Mooney, Palmer, Peek, Robinson of Carroll, Rose, Rosseau, Shanks,
Shiveley, Simonson, Snook, Tingley, Turman, and Vandeveer â€” 33.
, . Those who voted in the negative are, ...
Messrs. Barclay, Blakemore, Boardman, Bradley, Bruce, Claypool,
Colms, Conduit, Cowen, Endicott, Fuller, Garrett, Grubbs, Hannah,
Herod, Hill, Jamison, Jones of Fountain, Kelley, Kerr, Legg, Les-
lie, Lewis of Wayne, Little, McCluer of Knox, McGauhey, Miller,
Nimmon, Nutter, Osborn, Parker, Pomeroy, Rich, Robinson of De-
catur, Smilli, Stapp, vStophlet, Sullivan, Tague, Tomlinson, Walker,
Wills, Whight, Wolf, Wright of Wayne, and Mr. Speakerâ€” 46.
So the motion to adjourn did not prevail.
. On motion.
The House adjourned until 2 o'clock, P. M.
2 o'clock, P. M,
The House assembled.
Mr. Sullivan, from the joint committee to wait on his Excellency,-
the Governor, made the following report :
Mr. Speaker: n-
The joint committee appointed to inform his Excellency, the
Governor, that the two Houses of the General Assembly had con-
vened and were ready to receive any communication he might
please to make them, have performed that duty, and received for an-
swer : that he will attend in the hall of the House of Representatives
at half past 2 o'clock, P. M., this day.
On motion by Mr. Robinson of Carroll,
Resolved, That the reporters of the different newspapers in this
city, and also in the State, be permitted to occupy seats within the
bar of this House.
Mr. Osborn offered the following resolution for adoption :
Resolved, That the Door-keeper be authorized to contract with
the publishers of the Indiana State Journal and State Sentinel, for
two copies each of their respective papers, to be furnished to each
member of this House during the session of the General Assembly, at
a price not exceeding one dollar per copy.
Mr. Palmer moved to indefinitely postpone the resolution. .. â€¢
Mr. Robinson of Carroll called the previous question;
Which was seconded. ' '"
The question was then taken on the adoption of the resolution.
And the ayes and noes having been demanded, , ,.
Those who voted in the affirmative are, ' â–
Messrs. Anthony, Barclay, Bell, Brecount, Brown, Conduit, Con-
ner, Cowen, Harrow, Davis, Duzan, Endicott, Fuller, Garrett, Gre-
gory, Hardin, Hauser, Hazelrigg, Helwig, Heustis, Hill, Hinchman,
Hostetter, Howard, Huckaby, Jones of Fountain, Lewis of Wayne,
McAllister, McClure of Scott, McGauhey,Manville, Miller, Osborn,
Peek, Pettit, Pomeroy, Robinson of Carroll, Rose, Rosseau, Shanks,
Simonson, Smith, Snook, Stophlet, Sullivan, Tague, Tingley, Tom-
linson, Turman, Vandeveer, Walker, Wills, and Wolf â€” 53.
Those who voted in the negative are,
Messrs. Blakemore, Boardman, Bradley, Bruce, Byers, Claypool,
Colms, Fry, Grubbs, Hambrick, Handy, Hannah, Herod, Hodges,
Hoggatt, Huey, Jamison, Jones of Vigo, Kelley, Kerr, Lanius, Legg,
Leslie, Lewis of Dearborn, Little, McCluer of Knox, Montgomery,
Nimmon, Nutter, Odell, Palmer, Parker, Rich, Robinson of Decatur,
Shelby, Shively, Stapp, Whight, Wright of Switzerland, Wright of
Wayne, and Mr. Speaker â€” 41.
So the resolution was adopted.
Mr. Handy offered the following resolution for adoption :
Resolved, That the House will adjourn, sine die, (the Senate con-
curring therein) on Mondaj^ the thirtieth of December, 1844.
Mr. Huckaby moved to insert 20th,
When the resolution was laid on the table by consent.
