Indiana. General Assembly.

Documentary journal of Indiana 1856, part 1 (Volume 1856, pt.1) online

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to release the State from all liability for the payment of the princi-
pal or interest on one-half of the outstanding debt, the Bond
holders receiving in lieu of it the Wabash and Erie Canal, its lands
and revenues. The old Bonds were all to be surrendered, and new
Stocks issued for the other half of the debt as follows, viz:

1st. "Five per cent. State Stock," being for one-half of the
principal of the Bonds surrendered.

!2d. "Two and one-half percent. State Stock," being fur one-
half the accrued and one per cent, of accruing interest on the
Bonds surrendered.

For the payment of these two Stocks only is the State responsi-
ble. The Bonds issued for the principal were to draw four per
cent, interest from the consummation of the arrangement to the
ist of January, 1S53, and afterward five per cent, until redeemed,
which may be done at the pleasure of the State after the expiration
of twenty years. The Bonds issued for the accrued and one per
cent, accruing interest, being the 2i> per cent. Stocks, required no
interest to be paid on them until 1853, and then only at the rate
of 2^- per cent, per annum.

For the payment of the other half of the debt, principal and
interest, various kinds of Canal Stocks have been issued, for the
payment of which the State is in no wise responsible.

The condition in the arrangement, that the Bond holders should
complete the Canal from Terre Haute to Evansville has been com-
plied with, and the Canal is in operation through the entire Stale.

The following statement of the present condition of the Public
Debt is taken from the Report of the Agent of State.

Bonds Surrendered.

There were outstanding on the 1st day of November,

1855, 435 Bonds of $1,000 each, ■ $435,000 00

There have been surrendered since that time 10

Bonds of $1,000 each, 10,000 00

Leaving outstanding on the 1st Nov., Ib5b\ • • • $425,000 00

Five per cent. State Stock.

There had been issued on account of Bonds surren-
dered up to the 1st day of November, lb55,- • • -$5,301,500 00

There have been issued since that time on same ac-
count,- • ■ • 5,000 00

-Making total issued on 1st of November, 1856, • • -$5,300,500 00


Two and a-half per cent. Slate Slock.

There had been issued on account of Bonds surren-
dered up to the 1st day of November. 1S55, $2,036,973 50

There has been issued since that time on same ac-
count, ■ 3, S3? 50

Making total issued to 1st November. 1S56, $2,040,811 00

Five per cent. Preferred Canal Stcck.

There is outstanding of this stock same as reported

last year, $4,079,500 00

Fire per cent. Preferred Special Canal Stock.

There is outstanding of this stock same as reported

last year, $1,210,737 50

Five per cent. Deferred Canal Stock.

There had been issued on account of Bonds surren-
dered up to the 1st day of November, 1855, $1,222,000 00

There have been issued since that time on same ac-
count, 5,000 00

Making total issued to 1st Novembe , 1S5G, $1,227,000 00

Five per cent. Deferred Special Canal Slock.

There had been issued on account of Bonds surren-
dered up to the 1st day of November, 1855, • • • • $401,7-45 00
There have been issued since that time on same ac-
count, 3,S37 50

Making total issued on 1st November, 1856, $405,5*2 50


There have been eight coupons surrendered of $25

each since the 1st November, 1S55, making $200 00

[O 3 We have to repeat the remark made in last year's report
from this office, that there appears to be a mistake in the report as
to the amount of Bonds outstanding. The following is a correct
statement of the matter according to the data in the Auditor's
Office, viz:


The Bonds outstanding at the time of the State Debt

arrangement with the Bondholders amounted to, $11,048,000

The amount of State Stocks issued to

the 1st of November. 1856, is $5,306,500

Add same amount for Canal Stocks.- • 5,306,500


Leaving outstanding, $435,000

The error referred to seems to have occurred in the report of
December, 1852. The balance then outstanding is reported at
$982,000, when the figures show it should have" been $092,000.
The mistake has been perpetuated ever since. — Auditor of State.


According to the legers of this Office the amounts of interest
paid each fiscal year, since the commencement of the arrangement,
is as follows, viz:

In the year 1847, $78,600 00

In the year 184S, 1S3,730 00

In the year 1849, 188,344 00

In the year 1850, 188.595 00

In the year 1851, '203,718 00

In the year 1852, 199,784 00

In the year 1S53, -249,127 75

In the year 1854, 298,255 52

In the year 1855, 306,569 14

In the year 1856, • • • • • 316,674 34

82,213,397 75


Amount audi led for 1854, $3,756 50

Amount and ted for 1855, 5,050 00

Amount audited for 1S56, : ,260 00

$12,066 50

The amount of State Stocks redeemed since the State Debt
arrangement, is $378,234, of which 8150,000 are five per cents
and 8228,234 two and a half per cents. Of the five per cent* re-
deemed $75,000 were received from the Madison and Indianapolis
Railroad Company for the amount due the State on account of
her interest in the road.



