The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-02-02
Message on the sale and Exchange OF
BOnds, AuthOrizoe by the Act OF
April I'll. 1879.

April 81, 1879.
THE STATn OF TEXAS EXECUTIVE OFFICE,
Janury IL, ISL.
To the Honorable House Of Representatives IN
the Legislature assembled:
Anact was passed BY the sixteenth losis'
laturc, which was approved and took effect
April 81, 1879, "to provide for the insurance.
and sale Of bonds FOR the purpose of retiring
the outstanding bonds OF the state, and to
supply the deficiencies in the revenue,
and 10 provide the mode and
manner Of the sale Of said bonds.
Ia said act it was required that "the gov
ernor abal DO vested with tie authority 10
carry into operation the provisions aud in,
ientions Of this act, in such manner and
upon ouch plans as he may deem proper,
wise and for the best interests OF the state"
(Section 4 1t will be proper therefore that
i shall give information in tue nature Of .
report Of whG. has baeD done Ia the business
Of the state, tsus entrusted 10 my direc.is0.
Said act provided for the Insurance. Of
bonds to the amount OF SS,673,000, diyls9d
into three classes.
OF the d''?nn Of g. the SUN Of S $50 SS9
1906 i,sis,0oI
The $5s and $lOi are of the same
class and bear four per cent interest
and the $l00s And 81 COOS bear ave per cent.
interest.
The lrst object IN the execution Of the Law
was 70 get the bonds engraved, AS required by
the net, for which an appropriation Of $4,000
Was made in said act aud IA additional ap-
prouiaton wss made at the special session IN
1879 Of So 600 more, found necessary on &C.
count ofthe price OF engraving the bonds of
the denomination Of Gyo and ten dollars
(See laws Of regular session, ppgo 1874, Soc
ton lG, and Of special session, page do
Ia doing this, was aided by the comp
troller, Hon, $. Ii. Darden, who engaged the
assistance Of the firm of s..
Nj. swonsou, Son Sc o., Of New
York, who secured the work Of engraving of
the bonds to be done rs soon as practicable
aud had them forwarded TO Austin.
As coon 40 practicable the Hon. S. II.
Darden was sent To New York to negotiate
the sale of said bonds, an appropriation Of
five hundred dollars having boon made ia
said act TO begr his expenses, while thus en-
the bouds oftho bloomington Of 81 coo were
sent there for negotiation and sale. Tho
market was not favorable for sale NJ that
time II beng after tho business season
he'd opened in said city in 1879, and he re-
turned without making ealo of any Of
them, having lei, tho said ono Thousand
bonds, duly executed, under tae care and
control of said firm Of $. Nj. Swenson Son
d. 90.
Aftatward an effort was msdet1 enIiat IN
the negotiation ald sale Of said bonds, Mr.
Charles NJ. