The silver state. [volume] (Unionville, Nev.) 1870-1903, 1879-05-17
STATE FINANCES.
What the Governor Says About the
Late Financial Transaction and
Condition OF the Treasury.
CARSON Cry, May IA, 1877

briefly these. When the PRESENT
administrat on came MO Office they
found $40, 800 OF U. s. 81 bonds
in the Treasury that had been "called
in" by the General Government some
months previously, and upon which the
interest had ceased from the date of the
CALL Why this large amount of money
was permitted to remain dead or un-
productive the late administration can
possibly explain. At all events, it
became our duty to re-invest this money
in the best manner for the interest of
the State. Under the law and Consti-
tuition, but. three kinds of securities
could be invested in, viz. gu. S."
California" or estate bonds" OF
the former none could be had except
Az; the second could not be had at any
price. A correspondence was opened
by the Boards of Commissioners, COM
prising all or nearly all the State Off
GERS, throughpthe State Treasurer, with
parties holding our State and Terri
torial bonds. They offered to surren-
der them at rate which would insure
to the State Al interest OH the-amount
paid for their redemption-one half per
cent. more than any securities the law
allowed, investment in. The financial
officers of the State procured the pass
age of law by the last Legislature
authorizing the purchase of our own
bonds on this basis. The negotiations
have been concluded, the bonds men,
toned. Territorial and State) have been
retired and cancelled, the State getting
4 on the money paid for their re-
demption. | would advise you to re-
axamine your "Daboll" You say the
State would have saved $l50,000 by
loaning its money at 59 per ahnum by
the time the Territorial bonds became
due. Avery wonderful statement for
head so generally clear as yoafs. They
have loaned it at AL and your $780,
900 dwindles to very small amount.
But again, no Investment at 5 or any
thing over AZ could be had. A pru-
dent business man will pay his debts
when he can. The result of the trans
action may be summed up thus: The
State gets J of more for its invest
ment in round numbers of $500, 900,
than it could possibly get in any other
manner. 1t retires it's own indebted
ness, and in place of paying the inter
est on its bonds to European holders,
it pays it to the school children of the
the commonwealth for all future. time.
Again, the money thus investcds is re-
moved from the possible cupslity or
injudicious action of future Legisla-
lures. If this is not wise and excel
lent financial operation for the benefit
of the State, I am willing to admit that
/ know nothing OF financial matters.
The somebody whes profted by the
transaction" is the State of Nevada.
No expense attended the matter, ex-
icept alone two trips of the State Treas,
urer to San Francisco. The whole
amount of bonds payable in Washing
ton were used in San Francisco at par.
l. have been thus articular in describ-
ing this, transaction to show you that
at least by implication you have made
public an6,erroneous opinion. 1t is bat
just to say that the late financial
officers of the State two years ago tried
to effect aasimilar arrangement. They
failed only for the reason that the rate
of interest toabe insured the State ON
investment was too high and holders OF
the bonds refused to surrender them, at
the low premium necessitated by the
law. Circumstances in connection with.
original sale of the bonds now retired
will, if occasion requires, be in the
future ventilated. - / am
very proud of the transaction, and be-
heve you will think it good one when
you understand it. You, in common
with many others, fail to correctly rep
resent the present condition of the
Treasury. The coin on hand $29l,-