The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-09-29

Prlclpal OF bond 600
Premium. Observation-Disclosures. 40
Total ACKNOWLEDGEMENTS. ,liO
Italowed TO run until maturity, twenty
eight years longer, land tho state has no
privilege OF calling them before maturity
the cost will be;
nrlnu,p"' WV
Total at maturity. ............,....,.S2 luO
Take from this cost Of bond now.,....,, /, 40
And we have as amount. 81 200
saved to the state on each per cent bond.
A per cent. bond, redeemablo nj the pleas-
ure Of the state after 1892, if allowed 10 run
until 1892, Qt is presumed that they will be
redeemed them has eleven years to run, and
at the end Of that time will cost:
Principal OF bond 81, 900
Eleven years interest. Observation-Disclosures. 10
TotM.......".."..,".,....,.....,u.sl,77o
If bought now nj, say Sl25, tho cost is:
Principal of bond 81 200
PREMIUM NJ VIA ,....,,.,.,.,,.,,... .,. $50
MA, -
Total Observation-Disclosures. o., $50
In this there 10 a saving of $3.50 on each
bond retired now vt u premium OF 81 25
AS before said tho sinking fund and pro,
ceeds Of sales Of public domain arc entirely
under control OF tho treasurer. to be invested
by him in tho redemption and cancellation
of tho state bonds. These proceeds have
been invested u! different times and in small
amounts, rs until r, conlly no large lots of
bonds have boon procurabo, none but hold
ers of email lots having been found who
would sell, and in consequence of these
purchases have been made at somo lower
figures than more recent purchases made by
tho treasurer with the advice and consent of
the governor and comptroller.
The legislature on March Is, 1881, passed
an act to authorize and empower tho treas
urer, with the advice and consent of tina
governor and comptroller, to use surplus
moneys that may DO at any time in
mo state treasury belonging 10 the
general fund for the purchase and
retirement OF outstanding bonds of the
state; and also in the general appropriation
bill 81 100000 wero appropriated looking TO
the Investment OF any surplus over and
above all appropriations formerly inside.
Tho treasurer, realizing that quito large
surplus was accommodating, hogan stying, In
April last, to make investments but until
recently could find no bonds Tor sale other
than a, wsmall scattering lots which were
used in consuming the sinking fund. Tho
banking house of S. NJ. Swanson Il Son.
who have represented the state in invest
ments Of the special funds, in ropy 10 In
quiry, stated under date of April 18th. 1881,
"As you ara aware, the bonds ara held
very firmly Us Investments, and holders
arc unwilling to part with them OK,
oept at price approaching very nearly
the rates tor United States bonds, espo-
cially at tho present time when money IL
abundant at very low rates. The bank
OF New York is tho agent of the state In
New Nutk and has energeloallv souchl
tao holders Of our bonds and reported time
and again that Texas bonds wero held m
permanent Investments and could only be
had ut a premium little less, it any, than
what U. D. bonds were bringing, md 20 pur
chase, the state would have to pay what thew
were worth rs Investments From this. 4
was Elsin fact that tho states money could
only bo invosted al about four por cont ne
that is oil that could bs had for money. and
no the surplus was lying Idle and interosl re-
naming ON the bonded debt, Il was very cear
that Investments should be made n, ruling
rates and interest stopped. This view beinl,
taken of the case, and some of tho large
holders having been found who would sel
their seven per cen, bonds, purchmos wore
made, 81 81 being paid for seven per cent
bonds rodeonablo in 1882, and 81 40 for
those not redeemable before 1904. Tho
bonds bought for surplus revenue ara as col
lows; $3.50 900, duo in 1904 and 500 600
duo In 1892. The bonds of 1904 nave vet 10
run, say ,wenty.ihree years, and will cost the
state maturity rs follows;
irhciph. ...,,"",o,. ,.u..,n. $3.50, 600
lnterest Wen'y.throo years at per
..nt .fsss.s ssss.s.s,......... o, dOl, ZOO
And the state will have paid III ma
=. MiHy OBSERVATION-DISCLOSURES, 6i9, 500
Paid Tor theso bonds at Si.i1.,.,,.,,. ayl,OOO
saved TO the state by purchaslig now at
VIZ" ''ssss,.ssss..,.,,,,..., 303, 800
The 100000 due in 1892 will cos. a,
maturity;
tN Fhi .ssssssttttssss 100 ID1
interest, eleven years at per cent. 49,. n, O06
IN.ia ~ ~ NuIiy ..s,..s,.s,,..,..... 77,O0O
su ,or these et II ,3l...,,.,..,,,.,,,,,. lsl,0oo
seu oy purchasing now..",,.n,.,, l0.OO
In Tho purchase of tho two clsssos n will
~ s sssn that the sis.e realizes a saving
In consequence fsbo re.iremcn, OF these