The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1879-03-06

the members of this Legislature tina
the public debt of Texas is a larg,
one. La bonds of approved validity
the State owes to the world the larg,
sum of So 034, 600. In floating obi
cations, que to the people of the State
she owes:perhaps, $500, 900 more. This
is not a hopeful outlook; and coupled
with the further unpleasant considers
ton that the volume of our public
debt has steadily increased from few
hundred thousand dollars a few
years ago, to its present 81
gantic and alarming proportions it i!
enough to cause at least some earnest
sober reflections from the members o.
this House. Sir, with this debt star
ing us in the face, the question natur.
al J arises " hat are we 10 do as legis.
lstors, setting in behalf of our people,
10 reduce this huge burden resting
on their weary shOulders2
What plan can we adopt to lesser
the interest of $685., 600 demanded an.
Dually by the holders of our bonds2
Sir, the bill before the House hal
these objects alone in view. For the
accomplishment in part, sir, it was in.
PRODUCED, ana let me say here, that II
adopted as presented, honestly be.
l!eve it will practically bring about
the desired result.
Ia the first place, sir, the bonds tC
be issued under this bill are in amount
only enough to cover the entire bonded
indebtedness of the State. They are moi
issued for g greater or less amount
because, they are intended Ito treat
with the present bonded Indebtedness
as q thing t. be kept separate and
apart from the other obligations of the
State. The object of this bill is 10 re.
deem all bonds of the State bearing
extrayagant rates Of interest by plac-
ing in their stead others, which shall
bear a much less rate. Sir, it is fact
which Itq1ires no argument in its
proof here, that money is not worth by
far what it commanded when the pres.
ent outstanding Texas bonds were
issued and sold. The markets Of the
world have placed much less rate
upon it, and we find to-day, sir, that
bonds of other States of this Union are
negotiated at par which lear only 4
per centum per annum. of interest. We
should learn something from these
facts. We should act upon what is
here taught US and strike down our
large interest account to figures some
where near what the people can pay.
The bill before the House has this
object as the incentive for its intro
duction. Let US consider if its pro-
visions will accomplish this end. We
will deal now with some dry facts and
figures. A portion of the public debt
of Texas will become due on the first
day of July, 1879. This comprises the
pension bonds of 1874 and they are at
present bearing ten per cent. interest
per annum. This class of bonds
amounts to 81, lis 900, and the annual
interest to Sill, 800. Ii this principal
and interest was reduced to per
cent. bonds, a saving in this particular
alone of $66, 900 per annum would be
effected. There is likewise due some
SIS, 600 of six psr cent. bonds issaed
under the act of Msy 2, 1871 These
could lie reduced to per cent. bonds
with large saying to the State snnu-
ally. This is all of the interest bear
ing bonds due, or i'm nedistely to be-
come due, but there is another large
Indebtedness in the shape of urmG-
tured bonds, bearing sig and
eeven per cent. interest, due IN
amounts and in time So follows:
$500, 900 in twelve years, herring sew
en- per cent. interest; $1,000, 900 in
twenty-five years, bearing seven per
cent. interest; and 81 Gas, 600 due in
years and bearing six per
cent. interest; there is also $1,000 bear
ing ten per cent. and due in 1884 there
is also due the amount of $500 on
which the interest has ceased OF the
bonds of 1868.
Thus, si-, We have arrayed before
Us the bondcd indebtedness to fall due
IN the future. The rates of interest
which this class OF obligations bear is
too high, sud it strikes me, sir, should
be reduced. These bonds have d value
in the commercial world above the
amount expressed on their face. OBJ
serve from late market reports in the
Galveston Meas thSt the seven per
cents are quoted as beng worth on
Wall street $1.13-;hat is, every 800
bond IS worth S1l3.
know of no wsy, sir, to get these
bonds but TO buy them. Certainly,
our STATE could, not consent ito use
any but honest means for this
end. Then il is for US to consult
upon the wisdom or unwisdom, the
policy or the noE-policy of embarking
in TINS enterprise. l know that my
own mind Is made up fully upon this
important matter. favor it, aud /
will give sir, the reason which influenced
my judgment in striving a. this con-
You Will bear in mind, sir, that our
: per cent. bonds have twenty-five
years to run from 1880. The simple
interest on each 500 bond for the
years amounts to, il my
figures are correct, $l6S. The inter-
est upon per cent, bond for the
same length Of time will amount to
S96. Then, sir, let Us look ct this
matter as business men would view it.
What can be saved by reducing the
interts, Ga these : per centsl The z
peg cents would cost. say at pres-
ent quotations, $l13-that is $1S
more than one Of the 800 : per cents /;
add then this $l3 to the 500 OF
interest, IS above calculsted, and We
have sos as total cost oil the substi-
tuition OF iour per cent. bond and
twenty-four years Of interest for 9 seY-
en- per cent. bond. Deduct. then, this
$l09 from the tEenty-sour years of in
tssest On the seven per cent bond and
We show a saving Of $50 on each $lo0
seven per cent bond By the plan pro-
posed in the bill under consideration
The SIX per cents. are not worth 90
much in the market IS the sevens, and
per consequence the State would be
the greater gamer, To me. sir, these
facts are plain enough. What they
may be 20 others il is not in ny prov
nee 20 know. We may 90 into Other