SEC. 2. After complying with the provisions of the first section of this article, there shall be appropriated and set apart out of the surplus revenues of the State canals, in each fiscal year, commencing on the first day of June, one thousand eight hundred and forty-six, the sum of three hundred and fifty thousand dollars, until the time when a sufficient sum shall have been appropriated and set apart, under the said first section, to pay the interest and extinguish the entire principal of the canal debt; and after that period, then the sum of one million and five hundred thousand dollars in each fiscal year, as a sinking fund, to pay the interest and redeem the principal of that part of the State debt called the general fund debt, including the debt for loans of the State credit to railroad companies which have failed to pay the interest thereon, and also the contingent debt on State stocks loaned to incorporate companies which have hitherto paid the interest thereon, whenever and as far as any part thereof may become a charge on the treasury or general fund, until the same shall be wholly paid; and the principal and income of the said last mentioned sinking fund shall be sacredly applied to the purpose aforesaid; and if the payment of any part of the moneys to the said sinking fund shall at any time be deferred, by reason of the priority recognized in the first section of this article, the sum so deferred, with quarterly interest thereon, at the then current rate, shall be paid to the last mentioned sinking fund, as soon as it can be done consistently with the just rights of the creditors holding said Canal Debt.

SEC. 3. After paying the said expenses of collection, superintendence and repairs of the canals, and the sums appropriated by the first and second sections of this article, there shall be appropriated and set apart in each fiscal year, out of the surplus revenues of the canals, as a sinking fund, a sum sufficient to pay the interest as it falls due, and extinguish the principal within eighteen years, of any loan made under this section; and if the said sinking fund shall not be sufficient to redeem any part of the principal at the stipulated times of payment, or to pay any part of the interest of such loans as stipulated, the means to satisfy any such deficiency shall be procured on the credit of the said sinking fund. After complying with the forgoing provisions, there shall be paid annually out of said revenues, into the treasury of the State, two hundred thousand dollars, to defray the necessary expenses of government. The remainder shall, in each fiscal year, be applied to meet the appropriations for the

and third sections of this article, and after paying said expenses of collection, superintendence, and ordinary repairs, the surplus revenues of the canals may, in each fiscal year, be disposed of for the improvement of the canals, or for such other purposes as the Legislature may direct, but shall at no time be anticipated or pledged.

Loans to incor

porated compa

SEC. 5. The claims of the State against any incorporated com

nies not to be pany, to pay the interest and redeem the principal of the stock promised. of the State, loaned or advanced to such company, shall be en

released or com

enlargement and completion of the canals mentioned in this section, until the said canals shall be completed. In each fiscal year thereafter the remainder shall be disposed of in such manner as the Legislature may direct; but shall at no time be anticipated or pledged for more than one year in advance. The Legislature shall annually, during the next four years, appropriate to the enlargement of the Erie, the Oswego, the Cayuga and Seneca canals, and to the completion of the Black River and Genesee Valley canals, and for the enlargement of the locks of the Champlain canal, whenever from dilapidation or decay it shall be necessary to rebuild them, a sum not exceeding two millions two hundred and fifty thousand dollars. The remainder of the revenues of the canals, for the current fiscal year in which such appropriation is made, shall be applied to meet such appropriation; and if the same shall be deemed insufficient, the Legislature shall, at the same session, provide for the deficiency by loan. The Legislature shall also borrow one million and five hundred thousand dollars, to refund to the holders of the canal revenue certificates issued under the provisions of chapter four hundred and eighty-five of the Laws of the year one thousand eight hundred and fifty-one, the amount received into the treasury thereon; but no interest, to accrue after July first, one thousand eight hundred and fifty-five, shall be paid on such certificates. The provisions of section twelve of this article, requiring every law for borrowing money to be submitted to the people, shall not apply to the loans authorized by this section. No part of the revenues of the canals, or of the funds borrowed under this section, shall be paid or applied upon in consequence of any alleged contract made under chapter four hundred and eighty-five of the Laws of the year one thousand eight hundred and fifty-one, except to pay for work done or materials furnished prior to the first day of June, one thousand eight hundred and fifty-two. The rates of toll on persons and property transported on the canals shall not be reduced below those for the year one thousand eight hundred and fifty-two except by the canal board with the concurrence of the Legislature. All contracts for work or materials on any canal shall be made with the person who shall offer to do or provide the same at the lowest price, with adequate security for their performance.