Mr. Blakemore offered the following preamb'e and resolution for
Whereas, This House did on yesterday pass a resolution ap-
pointing a committee to act with a similar committee on the part of
the Senate, to wait on the Rev. Phineas D. Gurley, to know of him
whether he Avould open this General Assembly with solemn prayer ;
and if so, at what time it would be his pleasure to do so. And,
whereas, unavoidable circumstances as was the opinion of this
House, made it necessary for this House to adjourn this day at 10
o'clock, A. M.,
Resolved, therefore. That a committee be appointed on the part of
this House, to act with a similar committee on the part of the Sen-
ate, to wait on the Rev. Phineas D. Gurley, and know of him whe-
ther he will be pleased to open this General Assembly with solemn
prayer ; and if so, at what time it will be his pleasure to do so, and
report to this House.
Messrs. Blakemore and Sinionson were appointed said committee
on the part of the House.
On motion by Mr. Stapp,
Resolved, That the Senate be invited to attend in the hall of the
House, instanter, to hear the message of his Excellency, the Gover-
nor, and that seats be provided for them on the right of the Speak-
The Senate then came into the hall, and took their seats on the
right of Speaker's chair ;
When the Governor delivered the following message in the pre-
sence of both Houses. ;.â€¢...â€¢,â–º
*^ â– â– .\- V MESSAGE.
Gentlemen of the Senate, Â» â– ' â– ', â– ' â€¢
, â€¢ â€¢- , . - and of the House of Representatives :
We have cause of deep thankfulness to a beneficent Providence,
that during the past year we have been permitted, within the limits
of our own beloved State, to enjoy the blessings of civil and religious
liberty, unmolested by the hand of misguided zeal or lawless violence
â€” that the sacred right of worshipping Almighty God according to the
dictates of conscience, so justly conceded to each and every individual
by the constitution, has, in practice, been scrupulously respected â€”
that the benefits of education have been increased and extended in its
various departments â€” that peace, morality, and good order have
prevailed, the supremacy of the laws been acknowledged, and the
mild influence of religion felt far and near.
The annual meeting of the Representatives of the State, to whose
hands are temporarily committed the great and varied interests and
well being of a confiding people, is in itself, well calculated to awaken
that deep sense of responsibility which, it is confidently trusted, will
insure wisdom and prudence in your councils, and eventuate in the
As the public statutes of the State have recently undergone a tho-
rough revision, and at great expense, the hope is indulged, that but
few subjects of a general nature will, at this time, require your con-
sideration. All legislation, but especially that which is general in its
bearing, should be exercised with great care and deliberation, and
(except in palpable cases) should be tested by time and experience,
before resort is had to modification or repeal.
The ordinary expenses of the Government, for the fiscal year end-
ing with the 31st day of October last, were $93,368 73, as will be
shown by the report of the Treasurer, which he will shortly lay before
YOU. Of this sum, however, I am authorized to state, that more than
$17,000 were on account of stationery for the Revised Statutes of
1843, for printing and distributing the same, and for compensation
of the revisors ; and the same is therefore justly chargeable to the
expenditures of former years. A considerable portion, also, of the
expenses of the contingent fund, included in the first named sum,
accrued during the year 1843, although audited and paid during the
present year. By the same report it will be seen, that under a law
of the Legislature, the Treasurer effected a loan from the Michigan
City, Vincennes, and Fort Wayne Branches of the State Bank, to
enable him to meet the expenses of the State. Provision, by law,
was made at the same session, which, it was trusted, would ensure
the faithful paying over to the Treasury, by the Collectors, the same
currency by them received for State revenue ; and as by the partial
â€¢ 19 ^â– â™¦' â€¢â– ..:â– ., '
absorption of tlie treasury notes in circulation, which are receivable
for taxes, they had considerably increased in value, a hope was, and
yet is entertained, that an amount of bankable funds will thus be
collected, sufficient to meet the loan referred to, at maturity. But
as these otiicers are, by the present law, not required to pay into the
treasury the amount due for State Revenue, before the fourth Mon-
day in February, it is earnestly submitted whether early provision
should not be made to meet any unforeseen contingency in reference
to this debt, as well as to defray the expenses of the ensuing year.
The Auditor, in his report herewith submitted, estimates the sum
necessary for the ordinary expenses of the current fiscal year, at
$67,950. In this statement, however, it should be observed, he does
not include any estimate for unaudited claims due before the 31st of
October last, the State-house, the new State Prison, nor for the resti-
tution of trust funds, which, as I am informed by him, had been, in
the exigencies of the public service, paid out from the Treasur}^ in
former years without appropriation.
