The Placer herald., 1871-09-02

SECTION l. For the purpose of liquidating and
providing for the payment of the funded indebt-
elness of the State Of California hereinafter spec
ified and to lessen the burden Of taxation. the
Governor of tie State, the Controller of State
and The Treasurer Of State, and their successors
in office, shall constitute Board OF Commits
sioncrs to be STYLED the Loan Commissioners of
the State Of California. and shall have and cxer-
else the powers and perform the duties herein
after provided
SEC. g. The said Loan Commissioners are
hereby authorized to issue and sell not exceed
ing three millions seven hundred thousand dol
lars of the bonds Of said State, brarirg interest
ut the rate Of six per cent per annum, which in
terest shall be payable semi-annually, i'll gold
coin, on the second days in January and July
| in each year at the Office Of the Treasurer Of
State. The principal of said bonds shall be
made payable in gold coin within twenty years
aftor the date Of their ISSUE and shall be Of such
denominations rs the said Loan Commissioners
shall direct, bu. not less than five hundred dol
lars shall bear the date Of their issue, and shall
be signed by the said Loan Commissioners, and
shall have the seal of the State affixed thereto
and the faith of the State of California is here
by pledged for the payment of said bonds and
the interest accruing thereon rs here n provided
| SEC g. Coupons for the interest shall be at
| tached to each bond SO that they may be remoy-
| ed without injury or mrtlaton to the bond; said
coupons, consccutively numbered, shall be
| signed by the Treasurer of the State.
| SEC f. Before the snle of any of said bonds
the said Loan Commissioners shall cause no.
tees Of such sale to be published, for the spnce
of one month, in three daily newspapers publish
ed in English one in the City of Now York, one
in the City of London, in England, and one in
the Capital of the State; in and fer the space of
! one month in daily newspaper published i'll
French, in the City Of Paris, in France, and for
the space o. one month in daily newspaper
published in German in the City of Frankfort
on the Main in Germany. Such notice shall
specify the amount Of bonds to be sold, The rlte
Of interest they shall bear, the day ana hour OF
sale, the place of sale, which sha" be at the
State Capital and that sealed proposals VII be
received by the said Loan Commissioners for he
purchase of such bonds. Within one month
from the expiration Of such publication, and on
the day and hour named in said notice, the said
Loan Commissioners shall open all sealed pro-
posals received by them, and shall award the
purchase of said bonds to such bidders as will,
in their opinion, make fhe most advantageous
bid for the State; prorided that said Loan Com
mlssioners may reject any or al bids, If they
deem it to the advantage Of the State; pr0ridtd
further, that they may refuse to make any award
unless sufficient security shall be furnished by
the bidders for the compliance with the terms of
their bids; and prorjded further, that said bonds
shall not be sold at less than ninety-o cents
on the dollar, in gold coin, par value
SEC. s. 1t shall be the duty of the Treasurer
and Controller of State each to keep separate
record of all bonds sold under the provisions of
this Act, showing the number. date, amount and
rate of interest Of each bond, and to whom the
same was issued.
SEC. 6. The sum on one thousand dollars is
hereby appropriated out of the General Fund
for the payment of the expense that may be in
Cured by the Loan Commissioners III having
such bonds prepared and said notices published.
SEC. 7. The proceeds of such bonds shall be
paid into the State treasury, and shall be APP
piled to the payment Of the following bonds, in
the order of their issuance:
Frst-The outstanding bonds issned under
the Act entitled an Act to provide for certain
equitable claims against the State Of California,
and to contract funded debt for that purpose.
approved April twenty eighth, eighteen hundred
and ffty-seven.
lSecond-The outstanding bonds issued under
the Act of eighteen hundred and sixty.
Third-The outstanding soldiers relief bonds.
FourM-The outstanding soldiers bounty
bonds.
SEc. .. All persons having any of the bonds
specified i'll section seven of this Act shall, upon
presentation of such bonds TO the said loan
Commissioners, be entitled to exchange them at
their par value for bonds authorized to be issued
under this Act Mt the rate of ninety,three cents
on the dollar, par value, but no bond shall be
issued for less sum than five hundred dollars,
nor for Il fractional part of n hundred dollars,
but the said Loan Commissioners may issue GER
tihcates of such fractional parts not bonded,
which said certificate slall be transferable, and
entitled to be paid out of the proceeds of the
sales of any bonds provided for in section seven
of this Act The Loan Commissioners shall
cancel each bond so exchanged, and shallndorse
SEC. .. Whenever there shall be in the State
treasury, from the proceeds of the sale of bonds
sned under this Act, sum of ten thousand
dollars or more. it shall bethe duty of tho Treas
strer to advertise in two newspapers, printed in
English, one i'll New York and one in the Capt.
tai of the State, for two months, which adver-
tisement shall state the amount of of money in
the treasury applicable to the redemption of
bonds, and the number of bonds, numbering
therein the order of then issuance, which are
loemabl'; and three months from the date of
the expiration Of such advertisement, such bonds,
unless sooner paid, shall cease to draw interest.
but the money for the redemption of such bonds
shall remain in the treasury to pay such bonds
whenever presented.
SEC. 10. For tho payment within twenty
years of the principal and interest of the bonds
issued under this Act, there shall be and is here
by levied annually, after any bonds have been
issued under this Act, such rate of tax on each
one hundred dollars of the assessed value of
real and personal property in the State, to be
computed by the Controller of State on the ba-
sis Of the assessed value of such property for
the preceding year, as shall produce annually,
for the first five years, seven per centum of the
amount of such bonds issued; for the next ten
years thereafter, twelve per centum OF the amount
70 such bonds issued, and thereafter, until all
on such bond the date on which they received
the same, and from whom, the number and
amount of the bond issued in exchange therefor,
and shall file such bond in the Office of the Sec
retary of State.
the bonds are issued under this Act are paid, fif
teen per centum of the amount of such bonds
issued. The Controller shall certify the rate of
tax thus computed by him to the several County
Auditors, and the said Auditors are hereby di-
rected and required to enter such rate on the as
sessment rolls of their respective counties, in
the same manner and with the same effect as is
provided by law in relation to other State taxes.
Every tax levied under the provisions or author
ity of this Act is hereby made lien against the
property assessed. which lien shall attach ON
the first Monday in March in each year. and
shall not be satisfied or removed until such tax
has been paid. All moneys derived from taxes
authorized by the provisions of this section shall
be paid into the State treasury, and shall be ap-
Piled 4.
First-To the payment Of the interest on the
bonds issued by the DrOyisioDc of fhis Act