Amount audited for incidental expenses, $3,9S0 93

The Agent has received no warrant for his salary during the
last year.

It may not be out of place, in this connection, to take a brief re-
trospect of the former and contrast it with the present condition of
our financial affairs. The internal improvement bill, as has been
stated, was passed in January, 1S36, at a time when everything
way buoyant and prosperous, and when every kind of real estate
was sought after with avidity. At that time, and indeed for some
years previous, during which the eastern part of the Wabash and
Erie Canal was in a course of construction, no difficulty was expe-
rienced in the sale of State Bonds on favorable terms ; and for a
short time our public works were vigorously prosecuted, the large
amount of money disbursed giving a rapid impetus to every species
of enterprise. In 1838 a revulsion took place, which put a stop to
speculation in real estate, prevented the further sale of State
Bonds, suspended operations on the public works, caused a suspen-
sion of specie payments by the Banks, and produced general em-
barrassment, not in Indiana only, but, to a greater or less extent.
in every part of the Union. At that time no facilities existed in
Indiana for the transportation of produce to market except by
wagons, over indifferent roads, and of course it commanded a low
price at the place of its production. When the public works were
suspended, considerable balances were due to contractors as well
as to the Banks for advances made in anticipation of the con-
tinued sale of Bonds; to meet which, with other pressing demands,
the revenues of the State were wholly inadequate. For the pur-
pose of relieving, as far as was in the power of the Legislature to
do so, the demands of the contractors on the public works, a large
amount of Treasury Notes, bearing six per cent, interest, was is-
sued in the early part of 1S40, and paid to them; and for the pur-
pose of meeting the indebtedness to the Banks, another species of
Treasury Notes, denominated Bank Scrip, bearing five per cent,
interest was issued early in 1S42, and delivered to them in pay-
ment for advances made by them. These Treasury Notes were
receivable for State dues, and constituted the principal currency
lor the payment of taxes. It w ? as even difficult to find means to
meet the ordinary expenditures of the State Government. T,he
Fund Commissioners managed to pay the interest on the public
debt until 1S41, after which it. remained unpaid until 1847, when
the arrangement with the bondholders was consummated. At the
period when this arrangement was made, the value of all taxables
in the State amounted to about $123,000,000, whilst the value of
taxables for 1856, if returns were received from all the counties,
would exceed 8300,000,000, and if a new valuation of real


estate had been made in 1855, as was contemplated by law, the
value of taxables would now reach nearly 8400,000,000. The pop-
ulation of Indiana in 1S47 was probably about 800,000, whilst it
is now but little short of 1,500,000. The public debt, now a little
over $7,000,000, has become, in view of the growing wealth and
population of the State, a comparatively small matter, and is within
the easy control of the public authorities. Jf it were parcelled out
equally among the voters of the State, the share of each would not
exceed $30. Ever since the new arrangement was made, the in-
terest of the public debt has been promptly paid, and our bonds
are in as good credit as any five per cent, securities in the mar-
ket. Thus with a credit fully redeemed, with a population and
wealth thus greatly augmented, with common schools established
in every neighborhood, and with railroads running through almost
every part of the State, Indiana needs but wise legislation, and
prudent and skillful management in the various administrative de
partme'nts, to preserve her present elevated financial credit, and se-
cure to her citizens enduring prosperity.


Six per cent. Treasury Notes.

Total amount issued, • • $1,500,000 00

Total amount redeemed to Oct. 31,

1853, $1,501,330 00

Total amount redeemed since, •• 11,0S5 00

1,512,415 00

Excess of redemption, $12,415 00

Five per cent. Treasury Notes.

Total amount issued, $7'22,(>40 00

Total amount redeemed to Oct. 31,

1853, $732,915 00

Total amount redeemed since, 2,030 00

235,545 00

Excess of redemption, $12,9U5 00

Quarter per cent. Treasury Notes.

Total amount issued, $70,000 00

Total amount redeemed to Oct. 31, 1853, 76,093 00

Excess of redemption, $G,995 00


Interest Account.

