Year: 1878

Ot all the wrongs contempiatcu Dy the would-be scalers, there is per haps not one that would bring upon the people more iutolel able hard ships than the manner of securing the bonds to be issued. Let us ex- anime the case as it now stands and as it would then stand and see the effect. She can pay, or not pay, it is in her power to say what tax shall be assessed and collected to pay in terest on, or to redeem her bonds. There is no court that can compel her officers to levy and collect taxes :; that matter rests where it did when her debts were incurred, and very properly, too. Now let us see the case after scaling and securing after the manner of the Loughborough bonds: "In order to secure the prompt payment of the interest on said bonds, and to provide sinking fund tor the redemption of the prin- cipal, it is further enacted AS A PART OF THE CONTRACT on which said bond shall be issued and as an INvIoLABLE CONDITION THEREOF that until said bonds, principal and interest, shall have been fully paid off and dis charged, there shall be levied an an annual tax sufficient to produce the sum of one hunnred and fifty thousand dollars for interest ard thirty eight thousand dollars for sinking fund, winch sums are hereby set apart for the purpose aforesaid; and the first money received in the treasury annually during the period aforesaid, FROM ANY SOURCE WHAT EVER, is hereby expressly appropri- ated to said purpose, until the sum of one hundred and eighty eight thousand dollars aforesaid shall have been applied annually in payment of said interest and in creating said sinking fund; and the right of any holder of said bonds to the benefits herein provided shall be considered as VESTED and INExTINGUIsHABLE from he time of the issuing thereof until said bonds shall have been fully paid off, Again. Any judge of the circuit courts of this state, or chancellor in TERM TIME or VACATION, is hereby enjoined and REQUIRED upon the application of any holder of any of said bonds, to compel by mandamus or other process the prop authorities of the state to levy, as. sess, and collect the taxes provided that all the powers herein conferred upon the judge of the circuit courts of the state or chancellors thereof are hereby vested in any judge of the circuit or district courts Of the United States, and may be so exer- cised in the event that any bond holder aforesaid desiring the process of the courts shall be at the time & non resident of the state, and owning and holding bond not less than one thousand dollars" (Small capitals ours.

 The same security would compel the authorities of this state to levy and collect annually the sum of three hundred and two thousand six hun dred and ninety dollars, and one hundred and ninety four thousand five hundred and eighty seven dol lars interest, and one hundred and eight thousand one hundred and three dollars sinking fund Cat least after three years. This sum the bondholders could compel the state to raise annually, and that, too, be- fore the state could spend one dollar towards paying her own indebted ness (for the scalers propose to set tie only part of her debts, thus placing the control of her revenues entirely out of her own control and into the hands of her bondholders. Adding thus sum to the amount nee essary to maintain her government, we have at least to raise annually seven hundred thousand dollars, which would necessitate tax great CT than even our SINISTER government ever forced us to pay. And yet we are told that this would ENHANCE the CREDIT of the State," and place her upon 'ssoUND FINANCIAL BASIS" The truth is, that under such crushing debt, and that entirely in the hands of her bondholders, she could not in any market in the world raise single farthing, from the fact that she could give no security, be- ing overwhelmingly and hopelcssly involved and mortgaged. This would be the "sound financial basis" upon winch the state would be placed. Now, we ask, which is bet ter for the state, to control and gov ern her own financial troubles, as she now has the power to do, or place herself wholly in the power of her bondholders, as contemplated oy this scaling process? This IS a plain, lair comparison; nor can it be gain said.

 Every condion that is implied in this sealing process is against the state, and in favor of her bondhold- CTS. The amount of the debt itself is increased by a large amount couDted in as principal and made to draw interest; her interest is com. pounded and made to augment her interest bearing debt. Not satisfied with this, it proposes to take the control of the debt out of the power