December 4, 1840.
In the Illinois House of Representatives, December 4, 1840, House in
Committee of the Whole on the bill providing for payment of interest on
the State debt,—Mr. Lincoln moved to strike out the body and amendments
of the bill, and insert in lieu thereof an amendment which in substance
was that the governor be authorized to issue bonds for the payment of
the interest; that these be called “interest bonds”; that the taxes
accruing on Congress lands as they become taxable be irrevocably set
aside and devoted as a fund to the payment of the interest bonds. Mr.
Lincoln went into the reasons which appeared to him to render this plan
preferable to that of hypothecating the State bonds. By this course we
could get along till the next meeting of the Legislature, which was
of great importance. To the objection which might be urged that these
interest bonds could not be cashed, he replied that if our other bonds
could, much more could these, which offered a perfect security, a fund
being irrevocably set aside to provide for their redemption. To another
objection, that we should be paying compound interest, he would reply
that the rapid growth and increase of our resources was in so great a
ratio as to outstrip the difficulty; that his object was to do the best
that could be done in the present emergency. All agreed that the faith
of the State must be preserved; this plan appeared to him preferable
to a hypothecation of bonds, which would have to be redeemed and the
interest paid. How this was to be done, he could not see; therefore he
had, after turning the matter over in every way, devised this measure,
which would carry us on till the next Legislature.
(Mr. Lincoln spoke at some length, advocating his measure.)
Lincoln advocated his measure, December 11, 1840.
December 12, 1840, he had thought some permanent provision ought to be
made for the bonds to be hypothecated, but was satisfied taxation and
revenue could not be connected with it now.
1841