Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1879-01-16
RENEWAL FUNDING BONDS.

hINENAlI FUNDlNNt BlDNDN.
MORE INTERESTING FIGURES.
Bonds of this State to the amount of $685.
O0O fell due at different periods in the year
1917, and bonds to the amount of sl9O,0O0 ell
due in 1873. The act of March 2Jth, 1875,
provided for the issue Of new bonds. and the
proceeds of those bonds were directed to be
applied to the payment of bonds of this State
issued in the years 1853, 1856 and 1857. Those
bonds were rcdccmable at the pleasure of the
Legislature at any time after the expiration
of twenty years from their date. But. by the
act referred to, it was declared those bonds
should be redeemed at the expiration Of twen-
ty years from their respective dates. The
bonds which fell due in 1878, fell due in the
months of March, April, May, August, Octo-
her and December. BY the terms Of this act
no bonds could be issued at a later date than
the year 1877. The constitution provides
there shall he an annual tax levied and col
lectcd, sufficient to pay the aCcruing interest
upon the bonded debt of the State and to re-
duce the principal thereof each year not less
than s2jO,OOO. The attention of the Legisla.
ture was called to the fact that whilst at least
s2jO,OOO was required to be annually set apart
for the eXtinguishmcnt of the bonded debt of
the State, there would fall due in 1873, $780,
900 of bonds. This would be in excess of
the amount required to be placed in the Sink
ing Fund. and without considerable increase
in the revenue, this sum could not be paid
without additional legislation. No additional
legislation on that subject was had. The
amount of Z ,32S 600 of bonds fell due in 1871
and 1878, and there was no probability the
St1tc would be able to pay moro than the sum
OF 9250OOO annually as required hy the cont
stltutiOn. 1t was then apparent that as, un-
der the act OF March 10Th. 1875 the only bonds
which could be funded where those which fell
due in 1877, there would be a necessity to
convene the Legislature to provide for the cx-
igcncy, or to fund the bonds which fell due in
that year. the latter course was adopted.
My predecessor stated tn the General Assem-
bly,, i'll his message, that in 1871 there will he
to fund :jSS,0OO, in 1873 52in.0O0, and none
during the following four years. AS under
the act of March 18th 1875, only the bonds
falling due this year can be funded You will
have to provide by new act for funding the
excess S2iOO0O fOr lSIS.' IL was apparent to
him that the State would he compelled to
fund in the years 1877 and 1878 the sum of
s82S,OOO of its bonded debt, of the 5l,32S. 900
of bonds which fell due in those years. The
bonds were issued to aid in the construction of
Of the roads hereinafter mentioned, and fell
due at the times stated: In 1917, 1898 600: in
1878, !i9O,OO0.
The following is an extract from his reply
to the resolution Of the Senate requesting
whether, in his opinion, this section Of the
""' -'N''"''"S'
AN OPINION.
Now, suppose that the treasurer should Sc
ect one or more utterly insolvent and WORTH
less banks, or any one or more banks in for
cign state, and the Governor and attorney
general should refuse to approve the selection,
/ A l.. 4. .l...l
and the the treasurer should decline to make
tuither selection, what would be the result! /!
There is no requirement of the constitution,
or of any statute that the treasurer continue
to make such further selection of bank or
banks until the Governor and attoncy-genrral
shall approve selection; there is no statute
imposing any penalty upon the treasurer for
his failure to perform his duty in this particu-
lar; there would be no solution of the Difficult
ty in the law, and the treasurer would retain
the funds as if said constitutional provision
had never been adopted. Or, suppose the Gov
ernor and encouragement should approve the
selection made by the treasurer, of a bank or
banks, and such bank or banks were unable to
give security, satisfactory to the Governor and
attOrncy-general, for the -keepingand pay
mcnt of the State deposits, and the treasurer
should refuse to select any other bank or
banks, how could the said section in such case,
vides statute that shall prescribe the details of
the carrying INTO erect ot this provision with
suitable penalties to compel the observance of
sad constitutional provision, and the statutes
enacted IN pursuance thereof: Again, what
sort OF security must the Governor and attor-
ney-general take for safc-keeping and payment
ot such deposits! Must it BET bond with
personal security thereon, and if so, to whom
shall the bond be given, and what are to be its
conditlnns' Must 1t bo given to the State, or
to the state treasurer, or to the Governor and
attorney-generalE Must the Governor and
attorney general take real estate security, or
bonds and chooses in action, and lfso, who is to
have The custody and control of these securi-
tles' Ought there not to be some statute de-
inning the duties, not only of the treasurer but
the Governor and attorney-gencral, in this
matter! Is the treasurer at liberty to select
his bank or banks of deposit for the State
funds in any State or Territory that he NAV
olcotg mr. 10 la tr;o+,d Il, ,,nL ,oIo,t;or g.,
tne DhnhS OF TINS Dlate! III tne tONcfnOr ana
attorney general are authorized to take bond.
with personal security, for the safe-keeping
and payment of the State deposits, must the
sureties on the bond reside in this State or eau
they, in case of a selection of foreign bank
or banks, take nonresident sureties ON the
bond of such bank or banks. given for the
safe-keeping and payment of the deposits2