USA > Indiana > Johnson County > History of Johnston County, Indiana. From the earliest time to the present, with biographical sketches, notes, etc., together with a short history of the Northwest, the Indiana territory, and the state of Indiana > Part 17
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By the year 1843 the State was experiencing the disasters and embarassment consequent upon a system of over-banking, and its natural progeny, over-trading and deceptive speculation. Such a state of things tends to relax the hand of industry by creating false
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notions of wealth, and tempt to sudden acquisitions by means as delu- sive in their results as they are contrary to a primary law of nature. The people began more than ever to see the necessity of falling baek upon that branch of industry for which Indiana, especially at that time, was particularly fitted, namely, agriculture, as the true and lasting source of substantial wealth.
Gov. Whiteomb, 1843-'49, succeeded well in maintaining the eredit of the State. Measures of compromise between the State and its ereditors were adopted by which, ultimately, the publie works, although incomplete, were given in payment for the elaims against the Government.
At the elose of his term, Gov. Whitcomb was elected to the Senate of the United States, and from December, 1848, to Decem- ber, 1849, Lieut-Gov. Paris C. Dunning was aeting Governor.
In 1851 a general banking law was adopted which gave a new impetus to the comineree of the State, and opened the way for a broader volume of general trade; but this law was the source of many abuses; eurreney was expanded, a delusive idea of wealth again prevailed, and as a consequence, a great deal of damaging speeulation was indulged in.
In 1857 the charter of the State bank expired, and the large gains to the State in that institution were directed to the promotion of common-school education.
WEALTII AND PROGRESS.
During the war of the Rebellion the financial condition of the people was of course like that of the other Northern States generally. 1870 found the State in a very prosperous condition. October 31 of this year, the date of the fiseal report, there was a surplus of 8373,249 in the treasury. The receipts of the year amounted to $3,605,639, and the disbursements to $2,943,600, leaving a balanee of $1,035,288. The total debt of the State in November, 1871, was ยท$3,937,821.
At the present time the principal artieles of export from the State are flour and pork. Nearly all the wheat raised within the State is manufactured into flour within its limits, especially in the north- ern part. The pork business is the leading one in the southern part of the State.
When we take into consideration the vast extent of railroad lines in this State, in connection with the agrienltural and mineral resources, both developed and undeveloped, as already noted, we ean
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see what a substantial foundation exists for the future welfare of this great commonwealth. Almost every portion of the State is coming up equally. The disposition to monopolize does not exist to a greater degree than is desirable or necessary for localthy compe- tition. Speculators in flour, pork and other commodities appeared during the war, but generally came to ruin at their own game. The agricultural community here is an independent one, under- standing its rights, and " knowing them will maintain them."
Indiana is more a manufacturing State, also, than many imagine. It probably has the greatest wagon and carriage manufactory in the world. In 1875 the total number of manufacturing establishments in this State was 16,812; number of steam engines, 3,684, with a total horse-power of 114,961; the total horse-power of water wheels, 38,614; number of hands employed in the manufactories, $6,402; capital employed, is $117,462,161; wages paid, $35,461,987; cost of material, $104,321,632; value of products, $301,304,271. These figures are on an average about twice what they were only five years previously, at which time they were about double what they were ten years before that. In manufacturing enterprise, it is said that Indiana, in proportion to her population, is considerably in advance of Illinois and Michigan.
In 1870 the assessed valuation of the real estate in Indiana was $460,120.974; of personal estate, $203,334,070; true valuation of both, $1,268,180,543. According to the evidences of increase at that time, the value of taxable property in this State must be double the foregoing figures. This is utterly astonishing, especially when we consider what a large matter it is to double the elements of a large and wealthy State, compared with its increase in infancy.
The taxation for State purposes in 1870 amounted to $2,943,078; for county purposes, 84,654,476; and for municipal purposes, $3,193,577. The total county debt of Indiana in 1870 was $1,127,- 269, and the total debt of towns, cities, etc., was $2,523,934.
