Year: 1859

Together with three thousand eight hun
dred and two dollars and seven cents Of tho
old Bonds Of the State now due, and which
are liable to be presented at any time for
payment The amount the State owes the
different Trust Funds is not pressing upon
us like our other Indebtedness. All these
funds REQUIRE is the payment of their inter
est annually, it being in my opinion hotter
for these trusts to have their funds in the
hands Of our own State, than in the hands
of individuals or Of other States.


We al have direct interest in sacredly
guarding these funds, and having them
properly appropriated to their legitimate
purposes. This fund principally arises from
the sale Of lands granted by the General
Government to the State for educational
purposes, being the University, Normal
and Primary School lands.


The Constitution of the State provides
that the proceeds from the sale of all lands
that have been, or hereafter may be grant
ed by tho United States, to the State for
educational purposes, and the proceeds Of
all lands or OTHER property given by indi
viduals, or appropriated by the State for
like purposes shall be and remain perpet-
ual fund, the interest and incou Of which,
together with the rest OF all such lands as
may remain unsold, shall be inviolably ap-
propriated and annually applied to the spe-
ciic objects of the original gift, grant or np-
preparation. AS these lands are sold, the
money arising thcrefrom is paid into the
Treasury, and the State becomes trustee
for the faithful keeping of the same, and
the appropriation Of the interest and in
come Arising therefrom, according to that
clause Of the Constitution hereby referred
to. This trust is sacred one, and should
be kept inviolate.


The interest and income arising there
from should annually be appropriated TO-
wards the great object for which the grant
was conferred. Should the money arising
from the sale Of these lands, be allowed to
accumulate in our Treasury, no interest o,
income would arise lberefrom.


The true policy, in my opinion, is to ap-
propriatc the money arising from the sale
Of these lands towards the extinguishmen'
Of our State Indebtedness, the State pay
ing annually a rate Of interest for the uso
of such money. This has been the policy
heretofore pursued, and / recommend a
continuance Of the same. The other in
debtedness of the State stands upon far
different basis.


This Indebtedness must be provided for
both principal and interest, as the same
falls due.


True policy required tho Legislature,
whom it contracted this debt, in the early
rcttle,nent Of our State, TO have made pro.
vision for its payment, but they neglected
to do so, and il does not now become us to
look back and scan their acts, except TO
take warning from their missteps, and
guard our own conduct by the experience
Of those who have gone before us.


We frd this debt upon our hands, aud
it Is our duty to make provision for it.


The Constitution Of the State provides
as follows:


"Thc Legislature shall provide by law a
sinking fund Of at least twenty thousand
| dollars year, to commence in eighteen
hundred and fifty two, with compound in
tcrest at the rate Of six per cent. per annun
and an annual increase Of at least FIVE pei
cent, to be applied solely to the payment
and extinguishmeDt Of the principal Of Tho
State debt, other than the amounts due K
educational funds, and shall be continued
until tho cxiiuguisbment thereof"