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The State Debt

The State Debt image
Parent Issue
Day
4
Month
August
Year
1845
Copyright
Public Domain
OCR Text

We nrc inclined to believe that, on the whol?, a Stnte debt is a Slate evil; and tvliere the evil lins bren incurrei, it will be wise in the pcople lo remove il as eoon as possi'jle, nnd in some Slales meafures have already been taken for its pircvénüon in future. The Sta'e of Louisiann, nccording lo its popuialion and resources, is more henvily in debt than nny otlior State; and by tbeir new State ConMiituion tlïèlegiflèture are expreesly proIiibiled from cre-ating a debt, excepting in ext reine cases, unless by conpent of the prop'e. Tlie pei-ple of Michigan have ako incorporated a similar provisión into their fundamental law. 'Pliis is doubt !ess wiíc as a matter of preenlion: but how ore wo to pay the inlerpei on the State debts nlieady enntracied' This is a procticnl quefetion which stares theciii zens of Michigan in the face; ond it is one which they must meet. But how much is our State Debl? The Govrrnor's Mesfoge of lastjanuary t-howe tlial it was then 84,077,177,38. A report of a Lrgis'otiveCoinmitice suites that on Jan. 1, 13 1G, thore will be due from the State the eiim of $1D,&3!,75, inc'.uding the onnual expenses of the State, whirh ore obotit 70,000. To meet thi?, tliere ts r o: hing but the receiptF JVom the Central Railroad, the nett piofiis of whicli are not cstimnted by the most sanguine at more than $100, 000, leaving a bnlnnce of ,300.000 due next January, but entirely unpro'viÖèd for. So much for our immtdialc nee tf=.But the ofTairs of a Stnte fIiouM beconductrl on a well-considcred and syslematic plan. Wlmt sliall ihat plan be? Let os endeavor to look into the future a lili lo, and consitlcr wliat is best !o be dono. Onr Siate debt is a littlc more than Four Millions oí Dollars. This ve are not able to pay at present; and lliereforc ve take it tha'. we mu:t pay interest on it to our crcditois wfaó evor ihev miy be. Wedo not know the rate of interest paid on all the State liabilities, bul wc wil) a3surae it lo be bíx per cent, which wUl give on animal interest to be paid by the State of $240,000. Cali the annual State expenses $60,000, and you have a yearly expenditure of S00,000 which must be níet by the pcople. The quesüon i?, hoto shall they nieet i? It is vain to look to frnr Public Works for eufiicit-nt resources. The Soiitliern Ruüroad tías not yet paid n cent of'nell incomeir.to the Treasury, wiiilc L lias been a cominual scuice of expense. Nor wilt it pay any lliing of rno ment for many years to come. Our only reeource is the Central R.-iilroad. Tlie nett receipls of last yeor wore Y1-21,750. They will not probably exceed that tlie prosent yeár. líut the general condition of the ruad houlil be considered. Jt is niosily new, and on thc new Bcctions thereforecosis bnt iitle for repairs. But the Governor's Message asserts that 100,000 w necátd noto to buy iron to !ay enew thc superstructura betweeivAnn Arbor nnd Detroit, and that tlie repairs gcwrally vviJl soí n be beavy. lío declares it as liis opinion tJiat tlie road, ulen cotnpktcd to St. Joseph, will not yiold more thun six per cent above a!l Us expenses. VVü re incline! to think ibis estímale a fair one for semotime to come, if the road reñíame the proprty of the Stoto. Thc estima'ed cost of the road to St. Joaeph is i?2,'100,00(). Piv or cent on tln'ígives us St'M.OOO as ilie nveroge nett inconie of the road when cornpleled. Dedtict this f rom 8.00,000. theamount of our annual lía- 'büities, and we hnve a balcncc left of $;iO6,'000 lo be provided for in fome olhrr wny. We hav?henrJ five methtxh of meeting 'his Y ib lit'v propí By leaving it unpaidtill no "git rcady" lo fvj it a't erjne future l.me:By ïssumg Si ate Scrip ivhenever il may be necess:iry: Dy makiUg anoiher loan to pay tliis interest : B' imposingj u direct tax; nnd By .sell.níí ilic Public Works, end lliua li[iiidatiiiíí uur üabilitis. The tirt proposal shouM be nt once rcjrcted by every hottest man. The fait h ot' Ihe Staic tiióst be kep' invinlatr. Tae pecond, we lbi.uk, wi'l mct uilli bot Ule fnvor. Il would be attend d by conainnl eiiibarraPFincnl anJ Joss lo ibe Stutc and the cilizon?, tchile ihc Public DAH would be enntlanlfy uccumulating: for a scrip is not moiiey, bul a promibC to pny it. Becidee, the scrip system hos been tried, and the results iave nol been satisfactory. The thircl proposnl isto make a direct loan from year to year of $156,000, or whntever sum may be deemed necessary to deiray the unniial State liobilires. By thia metliod also the sutn total ot' our State Debt would be sieadily on Uiejnciease while the temptfltions 10 ex'.rr.vagant legislaiion would bemulliplied. Bet-ioes, no smoll portion of the loun would stick to the tingers of üose employrd in making it, and in handling the cash. Our past expenence in th'is respect is cnough. In addition to this, wo do not believe the