Democratic Sentinel, Volume 16, Number 42, Rensselaer, Jasper County, 4 November 1892 — STATE DEBT INTEREST. [ARTICLE]

STATE DEBT INTEREST.

Over Foot Millions Paid on ft rrjsgnt oi Republican Legislature. The Indianapolis Journal in a recent Issue said: If you have a neighbor who is inclined to doubt that Democracy is a tax, clip out this paragraph and show him the following figures, which represent the interest paid by the people of Indiana, during the past ten years, on money borrowed to meet current expenses: 1882 $280,886 24 1883 391,018 46 1884 285,114 9fl 1885 294,873 44 1886 .• 195,029 00 1887 439.494 58 1888 346,236 2S 1889 277,134 08 1890 274,074 68 1891 279,129 91 Total am’t paid in tei/Vears. $3,062,971 68 This is a shames ul hse Ml of Democratic mismanagement and the debt is still increasing. The above amounts represent the total interest paid each year on both the foreign and domestic debt and not “on money borrowed to meet current expenses.” ' The following table compiled from the reports of the auditor of state i§ authentic as any one taking the pains to investigate will find out. What does it show? It proves that the “interest paid by the people of Indiana during the last ten years, on money borrowed to meet current expenses” is not $3,062,971.68, but $844,563.96, as The Journal would make the credulous believe.

Interest on State Debts Since 1882. Foreign. Domestic. 1882 $46,579 25 $234,286 99 1883 156,729 19 234,286 99 1884 29,578 00 255,636 99 1885 47,838 45 247,036 99 1886 59,135 50 135,893 50 1887 64,334'55 875,255 48 1888 74,349 30 271,880 99 1889 95,549 49 181,613 64 1890 132,607 50 141,467 18 1891 137,862 73 141,467 18 Totals $844,563 96 $2,218,731 93 The large amount of interest paid on the foreign debt in 1882 is accounted for by the fact that during that year twenty-four old internal improvement bonds were paid with tlxe accumulated interest. This inte'est amounted to $110,149.92. These bonds had been in litigation a number of year 3. The reduction in interest on Democratic debt since 1889 is caused by the refunding of the school fund bonds at 3 per cent., effecting a saving in interest to the state of $117,136.99 per annum. The act authorizing this refunding was passed by the Democratic legislature of 1889. The whole domestic debt, with exception of $144,000, was created by Republican legislatures. In the report of State Auditor Carr for 1888, the following public debt statestatement is made: Debt Due by die State to Its Several Institutions. Five per cent, bond held by Purdue university tit Lafayette, Irul., due April 1. 1901 (authorized by act of The state university (Bloomington) bond in custody of treasurer of state, dated Oct. 1, 1885, bearing 5 per cent. , interest $60,000 00 The state university (Bloomington) bond in custody of treasurer of state, dated Feb. 15,1837, bearing 5 per cent. interest 60,000 00 The state university (Bloomington) bond in custody of treasurer of state, dated Sept. 1, 1887, bearing 5 per cent. Interest 24,000 00 Total $484,000 00 Debt Due by the State to Its School Fund, Which It is Proposed to llefuud. School fund bond No. I.issued .Tan. 1,1867, bearing 6 per cent, interest $709,024 85 School fund bond No. 2, issued Jan. 20, 1807, bearing 6 per cent, interest... 2,658,057 30 School fund bond No 3, issued . May 1, 1868, bearing 6 per cent, interest... 134,234 00 School fund bond No. 4, issued Jan. 20, 1871, bearing 0 per cent, interest ... 177,700 00 School fund bond No. 5, issued May 3, 1873, bearing 0 per cent, interest... 175,767 07 Total foreign debt $4,388,783 22 The legislature of 1881 which issued the Purdue university bonds was Republican in both branches. The state university bonds to the amount of $144,000 were authorized by Democratic legislatures. The university bonds cannot be regarded as a debt in the sense that the state borrowed money, for the}' were issued as a gift to the university. Even The Journal will not deny that the enormous debt of $3,904,783.22 on account of five school fund bonds was created by Republican legislatures. There was in the treasury when Morton became governor, nearly four million dollars belonging to tb; school fund, which had accumulated under Democratic administration through a sinking fund and the state bank. When the Democrats resumed the state government under Governor Hendricks there was nothing left of this fund. The money had been borrowed under Morton and Baker and turned to the current funds and as such was expended. The legislature, however, issued five school fund bonds to vl e, amount of $14,904,783.22 upon which “the ! people of Indiana during the last ton j years have paid” over two millon del- ■ lars. From the time they were issued, over . twenty years ago, until refunded by the

