The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-09-13
The Republicans and the stat. Debt.

Tire Republicans and the State Debt.
Conspicuous among the subsidiary at
tachments oil the Radical machine i'm Ind
lana is the Bureau for the Dissemination OF
Gsrbling and Lying Information Concern
ing Finances, whose abiding place is in
the central committee rooms and whose
chief mouth pieces have heretofore been
the two local organs. The stock
In trade OF this peculiar political
body consists of a bewildering mass
of manufactured statistics which it twists
about in kaleidoscope fashion to suit its
various purposes, and launches upon a
long suffering public in protean variety
Of shapes, ranging from the ephemsrsl
paragraph in the risky and petulant
News to tbs massive leader in the
po1derous and heavy witted Journal.
OF late the Cincinnati Gszstte has
been admitted within the charmed
circle. Its issue of yesterday con-
tsins rehash Of the old, stale figures.
Most of the statements made have lost
what little force they ever had by repeti-
ton and frequent contradiction, but one
lie is of such an ingenious and misleading
character as to be worthy of further notice.
This is the statement tbst the Republican
administration in 1870 "paid off the whole
state debt" By most audscIous abuse
OF terms, showing a sublime confidence
In the stu pidity OF their readers, the r sd icsl
organs call the action of Republican legis-
latures by which four million dollars were
appropristed-not to say stolen-from the
school fund and applied to the redemption
of state bonds, payment" of the debt,
ignoring the fact that the debt remains to
the school fund, and continues to draw in
terest to the amount OF over $500, 900 per
year. Not only this, but the rate of in
terest paid on the new debt thus created is
SIX per cent. higher than on the old bonds,
thus increasing the annual expenditure
tor interest some $4,000. The most
charitable construction that could be
placed upon this would be to
call it a refunding of the state deb, but 1t
is singular style OF refundiDg that raises
the rate of interest one per cent. and alb
serbs for general purposes fund specially
set aside for the support ct education. The
manner OF the proceeding wss this: At
various times from 1867 70 1878, the school
fund which had accumulated in the treas
ury was drawn upon to discharge the gen.
ersl Indebtedness of the state, till 1t
was all absorbed. The new indebtedness
thus created Is represented by so-cslled
" non-pegotiable bonds" The last audi
tors report shows the existence of five OF
these bonds in the state treasury, reach
ing the amount of 50 904, 1892, and draw
ing interest to the amount of 1924 .236 SO
annually. II the state debt was "paid" by
this transaction, whence this annual
charge for interest which makes the yearly
tax levy or cents higher than 1t would
otherwise be7 Does q man diminish bis
Indebtedness when he pays off a mort
gage on a piece of property with money
raised by another mortgage on the same
property at q higher rate of interest? This
would be an exactly parallel case
1t ought not to be difficult for the people tC
see the hollowness of the Republican
claims, and to comprehend the difference
between paying debt and merely refund
| ing it on less advantageous terms. It II
worthy of note In this connection that th,
last Republican auditor wholly neglected
to psy one OF the semi-snnual installmentl
of interest on the school fund, amounting
to Sill, l43 40, leaving that duty to be per
formed by the present Democratic official
The same report of the last Republican
auditor alluded to above contains SOM
other instructive figures. 1t shows tina
the entire state debt-which, 1t must be re
membered, was paid three years before
according to the Gazette artice-to b
Sc, or. 500 "a. OF this amount $500, 7sS 2
Is represented by the non-Degotiabl
school board bonds, which draw interes
at the rate of six per cent, this being tn
amount refunded from the old i've pc