SEC. 4. The claims of the State against any incorporated company to pay the interest and redeem the principal of the stock of the State loaned or advanced to such company, shall be fairly

forced, and not released or compromised; and the moneys arising from such claims shall be applied to the payment of said stock, or to repay the money which may be advanced to pay the same.

Canals of the

SEC. 6. The canals shall not be sold, leased, or otherwise disleased or sold. posed of, and shall remain under the management of the State

State not to be

Appropriation

bills.

State credit not

to be loaned.

Manner of

passing bills ap

money

forever.

SEC. 7. No moneys shall be paid out of the treasury of the State, or funds under its management, except in pursuance of an appropriation by law, nor unless such payment be made within two years after the passage of such appropriation; and every law making, continuing, or reviving an appropriation, shall specify the sum appropriated, and the objects to which it is to be applied, and it shall not be sufficient for such law to refer to any other law for that purpose.

SEC. 8. The credit of the State shall not be given or loaned to, or in aid of any individual, corporation or association. On

the final passage in each house of the Legislature, of any act propriating appropriating money or property, except for the purposes of or property. government, the question shall be taken by yeas and nays, which shall be entered on the journal, and two-thirds of all the members elected to each house shall be necessary to pass the same. (See also Art. VIII., Sec. 12, Proposed Constitution.)

enforced, and not released or compromised; and the moneys arising from such claims shall be set apart, and applied as part of the sinking fund provided in the second section of this article. But the time limited for the fulfillment of any condition of any release or compromise heretofore made or provided for, may be extended by law.

SEC. 5. If the sinking funds, or either of them provided in this article, shall prove insufficient to enable the State, on the credit of such fund, to procure the means, to satisfy the claims of the creditors of the State as they become payable, the Legislature shall, by equitable taxes, so increase the revenues of the said funds as to make them, respectively, sufficient perfectly to preserve the public faith. Every contribution or advance to the canals, or their debt, from any source, other than their direct revenues, shall, with quarterly interest, at the rates then current, be repaid into the treasury, for the use of the State, out of the canal revenues, as soon as it can be done consistently with the just rights of the creditors holding the said canal debt.

Legislature shall, taxes, increase

by equitable the revenues of the Sinking Funds in certain cases.

Canals of the State not to be

SEC. 6. The Legislature shall not sell, lease, or otherwise dispose of any of the canals of the State; but they shall remain the leased or sold. property of the State, and under its management, forever.

bills.

SEC. 8. No moneys shall ever be paid out of the treasury of Appropriation this State, or any of its funds under its management, except in pursuance of an appropriation by law; nor unless such payment be made within two years next after the passage of such appropriation act; and every such law, making a new appropriation or continuing or reviving an appropriation, shall distinctly specify the sum appropriated, and the object to which it is to be applied; and it shall not be sufficient for such law to refer to any other law to fix such sum.

SEC. 9. The credit of the State shall not, in any manner, be given or loaned to, or in aid of any individual association or corporation.

SEC. 14. On the final passage, in either house of the Legislature, of every act which imposes, continues, or revives a tax or creates a debt or charge or makes, continues or revives any appropriation of public or trust-money, or property, or releases, discharges or commutes any claim or demand of the State, the question shall be taken by ayes and noes, which shall be duly entered on the journals, and three-fifths of all the members elected to either house, shall in all such cases, be necessary to constitute a quorum therein.

State credit not to be loaned.

Manner of passing bills imposing a tax, creating debt, &c.