Year: 1865

"BV reference 10 Tue t'oASS NpH
to the second proposition OF Mr.. buuer'
it will be seen that, If the taxaoies IN
the State shall increase at the rate OF
a. 600 a0a a wear in value, which is a
moderate estimate. !. 4 tax of twenty five
cents on the hundred dollars, and seven
~ five cents poll, will afford the means
OF paving the State expenses, absorbing
all the six per cent. treasury notes, and
paving two per cent. interest upon the
pnblic debt. up to the wear 1898. and
from and after that time paying the State
expenses. and two and half per cent.
upon the entire funded debt of the State.
including back interest and dehciences
of interest and not only 50. but that the
proceeds of the same tax would, IN adCu-
ton. produce annually increasing sur
Dlus. to be set apart for the absorption
Of the principal of the public debt
which surplus for the single year, 1861,
would be about Sl4o- ooo


From this it clearly appears TO have
been contemplated by the committee
that q continuing tax OF twenty-five
cents on every one hundred dollars, and
seventy i've cents poll, was To be assessed
for the payment of the principal and IN
terest of the debt, and reference IS made
TO certain tables which had been prepar
ed by Mr. Butler. going y show what
would he accomplished by such 2 tax,
estimating the increase OF the polls 10 be
six thousand per year. and the increase
of taxable property ut SIX niihohs OF
dollars per year, and carrying the calcu-
lation as far down as 1860. Mr. Butler
calculation, however, turned out 10 ne
greatly erroneous, inasmuch as the ofdi
nary expenses of the State Government
were estimated too low. and the increase
of taxable property from 1916 TO leoi
averaged nearly twenty-one million of
dollars, instead of only six millions, per
annum. On the next day after the pass
age of this bill. and apparently in pur-
suance of its provisions, the Legislature
passed an act making q general levy, for
State purposes. of seventy five cents poll,
and twenty five cents on each one nun
dred dollars worth of property.


In the supplementary act of the next
year. lS47, the following provision Will
be found contained in the l4th section;


And whereas. doubts have been suS-
gested on the part of some such last
mentioned persons foreigners holding
honds) in respect of the matters herein
after menti med or referred to, which
doubts may operate preiudicially to the
operations contemplated by the said re
cited act, and 1t is therefore expedlent
that the same be removed; now, to
demonstrate the good faith OF the State
of Indiana and for the removal OF all
such doubts as aforesaid, and with the
view to create general confidence III the
arran ngement made in the said reclted act
by the State for the liquidation of its
debt:


BE Il enacted, That the tolls, revenues
and profits of the said canal and It's ap-
present and future, and the
moneys to arise and be collected by and
from the sales of the land and premises
thereto, and in the said act
more particularly mentioned and de
scribed, and the personal taxes to be
levied towards the payment of the said
debt. as in the said act also mentioned,
and the receipt and application thereof
for that purpose, as in the same act Is
also provided, shall remain and be invio-
late and in full force, and the payment
of the principal moneys and interest on
the certificates and stock intended to be
created pursuant to the said act, and this
act, and all certificates and evidences OF
the title thereof resp pectlyely. shall be and
continue effectual and inviolate by the
means aforesaid, until the objects and
purposes of the said act and this present
act Shall be fully accomplished.


The only taxes referred to in the act
of 1876 were the seventy-five cents poll
and the twenty five cents on the one
hundred dollars worth Of property and
by this section the good faith of the State
is soiemaly pledged that che said taxes
snail he maintained iuvloiate and In tu4i
force, and the proceeds thereof faithful
" applied to the pay Yment OF the pT1ncl-


4, II ii in
pursuance of the act of 1916 The sub
stance of this pledge, and of the under
standing entertained sy the Legislature
on the one hand, and the aoniholders on
the other. may be briefly stated this
That a tax of seventy five cents on each
poll. and twenty five cents on each one
hundred dollars worth of ofproperty, should
be continuouslv levied, and that after
defraving the ordinary expenses of the
State Government. aud paving the inter
est on the debt, the surplus proceeds
should be applied to the liquidation of
the principal sum.


The new Constitution, which was
framed in 1850. three years after the
passage of this act, contains the follow
ing provision


Section ,. Article Y. 'Ail the revenues
derived from the safe OF any OF tue puD-
lie works belonging to the State, ami
from the net annual income thereof, and
any surplus that may at any time remain
in the Treasury derived from taxation
for general State purposes after the pay


ment of the ordinary expenses of the
government, and of the interest on bonds
OF the State other than bank bonds, shall
be annually applied under the direction
Of the General Assent bly,, to the payment
of the principal of the public debt


This provision evidently contemplates
the speedy payment OF the public debt,
and the. existence Of an annual surplus
to arise from general taxation for State
purposes, and imperatively commands
the annual application of such surplus
10 the liquidation of the public debt.


To show the views entertained bv the
committee who prepared the section.
will present in full the report BY which
it was accompanied when it was laid be