Democratic Sentinel, Volume 17, Number 14, Rensselaer, Jasper County, 21 April 1893 — Bonds Returned. [ARTICLE]

Bonds Returned.

FIRST PAYMENT ON THE STATE DEBT FOR 25 YEARS. State Treasurer Call Receives Canceled Bo.ds for $340,000 from New York —This Showing Is Due to the Present Beneficent Tax Laws—Condition of the State Debt. Indiai apolis Sentinel. “This,’’said State Treasurer Gall yesterday, “is evidence nf the beginning of a new era in the financial policy of the state.” The above remark was occasioned by the return from New York of the bonds recently paid off by the stale treasurer.

They were to the am’t of $340,000, and were for a temporary interest loan which fell due on April 2. This is the first payment made upon the stale debt for a quarter of a century, with the exception of some 5 per cent, state etock certi-. fioates, which were paid in 1891, the principle a«d interest of which amounted to only $20,30£.63. The state debt is now the best pos sible shape and drawing the minium interest Under the aws of 1889, all the uebt of the state was refunded, except bonds amounting to $484,000, due to the State university ard Purdue university, which draw interest at 5 per cent. The bonds, known as the domestic debt, are of a permanent ehara jter and are intended, not so much for a loan to the state, as a means of a steady income to the two universities. Aside from this the funded debt of the state amounted to SB,346,616.12. The cancellation of the bonds just returned is the payment of $340,000 of this amount. The amount of $6,615.12 is in old state stock ' ertificates, which have been entirely lost track oi, although every effort has been made tr locate them ai d they have been repeatedly called for. This leaves the debt of the state at $8,000,000 even, and drawing a very low rate of interest

“This debt,” says Mr. Gall, “is so placed under the new laws that interest is paid in regular installs inentsand the principle, when due, can be paid off and th bonds celed if so desired. Under the old order of things it not infrequently happened that small loans were overlooked and the interest compounded until it amounted to more than the principle. In 1 888 twen-ty-four internal improvement bonds amounting to SI,OOO each we*e taken up and the interest amounted to $110,149.49, n jarly five times the principle. Nor was this the only case of the kind. All the old bonds taken up during the first ten years, under the act of 1872, amounted to $101,900, while the interest on the same was $520,45218. The cayment of the e bonds is the beginning of a new order of things. The stite debt is now systematized aud with the enforcement of the present tax can b( steadily decreased as the different loans become due.” Mr. Gall expresssed himself ns very much gratified that it should fall to his lot to make the first payment on the debt under the new laws, “i'he appiopriation forthi.payment,” he resumed, “was made after a hard fight. l s was made, however, without in tile least straining the capacity of the state and without encroaching Uj: on the rights of any other department. The credit of the whole matter belongs to the new tax laws, by which all property is assessed at its pro-, per value and which bring under taxation millions of dollars worth of taxable property heretofore .not upon the tax duplica.es. “Will the $370,000 which fall due next year be paid?” “Yes, the appropriation was made and tfie amount will be paid if everything else has to wait.”

Auditor Of State Henderson was found in a a unusually pleasant state of mind. “This,” he said, ref rring to' the pa ment ox the bonds, “is an event that 1 have looked for .vaid to with a good de 1 of pleasure, It is the beginning of the operation of the new Jaws, the best on the subject that Imlis aua has ever kuown. As l said in my rep.rt of 1892, ‘the new tax law is fouuded o t the sound doctrine of honest, full value appraistment. ~-m dollai is taxed at 100 cent , whether it be invested in lands, pro mets, bank capital, facto ie=, or luxuries* Under the benign ministration of this measure, millions upon millions of property heretofore sequestered, have been placed upon the tax duplicate.’ Under ,th s law the property ot corporations, which heretofore waj so easily sequestered is taxed. The increase in the amocut actually collected from railroads’alone .mounted to $937,203.28, the total amount collected being $2,0?'!,-

140.06, enough to pßy a'l the ex Denses of the state government. The new law, wh le it greatly increases the income of the state, does t make the rate of taxation greater; it simpl’v places all property upon the tax duplicat and places the burden of taxation upon a fair and equitable basis. In my report of 1892 I recommended to tin general assembly that it authorize by enactment the payment of the te'mpoiary interest bonds of $340,000, due April 1. Tnis was done, and now the first has been paid and provision made for the second.. I also suggested that provision be made for the.pay» ment or refunding of bonds amounting to $1,685,000 due in March and April, 1895. This was not done, however, but I hope the next general aseembly will auth orize the payment of this amount, as the income of the state will amply justify it ”