The New York Herald

The Illinois State Debt—Efforts to Redeem the Character of the State, &c., &c.

I presume you seldom receive any information of the state of affairs of the Suckers of the "Prairie State," and probably think we are so deeply sunken in the mire of insolvency, that we are altogether beneath the notice of the illuminator of the age—the illimitable Herald. In order to show you that we are still struggling to extricate ourselves from the "unpleasant fix," as one of our sage legislators expressed it, into which we have unfortunately become involved, it will only be necessary to inform you of the effort now making by our sagacious legislature, aided and assisted by our "dear friends" and fellow sufferers in affliction, the bond-holders of Illinois, to accomplish this consummation so devoutly desired by both parties. You must know, then, that after a long and painful travail, a plan was brought forth, by the united wisdom of our State, in general council assembled, and the agents of our creditors, by which the prostrated and sinking credit of our ill-starred commonwealth, was to be galvanized into life.

The plan adopted was briefly this: The bond-holders agreed to advance $1,600,000, for the purpose of completing the "Michigan and Illinois Canal," on the following conditions:—That the State should assign them all her public lands, together with the use and revenues of the canal, after its completion, until they realized a sum equal to their debt, and in the mean time pay them a small rate of interest on the amount. After the bond-holders had obtained, in this way, payment, the canal to revert back and become the property of the State. To execute this contract, it was agreed that three trustees be appointed—two on the part of the bond-holders and one on the part of the State who should have the entire management and control of the whole matter. A meeting of the bond-holders and their representatives was held in New York, in May last, and Mr. Leavitt, President of the Am. Ex. Bank, and Capt. Swift, of the U. S. Army, were chosen on the part of the creditors of the State, and about the same time, Gov. Ford appointed Gen. Jacob Fry, on behalf of the State. Into the hands of these guardians, the child of our hopes was committed, to be reared to manhood. And it is for the purpose of informing your readers, many of whom undoubtedly feel an interest in this subject quite as deep as the people of Illinois, how these agents have thus far executed their trusts, that I address you. It is with no ill-feeling towards any of the individuals, of whose acts I feel it my duty, as a citizen of Illinois, and a friend to the great work in which we all have so deep an interest, to speak. But being satisfied that a speedy and radical reform on the part of those who control its management, is indispensable, or the consummation of the object in view can never be realized, I feel called upon to sound the alarm. The mutterings of dissatisfaction and distrust, "not loud but deep," which has already manifested itself among the people, at the course pursued by the trustees, has excited the apprehensions of the many, that the tax for raising the interest would not be submitted to by our citizens.

These symptoms of rebellion, together with several articles published in a New York paper in relation to the matter, have had the effect of drawing out the trustees, through Gen. Fry, in an "Address to the people of Illinois," in which they labor to show that "all's well." But, notwithstanding this soothing cordial, so kindly administered, the "dear people" still cling to their former opinion, that "there is something rotten in Denmark." Messrs. Leavitt and Swift, soon after being appointed to office, made a hasty visit to Illinois, and being joined by Gen. Fry, they organized themselves, appointed a chief engineer—very modestly voted themselves a salary of $5000! per year out of the funds of the canal, and took their departure—the former it is supposed to attend to the business of the bank over which he presides, and the other to the duties of his profession—since which time nothing has been seen or heard of either on the line of the canal. Possibly Captain Swift may be on a Don Quixotte expedition to Texas, to fight the horrible Mexican shadows that flit over that "Paradise;" and for aught we know to the contrary, Mr. Leavitt may be engaged in Wall street, selling shares and stock in the Lake Superior Copper Mines. Wherever they may be, or whatever they may be engaged in, it is very certain they are not in Illinois, attending to the completion of the canal. Such being the case, the canal drags its slow length along, and like a consumptive patient, seems to be gradually sinking to a premature grave. The whole line was put under contract the 18th of August last; the contracts binding the trustees to take an estimate once in three months, and to pay the amount, less 12 per cent, in current New York funds. An estimate was made about the 15th of October, and the contractors were promised their money by the 1st of November. In consequence of great expense in procuring tools and implements—lumber for shantees, stables, &c., together with bringing laborers on to the line—most, if not all, of the contractors, who are men of limited means, had exhausted all the funds they possessed long before the day of promised payment.

To any one at all acquainted with public work, the difficulties and embarrassments under which a contractor labors, when destitute of the "sinews of war," can readily be conceived. Looking forward, therefore, to the 1st of November with as much solicitude and anxiety as the Millerites looked for the end of the world, they struggled along. It finally came; but, alas! no current funds came with it. The announcement that "no money would be paid until the 15th" fell like a pall on the high raised expectations of the poor canalers. "Hope deferred maketh the heart sick," saith the proverb, and the disappointed and disheartened contractor realized its truth. They sought, as a special act of mercy, fifteen days' more grace from their tormenting creditors, which, as there was no remedy, was granted; while the clamors of their ravenous workmen for "current funds," already too long withheld, could be appeased only by distributing among them such husks of the grain of life they hungered after as was afforded by a shin plaster factory, located somewhere in Wisconsin Territory, known as the "Wisconsin Marine and Fire Insurance Company,"

as a great favor to the distressed contractors, the engineers, clerks, &c., employed in the canal office, voluntarily offered to furnish them out of their own private funds, an amount of this trash, equal to the amount due them. And, as "take what you can get, or get nothing," some accepted of the kind offers made them, while others less inclined to submit to imposition declined, and stopped work. In this way things went on until the second appointed time arrived, being the 15th of the month, but faithless and treacherous as the former, it has given no current funds to the waiting multitude of expectants that have been anxiously looking for them. Wisconsin rags are still tendered to the now desperate croakers for current funds, and the private resources of the above named engineers, clerks, &c., are by no means exhausted. How it is possible for persons employed at salaries of from $50 to $500 per year, to save out of two or three months service, a sum equal to the whole estimates due the contractors on a line of canal 100 miles in length, amounting to several thousand dollars, is to many, wholly unaccountable, strange and mysterious. But any one initiated in the mysteries of Wall street, has no difficulty in solving the question.

It is simply a "business transaction," that would attract scarcely any notice in Wall street, but among the ignorant suckers it excites wonder. But seriously, is not every principle of justice, honor and right, violated by such barefaced imposition and outrage on innocent and trusting men? The veil behind which the trustees seek to hide from the public their iniquitous acts, is too transparent to deceive, while it serves to illustrate their own meanness "Wisconsin shinplasters,'" as they are called, can be bought like rotten eggs, at the buyer's offer, while New York funds command a premium of two per cent. In order to turn "an honest penny" into their own pockets, they withhold from the contractors their just dues, and seek to drive them with the lash of necessity, to receive worthless rags instead. Surely men who will resort to such base means to put money in their purse, are unfit to have the management of a work of such importance as the "Michigan and Illinois Canal." Let the bondholders attend to this matter at once, or they are destined to sustain loss, where they fondly hoped to realize gain. A special meeting of the Legislature has been called, and I doubt not the subject will be brought before them, for investigation. I have, Mr. Editor, "told but a plain unvarnished tale, extenuated nothing, or set down aught in malice."—More anon.