Interest allowed and paid on Treasury Notes to the 31st Octo-
ber, 1855, viz :

On six per cents, • • $337,523 5 i

On five per cents,- ■ 163,064 45

On quarter per cents, G57 92

Total, $501,245 91


By the first and second sections of the act to provide for a gene-
ral system of Common Schools, approved March 5, 1S55, it is de-
clared that the Common School Fund shall consist of the aggregate
amount of funds arising from the following sources, viz:


1 — The sum of ten cents on each one hundred dollars, of the
list of property taxable for State purposes.

II. — The Surplus Revenue Fund.

III. — All funds heretofore appropriated to Common Schools.

IV. — The Saline Fund.

V. — The Bank Tax Fund.

VI. — The funds derived from the sale of county seminaries.

Vll. — All funds derived from fines and forfeitures, on account of
breaches of the penal laws of the State.

VIII. — All funds derived from estates which shall escheat to the
State for want of heirs or kindred entitled to such property.

IX. — All funds derived from the proceeds and sales of all lands
which have been, or may hereafter be, granted to the State, where
no special purpose is expressed in the grant.

X. — The proceeds of the sales of the swamp lands granted to
the State of Indiana, by the act of Congress of September 2S, 1S50,
after deducting the expense of selecting and draining the same.

XL — The faxes which may from time to time be assessed upon
the property of corporations, for Common School purposes.

XII. — The iunds arising from the 114th section of the charter
of the State Bank of Indiana.

XIII. — All unreclaimed fees as provided by law.

It will be observed that the school law of 1^55, in the enumera-
tion of the items constitutiny the Common School Fund, leaves out

the Congressional Township Fund, which was embraced by the
law of 1S52. This is occasioned by a decision of the Supreme
Court, which declares that to be a special or local fund, and the


law (section 155) charges the County Auditors with the en re and
disbursement of the proceeds of said fund.

The amount of ihi> fund received and disbursed during the fiscal
year ending Oct. 31, 1S56, was as follows, viz :


On account of delinquent tax of IS54 and previous

years,- • $32,689 0?

On account of tax of 1S55, 286,337 43

On account of delinquent tax of 1S55, 1 1,898 31

On account of interest collected by County Treasu-
rers, 53,446 33

$387,371 14


Expense of Fund, $1,485 15

Distributed to Counties, 331,942 18

Taxes refunded, 350 01

$333,777 34

Excess of receipts over disbursement-, • • • ■ $53,593 SO

This shows the receipts and disbursements of this fund during
the fiscal year ending October 31, 1S56.

The balance clue the School Fund on the 31st day of
October. 1855, as appears by the last annual re-
port, was $39,288 OS

Receipts during the last fiscal year from all sources, 3S7,37i 14

Total, $4i26 'iS2 22

The disbursements, as shown above, were 333,777 34

Balance due, $92,SS1 8S

At the close of the fiscal year, a few of the Counties had not
arranged their school accounts, and they are not embraced in the
foregoing statements. The arrangement with them, however, will
not materially vary the balance due.

For details of the apportionment of this fund, of the taxes and
interest due, and of the number of children between the ages of
five and twenty-one years, reference is made to Statement No. 6
in the Appendix.

So far as regards the condition and operations of the School
Funds in the several Counties, the remark made in the last annual


report from this office, may be repeated, that the information fur-
nished is so incomplete, (many Counties sending no report at all,)
that no satisfactory exhibition can be made. For, such information
reference is made to the report of the Superintendent of Public
Instruction, who is probably in possession of more full and satis-
factory information.


Under Superintendence of Trustees.



There was remaining in the hands of the Trustees

on the 1st day of October, 1855, the sum of $24S,435 74

The receipts by Trustees for the year ending Sept. 30,
1856, were as follows, viz :

From tolls and water rents, • 128,486 50

From lands east and west of Tippecanoe, 19,40S 50

From lands in Vincennes District, 87,760 07

From interest on deposites, 3,087 18

From miscellaneous sources, 150 00

Total amount, - - $487,3*27 99


The expenditures by Trustees during the same period were as fol-
lows, viz :