In the compilation of this statistical matter we have before us the statistics of every element of progress in Indiana, in the U. S. Census Reports; but as it would be really improper for us further to burden these pages with tables or columns of large numbers, we will conclude by remarking that if any one wishes further details in these matters, he can readily find them in the Census Reports of the Government in any city or village in the country. Besides, almost any one can obtain, free of charge, from his representative in
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Congress, all these and other public documents in which he may be interested.
INTERNAL IMPROVEMENTS.
This subjeet began to be agitated as early as 1818, during the administration of Governor Jennings, who, as well as all the Governors succeeding him to 1843, made it a special point in their messages to the Legislature to urge the adoption of measures for the construction of highways and canals and the improvement of the navigation of rivers. Gov. Hendricks in 1822 specified as the most important improvement the navigation of the Falls of the Ohio, the Wabash and White rivers, and other streanis, and the construction of the National and other roads through the State.
In 1826 Governor Ray considered the construction of roads and canals as a necessity to place the State on an equal financial footing with the older States East, and in 1829 he added: "This subject can never grow irksome, since it must be the source of the bless-' ings of civilized life. To secure its benefits is a duty enjoined upon the Legislature by the obligations of the social compaet."
In 1830 the people became much excited over the project of con- necting the streams of the country by " The National New York & Mississippi railroad." The National road and the Michigan and Ohio turnpike were enterprises in which the people and Legis- lature of Indiana were interested. The latter had already been the cause of much bitter controversy, and its location was then the subject of contention.
In 1832 the work of internal improvements fairly commenced, despite the partial failure of the crops, the Black Hawk war and the Asiatic cholera. Several war parties invaded the Western settlements, exciting great alarm and some suffering. This year the canal commissioners completed the task assigned them and had negotiated the canal bonds in New York city, to the amount of $100,000, at a preminm of 13} per cent., on terms honorable to the State and advantageous to the work. Before the close of this year $54,000 were spent for the improvement of the Michigan road, and $52,000 were realized from the sale of lands appropriated for its construction. In 1832, 32 miles of the Wabash and Erie canal was placed under contraet and work commenced. A communication was addressed to the Governor of Ohio, requesting him to call the attention of the Legislature of that State to the subject of the extension of the canal from the Indiana line through Ohio to the
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Lake. In compliance with this request, Governor Lucas promptly laid the subject before the Legislature of the State, and, in a spirit of courtesy, resolutions were adopted by that body, stipulating that if Ohio should ultimately decline to undertake the completion of that portion of the work within her limits before the time fixed by the act of Congress for the completion of the canal, she would, on just and equitable terms, enable Indiana to avail herself of the bene- fit of the lands granted, by authorizing her to sell them and invest the proceeds in the stock of a company to be incorporated by Ohio; and that she would give Indiana notice of her final determination on or before Jannary 1, 1838. The Legislature of Ohio also authorized and invited the agent of the State of Indiana to select, survey and set apart the lands lying within that State. In keeping with this policy Governor Noble, in 1834, said: "With a view of engaging in works of internal improvement, the propriety of adopting a general plan or system, having reference to the several portions of the State, and the connection of one with the other, naturally suggests itself. No work should be commenced but such as would be of acknowledged public utility, and when completed would form a branch of some general system. In view of this object, the policy of organizing a Board of Public Works is again respectfully suggested." The Governor also called favorable atten- tion to the Lawrenceburg & Indianapolis railway, for which a charter had been granted.
