The Elko independent. [volume] (Elko, Nev.) 1869-1872, 1871-02-04
Funding Bill.

senator Haziett, OF Lyon county, has intro
duced bills for the funding Of the Territorial
and State debts Of Nevada. These bills have
been considered inthe Com nittee of the Whole
Of the Senate, and have met with general
favor; they are simple in their provisions, and
will accomplish the purpose of placing the
finances of the State on such basis that will
relieve it from the perple1ities of further in
creasing Indebtedness. The total State debt
is about SEQ, 900. The Constitution of the
State provides that the debt of the Territory
Of Nevada, which remained unpaid after the
State organization, should be assumed by the
State. That debt amounts to $3.50. 900, which
was bonded and will be due in 1872 The
Constitution has limited the extent to which
the State should be allowed to become indebt-
ed, to S300,0OO, though the Territorial indebt-
edness is not included with the State indebt-
edness. 1t is proposed to issue new bonds for
the Territorial debt, TO run 20 years, with in
terest at 10 per cent, payable semi-annually
The State owes $4,000. which is in bonds,
issued under an act of 1867, and also about
100000 of floating Indebtedness, mostly in
the shape of warrants, making some $3.50, 900.
1t is proposed to negotiate a loan for these
$3.50, 900 by giving bonds which shall be pay
able in ten years, bearing an interest of ten
per cent. per annum; but the bonds are not
to be sold for less than their par value in gold
coin. The State Treasurer may exchange any
of these bonds for the floating indebtedness
for outstanding registered warrants in sums of
not less than 500. The $4,000 bonds of
1867 are not payable until March, 1872, and
therefore need not be taken up until that time.
State Interest and sinking Fund is to be
created to pay the principal and interest on
these bonds; l2is cents on each 500 is to be
set aside for the purpose of paying the $780,
600 loan, and after this year % cents As the
Capitol Fund of 1921 cents will expire after this
year, the total levy will not be increased ex-
cept IN the sum of l2i. cents on the 800. II
any surplus remains after paying the semi-an-
nual interest above the amount of the ensuing
payment. exceeding $1,000, bids are to be
received for the surrender of bonds, and should
the total assessment of the State increase the
reduction from this source, it would be consid.
erable The total valuation of real and personal
property in the State at the present time is
estimated at S23, 900, OOO A levy of 81 % on
on each 500 would raise S2S7, 500. Out of
this amount set aside 500 900 tor the Interest
and Sinking Fund, and allow S57 900 for delin-
quent tax, and We have fair revenue to wit:
From property tax. $3.50, 500; from proceeds of
the mines. SIS, 600; from stamps, $50, 900; from
poll tax, Sl5, 900; and from licenses. SIS, 900;
which would be sufficient for all expenses, and
the State would be placed upon a permanent
cash basis.
The saving to the State, by the adoption of
this measure, says the Carson Register, is no
Insignificant item. BY starting on a cash
basis, the State saves all the charge for sup
plies arising from the depreciation of war
rants The extra charges on bills now run all
the way from % to 40 per cent. in addition To
the cash prices. Averaging these extras nj
33H per cent. land they have been fully that
during the past year), We find that the State
has paid about S29, 900 during the year above
the cash rates for supplies Should the ill.,
debteduess he not funded, this depreciation
in warrants is likely to amount to 90 per cent.
during the present year. These extra charges
to cover the depreciation, together with the
difference In the amount of annual interest on
the bonds (S9,OOO) amounts to about S52, 900
"A little item well worth saving II will soon
make vast difference to the taxpayers. These
bills appear 30 be adapted to the OCCASION and
just the measures to bring about that reforma-
ton, and meet the necessities now urgently
pressing solution. We understand that
should this loan be authorized there will be
no difficulty in negotiating the bonds. As
the amount is still within the Limitation of
$500 900 by about $50, 900 il will he seen that
the State has still some margin for extraOrdi-
nary expenses, should such occasion arise.