For general expenses of canal, $15,333 61

For ordinary repairs of canal, 71,551 43

For extraordinary repairs of canal, 25,183 91

For rebuilding bridges, 2,890 58

For cost of superintendence, 8,765 72

For cost of collection, 8,521 56

For construction from Terre Haute to Point Com-
merce, 13,493 43

For construction from Petersburgh to Evansville,- • !,32) 00

For expense of engineering, 3,505 21

For damages and water power, 3,896 4S

For expense of land office east and west of Tippeca-
noe, 277 87

For expense of land office in Vincennes District, • • 1,313 74

For interest on Wabash and Erie canal bonds,- • • • 5,240 00

For interest on advance of ^800,000 and exchange, 38,82b* 33

For bondhonders' subscriptions, first instalment,- • • 400 00

Total amount, $200,524 87


Total receipts and balance on hand brought down,- $4S7,327 99

Total expenditures brought down, 200,521 87

Balance on hand Oct. 1, 1856, • • • $286,802 12

The grand totql of receipts and expenditures on account of the
Wabash and Erie Canal from its commencement to October 1,
1856, is as follows, viz:


Total bv State to surrender to Trustees, $1,701,459 44

Total bv Trustees to Oct. 1st, 1847, 302,856 73

Total by Trustees for year ending Oct. 1st, 1848,- 385,606 95

Total by Trustees for year ending Oct. 1st, 1849,- 396,836 92

Total by Trustees for year ending Oct. 1st, 1850,- 521,972 30

Total by Trustees for year ending Oct. 1st, 1851,- 365,761 43

Total by Trustees for year ending Oct. 1st, 1852,- 460,452 04

Total by Trustees for year ending Oct. 1st, 1853,- 657,399 77

Total by Trustees for year ending Oct. 1st, 1854, 520.681 10

Total by Trustees for year ending Oct. 1st, 1S55,. 252,076 62

Total by Trustees for year ending Oct. 1st, 1856,- 238,892 25

Total receipts from all sources to Oct. 1st, 1S56, $5,803,995 55


Total by State to surrender to Trustees.' • $5,321,565 82

Total by Trustees to Oct. 1st, 1847, 7, 120 77

Total by Trustees for year ending Oct. 1st, 1848, • 354,31 1 62

Total by Trustees for year ending Oct. 1st, 1849,- 531,617 29

Total by Trustees for year ending Oct. 1st, 1850,- 519,013 13

Total bv Trustees for year ending Oct. 1st, 1851,- 414 273 27

Total by Trustees for year ending Oct. 1st, 1852,- 415,61 L 30

Total by Trustees for year ending Oct. 1st, 1853,. 625,0 14 19

Total by Trustees for year ending Oct. 1st, 1854,- 325,724 48

Total by Trustees for vear ending Oct. 1st, 1S55,- 422,192 07

Total by Trustees for year ending Oct. 1st, 1856,- 200.524 87

Total cost to Oct. 1st, 1856, $9,137,298 81

Total receipts brought down, $5,S03,995 55

Deduct bondholders subscription to be refunded out

of revenues of Canal, 653.430 03

Total net receipts, $5,150 / 65 52

Total net expenditures, 9,137,208 81

Grand total of expenses over receipts, $3,980,733 29


Total expenditures by Trustees till Oct. 1, 1856,- . $3,815,732 99
Total receipts by Trustees to Oct. 1, 185ii, exclu-
sive of bondholders subscription, 3,440,106 08

Excess of expenditures over receipt-, $366,626 91


The whole amount of (anal Land Scrip east, issued

by the Auditor and Treasurer of State, was $306,310 00

The amount issued previously by Commissioners of

Wabash and Erie Canal, 89,909 05

Total issued. $396,219 05

There has been redeemed and cancelled at ilie Treas-
ury, the sum of 385,427 64

Leaving outstanding, • $10,791 41

The interest on scrip east of Tippecanoe redeemed

and cancelled in 1853 and l!?54, was $502 75


Total of scrip issued, ■• $819,980 00

Total amount redeemed and cancelled,- ........... 815,190 00

Leaving outstanding, • $4,7 90 00

The amount of tolls collected at the various offices on the Wa-
bash and Erie Canal has not been furnished, and cannot therefore
be given.


