From Ohio History Central
While the Ohio Loan Law helped improve the state's transportation infrastructure, it also caused a great deal of harm in another way. Critics of this legislation commonly referred to it as the "Plunder Law," because the Ohio treasury's monetary resources declined greatly as a result of the law. The Ohio legislature loaned more money than existed in the state's treasury. As a result of these loans, the Ohio government had to borrow money to pay its expenses. By 1839, Ohio had a deficit of more than one-quarter of a million dollars. Most of this debt resulted from interest the state government owed to its creditors. In 1840, the Ohio legislature repealed the Plunder Law. The Ohio Loan Law had plundered the Ohio treasury, but it also had allowed for dramatic improvements in transportation with the state's borders.
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