Canal debt.

$1,300.000.

ARTICLE VII.

SECTION 1. After paying the expenses of collection, superintendence and ordinary repairs, there shall be appropri ated and set apart in each fiscal year, out of the revenues of the state canals, commencing on the first day of June, one thousand eight hundred and forty-six, the Sinking fund, sum of one million and three hundred thousand dollars, until the first day of June, one thousand eight hundred and fifty-five, and from that time the sum of one million and seven 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 canal debt as it existed at the time first aforesaid, and including three hundred thousand dollars then to be borrowed, until the same shall be wholly paid; and the principal and income of the said sinking fund shall be sacredly applied to that

$1,700,000.

General Fund, debt.

$350,000.

$1,500,000.

purpose.

SECTION 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 Sinking fund, 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 incorporated 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.

$200,000 of the surplus Canal

revenues

annu

ally appropri ated to Gene

Fal Fund, and

[SECTION 3. After paying the said expenses of superintendence and repairs of the canals, and the sums appropriated by the first and second sections of this article,

to specified

there shall be paid out of the surplus revenues of the the remainder canals, to the treasury of the state, on or before the thirtieth public works. day of September, in each year, for the use and benefit of the general fund, such sum, not exceeding two hundred thousand dollars, as may be required to defray the necessary expenses of the state; and the remainder of the revenues of the said canals shall, in each fiscal year, be applied, in such manner as the legislature shall direct, to the com- Annulled. pletion of the Erie canal enlargement, and the Genesee Valley and Black River canals, until the canals shall be completed.

ciencies in the

revenues of the ceeding $350,

State not ex

000, annually to be supplied from the reve.

nues of the

Canals.

If at any time after the period of eight years from the adoption of this constitution, the revenues of the state, unappropriated by this article, shall not be sufficient to defray the necessary expenses of the government, without continuing or laying a direct tax, the legislature may, at Certain defi. its discretion, supply the deficiency, in whole or in part, from the surplus revenues of the canals, after complying with the provisions of the first two sections of this article, for paying the interest and extinguishing the principal of the canal and general fund debt; but the sum thus appropriated from the surplus revenues of the canals shall not exceed annually three hundred and fifty thousand dollars, including the sum of two hundred thousand dollars provided for by this section for the expenses of the government, until the general fund debt shall be extinguished, or until the Erie canal enlargement and Genesee Valley and Black River canals shall be completed, and after that debt shall be paid, or the said canals shall be completed, then the sum of six hundred and seventy-two thousand five hundred dollars, or so much thereof as shall be necessary, may be annually appropriated to defray the expenses of the government.]

porated compa

released or

SECTION 4. The claims of the state against any incorpo- Loans to incorrated company to pay the interest and redeem the principal nies not to be of the stock of the state loaned or advanced to such com- compromised. pany, shall be fairly 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.

SECTION 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,

Legislature ble taxes in

shall by equita

crease the rev..

enues of the sinking funds in certain cases

State canals not to be sold or leased.

Salt Springs.

Appropriation bills.

State credit not to be loaned.

Power to contract debts limited.

Debts to repel Invasion, &c., may be contracted.

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 reve nues, 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.

SECTION 6. The legislature shall not sell, lease, or otherwise dispose of any of the canals of the state; but they shall remain the property of the state and under its management forever.

SECTION 7. The legislature shall never sell or dispose of the salt springs belonging to this state. The lands contiguous thereto, and which may be necessary and convenient for the use of the salt springs, may be sold by authority of law and under the direction of the commissioners of the land office, for the purpose of investing the moneys arising therefrom in other lands alike convenient; but by such sale and purchase the aggregate quantity of these lands shall not be diminished.

SECTION 8. No moneys shall ever be paid out of the treasury of this state, or any of its funds, or any of the 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 an 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.

SECTION 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.

SECTION 10. The state may, to meet casual deficits or failures in revenues, or for expenses not provided for, con tract debts but such debts, direct and contingent, singly or in the aggregate, shall not at any time exceed one million of dollars; and the moneys arising from the loans creating such debts, shall be applied to the purpose for which they were obtained, or to repay the debt so contracted, and to no other purpose whatever.

