The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-02-26
The Funding nm.


The Houston Mercury, commenting on
the funding bill, makes the subjoined re-
marks. We commend it to the attention of
Legislators:
As soon as practicable, bonds of the State
will be issued, and holders of warrants of
the class named are compelled to take bonds
in lieu of their warrants. This is, to say
the least, very extraordinary mode OF
paying debts. Applied to the tIansat tons
of everyday life, between man and man, it
would unsettle the very foundation of all
business, and destroy both confidence aud
credit. If it were possible under our laws
for debtor to deal in this matter with his
creditors, and were he to avail himself of
such questionable privilege, his fate as a
business man would be etfectually sealed.
He would be drummed out of the commu-
nifty as a swindler, and no one would have
dealings with him. Fortunately, our laws
do not recognize as legitimate any such pro-
ceeding, and no individual, however ro-
guishly inclined, can pay his current IN
debtedness by long time paper, unless by
the consent OF his creditor.
1t might be profitable TO inquire if the
Legislature has the constitutional right to
settle the debts Of the State in this way.
An inquiry would doubtless reveal the
fact that the State has no legal right to
force a creditor to take pay in anything or
in any way, not provided for and stipulated
in the contract. 1t may have the power,
but the exercise of it is contrary to every
principle of right and justice, and in effect
amounts to reputation.
So far we have seen nothing which
amounts to an argument in favor of this
measure. The plea of necessity, put forward
by the Galveston he'os IS the favorite of the
foot-pad and the highway robber, and to-
tally unworthy the countenance of honest
minded men. 1t is true the treasury is
empty, while there is outstanding demands
against It of a large amount. Some orthis
Indebtedness is in the hands of spectators,
but large portion is held by poor men, who
have rendered the State service in various
capacities. They have been compelled to
lay out their money in many cases for
over two years, and now, instead of pro-
vlding means to liquidate these just claims,
the Legislature gravely proposes TO pay
them in long time bonds at par, with a low
rate of interest. What necessity is there
for the commission of this wrong? Is the
State without resources whereby money may
be obtained to pay its debts2 No one Of or
binary intelligence but knows the State is
comparatively free from debt
The total floating and bonded debt win
scarcely amount to 50, 500, 600, and with
our immense resOurces-with the flattering
prospects before us-there is no reason in
the world why bonds of the State of Texas
may not be put on the market in New York
and sold at fair prices. This is the only
honest and business like way of settling
this financial question. Sooner or later it
must be resorted to, and far better fer the
credit of the State that it be inaugurated
at once, while the credit of the State is free
from the faint of Reputation, which will
surely follow the passage of the joint reso-
luton now pending in the Legislature.
We hope that body viii retraee Its steps
before it is too late.