1st Session.

No. 64.

IN THE SENATE OF THE UNITED STATES.

JANUARY 24, 1854.-Ordered to be printed.

MR. BRIGHT made the following

REPORT.

[To accompany bill S. 10.]

The Committee on Finance, to whom was referred Bill No. 10, "to provide for the surrender of certain bonds of the State of Indiana," submit the following report:

This bill provides that "the bonds of the State of Indiana, now held by the United States, shall be cancelled and returned to said State as fully liquidated by the heads of the departments, who have them in charge, and a full and final release be given of all interest that has accrued thereon, on the passage of an act, by the legislature of said State, accepting the same as in full and entire satisfaction of all claims against the United States for the expense of constructing roads through and in said State," &c.

The committee are in favor of the passage of this bill, with one amendment, striking it out from the enacting clause, and inserting the following:

"That the heads of the departments, who have them in chargana, and they are hereby, authorized to surrender to the State of Juding the bonds of the said State, held by the United States, (not of stock bank bonds,) and to receive in lieu thereof the new certificure of the to be issued under and by virtue of an act of the legiate, and apState of Indiana, to provide for the funded debt of sandred and fortyproved the twenty-seventh day of January, eighteentificates of stock: seven; the said bonds to be exchanged for the said be received in exProvided, That the new certificates of stock held by the said heads change for said bonds so surrendered, shall be same manner, and for the of departments, on the same account and

the same purposes, as the said Indiana Jads are now held."

Appended is the Report of the Copittee on Finance, [marked A,] on this same subject, at the session of 1847-'48, which will be found in the reports of the Senate, at the 1st session of the 30th Congress, No. 86. A bill had been referred to that committee, and a report was made, substantially, in favor of the amendment now proposed.

This report contains a statement of the public debt of Indiana, and the acts of her legislature, providing for an arrangement thereof with her creditors, and other matters necessary to a full understanding of the subject. In that arrangement it will be seen that the State of Indiana surrendered to her creditors the Wabash and Erie canal, with all its resources, including lands, water-power, &c., for one-half of her public

debt, with an agreement, on the part of the bondholders, that the canal should be completed to Evansville on the Ohio river-to be managed by three trustees, two on the part of the bondholders, and one on the part of the State. The old bonds of the State were to be taken up and new bonds were to be issued-and on one half of the amount the revenues of the State were to be applied for the punctual payment of the interest, semi-annually, in the city of New York, and the ultimate redemption of the principal; and for the other half canal bonds were to be issued, having for their basis the Wabash and Erie canal, now fully completed, and uniting the waters of Lake Erie with those of the Ohio river, at the city of Evansville on said river.

This is the longest line of canal in the United States, and has been completed by the bondholders according to agreement. The first boats passed through the line of the canal early in the last fall, and it will be ready for the ensuing spring and summer navigation the entire length.

The State has punctually paid the interest on the bonds, thrown upon the revenue, since the arrangement was made, and will every ensuing year be more able to do so. The improvements of the State, as well as population, are yearly increasing, and by the sale of other public works a considerable amount, in bonds, constituting a part of the pul lic debt, has already been paid. A law has also been enacted authorizing the Treasurer of State to appropriate any unexpended balance in the treasury, not otherwise appropriated, to the redemption of outstanding bonds, and the people are beginning to look anxiously to the day when the public debt of Indiana shall be fully discharged.

are

Under the arrangement with her creditors most of the holders of liana State bonds have come forward and taken advantage of its risions; but comparatively few of the original bonds of the State ditio in existence, and these, it is understood, are mostly in a conin the Europe, not to be reached, their ownership being in litigation Under cery courts, or they are held by infant heirs.

Will the circumstances the question now to be asked is this: part of this States be equally liberal to Indiana-a component Europe? blic-with her other bondholders, mostly living in

At the session Congress of 1847-'48, before alluded to, a bill similar to the present, amended, passed the Senate after mature deliberation-recommendet, by the Committee on Finance-and there seems to be no good reason why this bill, as proposed to be amended,

should not again pas.

The bill as originally introduced and referred, in the opinion of this committee, asks too much. If diana has any claims in regard to oads and bridges, they should be presented in another form, as they e not necessarily connected with this subject. But believing that is government can well afford to deal weh Indiana as liberally as her litors in Europe, we recommend the passage of the bill, with one a adment, herewith submitted.

C

he following extracts from the report of the Treasurer of State, recen. made to the governor of Indiana, will show the present condition of the treasury, and the ability of the State to meet her engagements:

A general statement of the receipts and expenditures during the fiscal year, from November 1, 1852, to October 31, 1853.