SECTION 11. In addition to the above limited power to contract debts, the state may contract debts to repel invasion, suppress insurrection, or defend the state in war; but the money arising from the contracting of such debts shall

be applied to the purpose for which it was raised, or to repay such debts, and to no other purpose whatever.

the legislative

creation of

SECTION 12. Except the debts specified in the tenth and Limitation of eleventh sections of this article, no debt shall be hereafter power in the contracted by or on behalf of this State, unless such debt debts. shall be authorized by a law, for some single work or object, to be distinctly specified therein; and such law shall impose and provide for the collection of a direct annual tax to pay, and sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal of such debt within eighteen years from the time of the contracting thereof.

No such law shall take effect until it shall, at a general election, have been submitted to the people, and have received a majority of all the votes cast for and against it at such election.

On the final passage of such bill in either house of the legislature, the question shall be taken by ayes and noes, to be duly entered on the journals thereof, and shall be: "Shall this bill pass, and ought the same to receive the sanction of the people?"

The legislature may at any time, after the approval of such law by the people, if no debt shall have been contracted in pursuance thereof, repeal the same; and may at any time, by law, forbid the contracting of any further debt or liability, under such law; but the tax imposed by such act, in proportion to the debt and liability which may have been contracted, in pursuance of such law, shall remain in force and be irrepealable, and be annually collected, until the proceeds thereof shall have made the provision hereinbefore specified to pay and discharge the interest and principal of such debt and liability.

The money arising from any loan or stock creating such debt or liability shall be applied to the work or object specified in the act authorizing such debt or liability, or for the repayment of such debt or liability and for no other purposes whatever.

No such law shall be submitted to be voted on, within three months after its passage, or at any general election, when any other law, or any bill, or any amendment to the constitution shall be submitted to be voted for or against.

passing bills,

SECTION 13. Every law which imposes, continues or Manner of revives a tax, shall distinctly state the tax and the object imposing a tax. to which it is to be applied; and it shall not be sufficient to refer to any other law to fix such tax or object.

SECTION 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, con

Corporations how created.

Debts of corporations.

Corporations defined.

Charters for banking pur. poses.

Specie pay

ments.

Registry of bills or notes.

Individual re

sponsibility of

tinues 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.

ARTICLE VIII.

SECTION 1. Corporations may be formed under general laws; but shall not be created by special act, except for municipal purposes, and in cases where, in the judgment of the legislature, the object of the corporation cannot be attained under general laws. All general laws and special acts, passed pursuant to this section, may be altered from time to time or repealed.

SECTION 2. Dues from corporations shall be secured by such individual liability of the corporators and other means as may be prescribed by law.

SECTION 3. The term corporations, as used in this article, shall be construed to include all associations and joint stock companies having any of the powers or privileges of corporations not possessed by individuals or partnerships. And all corporations shall have the right to sue and shall be subject to be sued in all courts, in like cases as natural persons. SECTION 4. The legislature shall have no power to pass any act granting any special charter for banking purposes; but corporations or associations may be formed for such purposes under general laws.

SECTION 5. The legislature shall have no power to pass any law sanctioning in any manner, directly or indirectly, the suspension of specie payments, by any person, association or corporation issuing bank notes of any description.

SECTION 6. The legislature shall provide by law for the registry of all bills or notes, issued or put in circulation as money, and shall require ample security for the redemption of the same in specie.

notes or any

paper

SECTION 7. The stockholders in every corporation and stockholders. joint stock association for banking purposes, issuing bank kind of credits to circulate as money, after the first day of January, one thousand eight hundred and fifty, shall be individually responsible, to the amount of their respective share or shares of stock in any such corporation or association, for all its debts and liabilities of every kind, contracted after the said first day of January, one thousand eight hundred and fifty.

Insolvency of banks, preference.

SECTION 8. In case of the insolvency of any bank or banking association, the billholders thereof shall be enti