In 1835 the Wabash & Erie canal was pushed rapidly forward. The middle division, extending from the St. Joseph dam to the forks of the Wabash, about 32 miles, was completed, for about $232,000, including all repairs. Upon this portion of the line nav- igation was opened on July +, which day the citizens assembled " to witness the mingling of the waters of the St. Joseph with those of the Wabash, umting the waters of the northern chain of lakes with those of the Gulf of Mexico in the South." On other parts of the line the work progressed with speed, and the sale of canal lands was unusually active
In 1836 the first meeting of the State Board of Internal Im- provement was convencd and entered upon the discharge of its numerous and responsible duties. Having assigned to each mem- ber the direction and superintendence of a portion of the work, the next duty to be performed preparatory to the various spheres of active service, was that of procuring the requisite number of engineers. A delegation was sent to the Eastern cities, but returned
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without engaging an Engineer-in-Chief for the roads and railways, and without the desired number for the subordinate station; but after considerable delay the Board was fully organized and put in operation. Under their management work on publie improve- ments was successful; the canal progressed steadily; the naviga- tion of the middle division, from Fort Wayne to Huntington, was uuinterrupted; 16 miles of the line between Huntington and La Fontaine creek were filled with water this year and made ready for navigation; and the remaining 20 miles were completed, except a portion of the locks; from La Fontaine creek to Logansport prog- ress was made; the line from Georgetown to Lafayette was placed under contract; abont 30 miles of the Whitewater canal, extending from Lawrenceburg through the beautiful valley of the White- water to Brookville, were also placed under contract, as also 23 miles of the Central canal, passing through Indianapolis, on which work was commenced; also about 20 miles of the southern divis- ion of this work, extending from Evansville into the interior, were also contracted for; and on the line of the Cross-Cut canal, from Terre Hante to the intersection of the Central canal, near the mouth of Eel river, a commencement was also made on all the heavy sections. All this in 1836.
Early in this year a party of engineers was organized, and directed to examine into the practicability of the Michigan & Erie canal line, then proposed. The report of their operations favored its expediency. A party of engineers was also fitted out, who entered upon the field of service of the Madison & Lafayette railroad, and contracts were let for its construction from Madison to Vernon, on which work was vigorously commenced. Also, con- tracts were let for grading and bridging the New Albany & Vin- cennes road from the former point to Paoli, about 40 miles. Other roads were also undertaken and surveyed, so that indeed a stupendous system of internal improvement was undertaken, and as Gov. Noble truly remarked, upon the issue of that vast enter- prise the State of Indiana staked her fortune. She had gone too far to retreat.
In 1837, when Gov. Wallace took the Executive chair, the reaction consequent upon "over work " by the State in the internal improvement scheme began to be felt by the people. They feared a State debt was being incurred from which they could never be extricated; but the Governor did all he could throughout the term of his administration to keep up the courage of the citizens. He
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told them that the astonishing success so far, surpassed even the hopes of the most sanguine, and that the flattering auspices of the future were sufficient to dispel every doubt and quiet every fear. Notwithstanding all his efforts, however, the construction of pub- lie works continued to deeline, and in his last message he exclaimed : " Never before-I speak it advisedly-never before have you wit- nessed a period in our local history that more urgently called for the exercise of all the soundest and best attributes of grave and patriotic legislators than the present. * The truth is-and it would be folly to conceal it-we have our hands full-full to overflowing; and therefore, to sustain ourselves, to preserve the credit and character of the State unimpaired, and to continue her hitherto unexampled marel to wealth and distinction, we have not an hour of time, nor a dollar of money, nor a hand employed in labor, to squander and dissipate upon mere objects of idleness, or taste, or amusement."
The State liad borrowed $3,827,000 for internal improvement pur- poses, of which $1,327,000 was for the Wabash & Erie canal and the remainder for other works. The five per cent. interest on debts-about $200,000-which the State had to pay, had become burdensome, as her resources for this purpose were only two, besides direct taxation, and they were small, namely, the interest on the balances due for canal lands, and the proceeds of the third installment of the surplus revenue, both amounting, in 1838, to about $45,000.
In August, 1839, all work ccased on these improvements, with one or two exceptions, and most of the contracts were surrendered to the State. This was done according to an act of the Legislature providing for the compensation of contractors by the issue of treasury notes. In addition to this state of affairs, the Legisla- ture of 1839 had made no provision for the payment of interest on the State debt incurred for internal improvements. Concerning this situation Gov. Bigger, in 1840, said that either to go ahead with the works or to abandon them altogether would be equally ruinous to the State, the implication being that the people should wait a little while for a breathing spell and then take hold again.
