Papers Of Abraham Lincoln

140

An act to provide for a loan for Canal purposes ^Originated in the Senate^
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Sec[Section] 1 Be it enacted by the people of the state of Illinois represented in the General Assembly, That in addition to the loans heretofore authorised, to be made, for the purpose of aiding in the construction of the Illinois and Michigan Canal, there shall be borrowed, for the purpose aforesaid, a sum not exceeding Four Millions of Dollars, for a term not exceeding Fifty years, and [?] a rate of Interest not exceeding six percent per annum, payable yearly; the payment of of Interest and reimbersment of principal to be made at such place within or without the United States, and in such currency, as may be agreed on

Sec. 2. The Governor of the state is authorised and required to execute bonds, for and in behalf of the state, for any sum or sums, of money which may be borrowed under the provisions of this act, in the English or any foreign language, stipulating for the payment of the Interest and principal, within or without the United States, in such currency as may be agreed on by the contracting parties, which bonds shall be

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signed by the Governor, countersigned by the Auditors of Public Accounts, and the [imprint?] of the great seal of state ^shall^ be affixed thereon by the Secretary of State.

Sec 3. The state doth hereby agree and [?] irrevocably pledge its faith to provide sufficient resources, and means with which to pay the [?] accruing upon said bonds as it becomes [?] payable, and to reimburse the principals [when?] the same becomes due, and doth hereby irrevocably pledge, as security for this purpose, all the lands heretofore granted or which may hereafter be granted to the state of Illinois by the United States to aid the state in the construction of said Canal and the said canal with all of its appurten[ances?] and the revenue arising from the use of said canal and every branch or part thereof, subject to the liens heretofore created upon the lands, canal and revenues aforesaid, as well as all premiums which may be obtained from the sale of bonds and certificates of stock created by this act, and the [?]ts issues and profits which may in any wise accrue to the state from the lands and premises herein pledged as well as from water privileges upon the line of the Canal.

Sec 4 It shall be deemed a good execution of the

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power to borrow, to sell the bonds herein authorised to be made; and the said bonds shall be so framed as that they shall be in form and substance certificates of stock, and shall be called the “Illinois and Michigan Canal Stock.

Sec 5 When bonds shall have been executed as required by this act the Governor, is authorised to constitute and appoint a suitable agent or agents to sell and transfer the same, and vest the said agent or agents with full power to take all proper means and measures for the sale and transfer of said bonds

Sec 6 All money obtained under the provisions of this act shall be kept and used according to the provisions of the law now in force in relation to the canal fund.

Sec 7 The right is reserved to the state to sell any of the lands pledged by this act, and the proceeds of sales to be applied exclusively to the payment of interest upon Canal loans, or to expenses of constructing the Canal.

Sec 8 No bonds shall be sold, under the provisions of this act, for less than their par value.

Sec 9 In contracting for loans under the provisions of this act, provision shall be made for the reception of the money by the state in sums of One hundred thousand dollars as the same may be wanting for expenditure upon the

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Canal

Speaker of the House of Representatives
Speaker of the Senate

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[ docketing ]
An act to provide for a loan for Canal purposes
1859

[ docketing ]
Engrossed

1On February 20, 1841, the House of Representatives adopted a resolution calling for the appointment of a select committee to report on the best means to pay interest on the state debt. The House formed a select committee of nine, which included Abraham Lincoln. On February 23 the select committee, pursuant to the resolution, issued majority and minority reports, which the House tabled. Cyrus Edwards of the aforesaid select committee introduced HB 291, which accompanied the majority report. The House tabled the bill and ordered 150 copies printed. The House refused to read the bill a second time by a vote of 34 yeas to 36 nays, with Abraham Lincoln voting yea.
Journal of the House of Representatives, of the Twelfth General Assembly of the State of Illinois, At Their Second Session, Begun and Held in the City of Springfield, December 7, 1840 (Springfield, IL: William Walters, 1840), 478-79; Illinois State Register, 5 March 1841, 2:2.