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

reasonably promise the desired result. I !
must, however, be permitted to reiterate my
clear conviction thst any plan which fails |
10 provide par funds to meet the ordinary
expenses OF administering the government
will fall short Of the demands OF proper
policy.
If it were probable that State bonds could
be sold without too great sacrifice, /
would greatly prefer to raise the funds in
that way, to pay of our floating debt. My
information is that this is an exceedingly
unpropitious time Tor such an operation,
and that no such sale can be effected except
ut great sacrifice.
During the ensuing summer money may
be easier, and sales that would he safisfac-
tory might possibly be made. I suggest
for the reflection Of your honorable bodies
another alternative, which, il il is Preferable
TO you, will be entirely satisfactory to me ~
solution OF our trouble, and which might
be preferred 10y the holders of the debt
proposed To be funded. II is to suspend the
payment of that debt for period of time,
say twelve months, to be paid earlier upon
notice by the Comptroller that funds had
been raised for the purpose. In order TO
raise money it would become necessary for
your honorable bodies to provide by appro-
pirate enactment for the issue and sale of
bonds.
It is believed that during the next twelve
months sale may be effected of State Sc
curities on terms that would involve no
greater sacrifice than ought to be made for
the purpose of paying off the creditors Of
the State. Bonds could most probably be
sold during the summer they ought to be
sold at the earliest possible moment, If this
plan is. adopted. 1t would be better for the
State to submit to a small sacrifice than
throw heavier loss upon the holders Of
her paper,
Isuggest twelve months, because shorter
time, say six months, would probably place
it in the power of interested persons to
take advantage of tho necessities of the
State by depressing the value of her secu-
rites. This plan, like the other, will re-
serve the revenues coming into the treas
ury for payment of the current expenses Of
the government, q result the accomplish
ment of which deem of paramount inn
portance. 1 believe it the best policy for
the Legislature, either by funding in the
mode proposed, or by the issue and sale Of
bonds, as soon as it can be done without
too great a sacrifice, to provide for placing
the finances of the State upon a solid, sta
bic basis, so that no more expedients will
have hereafter to be resorted to. We ought
to settle what we now owe in as short q
time as possible, and pay as we go here
after. If payment of these claims is sus-
pended, as suggested, justice would require
that interest be paid on them.
The grand total of the value of real and
personal property in Texas, upon which
taxes for the next fiscal year viii be col
lected, is estimated by the Comptroller at
$240, 900, 600, and the occupation tax is
estimated at $3.50, 900. 1t is believed that
the latter is considerably underestimate,
while the former is at least as small as it
should be. The rate of taxation under ex-
istlng laws is ample to meet all the ordi-
nary expenses of the government, embraced
in the Comptrollers estimate for the next
fiscal year, his estimate of the amount neces-
sary for this purpose being $1,000, 800.
And IT is believed that out Of this amount
may also be paid the interest on the bond
debt, including the floating debt, whether
funded or paid by sale Of bonds.
Accompanying this will be found copy
of the report of A. Bledsoe, late Comp
troller of Public Accounts, for the fiscal
year terminating August 81, 1873, to which
l respectfully refer your honorable bodies.
/ will state for the information of your
honorable bodies, that the bonds described
in an act entitled San act to effect loan to
meet deficiencies in the revenue, I" approved
May 81, 1873, which in said act the Cover.
nor of this State was authorized to sell, are
still in New York unsold. These bonds
amount to 5000, 900. Upon a portion Of
them, Hypothetical with Williams & Guion,
/ Of New York, according to the accompany
ing report of Comptroller Darden, the sum
of 1927, OLA 20 has been advanced, as perre
port of Ex-Governor Davis on file in that
Office. The amount of interest due on this
money advanced Is shown in the Comp
trolle='s report to be, up to September !,
! 1874, $34, $50. am informed that suit
is pending in the city of New York by the
Messrs Williams & Guion against certain oil
the late officers of the State government OF
Texas, in which it is sought to procure 9
decree subjecting the hypothecated bonds
to judicial sale for the payment of The
money advanced on them. Upon hearing
this I telegraphed the Farmers Loan and
Trust Company of the city of New York.
with whom the remainder of these Texas
bonds are deposited, to see that this suit il
properly defended.
The forty-three bonds referred to in TIT
above reclted act of May 81, 1873, claimed
to have been fraudulently obtained from
Raymond & Whitis, and for which no con
sideration has ever been received by th,
State, remain as heretofore in the hands o
claimants in New York.
I recommend the passage by your honor
able bodies of q joint resolution pledginl
the faith and credit of the State for the
prompt payment, principal and interest, oi
the bonds authorized, under the act of May
81, 1878, to be sold, believing it would
strengthen public confidence in these bonds,
and aid materially their sale for fair price.
It will be remembered that under existing
law, the proceeds Of sale of these bonds
when sold 90 into the treasury, to be ap-
piled to the payment of all claims upon the
State arising upon appropriations made by
law for the support Of the State govern
ment and in devising ways and means,
suggest that your honorable bodies take
these bonds into the estimate. recommend
that the tax law be carefully revised, with
view to increase the efficiency Of the sys
tenn of assessment and collection Of taxes.
1t is believed that large per cent. of the
property In Texas, especially real estate, il
not assessed, and bearssno part Of the bur
den Of supporting the government. A fail
assessment, close collection and honest pay.
mcnt Of the tax into the treasury would,
make no question, increase the revenues Of
the State one-third. am informed in the
Comptroller's Office, that twenty-five pei
/ cent IS the average loss, Tor several years
past, of the amount Of tax assessed. II we
add to that the tax on property not assessed
at all, It viii be seen that my estimate is NOT
an exaggerated one. Isuggest an inquiry into
the propriety Of giving the Comptroller
of Public Accounts greater authority over
the action Of the assessing and collecting
Z agents of the revenue, believing It possible
that their efficiency might, by judicious
enlargement Of the jurisdiction Of that off,
Ger over them, be greatly increased. In
woke from your honorable bodies the most
mature deliberation and consideration Of our
financial condition. Everything depends
/ npon the wisdom Of our action touching
that subject. Financial problems have al
ways been the most important and the most
/ difficult Of solution with which the states
man has had to deal. The operation Of the
whole machinery Of government depends
unon the aoffndueeg and wisdom OF the finan-