The subject of our State debt is of primary importance, and de-
mands our utmost attention. On consulting the best sources of infor-
mation, the following, it is believed, is a correct statement of the
nature and present amount of all claims against us, with perhaps,
a few unimportant variations : . ; ,
On account of Wabash and Erie Canal, - - $1,727,000
Internal Improvements, (proper,) - - - - 8,900,000
Madison and Indianapolis Rail-road, - - - 456,000
Lawrenceburgh and Indianapolis R-ail-road, - - 221,000
Surplus Revenue, 294,000
Interest, and to redeem Treasury Notes, - - 1,100,000
Of these there have been redeemed and
cancelled in Bonds, - - - 1,829,000
There were cancelled without being put
into circulation of the $1,100,000, be-
ing seven per cent. Bonds, - - 1,064,000
Outstanding, - - - $12,218,000
Of these the bank regularly pays the interest on - 1,390,000
Leaving ^ - â– '' ^ - . ^ - - $10,828,000
:'.'â– ' -â– . 'â– â– â– ' â– â€¢â– â– :â– ' . 20 ' â– 'â– â– ': ' ' .. â– â– â– â– â€¢
On which no interest is paid, and no provision is made for its pay-
Of this sum, $100,000 bears six per cent, interest; $10,692,000
five per cent, interest, and $36,000 seven per cent, interest.
The annual interest, therefore, on the Funded Debt, (exclusive of
what is paid by the bank,) is on â– â– : . '.
$100,000 at' six per cent., - - >. . . - $6,000
$36,000 at seven per cent., - - ..â€¢.â– ....f~^ 2,.520
,692,000 at five per cent., - ' - ^ ^. - 534,600
The Domestic or Unfunded Debt may be stated as follows :
Six per cent. Treasury Notes, outstanding, - - $677,000
Interest thereon to 1st January, 1845, - . 1 â€¢ - 170,000
Five per cent. Treasury Notes, outstanding, - - 513,000
Interest thereon, say 1st June 1842, to 1st Jan. 1845, 66,262
Borrowed of Michigan City Bank, - - ' - - 40,000
Borrowed of Vincennes Bank, - - - - 10,000
Borrowed Fort Wayne Bank, - . . . 6,000
Quarter per cent. Treasury Notes, outstanding, - 39,000
'â– '"' '' 'â€¢'â– *' â– '' \\X-^ â– ''-â– â– '' '' $1,521,262
To this may be added the loans by the former operations of the
Treasury, from various trust funds; which should be replaced as
speedily as possible, particularly the amount borrowed from the
Three per cent. Fund, â€” that being much needed and loudly called
for by the various counties to which it belongs.
In this state ot our affairs, and preparatory to action on the sub-
ject, it behooves us to carefully survey the whole ground, and note
the obstacles which beset our path.
It is far more difficult to pay the interest on a foreign, than on a
domestic debt. In the former case, there is an annual drain of the
precious metals, which directly, (and under the present banking sys-
tem, to a far greater extent, indirectly,) diminishes the circulation of
the country. In the latter case the interest is paid to citizens resid-
ing in the same country, in the local currency, â€” it still remains in
the same community, and no material diminution in the circulation
The government of Great Britain would be crushed under the
weight of its immense debt, were it not due to its own subjects.
Their onerous taxes could not be borne, if they were not simultane-
ously received from, and paid out to persons inhabiting the same
country. A constant drain of specie cannot be long sustained by
any country, unless the vacuum thereby occasioned, is from time
to tiine replenished by the exportation of industrial products.
