The principal bearing interest at 5 per cent., and the interest 24 per cent. from that date. Amount of annual interest to be paid by taxation, from 1847 to 1853, say $231,360; and after that say $326,337. 2. Wabash and Erie canal stock, issued for principal, 1st of January, 1847, bearing interest of 5 per cent. from 1st of January, 1847.. Half back interest to 1st of January, 1847... 1st of January, 1847, Wabash and Erie canal stock... $5,534,000 1,663,470 7,197,470 The revenues of the canal, after paying repairs and 6 per cent. interest on advances, are to be applied to the completion of the canal to Evansville, on the Ohio river. All back interest, and all arrears of interest on canal stock, to be funded on the 1st of January, 1853, at 5 per cent. The committee have no hesitation in recommending the passage of the bill with the amendment they have proposed. On the 30th of May, 1846, a committee, appointed by a large body of the holders of Indiana bonds in Europe, composed of N. M. Rothschild & Sons, Palmer, Mackillop, Dent & Co., Baring Brothers & Co., Frederich Huth & Co., Morrison, Sons & Co., Magniac, Jardine & Co., by certain resolutions then adopted by them, "concurred in the principles laid down in the acts of the legislature of Indiana, for the adjustment of the public debt of that State, by the payment of one moiety, of the principal and interest by taxation, and the other moiety by the property and tolls of the canal, from the State line adjoining Ohio to Evansville on the Ohio river; such property to be assigned to three trustees, and the State to be freed from responsibility on that portion of the debt and interest so to be secured." They also appointed Mr. C. Butler to apply to the bondholders of Indiana, resident in the United States, for their co-operation, carrying out the arrangement upon these principles. Accompanying this report is a copy of Mr. Butler's circular to the holders of Indiana bonds in the United States, relative to the Indiana debt, dated New York, July 14, 1846, marked B, from which we think it apparent that the proposed arrangement was the best that could have been adopted under the circumstances, for the benefit of the creditors. By that arrangement, more than nine millions of the State debt has already been cancelled. Scientific men have given the opinion, that when the canal shall be completed to Evansville, on the Ohio river, the revenues will be ample to meet the interest, and ultimately to redeem the principal of that half of the existing debt which is to be chargeable upon it. On the State half of that debt interest is now regularly paid. The committee, in concluding this report, deem it proper to add, that in recommending this arrangement with one of the States of the Union, making a noble effort to save herself from the stain of repudiation, they are actuated by a still higher, and in their view, a more important consideration than the mere security of this portion of the public money. Other creditors may be expected to refuse their assent to the just terms proposed by Indiana, (terms the very best she is able to offer to her creditors,) if this government should refuse to co-operate with them in the arrangement of her debt; and the loss of that arrangement, deeply affecting, as it would, the public credit of one of the sovereign States of this Union, would be certainly felt as an injury to all the rest. Your committee therefore recommend the passage of the bill, with the following amendments, viz: After the words "Secretary of War," insert "and Secretary of the Treasury." After the word "otherwise," line seventh, insert "except the bonds. issued under the original bank charter, called bank bonds, redeemable in 1856, amounting to sixty-one thousand dollars, held in trust by the Sretary of the Treasury for the Chickasaw Indians." A. Statement showing the amount of bonds held in trust by the Secretary of the Treasury, on account of the Chickasaw Indians, issued by the State of Indiana, with the amount of interest due thereon. Amount n Indiana bonds, State bank loan, redeem le in 1866, (bank fund pays this as it falls ue). Amount of Indiana bonds, Indianapolis rail road, redeemable in 1857.. To interest on $141,000 from 1st July, 1842, to 31st December, 1842... By cash on account of the same... *$61,000 141,000 $3,525 00 3,400 47 Statement showing the amount of bonds held in trust by the Secretary of War, on account of certain Indian tribes, issued by the State of Indiana, with the amount of interest due thereon. Amount of Indiana bonds, bearing interest at the rate of 5 per cent... $68,000 00 Interest on the same from 1st July, 1842, to 31st December, 1847, 5 years. $18,700 00 *The interest on the bonds redeemable in 1856 has been regularly paid. Bonds held in trust by the Secretary of the Treasury $202,000 00 70,000 00 Total... 272,000 00 Interest due upon bonds helds by the Secretary of the $35,374 53 Interest due upon bonds held by the Secretary of War 19,175 00 54,549 53 COMPTROLLER'S OFFICE, February, 1848. R. COCKRAN. B. Circular to the holders of Indiana bonds in the United States, relative to the Indiana debt. NEW YORK, July 14, 1846. SIR: Having acted in behalf of a large body of the holders of Indiana bonds in Europe, under the direction of a committee in London, whose names appear to the resolutions hereto appended, in a negotiation with the State authorities for the payment of the bonds held by them, and a law having been passed by the legislature making provision for the payment of the public debt of the State, on the principles therein expressed, and which has received the assent of the ties in London to whom it has been submitted, at their request I address the holders of bonds in the United States, and invite their co-operation. in the steps necessary