The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1876-06-01


given. No objection to trade portion in
cattle. Apply to NJ. B. Sweeney, 715
Congress Avenue. ma21d3t w3t
Reports of q, mmtIr-.s oa FIusDce and
PenItentIary.
Mr.. Kopperl, by leave, presented report
from the Committee on Finance, as follows:
Hon. T. r Bonner, Speaker Of the House Of
Representatives.
The Committee on Finance to whom was
referred that portion of the Governors gen
ersl) message, relating TO the finances OF the
State, beg leave Ia submit the following re-
port touching the bonded Indebtedness of
the State, present and future:
=. Certain bonds OF Texas amounting to
$404, 900 mature In 1876 and 1877, and yet
Others to the extent of $503, 400, by the
terms Of the laws providing for their issue,
are made retirable at the option of the State
before maturity, though If not retired are
maturable as the respective laws creating
them specify
The committee has also arrived at conclu,
sions as to the floating debt of the State,
which it finds TO be 1868, Dol 30, and the ex-
pediency of investing the. permanent school
fund III State bonds, and the necessity of
imposing a special tax to meet the accruing
interest on our debt for the present year,
which are embraced in this report.
The committee accordingly submits three
bills framed to embody the conclusions at
which 1t has arrived within the scope of
this report, stated above.
First. The first is bill authorizing the
issuance of State bonds to the extent, if
necessary, of 81 675, 900 bearing an annual
interest of six per cent. redeemable in
thirty years. The issuance of this amount
OF bonds, except those for $500, 900 which
the Constitution permits to be issued to
meet deficiencies, in case of necessity, will
not increase but will merely pay, to the ex-
tent issued, our re-existing public debt.
These six per cent. bonds are designed to
supply the place of ten per cent. bonds
already issued and outstanding. They will
save the State IN the matter of interest
$31, 269 annually. Besides, they will pro-
vide for the floating debt of the State, in
Guiding the amount due the teachers of the
public free schools.
The bill provides that the bonds shall not
be sold at less than par, save to pay the
bonds that will absolutely mature in Sep
TENDER, 1876, and January, 1877, and that
they are TO be disposed of at such times
and places only as in the opinion of the
Governor the needs of the State may re-
quire.
1t is thought advisable, rather to sell
these bonds and pay the floating debt than
to issue bonds directly, in exchange for
that debt; many of the items of which are
small and fractional amounts, such as could
not be conveniently converted into bonds
As it is more than probable that these
bonds Will command Il premium, their sale
by the State will give her the benefit of
that premium, while the creditors of the
State would receive all to which they are
entitled.
Capitalists investing in bonds of any
kind like to control as far as possible the
securities in which they invest. They pre-
fer that they should not be disseminated
but should remain in the hands of few,
as in that case fluctuations in value are
avoided, and the bonds are likely at all
times to command higher price.
The committee are gratified to be able to
say that the credit of Texas is now such
that these bonds can most probably be ne
gotiated without difficulty, and at d mere
nominal expense.
The bill provides that the commissions
for selling shall not exceed one-half of one
per cent, and we have also provided that
the commissions for paying interest on that
portion of our debt, payable in New York,
shall not exceed one-fourth of one per
cent, One-half per cent. being now paid,
which the committee regard as excessive.
There Is in the State Treasury to the
credit of the permanent school fund $474, :
$50 in United States bonds, and $3.50, 924
in currency, which it is proposed to invest
in the State bonds issued under this act,
which, If done, would save the State all
the expenses, in the way of commissions,
on the sale of bonds to that extent, and
leave only to be thrown on the general mar
ket $3.50, 900, if all tie bonds contemplated
had to be negotiated.
A considerable portion OF our debt, after
the withdrawal of that proposed by this
bill, bears an interest of ten per cent. per
annum, and can be retired within the next
few years Q979) If the same policy that
is here recommended be adopted in rela-
ton to these bonds as they become retira-
bic and are substituted by six per cent.
bond, saving to the State thereby, in the
way of interest ON such bonds, including
those provided for by the accompanying
bin, would in the aggregate be SIT, 426 per
annum, or 1892, 902 for the full period
which those bonds are allowed to run, I'M
der the respective laws authorizing their
issue, before they absolutely become due.
Besides, our debt would be represented by
fewer issue or series of bonds than at
present; now we have variety (to-wit, nine
fOrms), which is Objectionable. A uniform
bond for all our debt would be more &C
ceptable. 1t would simplify the manner of
keeping the accounts, and would be better
received in monetary circles.
Second. The second is bill authorizing
the sale of the United States bonds, and
also authorizing the funds now in the treas
ury to the credit of the permanent school
fund to be invested in the State bonds is
sued under the provisions of this act. 1t
is considered that the investment in our own
bonds will be as secure as any other, while
the interest arising therefrom will be great
ly increased by such investment, as will APP
pear by the following figures:
Suppose the permanent school fund, now
in the State Treasury, to remain invested
in United States bonds, the following will
be the RESULT
T .ri. Interest
Principal per annum.
The United States bonds to credit
of perm lneng sch oil fund $474, $50 90
Interest on the same per aru1m. S24,915 90
| Us currency to credit OF pc ma
nent school fluid. say - 9,g24.
Supposing same to he converted
lao . . per cent BONDS At
III, viii yield - .......... 80, 533 90
Interest, same per annum...., 1896 90
Prineip4l of fund if invested in
Interest on fund IL invested in
L. 5. bonds per snDum. e.. -. 39,441 90
Suppose the same fund as above to be in
vested in State bonds, at par, the following
would be the result:
Interest
Principal pr annum-
The L, S. bonds TO credit OF
fund ............s4 T4. $50 on
PieInIum above, say at H. S0,7Z4 90
L. 5. CurreHcy to credit OF
fund -. .......... $50 924 90
cSnt. per Il" a nm M ... p g 5s,7es 90
--
Pr ncipal If invested in State