The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-04-27
INDIANA'S WAR CLAIH.
the Government for Interest and
Discount on the War Bonds.

The discussion in the Legislature on the
question CT dissllowiHg fees to the Attorney
General or the war claim OF the State against
the General Government, and the passage of
q bill TO that affect has led to some inquiry
on the part OF q number OF persons who do
lot understand the questions involved, and
Who have a very imperfect idea OF the ex-
tent OF the claim and the reasons why il is
owing. A Sentinel representative called
upon Mr.. Will Hord, the efficient Deputy
Attorney General, last week and received
substantially TIE following account of the
matter:
the War OF The Rebellion, toe State Treasury was
almost entirely without funds, and, 10 enable the
Stale to properly respond 10 the calls OF the Presi
dent OF the United States for troops for the CON-
mon defense OF the United States, and to properly
raise, organize, arm. equip subsist, quarter, pay
and uantport the troops, II became necessary to
raise money by loan upon the credit OF
the State: and that, in consequence OF
this necessity, the legislature passed q law
which was approved May b. 1861, authorizing the
Governor to issue bonds. 10 appoint Board of
Loan commissioners and defining their duties
and levying tax 70 meet the payment o. the IN.
teiest aDc principal of the bonds 10 be sold. The
bonds Of the stale we're Issued in pursuance OF
this act to the amount Of s. 600 0o0 par value and
the same were sold ct discount of s43.l0l.t1.
The STATE incurred paid in the sale of the bonds
including printing, brokerage salaries and ex
penses OF Loan Com missiOners, the OF 6S7 80
The state has paid on account of interest which
has accrued on the bonds up to the LIST day OF MAY
1865 the sum OF 1867, 1861
The moneys realized from the sale OF the bonds
itary fund and the same was paid out for expenses
growing out OF the War OF the Rebellion,
and incident thereto. in rsisiog. Organizing
arming, equipping, subssting, quarteTing pay
service OF the United States, and the Government
returned to the State the principal sum of s. OOO
0CO. less the discount of SAB 107.6l.
TheTeupon, in 1865, the State made out her claim
as follows:
For discount on the bonds sold..... .s2is,lO7 81
Printing, brokerage, expenses OF sale.
etc -........ l.6S5 80
Interest bonds until redeemed-...... 362 ls6 81
Total. .-..................-... $3.50 s79 IL
This claim was presented to, and refused or
rejected by the accounting officers of the Treasury
posed rule OF that department that the Govern
ment ala not pay interest on claims. This was
listed, ii did not apply to this case.
II is not true that the Government does not
count interest as en- element in ascer. sin1nE her
Indebtedness. II she has promised to pay inter
est. she does It
ON the faith OF the act of 1851 the State OF In
diana undertook to enroll subsist clothe sun.
ply, arm. equip. pay and transport her troops
employed ia aiding TO suppress the rebellion: and
by the terms OF that act the United states sgreeG
To pay TO the state 1.-The costs, charges and exDen-
SEES properly incurred" in doing SO. The discount
the expense IN negotiating the bonds. aud the
interest paia upon the loans. were as much part
OF the costs, charges and expenses as the Drin.
opal sum. They were not interest on a claim
against the United States: they were part OF the
money expended for the United states, 81 her re.
quest and the claim of the State TO be reimbursed
was all part OF the principal due from the United
States 10 the state. Indiana charges no interest
on this principal sum, but only asks to have her
money repaid TO her that hhe has actually paid
out.
bill was introduced in the last Congress which
provided that per cent interest should be paid
10 the states upon their bonds until the money
was refunded by the Government. Tnis bill was
reported upon favoIabiy by the Committee on
War Claims, and an exhaustive legal argument
was submitted by Senator Hear in support OF the
legality of the clsim. But this hilI should X De.
come law, would not cover the whole claim OF
Indiana Ii does not cover the costs cnargss and
expenses incurred by the State in sale OF the
bonds. Indisna feels that she has Just demand
as just ss the msn who holds the bonds OF tue
Government, ard she can not appreciate the Rnx-
iety which protects the bonds by the pay
ment OF interest in anticipation of the
day 10 is due and keeps her out of
her just claim for number o! years. She is
justly proud OF the credit of the government but
she knows no good reason why she should not be
treated as other creditors.
When, in 1867, this claim was rejected by the
Hon. John Wilson, Auditor he used the follow
country is considered at the time these expenses
were made, the heroic efforts of the loyal States
to sustain our country in this the time OF her
greatest trial, 1t Is clear in nv opinion that Con-
gress should authorize the reiunding, not Only OF
the interest paid 10 raise money, but of all ex.
penses, drawbacks, etc, in fact. of every dollar
paid by any such State, directly or indirectly in
support OF this holy cause"
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