Democratic legislature ot 1889, the “people of Indiana” paid 6 per cent, on this Republican debt, amounting annually to $144,000, or over $4,000,000 since they were issued. The interest of this Republican debt was reduced from 6 to 3 per cent, by the Democratic legislature of 1889, by refunding it. Bonds were issued bearing 3 per cent., which sold in New York at a premium. With the proceeds the school fund bonds were cancelled and the money distributed among the counties to be loaned out at 6 per cent, in sums not exceeding $2,000. This debt was thus transferred from a domestic to a foreign debt. Just think of it! Over $4,000,000 in interest, which the people of Indiana have lmd to pay on a debt created by Republicans over twenty-five years ago. No wonder the state could not collect enough revenues to run the government without borrowing. State Debt. On Oct. 31, 1891, the entire debt of the state was $8,830,615.12, and that is the amount of the debt at the present time. In the public debt statements the debt is divided into foreign and domestic. The foreign debt is that owed by the state to the non-residents, and the domestic debt is that which the state owes to itself; such as the school fund debt, the debt due to the Purdue university, and the debt due to the permanent endowment fund of the state university. The legislature of 1889 authorized the refunding of the school fund debt, and that was done; and this part of the debt is now called in the public debt statement a part of the foreign debt of the state, but in considering state debt this should still be designated as part of the domestic debt, as the general fund of the state treasury received no benefit from these refunding operations. The state debt, therefore, at the present time, should be divided as follows: Foreign debt $4,441,615 12 Domestic debt 4,389,000 00 Tota l $8,830,615 12 On the 31st of October, 1882, the foreign and domestic debt of the state was as follows: Domestic debt $4,244,783 22 Foreign debt 631,825 12 T °tal ' $4,876,608 34 This shows that there has been an increase in the foreign debt of the state since Oct. 31, 1882, and up to the present time, of $3,809,790. Beginning with the legislature of 1883 large sums of money have been appropriated for erecting new buildings for benevolent purposes and for additions to the benevolent, penal and reformatory institutions (if the state that were in existence at that time. The following table will show the amounts appropriated by the legislatures of 1883, 1885, 1887 1889, 1891:

New insane hospitals at Evansville, Logansport and Richmond ... $1,401,722 66 bcliool, feeb’e-minded youth, Fort Wayne 314,911 00 boh hers and sailors’ orphans’ home, Knightstown 165,000 00 Central insane hospital, Indianapolis 114,500 00 Deaf and dumb institution, Indianapolis 67,500 Institute for blind, Jndianapo ' lis -; ; 55,000 00 heniale prison ami reformatory, Indianapolis 42 oqo 99 Reform school for boys, Plainfieltl 63,300 0C btate university, Bloomingbta'e normal school, Terre Haute 100 000 00 Pm due university, Lafayette State prison north, Michigan «ty... 43,340 00 State prison south, JeffersonSoldiers’ and sailors’ monument, Ind: napolis.. 230,000 00 New state house, Indianapolis. 834,130 00 , . $3,598,303 66 10 this amount should be added the amount paid on the state debt since 1882, viz.: twenty-four internal improvement bonds and interest on same, paid May 23, 1883 434 i 49 93 Five per cent, state stock certificates, anil interest on same, paid April 8,1891.... 20,855 63 Making a total of $3,752,809 21 To meet these extraordinary expenses it became necessary to increase the foreign debt of the state to its present amount. In additition to these extraordinary expenses the maintenance of the new and enlarged institutions of the state has largely increased the ordinary expenses of the state government, and there has been no increase in the rev. enues of the state from taxation during the period named. High taxes are like the high fences about the Homestead mills. Both serve the team of protection and alike, according to Republican doctrine, purport to regulate American wages.—Richmond Independent. The great Pittsburg riot is only a beginning of what this country will see if McKinleyism is continued and a force bill passed. This is a time when every American ought to consider carefully the needs of the hour.—Tell City News. Nothing can well be plainer than that this is not a high tariff year in the United States of America, but there are none so impervious to the doom awaiting ! them as is the partisan blinded by his i own prejudices.—Noblesville Democrat. The most imposing and impressive' Cleveland meetings of the campaign are now held daily and nightly by the thou- 1 sands of employes of Mr. Carnegie’s steel works near Pittsburg.—Washington Advertiser. Carnegie, the Pennsylvania iron baron, did not let quite enough time elapse between trying to cut down the wages of his workmen and cabling his congratulations to Harrison.—Ripley Journal. The Homestead trouble has already cost more money to the mill owners and operatives than the difference in wages contended for would have amounted to j in three years.—New Albany Ledger.