Total receipts into the treasury from all sources during the year.

Add balance on hand, November 1, 1852.

$1,620,943 74

402,719 48

The recapitulation of the receipts and disbursements of the general fund, and of each of the separate funds belonging to or held in trust by the State, shows the following:

APPENDIX A.

IN SENATE, MARCH 14, 1848.

Mr. CLAYTON made the following

REPORT.

[To accompany Bill S. 68.]

The Committee on Finance, to whom was referred bill No. 68, authorizing the Secretary of War to surrender certain bonds of the State of Indiana, (held by the United States,) to the "agent of State, for said State of Irdiana," submitted the following report:

This bill directs the Secretary of War to surrender to the agent of State, of the State of Indiana, any and all bonds of said State, held by the United States in trust or otherwise, and to receive in exchange for the same the new stocks proposed to be issued under the act of said State, entitled "An act to provide for the completion of the Wabash and Eria canal to Evansville," approved January 19, 1846, and an act supplementary thereto, approved January 27, 1847. The committee hereto annex a statement of these bonds, as furnished from the Comptroller's office, (marked A,) from which it appears that the amount of principal and interest due on the bonds, held by the Secretary of the Treasury and the Secretary of War, issued by the State of Indiana, was, on the 31st of December last, the aggregate sum of three hundred and twenty-six thousand five hundred and forty-nine dollars and fifty-three

cents.

Of this amount the Secretary of the Treasury holds bonds in trust on account of the Chickasaw Indians, the principal of which is two hundred and two thousand dollars, and the Secretary of War holds other bonds in trust "on account of certain Indian tribes," the principal of which amounts to the sum of seventy thousand dollars.

A portion of these bonds, called "the State bank loan, redeemable in 1856," is said to be secured by the State bank fund of the State of Indiana. This portion amounts to sixty-one thousand dollars, and on this sum the interest has been regularly paid. On nearly all the residue of these Indiana bonds no interest has been paid since the 1st of July, 1842. All this will more fully appear by reference to the statement of the Comptroller.

The committee also submit with their report full copies of the two acts of Indiana, referred to in the bill, marked C, with which they have been furnished by James Collens, State agent, appended to which is a full statement of the Indiana State debt.

From this it appears that the debt of the State of Indiana, principal and interest, exclusive of original bank bonds, is stated to be $15,271, 250. Besides this amount, there are $1,390,000 of original bank bonds, on which the interest is regularly paid by the bank. The statement

thus furnished by the State agent shows that the debt of the State of Indiana, exclusive of the bank bonds, is composed of the following items:

1. Public Debt.

State bonds, outstanding principal.

$11,068,000

Interest due on same, from 1st of January, 1841, to 1st

of January, 1847...

3,326,940

14,394,940

2. Domestic Debt.

Six per cent. treasury notes, outstanding principal $342,845

Interest due on the same....

110,000

It appears by the first section of the act of the State of Indiana, passed on the 19th of January, 1846, that no provision was intended to be made for the surrender of the "bonds issued under the original bank charter," and therefore these bonds are expressly excepted from the operation of the act.

On these bonds, on which the interest has been regularly paid, no sacrifice has been required from other creditors, and therefore, as the Secretary of the Treasury holds bonds of that description, to the amount of sixty-one thousand dollars, in trust for the Chickasaw Indians, the committee submit to the Senate that it is proper to amend the bill which directs the surrender of "any and all bonds of said State of Indiana, held by the United States in trust or otherwise," by excepting the bank bonds from the operation of the proposed law.

Deducting this sum of sixty-one thousand dollars, there will still remain two hundred and sixty-five thousand five hundred and fortynine dollars and fifty-three cents, the principal and interest on the 31st of December last, of Indiana bonds (other than her bank bonds) held by the United States in trust for the Indians, to be exchanged for the stocks provided for by the laws of Indiana, referred to in the bill. The public debt of the State is, by the terms of these acts adjusting it, to be equally divided between the State and the Wabash and Erie canal, and stood thus on the 1st of January, 1847, which will appear from the statement to which we have before referred.

1. State stock, principal, bearing interest 4 per cent. till 1853, and thereafter 5 per cent. till redeemed..... Half back interest to 1st of January, 1847...

Deficit 1 per cent. interest, up to January, 1853 (say)...

Estimated public debt, 1st of January, 1853......

$1,534,000

1,663,470

322,040

7,519,510