In addition to the election of three United States Senators this
Legislature had some very important work before it, as has already been
stated in a previous chapter. A new public school system had to be
inaugurated and put in operation, thus necessitating the construction of
schoolhouses throughout the State, some of them, especially in the towns
and villages, to be quite large and of course expensive. All of the
other public buildings and institutions in the State had to be repaired,
some of them rebuilt, all of them having been neglected and some of them
destroyed during the progress of the late War. In addition to this the
entire State Government in all of its branches had to be reconstructed
and so organized as to place the same in perfect harmony with the new
order of things.

To accomplish these things money was required. There was none in the
treasury. There was no cash available even to pay the ordinary expenses
of the State government. Because of this lack of funds the government
had to be carried on on a credit basis,--that is, by the issuing of
notes or warrants based upon the credit of the State. These notes were
issued at par to the creditors of the State in satisfaction of the
obligations. In turn they were disposed of at a discount to bankers and
brokers by whom they were held until there should be sufficient cash in
the treasury to redeem them,--such redemption usually occurring in from
three to six months, though sometimes the period was longer. To raise
the necessary money to put the new machinery in successful operation one
of two things had to be done: either the rate of taxation must be
materially increased or interest bearing bonds must be issued and placed
upon the market, thus increasing the bonded debt of the State. Although
the fact was subsequently developed that a small increase in the bonded