Of course much individual indebtedness was created during the progress of the work on internal improvement. When operations ceased in 1839, and prices fell at the same time, the people were left in a great measure without the means of commanding money to pay their debts. This condition of private enterprise more than
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ever rendered direct taxation inexpedient. Henee it became the poliey of Gov. Bigger to provide the means of paying the interest on the State debt without increasing the rate of taxation, and to continue that portion of the public works that could be immedi- ately completed, and from which the earliest returns could be expected.
In 1840 the system embraced ten different works, the most im- portant of which was the Wabash & Erie canal. The aggregate length of the lines embraced in the system was 1,160 miles, and of this only 140 miles had been completed. The amount expended had reached the sum of $5,600,000, and it required at least $14,000,- 000 to complete them. Although the crops of 1841 were very remunerative, this perquisite alone was not sufficient to raise the State again up to the level of going ahead with her gigantic works.
We should here state in detail the amount of work completed and of money expended on the various works up to this time, 1841, which were as follows:
1. The Wabash & Erie canal, from the State line to Tippe- eanoe, 129 miles in length, completed and navigable for the whole length, at a cost of $2,041,012. This sum ineludes the cost of the steamboat lock afterward completed at Delphi.
2. The extension of the Wabash & Erie canal from the mouth of the Tippecanoe to Terre Haute, over 104 miles. The estimated cost of this work was $1,500,000; and the amount expended for the same $408,855. The navigation was at this period opened as far down as Lafayette, and a part of the work done in the neighbor- hood of Covington.
3. The cross-ent canal from Terre Haute to Central canal, 49 miles in length; estimated cost, $718,672; amount expended, $420,679; and at this time no part of the course was navigable.
4. The White Water canal, from Lawrenceburg to the mouth of Nettle creek, 763 miles; estimated cost, $1,675,738; amount expended to that date, $1,099,867; and 31 miles of the work was navigable, extending from the Ohio river to Brookville.
5. The Central canal, from the Wabash & Erie canal, to Indianapolis, including the feeder bend at Muncietown, 124 miles in length; total estimated cost, $2,299,853; amount expended, $568,046; eight miles completed at that date, and other portions nearly done.
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6. Central eanal, from Indianapolis to Evansville on the Ohio river, 194 miles in length; total estimated cost, $3,532,394; amount expended, $831,302, 19 miles of which was completed at that date, at the southern end, and 16 miles, extending south from Indianav- olis, were nearly completed.
7. Erie & Michigan canal, 182 miles in length; estimated cost, $2,624,823; amount expended, $156,394. No part of this work finished.
S. The Madison & Indianapolis railroad, over 85 miles in length; total estimated eost, $2,046,600; amount expended, $1,493,- 013. Road finished and in operation for about 28 miles; grad- ing nearly finished for 27 miles in addition, extending to Eden- burg.
9. Indianapolis & Lafayette turnpike road, 73 miles in length; total estimated cost, $593, 737; amount expended, $72,118. The bridging and most of the grading was done on 27 miles, from Crawfordsville to Lafayette.
10. New Albany & Vincennes turnpike road, 105 miles in length; estimated cost, $1,127,295; amount expended, $654,411. Forty-one miles graded and macadamized, extending from New Albany to Paoli, and 27 miles in addition partly graded.
11. Jeffersonville & Crawfordsville road, over 164 miles long; total estimated cost, $1,651,800; amount expended, $372,737. Forty-five miles were partly graded and bridged, extending from Jeffersonville to Salem, and from Greencastle north.
12. Improvement of the Wabash rapids, undertaken jointly by Indiana and Illinois; estimated eost to Indiana, $102,500; amount expended by Indiana, $9,539.
Grand totals: Length of roads and canals, 1,289 miles, only 281 of which have been finished; estimated cost of all the works, $19,914,424; amount expended, $8,164.528. The State debt at this time amounted to $18,469,146. The two principal causes which aggravated the embarrassment of the State at this juncture were, first, paying most of the interest out of the money borrowed, and, secondly, selling bonds on credit. The first error subjected the State to the payment of compound interest, and the people, not feeling the pressure of taxes to discharge the interest, natu- rally became inattentive to the public policy pursued. Postpone- ment of the payment of interest is demoralizing in every way. During this period the State was held up in an unpleasant manner before the gaze of the world; but be it to the credit of this great
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'and glorious State, she would not repudiate, as many other States and municipalities have done.
