The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-02-26
IooHNUsIcATED.l
STATE FINANCES.


'Ht.' - I1A AL0 NalfLlAatuk WAffAAtn
Deaeieaey u appropriations and warrants
estimated % September J. isIa-..-.---.- oOoooO "
Totai ........... ................s-, aas,sSi -
Tue 70 permanent school fund, University
fund, Agricultural and Mechanical fund lll,yDo u
Due available school fund .......-..... O0OOO %
Dne Cor frontier defence (estimHe Of Ad- -. -
igtsni General Steele).. los'6io %
Tot1 e. "a al o6
Ada anonnt dnefor penriOns, tstimatedl 100000 %
Total debt 4s6 O.
The above figures are certainly as low as the
data presented win justify, and the probability
g that wien all the appropriation accounts are
presented, they viii be swelled considerably.
a bill j. now pending FOR frontier defense,
which viii probably pass in some shape. Upon
the most economical bases, the troops will cost
$4,000, and they viii cost, 70 be thor
ougbly efficient, $500, 600 This viii make
tie total Indebtedness, September I, 1874, in
Gliding six months cost Of frontier troops,
S3,S7S, 1855 00.
The Comptroller estimates the unpaid taxes
For 1873 Of $50, 100 Deduct twenty per
cent loss in collection, ana from the balance
twenty-five per cent. for school fund, and the
following showing is presented:
Total debt September 1, 1874 .SSs7s45s O6
Net state revenue 1s73.................. 4si5H %
Balance OF debt September 1. 1874. .S8s0sss3 %
OF which 81, 1sl 1891 20 viii be bonded
debt, and $7l1 ,008 81 due to State funds,
leavinga floating debt Of 81 ,5O4, 40 10.
To this Is 70 be added any debt or interest
thereon arising upon subsidies TO the Interna-
iional Railway, If decided legal by the Su-
prcme Court
The Comptroller estimates that the net re-
ccipts from taxes for the next fiscal year win
be 81 ,000, COO, and that this viii be sufficient
TO pay the ordinary expenses Of the govern
ment and the interest on the bonded and
funded debt. II is evident, however, that ex-
traordinary appropriations for the agricul-
iural fund and for putting the common school
system on an efficient basis, are not included.
A deficiency may therefore reasonably be ex-
pectcd, and the State will want to cover the
moneys belonging TO special funds and to re-
tire the floating debt within the next year,
not less than s., 100000.
Under these circumstances, Is not the pres
eryation of the credit Of the State a para
mount consideration, for whether this def
cheney Is TO be met by placing her bonds in the
HANDS Of our own people, or Of outside capital
lists, q maintenance Of the good faith and credit
Of the State is necessary. In my humble opin-
ion, this cannot be done by devoting the cash
which comes into the treasury to the payment
Of the current expenses of the govern
mcnt, and compelling the home creditors Of
the State to fund their warrants (many Of
WHICH nave DCcu uuC anu lOI Two
years. in State bonds, no matter at what rate
Of interest. Instead of devoting the cash to
this purpose, Il seems to me the more equita-
bic way would be to devote the cash to the
payment of claims according TO priority. The
adoption of such policy could not fail to Sc
riously damage the credit Of the State, while
il would fail In its object, because people hold
ing the warrants win not pay their taxes, while
the State dishonors its obligations, preferring
10 tab fl,. oIta 40
have been taking them for two wears past
Many have believed that this Legislature
would create some equalzed basis of settle
mcnt Of unpaid taxes, so as to lessen the
burihens Of delinquents; and doubtless many
tax payers have expected to hquidate their
debt to the State by paying to the State the
drafts they hold on the treasury. None have
expected that the Legislature would provide
for itself and the present expenditures of the
government at the sacrifice of existing claims
The embarrassing position in which theme
administration Is placed can readily be real
lied. An empty treasury, clamorous credi-
tors, and debts accruing in which the honor of
the State is involved, are circumstances calcu-
lated 10 excite o gloomy view of the situation
The greedy spectators who have taken adj
vantage OF the necessities of the original war
rant holder do not in the least enliven the pic
tire; yet when the financial situation Is re-
has, in the past few months, been sold at a
ruinous discount, and that their purchases of
warrants have been made with an increasing
deficiency staring them in the FACET doubt
whether there is much room to complain of
their action in buying warrants at from sixty
five to seventy-iive cents on the dollar. If,
after holding them year, they have to take
the chances of funding them in eight per cent.
bonds on two per cent month market, the
laugh is certainly not much on their side.
IL the financial difficulties in the way of the J
administration are great, it must also be recol-
lccted that It Is neither responsible for this
state Of things nor has it made any pledges as
20 producing a financial millennium in any
given space Of time. The condition of things Is
certainly not wholly unexpected. The admin
isiraiion has willing people at its back, who
are ready TO endure reasonable sacrifices In
order 10 get financial matters back in the old
groove, provided business and fairness Is at
tho bottom Of any policy adopted. Under
these circumstances, considering the unim-
paired resources of the State, more hopeful
view Of the situation, believe, is warranted
than that presented In the message of his Ex-
celcncy. A reference 20 leading opponents of
the money market win, / think, show that
instead OF the present time being unfavorable |
tor the negotiation of the bonds Of the State
OF Icxns, that there Is an abundant money
market and that first class investments are |
eagerly sought for. The panic Of last fall, |
wceded ont worthless securities, which were
nonrpr0duetive and the money that hitherto |
Inns gone into new bonds of the same class, 70 |
provide money 10 pay interest on those already |
issued, now seeks investment in good interest," |
paying bonds Nearly the entire line of such |
bonds have recovered from tho effects of the |
panic. The doubt surrounding some classes
If railroad securities has led many investors
% change their investments into government, |
State and municipal bonds, which being sus-
iained hy the taxes Of the people are certain |
of redemption The banks have not only re- |
covered their former surplus, but are far ahead /
~ &. Money matters in the great centres are
conslueied with more caution, yet the rebound I
has been 50 strong that securities which are 1
not really first class, arc improving in value. /
on he tenth instant the New York banks
held So 555, $50 lawful money in excess OF /
twenty-five per cent Of their total liabilities. /
The hftairq ft,Sf Of that date says:
he week opens In Wall street generally /
pcakng with a quiet market for purely /
speculative shares; bus with a remarkably /
,rQng enc for all classes OF investments. be /
ginning With United States bonds and ending
WIN railroad shares Of companies which /
either pay dividends or promise To in tho early
Future. This buying movement Is caused bv
/. ee belief that rates Tor money win rule very
low during The year and is participated IN BY i
mpncy lenders
Tho Ifi5aaeof same date saws s'the demand
has BEEN active for nearly An classes of secu-
rites and prices have advanced IN almost al 1
Iircctions
Fhe foilowingare the quotations of the only
Iiss class southern State bonds on the market:
ssaas..ss g. old.......,... IL 81
. ta4 - g g, new ...... ......-... S1A So
,'se.t. -. ,..s..-..,......,..St