The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1876-07-13
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lOthl. .........H.. 1000, 900 %
These bonds are now worth in New York
from III TO 121 1-2, say our kilograms, and
II now sold. will increase the permanent
school fund about 800, 900, and thus, instead
OF having fund Of 1898, 359.62, it will be
increased 70 1923, 35S.62.
Again, we can only invest either in State
bonds OF in United States bonds, and If IN
the latter we will have to pay at least III
for every dollar of bonds we buy, and be-
lieye Il unnecessary to make such a sacrifice,
whom by purchasing from the State the
hoard can get State bonds at par. But the
Senator from Harris prefers, if the board
should make this Investment, that they
should 90 into the market and buy from
others, and 10 this we reply that the bonds
OF the State in New York are quoted at
from 1O2 to 40 on the dollar, and in the
city OF Austin printed bond known
as the pension bond can be sold
at 1O7, aud there is but one bond OF the
State quoted under par, and that is the.6
per cent. currency bond of small deRomina-
ton, and not regarded as a good CONNER
cial bond, and it is quoted at "a cents on
the dollar. This Is currency bond,
while the school board believe. and as all
financial men know, that a gold-bearing
bond is the best for a school fund. Then
why should we adopt the ideas of the Sen
ator from Harris, and 60 further from home
and fare worse2
Again, there is nothing in either of thu
bills that proposes to take the control of
this matter out of the hands of the school
board OF education where the Constitution
lodges t. Nothing in the bill requires them
to make the sale and investment if they do
not see proper to do so. They are the
trustees of the fund under the Constitution
This bill does not increase their powers or
discretion, nor does it diminish either, but
simply gives them the necessary legislation
20 carry out constitutional provision with
less expense aud trouble than would other
wise be required.
The United States bonds now in the
Treasury cost the school fund about 112.
At the same time that purchase was made,
State bonds, now worth 104 to 10, could
have been had at 20 cents on the dollar,
but, under the Constitution then in force,
the school fund could only be invested in
United States bonds, and we thus lost
about 10 cents on the dollar, and the diff
ference between per cent. and 10 per cent.
interest. That was indeed, a beautiful
financial scheme forced upon us by the Con-
stitutlon Of 1869, and the Senator would
have that clause virtually retained, and
pFoCtlCtO uy the SCHOOL OOAfQ OF tuuCdtlOn.
The Democratic people of Texas think diff
ferently, and have spoken in thunder
tones in the adoption of the new Constitu-
ton, and sent up to tins Legislature Demo
cratic members enough to enforce It's pro-
visions, and he (the Senator) is not respon-
sible.
So far as the other bill, providing foI
the issuance of State bonds, is con-
cerned, repeat thatthe Senator from Har-
ris Is again at fault. That bill proposed to
sell bonds to the amount of $16I5. 600, OF
IN bonds to bear 6 per cent. interest, due
in thirty years, aud this money Is to be
used only for the purpose of paying of
the interest-bearing debt, nearly all bearing
10 per cont. interest, except 5000, 900 dei
cheney and outstanding. warrants, sac,
721.s9 already ISSUED aud long since due, and
not one dollar Of il to pay the per diem pa!
OF members Of the Legislature, AS stated by
the Senator from Harris. This much
have seen proper 10 say as a question o
privilege, because am urged to do SO b!
honorable Senators, some OF whom have
grown gray Ia the defense Of Texas anu
the Democratic party.