By the year 1850, the so-called "internal improvement " system having been abandoned, private capital and ambition pushed for- ward various "public works." During this year about 400 miles of plank road were completed, at a cost of $1.200 to $1,500 per mile, and about 1,200 miles more were surveyed and in progress. There were in the State at this time 212 miles of railroad in suc- cessful operation, of which 124 were completed this year. More than 1,000 miles of railroad were surveyed and in progress.
An attempt was made during the session of the Legislature in 1869 to re-burden the State with the old eanal debt, and the inatter was considerably agitated in the eanvass of 1870. The subject of the Wabash & Erie canal was lightly touched in the Republican plat- form, occasioning considerable discussion, which probably had some effeet on the election in the fall. That election resulted in an average majority in the State of about 2,864 for the Democracy. It being elaimed that the Legislature had no authority under the constitution to tax the people for the purpose of aiding in the con- struction of railroads, the Supreme Court, in April, 1871, decided adversely to such a claim.
GEOLOGY.
In 1869 the development of mineral resources in the State attracted considerable attention. Rich mines of iron and coal were discovered, as also fine quarries of building stone. The Vineennes railroad passed through some of the richest portions of the mineral region, the engineers of which had accurately determined the quality of richness of the ores. Near Brooklyn, about 20 miles from Indianapolis, is a fine formation of sandstone, yielding good material for buildings in the eity; indeed, it is considered the best building stone in the State. The limestone formation at Gosport, continuing 12 miles from that point, is of great variety, and ineludes the finest and most durable building stone in the world. Portions of it are susceptible only to the chisel; other portions are soft and can be worked with the ordinary tools. At the end of this limestone formation there commences a sandstone series of strata which extends seven miles farther, to a point about 60 miles from Indianapolis. Here an extensive coal bed is reached consisting of seren distinet veins. The first is about two feet thiek, the next three feet, another four feet, and the others of various thicknesses.
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These beds are all easily worked, having a natural drain, and they yield heavy profits. In the whole of the southwestern part of the State and for 300 miles np the Wabash, coal exists in good quality and abundance.
The scholars, statesmen and philanthropists of Indiana work- ed hard and long for the appointment of a State Geologist, with sufficient support to enable him to make a thorough geological survey of the State. A partial survey was made as early as 1837-'8, by David Dale Owen, State Geologist, but nothing more was done until 1869, when Prof. Edward T. Cox was appointed State Geolo- gist. For 20 years previous to this date the Governors urged and insisted in all their messages that a thorough survey should be made, but almost, if not quite, in vain. In 1852, Dr. Ryland T. Brown delivered an able address on this subject before the Legis- lature, showing how much coal, iron, building stone, etc., there were probably; in the State, but the exact localities and qualities not ascertained, and how millions of money could be saved to the State by the expenditure of a few thousand dollars; but "they answered the Doctor in the negative. It must have been because they hadn't time to pass the bill. They were very busy. They had to pass all sorts of regulations concerning the negro. They had to protect a good many white people from marrying negroes. And as they didn't need any labor in the State, if it was 'colored,' they had to make regulations to shut out all of that kind of labor, and to take steps to put out all that unfortunately got in, and they didn't have time to consider the scheme proposed by the white people."- W. W. Clayton.
In 1853, the State Board of Agriculture employed Dr. Brown to make a partial examination of the geology of the State, at a salary of $500 a year, and to this Board the credit is due for the final success of the philanthropists, who in 1869 had the pleasure of witnessing the passage of a Legislative act " to provide for a Depart- ment of Geology and Natural Science, in connection with the State Board of Agriculture." Under this act Governor Baker immedi- ately appointed Prof. Edward T. Cox the State Geologist, who has made an able and exhaustive report of the agricultural, mineral and manufacturing resources of this State, world-wide in its celeb- rity, and a work of which the people of Indiana may be very prond. We can scarcely give even the substance of his report in a work like this, because it is of necessity deeply scientific and made up entirely of local detail.
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