The Writings of Abraham Lincoln, Volume 1 by Abraham Lincoln
Remarks in the Illinois Legislature.
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.