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The State Debt

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Parent Issue
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OCR Text

Onr LegisJaliire havo passed an act Tor the Üqidation of Die tlebts of this State. The object is ccrlainly goot!, as ulmost any arrangement fur its future paymoiit, or for the payment of a portion ofir, is preferablc to having the matter reinnin at Joosc enda froni year to }ear. As the net is important in eeveral respects, we gi ve the fullo vving synopsis of it frotn the Detroit Gezette. The first scclionauthoriscs the Governor to. issue honda for tl. e paymeut of the interest on the honda of the State, nnd desígnales the bondf on which the interest shall be paid, being those for which the Stato has received full considcration. The bonds now authorisec to be issued, are to become due on the first dny oí Janunry, 1850, vvith interest frorn the first day of July, 1845, payable semi-aiinually. The aniount of principal on which the bondá are to be issued is O1,387,000. The second section appropriates the proceeds of all the public works for the payment of interest on the bondá specified in the first section of the act, and those which may bcsued iinder tlic 6t.Ii section, except so faras iá necessary to carry out the provisions of acts heretofore possed for the completion o f ihe roads, to ccrtain points named, the purchase of car?, locomotivos, redemption of scrip, &c. TJie tliird section provides that the bonds issued for iiHcrest shall be received for state Jamls at $1,25 per acre, after the Ist of Julv 1845. The fourth section provides for the levyingof a tax to supply any deficiences in theayment of interest, after the year 1845, if any such deficieney should exist. Some of the uieinbers contended, when the bil] was onder consideration, that it would be better for the Legislaturc of 1315 te make provisión for the raising of the tax, if t should at that lime appear to be necessary, while others contended that if the provisión was rtow incorporated in the bill it wouttl show to the people abroad that we were willing to make any snerifice for the honest discharge ofour public indebtednesp. WhHeit was pretty generally considered that the other provisions of the bill for the payment of the interest, were amply suff. cientj and íhnt a resort to taxation was not considerad to be neecssary, even in 1845, the Jaw as passcd conlained fhe provisión. A nol her prenmble is then adopted relative to the bondn delivercd by the state to the United Bank, and Morris Canal and Bajrícing Cornpany. and upon which the State has received only a portioi: of the amount due un them.Sertion six provides that whenever bonds shall bo surrendered lo the state, they pliall bo cancelled, and new bonds issued for paymcnt of principal actually received, and interest, subject to a deduciion, however, for lamages, susfained by ibe state foi failure on ll;e part of the United States Bank and Morrison Canal and Banking Couipany, to fulfil tiieir contnicts. These bond.3 are to be placed on the snrne footing as those in the first section.1'


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