CHAPTER XXVI. STATE HISTORIES-INDIANA.* Administrations of the Governors of Indiana from Jonathan Jennings to Thomas A. Hendricks - Internal Improvement Troubles - Public Affairs Progress of the State, Historical and Statistical. THE first election under the state constitution of Indiana, occurred on the first Monday of August, 1816, and Jonathan Jennings was elected governor; Christopher Harrison, lieutenant governor, and William Hendricks was elected to represent the new state in the house of representatives of the United States. The first general assembly, elected under the authority of the state constitution, commenced its session at Corydon on the 4th of November, 1816. John Paul was called to the chair of the senate, pro tem., and Isaac Blackford was elected speaker of the house of representatives. On the 7th of November the oath of office was administered to governor Jennings and lieutenant governor Harrison, in the presence of both houses. state. Thus was the territorial goverment of Indiana exchanged for a state government on the 7th of November, 1816. During the session of the legislature, James Noble and Walter Taylor were elected to represent the state of Indiana in the senate of the United States. Robert A. New was elected secretary of state; W. H. Lilley, auditor of state, and Daniel C. Lane, treasurer of The session was adjourned sine die on the third of January, 1817. The inhabitants of the new state first turned their attention to farming, to agriculture, which remains the principal industry of the state. New farms were opened, new settlements. were founded; orchards were planted; log and frame school houses were erected, churches were built, and very soon towns. and cities began to flourish. "Thus was inaugurated that great era of prosperity which can only terminate in future greatness. * Ohio, which should have been taken up first in regular order, will be found further on. Withal, a sense of security prevaded the minds of the people. The hostile Indians, as we have seen, had been humbled. Their power and pride had been broken, and the tomahawk no longer excited the fears of the pioneer settler of Indiana. The settlers dwelt in safety in their little, plain, log cabins, and actuated by a faith in that future prosperity which they have lived to enjoy, they cultivated their small fields without the aid of armed sentinels. The numerous forts and block houses, which had once been made desolate by merciless slaughters, were now converted into storehouses, dwellings, or in some way made to serve the purpose of trade. But it must not be supposed that this great prosperity has been attained without difficulty. Indiana has had her internal improvement troubles; her financial embarrassment; a currency panic; a commercial depression; her dark days; but these have all passed. They were unequal to the persistent energies of a free people. In 1816-17, when the state was in its infancy, and the citizens were not wealthy, and when the number and value of the objects of taxation were miserably small, and the inexhaustable resources undeveloped, it was difficult to raise the revenue necessary for the support of the government. The burden upon landholders was indeed heavy; the funds for county purposes were derived mostly from a poll tax, taxes on lands, town lots, horses, carriages, clocks, watches, and to license venders of merchandise." The revenue troubles of the state seemed, for a time at least, to check the progress of the state. In November, 1821, Gov. Jennings convened the legislature in extra session, to provide for the payment of the interest on the state debt, and a part of the principal, amounting to twenty thousand dollars; but the means for payment were scarce and uncertain, and in this year the industries of the state suffered great embarrassment from dishonest speculation in high places. Gov. William Hendricks succeeded Gov. Jennings in the administration of the affairs of the state in 1822. His term extended to 1825, during which time the state enjoyed considerable prosperity. He was succeeded by James B. Ray, who also had a very successful administration. In 1830, the current of emigration was * History of Indiana, p. 186. still flowing into the state and spreading itself throughout the limits of the territory, affording the surest indications of a continued growth and prosperity. These assurances were considerably supported by the great increase of agricultural productions, facilities for transportation, and increasing wealth, enterprise, intelligence, temperance and morality; and of the general and rapidly accumulating masses of the people. During these months, the people were daily cheered by witnessing from twenty to fifty wagons, containing families, moving through Indianapolis and other large towns, on their way to the valleys of the White and Wabash rivers. It was estimated that every day, during the year 1826, over thirty families settled in the state of Indiana. It is only from a contemplation of these facts that the reader can form any correct idea of the rapid growth of the state. At no former period within the history of the state had the people enjoyed a more ample reward for the various agricultural products than in 1830. This market was created from various causes, but mainly from the existing wars. in December, 1831. The latter held the office