, and for the payment of the principal
and interest Of the Canal stock, the
holders were to look to the revenues
and profits of the Canal. the State, by
stipulated agreement, fully eoncurred
ia By the holders of the original
bonds, being entirely relieved from
all obligations in relation to that poT-
ton of the principal and interest.
The one-half of the debt represent
ed by certificates of State stock, as
shown by Douglass Mcguire. Auditor
of State, In his report for the fiscal
year ending October 81, 1917, doc.
journal, 1917, page II, was as fol
lows:
January j, ,132 500 W
One-half OF unpaid interest
January i, 1S41..-.............-.... ,S6S Uz0 W
One per cent. OF interest, from
January 1. 1S47, to January
], lS53......... t3 $50 U
81 81, 40 90
This is, briefly, the origin of the
debt that has hung over the Safe OF
Indiana daring the past thirty-hve
years.
On the FIRST day Of July, 1849, the
debt of the State. as reported by the
Auditor, Doc. journal, 1S49, PIP. 33,
81. 35, SO. was as follows:
Internal Improvement Bonds
not surrendered under the
Five per cent. State STOCKS is.
sued under the "Butler Blu. 4,6G00 600 co
Two and one-half per cent.
State tocks issued under the
Butler Biu' 1885, 207 50
Making the total bonded debt. S, U45, 207 0U
To which add the domest. C
debt, October 81, IS4O....... Ola, $50 90
Total......... ......... .......... sS,25s,7o7 so
At the close of Governor Wright's
admins ration, January, 1857, the do.
mestic debt had been extinguished.
and the foreign, or bonded debt,
| Auditors Report, 1857, p. p was
S7,771. 073 80.
In Ontnhar 1850 after aarontean