As was stated in the last annual Report from ihis office to the
Governor, a considerable degree of embarra sme'iil and difficulty
have been experienced in relation to ti e -drainage and ditching of
the Swamp Lands. At the close of the fi-cai year 1354, a large
balance, amounting to $398,831 61, was reported to be due to the
Swamp Land fund, and Commissioners in many counties had made
heavy contracts for drainage under the be ief that theie was am-
ple means in the Treasury to pay for the work as estima es should
be furnished by the engineers. A laige amount of the funds due
to the Swamp Land account having been used for other pui poses,
it became apparent, early in 1855, that unless a cluck should be put
upon the operations of ditching, there w >uid not be funds to meet
the demands from that quarter. In view of ihis difficulty, the
Governor and Treasurer issued a circular early in March of that


year, requesting that no new contract should be made until in-
formation should be given that the Treasury was replenished ;
and in June following, the same officers issued another circular,
authorizing commissioners to make contracts for draining and
ditching, provided the contractors would take lands in payment,
the lettings to be made as prescribed by law. Under that arrange-
ment a considerable amount of work was done during the two
last years, payments for contracts previously entered into having
in the mean time been made in money at the Treasury. The bal-
ance due at the commencement of the fiscal year 1S55 was re-
duced during that year $127,408 44, leaving at the close of 1855
a balance of 271,423 17. This balance was reduced during the
fiscal year just expired the sum of $42,457 73, leaving still a bal-
ance due of $228,965 44.

The receipts during the fiscal year on account of

sales of land amount to §74,860 S9

The expenditures during the same time were 117,31S 62

Excess of expenditures over receipts, $42,457 73

The whole receipts and expenditures on account of Swamp
Lands since the commencement to October 31st, 1856, are as fol-
lows, viz :

Whole amount of receipts, $882,314 76

Whole amount of expenditures, 653,349 32

Balance October 31, 1856, $228,965 44


The assessment law of 1852, section 73, requires the county
assessors, in making returns to the county auditors of the taxables
of the respective townships, " to set down in appropriate columns,
the number of domestic and farm animals of all kinds, and the
quantities in bushels and tons of farm products of every kind in
his township." The same section also makes it the duty of every
county auditor in the State, alter receiving the statements from
the county assessors, to report the same, under appropriate heads,
to the Auditor of State; and further provides that the Auditor of
State shall embody a condensed statement of the matters contained
in the reports in his annual report to the General Assembly.

All the information which has been furnished this office will be
found in Statement No. 7 in the Appendix. At the time when this
Report must necessarily be put to press, returns have only been
received from eighty-three of the ninety-one counties of the State.
From the counties of Benton, Hamilton, Howard, Huntington,
Ohio, Shelby, Starke, and Steuben no report has been received.


Even on the supposition that the reports which have come to hand
are full and complete, the failure to obtain any information from
eight counties makes the totals of the columns fall far short of the
amounts which complete returns would furnish. It is however
confidently believed that the totals of the counties from which re-
ports have been made are very much below what a full and com-
plete exhibit would show. If the Legislature shall deem it proper
to continue the effort to obtain statistical information on this sub-
ject, it is respectfully suggested whether some plan may not be
adopted by which the object can be more satisfactorily accom-


Annexed is an abstract of the present condition of the suspended
Free Banks, as compared with their condition at the time of my
last annual report. By the recapitulation of this abstract, it will
be seen that the outstanding circulation of these Banks at that

time, was $155,818

Since which there has been redeemed,- • $101,759
Less excess on Plymouth Bank, New
York Stock Bank, and Traders' Bank,

Terre Haute, 1,130


Leaving yet outstanding, $55,180

The circulation of the following Banks, as shown on the book*
of my predecessor to have been outstanding at the time of my as-
suming the duties of this office, has all been redeemed; and' the
securities and other assets turned over to me, for the redemption of
the circulation then shown to have been outstanding, have been
all exhausted, viz:

Goverment Stock Bank.

Merchants Bank at Lafayette.

Merchants Bank at Springfield.

State Stock Bank at Logansport.

Public Stock Bank at Newport.

Steuben County Bank.

Bank of Rensselaer.

Bank of Fort Wayne.

Wabash River Bank at Newville.

Trader's at Terre Haute.

Greene County Bank at Bloomfield.

Farmers and Mechanics' Bank at Rensselaer.

Upper Wabash Bank.

Perry County Bank.

Starke County Bank.

Wabash River Bank at New Corydon.

Wabash River Bank at Jasper.
1 D. J.— 11.



The tabular statement No 10, gives the kind and amount of Bonds
on deposit by each of the specie-paying Free Banks remaining under
the General Banking Law of; May 28th 1852, and the amount of
circulating notes outstanding. By i his it will be seen that the cir-
culation of these Banks is but seven hundred and seventy-seven
thousand and thirty-nine dollars, while the securities on deposit,
consisting of the very best of State Stocks, amount at their par
value, to nine hundred and thiee thousand nine hundred and nine-
ty-four dollars.

These securities consist of the following State Stocks, viz:

Indiana 5 per cent $2S8,000 00

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