Year: 1865

Secretary Of the Treasury, who there
upon declined 10 appoint the officers pro
vided by the law 10 collect the tax with
in the State. On the-of January,


1862. Mr. Lange, the Auditor of the
State, proceeded TO Washington with the
papers and vouchers embracing our
claims against the Government up 10 the
time for the purpose OF making settle
ment He found. however, that the mode
of settlement with the several States had
not been determined upon by the Treasu-
ry Department, and that the press OF
bssiness in the Department was such as
to prevent the taking up of our accounts.
He was directed to file them in the De
partment to DE taken up for adjustment
whenever they could be reached. 1t
then became obvious that our accounts
would not be settled and adjusted by
the last dav of June. 1861. so as 10 be


'liquidated and determined within the
meaning of the Act of Congress, as be-


fore quoted, and that, after all, our set
off against the tax was about TO fail.


Accordingly. brought the matter to
the attention of our Congressional dele
CATION, and asked them to procure, If
possible, such legislation as would facili
tate the settlement of our accounts, and
if that could not be done, to procure the
extension of the time in which accounts
could be fled and settlements made. so
that the advantage OF the set OFT need not
be lost. After much trouble and delay,
they procured the passage of an Act,
which was approved on the 18th day of
May, 1862, the concluding part of which
is as follows: Provided, that III case
of such release, such State, Territory or
District shall be allowed the same abate-
ment of the amount of such Tax as would
be allowed in case of the payment of the
same in money shall be construed as
applying 10 such claims of States for
eimhursement of expenses incurred by
them in enrolling, subsisting, clothing,
supplying, arming, equipping, paying
and transporting its troops employed IN
aiding to suppress the present lnsurrec
ton against the United States, as shall
be fiji ed with the proper officers of the
I nited States before the thirteenth of
July next. And in such cases the abate-
ment of fifteen per centJIm shall be made
on such portion of said tax as may be
paid by the allowance of such claims, in
whole or in part, the same as if the final
settlement and liquidation thereof had
been made before the thirteenth of June


This act healed the difficulty and un-
der it we have filed with the proper Off
GERS, anterior to the 3Oth of July, 1862,
claims against the United States, due TO
the State, more than enough to cover the
amount of tax due from the State, after
deducting the fifteen per cent. from the
gross amount


By this operation, the State has
saved fifteen per cent of the original
amount which is SI35, 731 80, reducing
the amount from S9o4, SI5 33 to SI65, l44
03, and the latter sum is set-of and paid
by our advances The arrangement is
mutually advantageous to the State and
General Government. 1t would do the
Government no good to draw a large
amount of money from the people of the
State for taxes. while she was debtor to
the State to q still larger amount, which
Indebtedness must sometime be paid by
money raised by taxation. Besides this,
the Government was in no condition to
reimburse the State in the full amount
of her advances and If these advances
were not used to pay the direct tax, the
tax must have been collected from the
people of Indiana Immediately, while
the advances would in all probability,
remain as suspended debt for years to
come, on which the Government, if it
followed former prcccdents, would pay
no interest l respectfully recommend
that the Legislature approve my action,
and that of the State Officers, in the
premises This subject was laid before
the Legislature at its last sessi on, but no
action was taken in reference to it. The
settlement of our accounts with the
Government has progressed slowly,
owing to the imperfection of many of
the vouchers, growing out of the haste
with which the business was done, and
the inexperience of the officers in the
beginning of the war. At the request
of the Department have made arrange
ments to send an Agent to Washington
to cooperate with the accounting officers
of the Government. and anticipate but
little trouble in bringing the settlement
to q speedy and successful issue.


EMIGRATION.


It is not necessary to argue the impor-
tance of adding to the wealth &population
of Indiana. by increasing the emigration
to her borders from the various countries
of Europe The agricultural and mineral
resources of the State are, as yet, compar-
ativelv undeveloped, for the want ofpop-
ulation, labor and capital. Nearly one
fourth of the whole area of the State is
coal field, large part of which is said
to be of the best quality Excellent iron
ore is found in vast quantities in many
counties, and throughout the State, ex-
cepting few small localities, the soil is
rich and fertile, capable of producing all
the grains and grasses in the greatest
abundance The State abounds in fine
timber, aud living streams of water, and
in every respect presents facilities 70 an
easy and profitable agriculture, while an
abundance of coal and water power furn-
ishes the means for manufacturing on the
largest scale and cheapest terms Large
tracts OF country are vet unsettled, and
in many counties the population is quite
sparse and it is not too much 20 say, that
the State can support in ease and com
fort q population three or four times
larger than the present The war has
made q heavy draft upon the labor OF the
State, which is now scarce aud In grea.
demand. and should be replenisbed and
Increased BY every legitimate means.
.herefcrr earrestiy recommend the est.b.