The same is true of our foreign commerce. Cash payments for
balances in favor of imports would, if continued, shortly drain the
whole country of specie. Before that time would arrive, however,
the greater cheapness of the staples, arising from their accumulation
at home, and the scarcity of money caused by it its being
sent abroad, would occasion the former to be exchanged for
the latter, and the equilibrium would be restored. The compara-
tively small amount of specie brought into the United States, by
immigration, or produced from our mines, can not be rehed on for
restoring these balances, in as much as it scarcely keeps pace with
the rapid growth of our population, as compared with that of most
other countries. The balance of the trade of the United States may
at times be unfavorable. But in that case it will soon be restored by
a corresponding amount of exports. For, if it is at once restored by
cash payments, still there must be an excess of exports afterwards, to
supply the loss of currency occasioned by such payments, which
amounts to the same thing. Thus, while our own commercial history
shows these vibi'ations in trade, it also establishes the fact that the
average exports and imports of the United States are equal. The
apparent balances against us, while many of the States were engag-
ed in making loans from abroad, for objects of improvement, and
other purposes, arose from the fact that the far greater part of these
loans passed through our custom houses in the shape of goods, into
which they had been converted in Europe. These loans of the in-
debted States amount to above $200,000,000, and it is manifest from
what has been said, that this large balance when paid, with its ac-
cruing interest, must be met, directly or indirectly â€” sooner or later
â€” by the increased exportation of our agricultural and other staple
If the foregoing views are correct, the discharge of our foreign in-
debtedness will be more or less onerous, accordingly as the tariff' policy
adopted by the general government, is more or less restricted. In-
diana is now almost destitute of a currency, because there has been
a constant drain upon it, to pay our large balances due to the east-
ern cities. To supply this deficiency, we must have a ready and
profitable sale of our agricultural productions. A common argu-
ment in favor of the restrictive system, is, that it furnishes a home
market for the farmer. But a reference to the returns in the last
census, demonstrates that the agricultural productions of the United
States far exceed any domestic demand for consumption. And they
would be still greater, if the industry and enterprise of the farmer,
were stimulated by remunerating prices. The manufacturing States,
are themselves, largely agricultural. What they lack in supplying
the demand within their own limits collectively, could be easily fur-
nished by a single western State. Where then are the other agri-
cultural States to find a market for their surplus ? Or, should there
be an increase of manufacturers, sufficient to consume the surplus
produce of the whole country, where would their fabrics find a mar-
22 â– .â– ;â– â–
ket 1 "At liome, the demand would bear no proportion to the sup-
ply," and (if the doctrine of the restrictionists themselves is correct)
"abroad, others would undersell."
The wealth of a country consists in the products of labor, in its
largest sense. The aggregate of this wealth cannot be increased by
legislation ; it is limited by the number, strength, industry, and skill
of those engaged in its acquisition. Any legislation, therefore, that
gives certain individuals in the community, higher prices for their
products than they could ordinarily get in the natural course of
trade, or, in other words, bestows upon them more than their share
of the aggregate wealth created by the joint efforts of all, must do it
at the expense of others. We have an illustration of this
truth in the operation of the existing "protective system," as it is
styled by its advocates. We are now paying increased prices for
fabrics of the large manufactories, which are consequently dividing
exorbitant profits, many of them from 10 to 30 per cent., on their
investments. And yet the prices of western produce, our almost ex-
clusive reliance for meeting this large and increasing drain on our
means, are at the lowest ebb. We need a system that will "protect"
as equally as practicable, the industry of the farmer and small me-
chanic as we.l as that of the wealthy capitalist. The question is
not, whether duties on foreign goods shall be abolished, but what
shall be their extent ? Any amount of duty operates as a corres-
ponding protection to the large manufacturer of the rival domestic
article, who, therefore, under this system, must always have an ad-
vantage to that extent over the labor of the farmer. And ought he
not to be satisfied with this advantage when created by duties suffi-
cient for a reasonable revenue ?
It has not been proposed in Congress to reduce the tariff duties
below those established under the administrations of Washington,
Jeiferson or Madison. On the contrary, a willingness has been
manifested to go beyond them, if found necessary, for the economi-
cal expenditure of the government.
Many advocates of the so called "p-otective" policy profess to be
in favor of a system limited to the fiscal necessities of the countr}^
or as it is usually termed, a Revenue Tariff. But under the existing
tariff regulations, we find that the revenue will largely exceed the
legitimate wants of the Treasury. This not only tempts to lavish
prodigality on the part of government, but it operates as an op-
pressive tax on western labor. Its eft'ect is the greater or less exclu-
sion of imports, which, as has been shown, must limit the amount of
our exports to a corresponding extent. This results directly as a
twofold injury to the farmer, for, by the exclusion of foreign manu-
factures the demand for and prices of the domestic article which he
is compelled to purchase, is increased, while the demand for the pro-
duce of his own labor, thus accumulated at home, is limited, and the
price consequently diminished.
The most thorough conviction is felt, that our embarrassments
â– â€¢' â€¢ 23
must, to a greater or less extent, be aggravated, while such a system
continues to exist.
The great mass of our fellow citizens, I will not suffer myself to
doubt, are willing â€” nay, anxious â€” to meet all our just obligations.
