Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1876-09-07
INDIANA FINANCE.
The History of Internal Improvements
in This State...Its Schemes of Finan.
ciering.

ciering.
At speech by Senator Newton
Booth, Of California, at Terre Haute
on Aug. 31st, he gave the following
bit Of financial history of Indiana
which will prove interesting to our
readers:
l can remember when the State oI
Indiana entered upon a system OF
internal improvement by authorizing
a loan of s10.OOO.OOO. Though it is
nearly forty years ago, perhaps some
OF you can. No event i'm the history
Of the State caused more general re-
joicing. We had no cities then, but
the tar-blazed at the cross roads
towns and villages were illuminated
turpentine- balls flashed like meteors
through the streets, and everybody
got ready for the millennium. re-
members one house which was not IL
Illuminated, greatly to my mortifica-
tion. 1t was almost solitary excep-
ton. However I had my boyish
share OF the general jubilee. 1t was a
surprise next day to find that the
wood was just as hard to split, that
the cow-pasture was no nearer, that
the school-bell rang as early as be-
fore, the words did not spell any cas-
ier, and IL was even longer until
intermission. Alter while the
contracts were given out, and there
was great strife to get them, and
for our share Of the system" we
were to have Macadam road from
Salem to New Albany. Gangs of
men were set to work cutting down
and filling up the streets, and quar-
rying and dressing stone to bridge
the creek we had always crossed on
foot-log, when we did not wade it.
Times were good. Mechanics were
busy making carts and harness, shoe
ing horses, sharpening tools. Farm
ers had a market at home. Money
was plenty, and even the old fogies
who had doubted the policy Of the
State going in debt began to feel
that perhaps they had made a mis-
take. 1 thought il that Macadam
road was finished to the Ohio River,
and we could cross the creek on a
stone bride. it would be the consum.
nation of earthly hopes. 1t never
was completed. One morning the
horses and carts and workmen did
not go out as usual. There was a
general CONSERVATION. The Morris
Canal Company had failed, and the
State found that she was in debt to
contractors for number of unfin-
ished works, few of which would
have been worth cost if completed,
and the owner OF an undivided in.
terest in soap-factory somewhere in
New Jersey. Then there was a COL
lapse. Money in circulation con-
tracted because the business for it
to do had contracted. Credit which
had been easy became hard, because
securities were deprecated. The
State was in debt to the contractors,
and having no other money to pay
them, and no money to pay current
expenses, issued scrip" But even
that did not make money plenty, and
though it bore interest, 1t would not
remain at par. Never was there a
better illustration of the principle
that Il :
MONEY WILL STAY AND CIRCULATE bg
where there is business for it to do.
1t will not remain in excess of the
actual legitimate demand: it runs
away from falling values. Poor
money will drive out good, but the
volume and value of either will be
regulated by demand, and is not sub
ject to arbitrary control Distribute
it by the car. load in excess of de-
mand for its profitable employment
for the time being, 1t will create fe-
yer of speculation and habits of ex-
travagance.i Seek for it year, and
you will fail to find it. 1t will go
where the demand is. Create the de,
mand for it, and there is no power in
Legislation to keep it away II that
demand be healthy and'Ilegitimate
one, the work it accomplishes en-
dures as permanent good. II it be
an unwise one, mere scheme OF in
flation for its own sake,-if il be SIM
ply discounting and double discount
ing the future, it must be paid back,
with that compound interest which is
ultimate ruinous loss. al
What mongrel of currency we
had in the following years-of all
shapes, shades. and values. State
scrip. Indiana State Bank notes, nli-
nois State Bank notes, Shawneetown,
Red Dog, Blue Pup, John Watson's
shinplasters, and an occasional stray
from the Eastern States. Bank notes
were not otredeemable, and there SEEM
ed to be no reason in the nature of
things why they should not be abun-
dant: but somehow they would not
stay around, or il they did, would not
stay good. / remember one of our
citizens, quite famous as a wag in his
way, conceived the idea that he had
as good right to make paper mon
ey as John Watson. and accordingly
he issued his notes on the same
terms that Watson did, payable on
presentation in sums of five dollars
in state bank paper" But he only
issued four dollars and seventy five
cents. He might have inflated the
currency twenty cents more, and still
have been on the safe side of his
promise. There was an instance of
banking made easy, an irredeemable
currency which performs all it's
promises, and of "limited" initiation
In miniature perfection. -1i 'eS
Then corn was down to 10 cents a
bushel, pork to dollar and half a