of governor until 1837. It was during the first year of Gov. Noble's administration that the work of internal improvement was begun, a work over which the state became bankrupted in treasury, but from which it finally emerged in triumph. The principal feature of the internal improvement system was the Wabash and Erie canal. Work on this and other projects was commenced under Gov. Noble, but in 1838, when David Wallace succeeded him, funds were found to be exhausted, and the prospect of public affairs full of foreboding. At the close of this year, Gov. Wallace, in addressing the legislature, used these words: "Never before I speak it advis edly never before have you witnessed 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 march 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 dissi Mr. Ray was succeeded by Noah Noble, pate upon mere objects of idleness, or taste, or amusement." The condition of the state at this time was truly critical. There had been borrowed by the state, for internal improvement purposes, three millions, eight hundred and twenty-seven thousand dollars -one million, three hundred and twenty-seven thousand for the Wabash and Erie canal, and the remaining two and a half millions for the benefit of other works. Upon the whole of this sum, with a very inconsiderable exception, the state paid an annual interest of five per cent., which of itself was an unbearable burden. To meet this demand, the state had but two small sources, independent of taxation. These were, first, the interest arising from the balances due upon the sales of canal lands, and secondly, the proceeds of the third installment of the surplus revenue, both amounting, in 1838, to about forty-five thousand dollars. This was all the visible means with which the state had to pay the enormous sum of two hundred thousand dollars, without resorting to direct taxation. At the close of 1839, labor was suspended on all the works, and the contracts were surrendered to the state. In 1840, Gov. Wallace was succeeded by Samuel Bigger. This and the year following were dark years for the state of Indiana. With the assembling of the legislature in 1841, the state had reached a crisis in its affairs which had been expected by many, but which many had expected to avoid. Indiana, until that year, had succeeded in paying the interest on her public debt, and at the previous session of the legislature, ample provision was supposed to have been made for its payment, but circumstances beyond the control of the agents of the state rendered it impossible to obtain the necessary funds, and at this period the people were compelled to acknowledge the unwelcome truth that the credit of the state had not been sustained. In this connection we shall briefly glance over those measures, the unfortunate issue of which involved the state in the difficulties to which we now refer. * In the year 1827, the state of Indiana obtained from the general government a grant of land to aid in the construction of the Wa bash and Erie canal, with a view to connect the Wabash river with lake Erie. A portion of this grant was surrendered to the state of Ohio, on the condition that she would construct the canal *From Tuttle's History of Indiana. from the boundary of Indiana to the lake. This canal had been. completed ready for navigation from Lafayette, on the Wabash, to the eastern line of the state. This work was not generally regarded as a part of the system of internal improvements adopted in 1836. In the month of January, 1836, the legislature of Indiana passed an act to provide for a general system of internal improvements, embracing a number of expensive works. The extent and condition of these works, including the Wabash and Erie canal, at the close of the year 1841, with the total disbursements thereon, may be summed up as follows: 1. The Wabash and Erie canal, from the state line to Tippecanoe, one hundred and twenty-nine miles in length, completed and navigable for the whole length, at a total expenditure of $2,041,012. This sum includes the cost of the steamboat lock afterwards completed at Delphi. 2. The extension of the Wabash and Erie canal from the mouth of the Tippecanoe to Terre Haute, over one hundred and four miles. The estimated cost of this work was $1,500,000, and the amount expended for the same, up to 1841, was $408,855. The navigation was at this period opened as far down as Lafayette, and a portion of the work performed in the vicinity of Covington. 3. The Crosscut canal from Terre Haute to Central canal, fortynine miles in length, estimated cost $718,672 — amount expended to 1841, $420,679, and at this period no part of the work was navigable. 4. The White Water canal, from Lawrenceburgh to the mouth of Nettle creek, seventy-six and a half miles-estimated cost $1,675,738; amount expended to that date, $1,099,867, and thirtyone miles of the work was navigable, extending from the Ohio river to Brookville. 5. The Central canal, from the Wabash and Erie canal, to Indianapolis, including the feeder dam at Muncietown, one hundred and twenty-four miles in length - total estimated cost $2,299,853; amount expended, $568,046; eight miles completed at that date, and other portions nearly done. 6. Central canal, from Indianapolis to Evansville, on the Ohio river, one hundred and ninety-four miles in length; total esti |