Year: 1873

Governor Walker, on 18th, sent a special
| message to the Legislature upon the finances OF
the State, in which be refers to a subject the
real merits Of which, he says should be can
dldly and impartialy discussed, and wise and
patriotic conclusions reached. This is a SUBJ
!ect which embraces two propositions, distinct
In character, but harmonious In result. They
are-frst, the assumption and payment by the
government of ali the present legal indebted.
| ness OF the several States; and, second, to pre-
/ vent occurrence of the necessity for similar ac
| ton hereafter, and the solemn agreement by and
| between the States to abstain from contraction
| of any debts in future, except such as may be
| found necessary to the legitimate and effective
execution Of their governmental functions, or
| as may be required by sudden and great emer-
gencies The former of these propositions must
be accomplished by an act of Congress, while
the latter can be achieved only through an
amendment to the Federal constitution, which
will require the concurrence of three-fourths of
| all these States


The Governor says these propositions may be
opposed because of the great inequality in the
| amounts of the debts of the several States and
the consequent unequal distribution of the bene-
fits and burdens which might flow from their
adoption. But this difference is more apparent
| than real, and especially if the present market
| value of State securities be taken as the basis





States owe large debts and others comparative
| ly little or nothing yet when the amount which
each State contributes to the federal revenues,
| and the great impetus which relief from large
portion of the State taxation would give to
commerce, manufactures and production Of all
kinds, everywhere throughout the country, are
taken into consideration, it will be found that
this objection dwindles to little Importance and
these considerations, to some extent, apply to
thor -.
be raised VIZ, the increase Of the national debt.
| which the assumption of the State debt would
cause, and the deleterious effect upon our ma
tional credit which might he thereby produced.


The Governor next submits a detailed state
ment of the total Indebtedness of all the States,
which, if assumed by the federal government,
would increase the national debt three hundred
millions of dollars, if taken at par, but if taken
at the market value it would be much less
This sum, at FIVE per cent interest, would an
nualy require fifteen millions to pay the accru-
ing interest, aud to this extent, and no more,
would the burthens of the federal treasury be
increased.


The Governor claims that this comparatively
small sum would cause no embarrassment, nor
necessitate any increase of federal taxation, as
the present revenues Of the general government
are sufficient to meet all current expenses, in
Guiding the interest on the public debt, and


leave balance of nearly one hundred millions
to pay the principal of the national debt and
that too before maturity.


The adoption of these propositions, instead
of injuriDg, will enhance our national credit by
the withdrawal of all State securities from the
markets of the world, leaving the national bonds
the sole American security known. It would
check the growing danger of reputation and
place the national debt upon so secure basis
that in few years it might be funded into
bonds bearing no higher rate of interest than
the debt of England, reducing the interest up
on the public debt and lower rates of interest
upon all other securities The wealth Of the
country would be employed in the development
of its resources rather than in specializing upon
it's necessities.


The Governor says he knows Of no measure
which could be devised of more general adyan-
tage to the people or more beneficial to their
interest and well being, nor one which would
tend in an equal degree to unite and harmonic
the whole conntry and obliterate the last YES
tiges of national differences and antagonism.


The Governor recommends the General As
sembly to invite the cooperation of all the
States to secure the adoption of these PROPOSE
tions.


Resolutions were introduced in the Legisla-
ture to carry out this recommendations.