308 



FINANCES OF THE UNITED STATES. 



nearly sufficient to pay the debt. The same 

 Legislature refused unanimously to pass any 

 stay or stop laws interfering with the collection 

 of debts. 



The taxables of the State are of the value of 

 four hundred and fifty millions. Under the 

 amended general banking law of the State, the 

 basis of circulation is confined to the Indiana 

 State and Federal stocks. 



The State of New Jersey at its session in 

 May passed laws for raising a six per cent. 

 loan of $2,000,000, the bonds to be redeemable 

 after 1865, at the rate of $100,000 per an- 

 num; and a State tax of $100,000, to raise four 

 new regiments, to purchase arms, artillery, and 

 munitions of war ; to pay the families of volun- 

 teers $6, and to volunteers without families $4 

 a month extra ; to authorize the cities of Tren- 

 ton, Newark, Camden, New Brunswick, Jersey 

 City, and Bordentown, to borrow money to 

 aid the volunteers, were passed. New Jersey 

 had previously no military. 



The State of Massachusetts issued a loan for 

 $1,000,000, six per cent, per annum, and issued 

 in denominations and redeemable as follows : 



$200,000 in pieces of $100 each ................ July 1, 1871. 



200,000 in pieces of $500 each ................ July 1, 1872. 



200,000 in pieces of $100 each ................ July 1, 1873. 



200,000 in pieces of $1,000 each .............. July 1, 1874. 



200,000 in pieces of $1,000 each .............. July 1, 1875. 



The bids ranged from 98 to 101 per cent. 

 All below par were rejected, amounting to $66,- 

 500. At par the bids reached to $598,000. 

 Between par and 100.50 they reached $577,- 

 000. Above 100.50 they reached $16,000. 



The Connecticut Legislature authorized a 

 war loan of two millions of dollars, bearing 6 

 per cent, interest. The State had before no 

 debts. The bids were opened for a portion of 

 it July 21. A large share of the bids were at 

 par, although many were given at an eighth 

 premium, and in rare instances more. The 

 banks offered a quarter of a million at par. The 

 bidding would have commanded premiums, had 

 it not been that the United States loan was 

 pending, and with such rates of interest that 

 the men who had the money at hand, were 

 holding up for that which would give them a 

 cent and a fraction additional every year. For 

 the $800,000 offered July 24, $1,279,900 were 

 offered at par to 5 per cent, premium. 



The loan of the State of Maine was opened 

 July 28, and the average rate was 1 per cent. 

 premium. 



The State of Illinois offered $1,000,000, in- 

 terest at the rate of six per cent, per^mnum, 

 payable semi-annually in New York, and the 

 principal reimbursable after 1879. The bonds 

 have coupons attached for $3 each, for each 

 half year during which they have to run, and 

 will of course be receivable for taxes and all 

 other State dues at the Treasury. The bids in 

 "Wall street did not meet the views of the com- 

 missioner. and it was withdrawn. A con- 

 siderable number of these small bonds, were, 

 however, subscribed for by citizens of Illinois, 

 and the whole amount was thus taken at par. 



The State of Michigan offered a war loan of 

 $500,000, 7 per cent., redeemable after twenty- 

 five years. 



The State of Iowa also created a loan. The 

 Constitution of that State provides: 



Article 7, Sec. 4. In addition to the above limited 

 power to contract debts, ($250,000 altogether,) the 

 State may contract debts to repel invasion, suppress 

 insurrection, or defend the State in war, Ac. 



Sec. 5. Except the debts hereinbefore specified in 

 this article, no debt shall be hereafter contracted by, 

 or on behalf of this State, unless such debt shall be 

 authorized by some law for some single work or ob- 

 ject, to be distinctly specified therein, &c. . . . But 

 no such law shall take effect until, at a general election, 

 it shall have been submitted to the people, and have 

 received a majority of all the votes cast for and against 

 it at such election, &c. 



The General Assembly, at its extra 'session, 

 recognizing, probably, the existence of "in- 

 surrection" the State having been called upon 

 by the President to furnish its quota of troops 

 to meet such a crisis considered that the pro- 

 visions in Sec. 4, above cited, warranted an in- 

 crease of indebtedness without the sanction of 

 a popular vote as required by Sec. 5, the con- 

 tingency contemplated in Sec. 4 having arisen. 

 A new issue of bonds was therefore authorized, 

 amounting to $800,000, which, when sold, 

 would make the entire bonded debt of the State 

 about $1,000,000. 



Objections seem to have been made to the 

 legality of these new bonds; it was contended 

 that the law should have been submitted to a 

 popular vote, pursuant to Sec. 5 ; that Sec. 4 

 applies only when the State is invaded, or in 

 case of insurrection within the State against its 

 authority. 



The negotiation did not succeed. But the 

 same difficulty applies to some other State 

 bonds which were successfully placed upon the 

 market. 



The State of Ohio, April 26, authorized a 

 loan of $2,000,000 for war purposes, at 6 per 

 cent., 7 years to run, and not subject to State 

 taxes. The bids for the loan in New York were 

 not satisfactory to the State, and as the General 

 Government reimbursed the State at about the 

 same time $1,000,000 for its advances, the low 

 offers were not accepted. The loan was sub- 

 sequently placed in Ohio. 



The State of New York made a loan of $3,- 

 000,000, 7 per cent., which was negotiated 1.38 

 to 4.50 premium. 



The State of Pennsylvania made a loan of 

 $3,000,000, which was promptly taken. The 

 bonds bear six per cent, interest, payable in 

 specie are payable after ten years are not 

 subject to taxation of denominations not less 

 than $25. Those less than $100 have coupons 

 attached. 



Pennsylvania also passed a State law, grant- 

 ing one year's stay upon all judgments, and all 

 that might be obtained within six months from 

 the passage of the act. 



The contributions that were made by various 

 public bodies up to the close of May were as 

 follows : 



