Page:Oregon Historical Quarterly volume 11.djvu/443

 Financial History of Oregon 413 is fully attested by the records of their redemption, and through several corroborative sources. The legislative investi- gating commission of 1872 found a scandalous state of affairs existing with reference to participation by several of the officials at the capital in this bond speculation. Inside infor- mation on the conditions of the surplus available for redemp- tion, as well as cash on hand in the general fund, were being utilized. 1 The redemption items in the biennial reports of these funds exhibit clearly to whom the individual claim-holders had taken their bonds to realize cash. What rates of discount they had been compelled to accept do not appear. 2 //. Internal Improvement Indebtedness. Oregon, like other American commonwealths, would be likely to have only two general classes of occasions for con- tracting bonded indebtedness: War, invasion or the suppres- sion of an insurrection would be one; the other would arise in connection with the undertaking of, or the participating in, a large enterprise of permanent public improvement. The occasions of the first class, and the use of its credit in meeting them, have been referred to. From a glance at the article of the state constitution on "Corporations and Internal Improvements" one would suppose tnat the history of Oregon's use of public credit for the pro- motion of internal improvements would be very brief. The disposition of the framers of the state constitution with regard to state aid towards, or state participation in, the work of internal improvement was there unmistakably declared. All possibility of the use of public credit in Oregon for any internal improvement would seem to have been forestalled. For the constitution enjoins that the "legislative assembly shall provide for the raising revenue sufficient to defray the expenses of the state for each fiscal year, and also a sufficient sum to pay inter- i Report of Investigating Commission, 1872, pp. 48-73. Treasurer's Report, p. 103. 2319 bonds were redeemed for one bank in 1887.