The Indianapolis journal., 1890-08-18

reported whether they belong to the State or to
not wholly applicable to the payment OF debt,
but are pledged for the use OF schools or charies
1t is true that my Office has never been
applied to for information. The Auditor
of States office, however, has, and to the
inquiry in the column of the inquiry sheet
headed Balance on hand end of year" the
answer was made that there was IN the
treasury on Oct. 81. 1889. the sum of S9.4,-
1923 belonging to all the various funds
Now. 1T is evident that the further sum OF
s., ,9O4. as. %, representing the school-fund
debt OF the State. was added and the total
of 81, SIS. .S92, 50 obtained, which amount the
Sentinel would have its readers understand
to be an asset that should be in the treas
ury of the State and 1.-The whereabouts OF
which the people want to know all about"
The use made of the amount representing
the schoOl-fund Indebtedness was author
lied neither by this Office nor the Auditors,
Tor no questions regarding it were ever
asked nor information solicited of him or
me. Had this been done, the fact would
have been reported that the said school
fund debt had, by operation of 'refunding"
In June and July, last year ceased 10 be q
domestic" debt, and had been shorn of it's
double-ender capacity of being both debt
and an asset at the same time.
In referring to census bulletin No.
find that the bureau of 1880 observed the
State debt, then amounting to 81 99S S34
or nearly S5.OOO,OOO. was offset In the pc
culiar manner indicated above reducing &c
to S509. 20, or little over half million
of dollars. Whether this be the square
way of giving information to the world i
leave for others to determine. 1t is, how.
ever. to be remarked that all the States of
the Union seem to have been treated after
this same rule.
In reply to one of the complaints against
the Republican State officers made by
Judge Jordan, in his late communication
TO- the Sentinel. l beg leave to say:
That, after adjournment of the Legisla-
ture in the spring of 1859: when bids ids were
authorized. it became apparent that the
question of the constitutionality of the act
authorizing said loan would have to be
tested in the courts, causing delay and IN
snch litigation. Considering the then de-
pleted state of the treasury, there being
on the 31st of March only S67, ,7S0.21 in the
general fund, the question presented itself
to the financial board, how to meet the
semi-annual interest on the school-fund
debt due in April, amounting to S117, 143 49, to-
gether with the interest maturing on bonds
in the East during the same month. The
Governor. Auditor and Treasurer of State
thereupOn, by authority of Section 55S6 of
the Revised Statutes of 1881, and to avoid
the possibility of the State being protested
for the non-payment of interest did as had
been done before-borrowed the money at 3
per cent. and this is the explanation which
OuuSC OOludu OcSlICo tudb buC hCpuOiCdh
| State officers should make to the people.
The borrowing of this interest-mOney did
not increase the State debt. as the Judge
| pretends to believe, for it only released an
| equal amount in the general fund where
with to pay the legislative appropriations,
which created the debt present and to
come, and which exceeded the available
means from all sources then and after
ward, by more than q half million dollars,
| and the money borrowed at 3 per cent.
| or it's substitute. discharged obligations
| upon which the Legislature heretofore has
| usually allowed it's creditors, on deferred
| payments. 6 per cent.
| During the two years following the Legis-
| lature of 1887, when the demands upon the
| State treasury exceeded the receipts, the
| present treasurer bad sufficient occasion to
| to become acquainted with Sec. 56i2 of the
| Revised Statutes of 1881. quoted in the
| Sentinel of the 14th, and under it's pro-
| visions managed, by frequent calls upon
| the county treasurers, to keep the machin-
| cry of the State government running. He
| has not forgotten it now, and will not fail
| to enforce it as soon as there is likelihood
of there being sufficient funds in the vari-
by the time quarterly payday arrives
| enough money can be obtained from this
source. which, together with the money
then on hand. held to pay the preferred ap-
preparations. the officers and employees OF
| the State. and all other claimants may rest
assured that payment will be made
| promptly far as the money will reach.
| INDIANAPOLIS, Aug. IA. j. A. LEMCKE.