con?ent of the people could be obtained for c nlractinjr o loan.The fourfh proposilion is to impose a direct tax iipon the people to meet thia deficiency. f tbere be 300,000 people n the State, the aiinual tax of each ma, w ornan nnd child wül be a little more than Iiolfa doliar each, or three dollars to each family ofsix persons. But 88 a portion of the families do not pay any taxa?, the burden will come so much the heavier on those who do. Henee the avernge amount of the tax to ench tax p.iyer mav be cstimatnd at about four dollar?, u liich will bring n heavy nssessment on lo the larga property holders. We have not now tlie means at hand of substantiating this estimate by s;atstic.s, but we presume il will be ■ound a very moderate one. It is to be recollecled tlint this tax is to be perpetual. At least, atcording to present appcurances.it would be needed for a generation. It woukl also be as?esse upon all portions of tho State, and chiefly for maintaining a systrm of public works by which only particulnr portions of the State would bedirectly benciilled, while tl.e whole State would be damagcd, in a pecuniary point of view. to the amount of the expenses above the recoipt?, which amount of dnmage the whole State would be required to pay. We are inclmed to believe that fiie Stale Tax here proposed would be fèlt as gtievous in the border setlenients, and would be puid by theinhabitonts ery reludantly. Besi!e?, t 'is vpry dmibtful whether a system of tnzátion of this kind would be perinanently submitted to by the peple, wliile títere werc abundance of coun- ellore ever rendy to suggest to them that this groivous burden mighl be made to cease at any ime by selling the Public Works. So fur, then, as we can see, the alfernntive heforc the people of Michigan is heavy Direct Poxation, or a sale of the Public Works. - Like a large portion of ourcitizens, we have ben well aware that theie were two sides to this questior?, and we have been somewhat in doubt what course was wisest, but our reflections have led ns to believe that, nnder our present circumstances, the latter alternative should be preferred. Bnt the Public Works shoold be sold only on just and equitable terms. Tl-.ey should all be sold togelher. ït would be no object to sell the Central Railioad, and keep theotlicr works which cost much annually and yield nol hing. Tiiey ehould nol be sold for much, if any ess than the cost. Their real valué cannoc be ajcertained without trial: and the cost is the best criterion of their market volne that vel c-xists. We, thercfore, would substantially abide by t.They sh ultl be sold on'y on coiidition of receiving the boncis of the State to be cancel led at the time of Any other arrangement will make the álate a subjrct for sharpers to try their wits upon. Pay doten should bc the only propnsition in this case. Tlic best possible security of the citizensngainst the fraud and oppression of the future proprietors of the Pnbüc VVork9 shouldbe re tiired as o condilion of their sale. Tlnder these lestriclions our minde pre pondérate n favor of a sale of the Public Works, lor Ihe followmg reasons: 1. The proceeds of the sale woukl enncel nearly o I the State debí. The cost of the Railroods last January was ihree and o quarter millions. Supposing them to bc öold for that eum, the bnlanco of our indebtedness wouid not much, if any, exceed one million, which mijlit be cancelled from other resources of the Stato, without resorting to perma-. nent tsXfttlon. 2. The R'iods migh. be as well managed by a cotnpony as they now are by the State. If tlie rale of fa ie on the roads be as cheap as t now 't?, and the business bedone as well ant ;is promptl)', we do nol see but the citizens will derive as tnuch benefit from the roads as they would if they weie ewned by theState. J"3. The qurst.ion of bnving nny Public Works would ihon bc deciïively settled ia llie minda of tho ponple. 4. Wc could soon etinguisli our State dcbt, nnd thus be exemp'. from any more tuxation thnn woold be mceesary to meet the anmial cxprnícs of the State ndministralion. - Whercas UiC expprience of all ualinns teaclies us Ihat n. Iicavy State debt has been folluwcd, in the end, by heavy laxiiion. 5. The time of the Lcgidalure vohlö nbt then be sn Inrgely occupifd with 'hcorriHl ïmprovemrnt" bil!?, and the deíuilá connrcied with th Public Work?, and the ecraiOro uf ihe Legisla) ure miglit thereby be eburtened one third or one hajf. 6. Tlie fuIc ill tend to einiplify the soliere of Government operalions, nnd it within r.arrower nnd more legitímate lioiiis. The pi icipal object of goverument should be to pri;ect llie riglits of each individual Bgniusi all agrcssion, domeeüc or from abroad; atidthe transportación of the persona and produce of the citizens is a biitineps as foreign to this object as would bc tho fiirnishiiiff of thcni wiih garmor.ts to wcar, or tools and impleinents to use.

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Subjects
Signal of Liberty
Old News