Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1879-01-25

men are reported in%solvent; two OF
the others reputed wealthy, but
nothing can be made out of them by
execution. When this bond was
given a portion OF the sureties quail
flied as worth one and q half million
dollars. The new bond given by the
treasurer has not come into b pos
session of the committee.
John w. Sutherland. commissioner
Of the agricultural lands bond $780,
900 worthless.
James Harding, railroad commits
sioner, bond 5000 good.
Ewing Y. Mitchell, adjutant-gsner-
al /; bond 2 ,0OO-good.
VIM. S. Relfe, superintendent In
france department; bond $lO.oOO-
good.
Henry W. Ewing, clerk of the u
prene court; bond $1,000. One OF
the bondsmen insolvent and living
out of the county, the other good !;
the bond should be renewed.
NJ. II. PHELAN, Chairman.
D. C. DADE.
JAS. NJ. HARRINaToN,
Committee.
APPENDIX - FUND COMMISSIONERS
HoLLADAY'S REASON FOR PAYING
DOUBLE INTEREST.
JEFFERSON CITY Jan. Is, 1879.
Hon. NJ. HI. Phelan, Chairman Ex-
aiming Committee: Dear Sir In
answer to your verbal inquiry III re-
gard to payment Of interest not rep
resented by coupons in 1877 and 1873
on the maturing bonds of the state,
with the bonds, VIC have the honor
to say:
In our opinion the interest refer
red to was q legal demand against
the state, and the authority for pay
ment is found in the laws under
which the bonds were issued. The
state promised to pay interest on the
bonds Sat the rate of six per cent.
per annum until paid"
The bonds could not be paid before
maturity, because the general as
sembly had not authorized us to pay
the bonds before due, nor provided
the means of such payment. The
policy of the state has always been to
pay such interest, and Jul predeces-
sors did so, which became u pre-
cedent.
During the years 1875, 1876 and
1877, the state had to go on the market
for the sale of $~4,350,000 renewal
funding bonds, pursuant to act of
March 20. 1875.
Before the passage of such act and
the sale of bonds by its authority,
our state bonds could only be sold
for 924 cents on the dollar. 1t was
evident that the fund commissioners,
to whom the sale of the bonds and
payments of the maturing bonds
were confided, should pursue the
policy which would build up the
states credit and enhance the price
of the bonds to or above par, so that
the state would be benefited by the
advance in the price.
There were sold in
1875 ......"..".... ss. os7 600 . for IS, os2. go 90 %
1917 sas 200 for $50. osl 90
Amount sold $4, $50, 900 aud the
sum realized 81, $50, 67s 81.
The reason the act of -, 1875,
provided for sale of $1,000, 900 bonds
was because of the low price they
were then selling for. 1t was a%ntici-
pated that the loss on the sales would
be from $780, 900 to 100000 unless
the price enhanced.
If the policy had not been the faith
full maintenance of the credit of the
state by the fund commissioners, and
had they resorted SO purely technical
objections or %imEeaching the action
of those who issued the bonds, viz,
Cows. Jackson and Stewart, secre-
tary of State B. F. Massey, State
Treasurer Alfred w. Morrison and
State Auditor w. H. B%offingten, who
were recognized as honest aud hon.
orable gentlemen, as well as efficient
officers. and who We believe would
not issue bonds with overdue cou-
pons attached; the effect would have
been the depression of the bonds,
whereby the state would have been
largely the loser. by reason of the
impairment.
Time aud space will not permit a
discussion of the whole subject, nor
minutely entering into the details of
all the laws under which the bonds
were issued, but We beg to make here
some references aud quotations:
First-It is expressed in the face of
the Cairo aud Fulton r. r. bonds
"with interest at the rate of six per
cent. per annum from the date of the
negotiation of this bond in the hands
of the holders, such date to be in-
| dorsed hereon." This
| bond is redeemable at the pleasure
of the legislature at any time after
| the expiration of twenty years from
| the date hereof" On the back of
these bonds, and printed with them,
is the following: "Pay the bearer
amount of this bond, together with
interest from the first day of July,
1877, until due" This was a part of
tbs contract on which the negotia-
ton was effected.
No date for the negotiations is ex-
pressed in the bonds or the law under
which they were issued, and not
knowing in the nature Of things
when they would be negotiated, and
having twenty years or longer to run
from the date of their negotiation
how was it practicable to offer cou-
pOns for the fractional interest from
July l, 1877. to date Of maturity?
Again, if it had not been the pleas.
ure of the Legislature to pay them
twenty years from this date, they
might have run for thirty, forty OF
fifty years; yet, there would have
oSSo coupons w ASPhSSChe II
s%emi-annual% interest after the expira'
ton of the twenty years, and i,
would have been paid with the
bonds.
~Second-The ST. Louis and Iro,
Mountain bonds have in effect t
same conditions expressed III and OF
them.
Third-Section 5 Of act of Febru
airy, 1855, under which the Nortl
Missouri bonds were issued, ex
pressly provides: "The interes
thereon shall be payable semi-snnu
ally in the City of New York, OF
the first day OF January and July il
each and every year, and if any o
the said bonds mature between
either of said days, the interes
which shall have accrued Thereon
shall be paid at the maturity of tn,
bond" which was printed OH tn,
bonds.
Section IA of act December rs
1858, page IA, provides, "wheneve
any of the bonds authorized by thi
, act. or any former law, to be loane,
to the Pacific railroad shall come t,
maturity between the first days O
. January and July. or July and Jau
/, uary, the interest thereon accruin
! between the date when the last cou
pom falls due, and the maturity q
the bonds, shall be paid at the matu