The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-02-26
icosnUsIcArEnl
ATATE FlNANCEs.
Suau.En Two.

ought 10 ije PLACED ti.s spring NJ NOT less
than ninety cents. They asu6la rapidiv ~.
proxima,e opar. Any sCssius existing al
/ Ter retiring nsturssi iusi,bte,lness could
well l-e devoirsi wilhsiE.wiug the eight
qua ten per ce..4. bon,is naw ia the market.
4 Willingness on the lssr % % State to psy
IA higher rait q. interest than siX per yrAf.
gOhl. az seven per cent. currency. az tie
outside. lessSls can.iacncc IN tie financial
ideas 81 It's sta.esmei. because capitalists DO
not frlieYr Ilsat governments cau afford 10
I pay high rtrs 81 interest.
During the height of lhe panic in Wall
1 street, thc Treasury Department of the
! nited STATES did not hesitate to call To its
aid ao,l seek the counsel of the leading
banker, and business men of the country.
Would it not be well in this emergency,
( rather than TO adopt eXpedients, FOR the
Governor TO invite n conference Of the lead
Ing bankers of Austin, Galveston and Hous-
ION, To see if some plan cannot be devised
10 relieve the Treasury. am satisfied that
! IL IL board of loan commissioners were
created, consisting of one banker from each
city, the bonds Of the State could be placed
for small commission in ample time to
relieve the Treasury from embarrassment
and save the harsh necessity OF compelling
The creditors of the State to either fund
their warrants. or lie delayed in receiving
payment ON the oldest claims, while the
fscreditor OF to-day IS paid promptly.
Under the pidn proposed in the Senate
bill, the deferred warrants, bearing eight
per cent. interest, viii necessarily have to
be fundable, to give them market value.
Our people cannot afford to hold them, and
would only fund to make them more mar
ketable. They would find their WAY then
TO the markets of the North, To be sold by
street brokers at prices calculated to depress
the credit OF the State and embarrass her
efforts TO place loan in regular hands, as
she ultimately be compelled 10 do. 1t
is the interest OF the State 10 mobilize her
debt as much as possible. 1t is her duty
to so manage the sale of her bonds
as to secure for the citizen who has trusted
her in the time os her poverty, the highest
possible price for her paper While, there
fore, it is but Just that she should pay in
tefest on all warrants on her treasury she is
unable to cash, it is also her duty to devise
plan by which these warrants shall realize
as near par as possible, nthe shortest prac-
ticable time
1t was well understood ut the last session
of the Legislature that there would be
considerable deficiency in the revenues, al
though the amount was not known, extra
ordinary means to raise money were believed
to be necessary. In the end, reliance was
placed on the prospect OF negotiating the
bonds then in New York 4 funding bill
voluntary in its character, and also embra-
cling payment of interest on warrants was
pressed. A measure was also presented by
Hon. Mr.. Joseph of Galveston, and advo-
Gated with great ability, providing for re-
ceiving treasury warrants from tax payers
in payment of their individual taxes, when
presented in amounts less than, or equal to
the amount of tax due by the individual.
1t provided as far IS is remembered, that
the sheriff before receiving the warrant,
should require the person paying il for
taxes, to iudorse on the back OF the war
rant, his name and the date when paid,
and that the sheriff should state III his
tax receipt, the number, class and
amount of warrant so paid in, and
make a corresponding report to the
Comptroller, and that no warrants other
than those SO endorsed and reported by the
sherltfs should be received of them by the
Comptroller in the settlement OF their ac-
counts. The passage of this bill, it was
urged, would make cash demand for the
warrants. it would, in case of their being
offered at discount he m inducement for
the people to pay their taxes, ana cause n
large amount of cash to flow into the Treas, |
ury. There are $780, 100 due from taxes
for the year 1873 The payment OF these |
taxes would make a demand, of course, |
upon the whole volume of warrants, but |
would not absorb them. 1t is probable, |
however, that the balance would not be a |
disturbing clement Of State finance, while I
awaiting time of payment
At DrpSprt thp pntirp dpynond FIR 1,o r,-, nte |
is confined to Austin, where tax collectors |
paying money into the treasury are enabled /
to speculate in them by connivaHce with |
parties holding large amounts who are |
ready TO pay for the privilege Of paying I
money into the treasury, IS described by the /
Governor. If made receivable for taxes. |
on the basis stated, there would be good |
demand from all the large towns of the /
State, and bankers would deal in them. OF |
course 4 system like this would require that /
the cash coming into the treasury should he |
applied to the payment of claims ac- /
cording to priority, or to refund the /
amounts borrowed from special funds, /
or in some other equitable and Just
manner Nor would it be expected that
the State should pay interest on var
rants receivable for taxes. The class which
holders saw proper TO make interest-bear-
ing, until paid, should stand on an interest
bearing basis entirely. Those not presented
to be stamped intersst-Jearng. should alone
be receivable for taxes. This would relieve
respecting interest computa-
ion by tax collectors.
While 1t seems to me no just argument
can be made against the propriety of the
State receiving its own paper in the pay
nent Of taxes when presented by the per
son paying the taxes, anS measure of this
is only an expedient, and ought
to he avoided, If possible; but it Is bet
ter to adopt such Il plan. and also to allow
holders who desire 10 keep their warrants,
10 make them interest bearing, than for the
State to longer delay payment and at the
same time, exact the payment Of money By
The people. Under any circumstances the
sxpedients adopted, ought to be temporary
md the warrants be subject to DC called IN.
IF interest stopped nc reasonable notice by
he Comptroller and Treasurer True. the
receipt of warrants for tuXes, will involve
changes in the system Of business in the
'omptroller's and Treasurer's Office: but oil
hese things ere subordinate to the right Df
he creditor OF toe State To be paid. u may
give a tax collector u chance
o speculate in warrants; but Is
hat any worse than the present
Now. speculation il coneen-
rated in a few hands Then, it will be di-
-ided, and the whole capital OF the State
Kill be at command. nor win & lessen the
ralue OF the claim OF the present Office
holder. The servant Of the state. in the
counties distant froni the capital. viii readily
ealizs at hume as much. and doubtless
more, than il compelled. as ~ present, to I
cad his warrant to Austin for s,ile. unless
money should flow into the treasury under
he proposed system Of giving preference TO
lew warrants) more rapidly than it generally I
loes under such circumstance. Objection 2
Die. therefore, as this plan would be, il Is
ar preferable - compulsory funding, or 70 4
As an expedient. pending
he negotiation OF a loan, and to be terni-t
iated in whole orin p1rt As the negotiations
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