The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-02-12


ulation. We are not without numerous IL
Illustrations Of the truth Of this proposition
in Texas. Besides, no government can
maintain itself, in the respect and conf
dence Of the people, whose administration
and current expenses are paid for in deprc-
ciated paper. If we would administer the
government economically, and at the least
expense, avoid official corruption and pecu-
latien, and command the esteem aRd conf
denee Of the people, we must pay the cur
rent expenses Of the government IN good
par money.
In order to bring down the expense Of
the administration to a proper economic
standard. we must only pay market value
for what the government buys, not that, and
fifty per cent. besides, to cover discount on
paper, which, though deprecated, has even
tually TO be paid in full by the government,
and to get what must be had, at fair mar
ket price, we must have money to pay for it.
l hold that no greater misfortune,
whether in a financial or moral point of
view, can befall a government than that
which condemns IT, under the necessities of
financial embarrassment, through the me
dunn Of dishonored paper, to be heeced by
spectators and swindled by officials, made
corrupt, possibly, by opportunity and temp
tation.
When par funds only are used, with
proper watchfulness, there is no danger of
fraud; there is no inducement held out to
officials for improper speculation in, or use
of public funds; and no margin for illegiti-
mate private gain; and the public interests
viii be honestly dealt with.
In view of these considerations, recon-
mend to your honorable bodies to take
such action as win devote the State revenue,
coming1nto the treasury from this time, to
the satisfaction of claims arising against the
State on and after the thirteenth of Janu-
airy, 1874, and to the payment of interest
on the public debt. This will be considered
a harsh measure toward the holders of
claims against the State existing anterior to
that time, but it must be borne in mind
that we are driven to this course by neces-
sity, if il is adopted.
The people are already taxed to the OK
tent that they are able to bear, and l do not
believe that your honorable bodies would
impose additional taxation on them. /
could not recommend you to do it.
We could not sell bonds of the State at
this time, except at a ruinOus sacrifice. The
country has not yet recovered from the
shock OF the unparalleled financial storm
through which it has recently passed, and
out of which it comes strewed with the
wrecks of ruined credit, and the best secu-
rites in the great cmmereial centres viii
not bring money, except upon discounts
which no prudent business man is willing
to make.
1 am not willing to advise you to force
the bonds of Texas on such market and at
such sacrifice. It is believed that later in
the season, perhaps during the summer,
when capital is usually not so actively
employed, and money is easier of access,
by which time it will be understood that
the government of Texas is the choice, and
can pledge the faith of the people of Texas,
that Texas securities will bring probably
something near their value in New York,
but they will not do it now.
Those two are the only modes known TO
me for raising money, and cannot at this
time recommend you to adopt either OF
them
If we cannot raise money to meet our liza
bilities and pay the current expenses OF
the government, then say use the money
coming into the treasury to pay the latter,
and make the best arrangement we can fOI
the former; and for this purpose recon-
mend that your honorable bodies provide
by law for retiring the entire floating debt
of Texas in existence up to the thirteenth
day of January, 1874, into bonds. l mean
by the floating debt all claims for money
against the State, whether in the shape OF
warrants or other claims, which might be
matured into warrants upon the treasury.
recommend that bonds be issued fol
this debt, in such mode as you may pre-
scribe that these bonds be payable in ten
years, and at the option of the State, In five
hot tan
and that the interest be payable scmi-annu-
ally, and that it be provided that whenever
bond is executed and delivered, that the
Treasurer shall set apart, out of the first
money paid into the treasury, enough to
pay the first installment of interest, and a
small per cent. sinking fund, and success
siYely after each interest installment is
paid, again, in the same way to make pro-
vision for payment of the next install
ment, etc.
recommend an enactment on the general
plan of that of May 80, 1873, to which
respectfully make reference, with the addi-
tional provision which will cut off that por.
ton of the public debt referred to from the
right to present satisfaction at the treasury.
Ambefore remarked, this is a measure Of
absd he necessity. If it is not adopted,
every dollar paid into the treasury will be
absorbed as fast as it goes in, and the cur
rent expenses of the government must BIZ
paid in warrants, and much of it at dis
count which will make the expense double
what it would be if money were used. While
paying and taking up one warrant at full
face value, we would be issuing two, OF
three, and sget for them but little, if any,
more than llaH their face value; these il
turn to be Redeemed at their face value. VIZ
would be travelling in a circle, the public
debt acquiring volume and speed in its &c
emulation, in proportion to the number Of
its revolutions. The result would necessa-
rily be that the treasury would remain
empty, the country would be flooded will
warrants, and they would depreciate to such
an extent that all the evils Of a WORTHLESS:
currency would be upon US. To permit
these warrants to be taken in payment fol
taxes might be advantageous to few in
dividuals who hold the bulk of them, in
this, that they would be enabled to get rid
of them at remuneTating prices (for, be
fore the session of your honorable bodie.
commenced, am informed that these war
rants were bought here at sixty cents on thu
dollar, but the great mass Of the people o.
Texas, who never saw one Of them, would
derive none of the benefits, and suffer al
advantage of q temporary advance and sell
ing out, these same persons would be in con
dition to take advantage OF the inevitable
decline which would surely follow, and
again reinvest, to hold for another rise.
II money could be raised to pay off al
these demands without too great sacrifice
Of course it ought TO be done; but II that !.
impossible, / hold it to be the duty of th,
government to protect itself, and the peo
pie, in the administration Of its affairs, JUS
as prudent, practical business man would
do in penod Of temporary embarrassment
that is, to so manage its affairs Us to amply
secure its creditors and pay them well fol
the delay of settlement, and at the same time
protect itself against unreasonable sacri-
ice. The bonds INTO which it is suggested
that these warrants be funded, venture
the assertion, are not exeelled by any secu-
rity In the State as q profitable investment
for capital Running for a comparatively
short time, bearing ten per cent. interest,
payable semi-aunually and secured beyond