Year: 1865




at any time remain in the treasury deriv-
ed from taxation for general State pur-
poses, after the payment of the ordinary
expenditures have had the same under
consideration. and having come TO the
conclusion that the entire debt of the
State will be paid within fifteen years. by
J a continuation of the rate OF taNauon
prescribed by law, have directed me TO
report the accompanying section, 10 be
cnprafted in the new Constitution, and
ask to be discharged from the further
consideration of the subjects embraced
F.. in said resolutions"


This report was submitted by Judge
Hall. OF Gibson county, one of the most
eminent lawyers in the State, and Is so
explicit in regard to the understanding
of tho committee that the tax was 10 De
continued, and that it would pay the debt
: by 1868. that il leaves no room to DOUBT
= as to the purpose for which the constltu-
tional provision was introduced.


Afterwsd. on the 25th dav OF January,
1881, this provision came up IN the con-
vention for consideration, when Mr.
Howe, of Lagrange, offered to amend hy
adding the following clause-not as a
substitute-but additional:


That q specific tax of fifty thousand
dollars. with an annual increase of five
. per cent he levied for twenty five years,
and expended each year in the purchase
of our State bonds, unless the State debt
is sooner paid Off


In support of his amendment he used
the following language;


| 1T is very probable that the present
rate and method of taxation guaranteed
in what's commonly called the Butler
Bill. will he observed but even If that
taxation affords fund for the payment
of the debt this will enable us to pay it
off sooner Besides. our public debt,
was contracted chiefly for the benefit of
property, and property should pay 1t


Mr.. Borden then said:


Il desire to make an inquiry of my
friend from Gibson Mr. Hall, J whether
the section now under consideration
provides that any overplus of the taxes
arising from the imposition of twenty
five cents tax on the hundred dollar
valuation. shall be applied to the definite
object of liquidating the principal of
our outstanding State debt after the
payment of the interest on the debt


In answer to this question, Judge Hall
said:


'.The arrangement, and only arrange
ment. with our bondholders. was under
the act OF 1916 and 1871, by which
twenty five cents on every hundred dol
lars worth of taxable property, and
seyenty-fjve cents poll tax, were pledged
for the payment of the principal and III
terest of the public debt, until it shall
be entirely paid. According to calcu-
Iation made if this system of taxa ion
shall be continued, in eighteen years the
entire public debt will be paid off The
committee of which l am chairman, hay
ing charge Of the subject. believing that
there was q propriety IN placing 1t be
yond the bower of the Legislature to
violate the pledged faith of the State,
instructed me to introduce section
providing that the twenty five cents on
each one hundred dollars of taxable
property, and seventy five cents poll tax
should be annually assessed until the
debt was paid. This section was laid
upon the table, and, l think, iuconsid
erately. / think the matter should be
placed beyond the power of change by
the Legislature"


Ar Borden then replied as follows !:


Sir, on a previous occasion, desired
that this should be done; because | know
that this is the wish of the people | have
been sent here TO represent. They do
not want the subject to be left with the
Legislature They are willing to carry
out in good faith, the arrangement made
with the bonaholders of the State, and
to pay twenty-five cents tax upon every
one hundred dollars valuation, until
the State debt is extinguished; and they
desire that q clause shall be inserted in
the Constitution which shall secure the
application of this overplus to the
tinguishment of the principal of the
State debt


~ H. "A
Mr. Howes amendment, on the ground
that taxes should not be levied in the
Constitution, and in conclusion used
these words


..Sir this attempt to levy an additional
tax upon the people by US is all wrong
| believe there is virtue enough in the
people to settle this matter through their
REPRESENTATIVES in the Legislature, and
much prefer to leave it with that body. "


Mr.. w alpole followed in speech, OPP
posing the adoption of the original sec
ton reported by the Committee, for the
reason that he would do nothing to con
firm the contract made by the State with
the bondholders unless there was also a
provision requiring the bondholders TO
perform their part of the contract.


Mr. Magure followed in support OF tue
original section as reported by the Com
mittee, and referred with appreciation to
the calculation, showing that the then
existing rate of taxation would pay the
debt in fifteen or sixteen years, If the
surplus was properly applied from year
to year in the purchase of our stocks al
their value.


Mr. Ritchie then moved to re commit
the section. with instructions to strike
out aud insert that, 1.-The present rate OF
taxation, twenty five cents on taxable
property. and seventy five cents on each
poll. shall be continued until the in
debtedne.s of the State is fully hqui-
dated


Mr. Ritchie tlren said


I would remark that this is tran
script of the report of the committee on
the subject, and have no doubt if this
course is adopted that in some fifteen or
sixteen or eighteen years the public in
debtedness of the State will cease TO


Iaa ac@f1r, Of ba