to be taken to secure the benefit of the law in question. par The design of the law is to secure the payment of the entire amount of the principal and interest of the bonds of the State now outstanding. This result is provided for the extent of one half, by means of revenue to be derived from taxation, and for the other half, by means of the property and revenues of the Wabash and Erie canal, and which are. to be vested in trust for that purpose. The law, as at first introduced by the committee of the legislature, provided for the payment of two and a half per cent. interest on the entire amount of principal of the bonds from taxation, and the other half out of the revenues of the canal, and the first section of the bill was framed with this view. In the subsequent action upon it by the legislature, it was so amended as to reserve to the State the right of dividing the principal of the debt, and transferring one half of it also to the canal. It seems to be conceded that the debt will be adjusted agreeably to this provision of the bill, and that the first issue of the new stock should be in conformity with it, in order to simplify the plan, and avoid the unnecessary expense and inconvenience which would be involved in rendering it necessary to make two separate issues of stock materially different in form. The London committee, in their resolutions, have recognized and assented to this principle of the bill, and I have therefore assumed it as the basis of the present exposition. 1847. January 1. Principal of debt.... Interest from 1st January, 1841, to 1st Jan uary, 1847, six years, at 5 per cent. is... $11,090,000 3,327,000 1st January, 1847. Total debt to be provided for is 14,417,000 Separate certificates of stock will be issued for the principal and interest above stated. Certificates given for the principal will bear interest at five per cent. per annum, from and after 1st January, 1847, of which four per cent. per annum will be paid, up to 1st January, 1853, at which last date the remaining one per cent. will be funded in certificates, then to be given for it, and thereafter full interest will be paid on the principal. Certifidates given for the back interest and for the deficiency of interest, will bear interest at the rate of two and a half per cent. from and after 1st January, 1853. The other half is to be transferred to, and charged upon the Wabash and Erie canal, that is to say: One half of principal One half of interest. $5,545,000 1,663,500 7,208,500 Separate certificates of canal stock will be issued for the principal and interest above stated. The certificates for principal, bearing five per cent. interest, from and after first January, 1847, and the certificates issued for the interest, and denominated "special stock," to draw interest at the rate of five per cent. from and after 1st January, 1853. Deficiencies of interest accruing between 1st January, 1847, and 1st January, 1853, (in consequence of the revenues of the canal not being sufficient to cover the full amount,) will be funded also at the latter date in stock, bearing five per cent. interest. For the payment of this entire sum, ($7,208,500,) principal and interest, the Wabash and Erie Canal, together with its lands and revenues, are to be vested in three trustees, two of whom are to be appointed by the subscribers to the advance for completing the canal, and one by the State. The majority of the trustees govern. The Wabash and Erie canal extends from Toledo, at the head of Lake Erie, in the State of Ohio, southwesterly, through the State of Indiana, to Evansville, on the Ohio river, and will be (when finished throughout its entire length) four hundred and fifty-eight and threeeights miles in length, of which eighty-four miles of the eastern end are in the State of Ohio, and the residue, being three hundred and seventy-four and three-eighths miles, is in the State of Indiana, and the property of the State, to be vested as above. It is now finished and in operation from Toledo to Covington, in Fountain county, Indiana, two hundred and fifty-eight miles, of which one hundred and seventy-four belong to the State of Indiana. There remain two hundred miles to be finished from Covington to Evansville, on the Ohio river, on which part about $1,200,000 have been expended by the State and considerable portions of which are finished. It will cost, according to the estimates made by Jessee L. Williams, R. H. Fauntleroy and William J. Ball, engineers of established reputation, the further sum of $2,010,000, to finish the entire canal. To cover this amount, the State is to transfer to the trustees certain lands and property which have been heretofore donated by Congress to the State for that purpose, that is to say, nine hundred and sixtythree thousand one hundred and twenty-six acres of land lying adjoining to, and in the neighborhood of the canal, and of which the largest portion has been selected with the utmost pains, under the personal supervision of Governor Whitcomb. There is a balance due to the State on contracts for lands sold east of Tippecanoe (and for the payment of which the land itself is held) outstanding to the amount of $244,711, bearing six per cent. interest, and on which the purchasers are entitled to a further credit, if they desire it, of five years from 1847, on paying the interest annually in advance. The value of the above property, viz., the lands and contracts, is carefully estimated, at this time, at $2,408,998. The completion of the canal will give additional value to all the land remaining on hand; and it is necessary to finish the canal to make it fully available as a source of revenue. There are two modes proposed to finish the canal. The first is by cash means alone. The second by a cash advance equal to one-third |