With them it is not a question of inclination but of ability. But
the extent of the debt, the actual condition, and the means of the
State, and a more thorough examination of the whole subject, have
only served to confirm me in the opinion I expressed on a former
occasion, that it is beyond our power to meet our liabilities. Indeed,
so far as my observation has extended, the opinion advanced by my
predecessor in his last annual message, "that we cannot now pay
the interest on our public debt," is universally entertained among
the people of the State.
Since the last adjournment, I have received a communication
from Boston, enclosing a memorial from sundry of our bondholders
in London. It was only competent for me to acknowledge its re-
ceipt, express my individual opinion as to the ability of the State to
meet their claims, and engage to lay the memorial before the Gene-
ral Assembly, which is accordingly done.
Under all the circumstances, I would recommend that provision
be made by law for the appointment of one or more commissioners,
to receive any such communications as may be hereafter addressed
to the authorities of the State, in reference to this matter, in the hope
of making an arrangement as to all our just debts, which, while it
will bring the subject within our means, will save the honor of the
State, and be satisfactory to our creditors. Such an arrangement
should, of course, not be binding until ratified by the Legislature, or
what is perhaps better, until confirmed by a direct vote of the peo-
ple. The latter, it is understood, was the course adopted by Michi-
gan in relation to a portion of her debt, and that the arrangement
was duly ratified at the polls by her citizens.
Few among us, I hope, would be found willing to repudiate any
just claim against the State, and I have great confidence that if in
the manner proposed, a plan for extinguishing the debt is matured
and agreed upon, â€” one which in terms will be feasible and clearly
brought within the ability of the State to meet, that an appeal to the
moral sense of the citizen for his approval at the ballot box, will not
be made in vain.
The settlement of this question would infuse more of confidence
throughout the community, would improve the credit of our citizens
individually, would encourage immigration and hasten the improve-
ment of the country. Our creditors, too, when thoroughly inform-
ed of our condition, and the extent of our means, will, it is hoped,
see their own interest in an early adjustlnient of this matter, before
the present anxiety of the people to discharge the debt is succeeded
by apathy and despair.
In some of the indebted States the payment of their foreign liabil-
ities, by a sale of their public works, has been agitated. In favor of
this policy in our own State, it has been urged by some that our cre-
ditors advanced the loans, not on the ability of the State to make
payments with its disproportionate resources, with which they must
have lirst made themselves acquainted, but on the expected produc-
tiveness of the works for the construction of which the loans were
made â€” that they could be finished more cheaply and speedily by in-
dividual enterprise than by government â€” that when completed they
would be equally as profitable to the purchasers as to the State, if
she were the proprietor ; and that they could make payment for them
at the cost of construction, in our depreciated bonds at par. On
the other hand the advantage to the State by the adoption of such a
measure, it has been suggested, would be, that these works would
thus speedily be completed, which otherwise it would be impossible
for the State with her present means and credit to finish â€” that the
benefit to our citizens would, in that case, be as great as though the
works were constructed by the State â€” that the progress of the works
would give employment to our labor and a market for our produce,
and finally, that our State debt would thus be proportionally absorb-
â– ed. Provision might be made to limit the sales to the unfinished
works, to prevent the exaction of extravagant tolls and charges, and
that the works themselves should ultimately revert to and be the
property of the State. Other restrictions might be added if found
necessary for the rights of the respective parties.
I am aware that by an act of our Legislature of 1842, the privi-
lege was extended to our creditoi's to purchase from the State all or
any part of these works without restriction, making payment there-
for in our bonds at their face. Although no bonds have been re-
ceived in this way, it may have arisen from the fact, that it not only
requires the joint action of a considerable number of oar bondhold-
ers to make such an undertaking feasible or profitable, but they
might desire further legislative action to secure their rights.
Power might also be conferred on the same Commissioners to ne-
gotiate with our creditors in relation to the latter mode, subject, in
like manner, to the ratification of the people, if the Legislature, on
a full examination of the whole ground, shall deem it advisable.
By the adoption of some such measure for receiving overtures
from, and negotiating with, our creditors, preliminary to a final ad-
justment of the whole matter, we shall give stronger evidence of
that sincere desire, which I am satisfied is felt among us generally,
to restore the honor and credit of the State, and of its citizens, than
by vague and general professions against repudiation.
By the accompanying report of the Adjutant General it will be
seen, that under existing laws, no returns of the strength of the mi-