, 1873-01-06

alppi to tho Ohio nivor; 1t also embraced
tho cana1 to connect tho Illinois
nivor with Lake Michigan. The
scheme Of railways which WAS thon projected
aoonH to us at thts day but small ono-hard1y
exceeding In tho number Of mos tho railways
actually constructed in Illinois in 1912. Tlo
nnanoiora Of that dny sought to mako money
plenty by providing for an isBuo Of bank notoB
md thoy mado theBo notes legal tondors, and 1t
was hold that any man who would not take them
was, In somo why, dinloyal to tho State. Dy
flooding tho 8sato with an irrotleemnblo ourron-
oy they drove coin from circulation, mud, for n
long period, coin was as great curiosity In ILL.,
noia na It has been since 1864 Tho State iaBuod
Its bonds and aont agents to London to nego-
tiato thom; md, at 1ast whom all tho
bonds Ind boon sold that any por-
son would tako at any price,
when Auditors warrants on tho Treasury woro
equally unBalablo, and yet woro tho only form in
which tho State could collect rovonuo, aud when
Canal acrip was as common aud about aB va1uo-
loss as tho 1oavoB In tho foroBt, the State aunk
undor tho load and took no further caro- for in-
terost or principal. When tho aaaots wore ar-
rayed, thoro was twenty-five milos Of railroad
upon which single track had boou laid there
was an unfinished, and, Of course, unnayigablo
canal, and thoro was aomo millions Of stock In
several banks which novor had any capital and
which had given up tho ghost. Thus matters
stood for aevoral yeara. There Was q strong
but nevertheless quiet party TINT favored
reputation to tho o1tont OF pnying only
suoh IN nmount aa tho State had actually 1o-
coiyod in cash; tho Legislature, however, shi1o
1t was wchk enough to refuae to lcvy any ta1os
to pay tho interest on tho dobt, did not daro to
tako any such scheme aa wasproposod. Finally,
tho holders Of tho bonds for tho construction OF
tho canal offered to advance money enough to
complete it II tho State would convoy the canal
to Trustoos to o1pend tho money and hold tho
canal until, from it's rovenuos, tho principal OF
the old and now loans could be paid and until
certain other olaasos Of canal indobtodnosa woro
paid. This agroomont was mado. The
State, In the moantimo, after an Intense
struggle got outo Of tho clutches Of tho banka.
1t ia ibut juBtto state that at tho tmo Of the
informal Improvement aoluBion q cenaus Of tho
inhabitants was taken, with view to distribute
money por capita to those counties through
which no railroad waa run, and It Was found that
tho State contained, all told, only 251 600 per-
sons. During this long night Of financial dis
aater, tho State suffered greatly in her material
prosperity. immigration to tho stato dimin-
isled Private credit was aslow as was TINT Of tho
Btato. No man in Illinois could borrow money,
or purchase goods on credit. Tho State WAS
considered 80 completely buried under dobt, that
| omigrants from tho East aud from Europo drove
| their wagons acroBs tho State into Missouri.
Many poraons abandoned their settlements ind
went aoross tho hliaHissippi River into Iowa.
There Was cloud hanging over tho State from
which all mon sought to escape.
Having arranged tho canal debt and got rid Of
the banks, tho 1attor arrangement being largely
due to the iniexiblo honesty. Of Governor Ford,
there WAS revival Of hope. In 1843 PROPOSE
ton tor now Constitution was suggested,
which eventually resulted in o Convention in
1847. In tho Constitution was placed d provision
providing that thoro should bo annually loyiod q
tax OF two mills, the proceeds Of which should be
applied to the payment Of tho principal Of the
| public debit This provision was sub
mittod separately to tho popular vote and was
ratified by tho people. Tho credit Of the State
| took a new start; tho creditors offered to make
torms. The old debt was luntod up and ro-
funded; tho long years Of unpaid interest were
consolidated, and new bonds issued therefor.
Tho floating cana1 scrip WINS called in and put in
tho shape Of bonds. Tho first Of the two-mill
tar WAS collected in 1850, and was paid out to
| tho creditors. separate tax was loviod to pay
tho interest on tho whole debt. Tho canal wae
completed, and it's revenuoB begun to DO applied
| to that dobt Illinois onco moro enjoyed au
honorable name. Not dollar Of tho debt was
repudiatod; Ill tho back Interest," was paid with
! interest. Tho debt thus refunded and con-
aolidated amounted to a large sum, the
cxnct nmount of which wo cannoi
now state. With tho renewal Of credit there
aot In tido OF immigration. Thon camo the
Illinois Central Railroad grant, and tho a]moal
immediate poopling Of ono-third OF tho State
uhero lands had boon forty years in tho market
without purchaser. Annually, since 1849, the
two-mill tux was levied and collected until
1870-71. This fund was often in o1cess Of tho
current obligations as they foil duo. Creditors
begun to refuse to present their bonds befora
maturity. Tho State gradually aided in tho OK.
tinguishmont of tho canal debt, and in 1870
that improvement, froo Of dobt, was surr
rendered to tho State. Now, in 1873, the
odds aud enla Of tho Btato.debt do not exceed
81, 400, 600 In excosa Of the money in the Troas-
ury; to meet this the State is in the rocoipt an
nually Of about !s4qo. 900 from tho Illinois Con-
tral Railway, and 900 from tho canal. The