Year: 1871

r r.


with interest an article published else
where, from the Louisville Ledger, which
contains the report of the special com
mittee, and the Ledgers comments upon
The bill introduced by Senator Tyler, the
object of which is to pay off the bonded
debt of the State with the assets of the
Sinking Fund. This is undoubtedly the
most important measure Of the session,
and Senator Tyler deserves great credit
for maturing it, We understand Seua-
tor Turner is the author Of the idea of
paving of the debt in this manner,
though Senator Tyler is the author Of,
and drew the bill, which passed. The
bill assumes the position that by selling
the assets OF the Sinking Fund the en-
tire outstanding and bonded Indebtedness
of the State can be at once liquidated.
The State Sinking Fund holds bonds and
Stocks Of the State. amounting to 81,
62s,o11 ss-tfeir present market val
ue.-or in other words the stocks and
bonds of the Sinking Fnnd canb be turn
ed into cash at the above figures on short
notice. The outstanding and bonded
indebtedness Of the State is 81 .424394
90. In. plain words. the State owes ST.
424 .394 90; aud the State has 81 1.628.-
OIL SO. in the Sinking Fund, with which
she can pay herself out of debt The





question is shall the State sell her stocks
and bonds in the Sinking Fund with
which to pay her debt, or shall the
burthen of taxation upon the people be
increased to raise the sum Senator
Tyler's bill proposes to sell off these
stocks and bonds, and we think it is
right If the figures of the report are
correct, and we presume they are, the
proposed sale of the Sinking Fund will
pay our entire State debt, aud leave an
excess of s612,OO0 in the treasury. This
Is happy deliverance from the expected
increase of taxation.


The Louisville Commercial calls this
"white- washing bill" and says that this
borrowing from the Sinking Fund by
the Revenue Department is in violation
of Sec. 81 of the State Constitution,
which prohibits the Legislature from
passing laws to diminish the resources of
the Sinking Fund We regard a loan
to the Revenue Department as too good
and secure to be considered in any light
as a dimunition of these resources. But
I if the BIZ. as il proposes, pays the entire
State debt and interest, the purpose of
the Sinking Fund is accomplished; and
&c altar paying .dabt- there he a4hal-
ance on hand, who does it belong to? If
this surplus can be applied to the relief
of the Revenue Department, it is relief
to the people, because it prevents sn
increase of taxation Our fear is, how
ever, that this plan will not prove sue
cess, because large part of the State
debt is owned in Europe, and cannot be
called IN until it falls due Nevertheless
Senator Tyler and his committee, bave
suggested wise plan for the solution of
our financial difficulties.


But while we commend the wisdom of
Senator Tyler's bill, the excessive and
perhaps extravagant expenditures of
previous Legislatures, may not be deni-
ed We 6ud now that the Revenue
. Proper is IN debt to this Sinking Fund
$1,000 600 It is true that the Revenue
Department borrowing from the Sinking
Fund, is like man borrowing from him
self and for himself, but nevertheless,
We doubt not, that the history of loans
obtained from the Sinking Fund would
reveal large extravsgance, and perhaps
some corruption. Bythis @windiug up
or selling Off the Sinking Fund the
State win be paid entirely cut of debt
and the people can then see that The
State government shall not hereafter be
come financially Involved The articls
from the Ledger argnes the question IL
full, and to ii we direct attention.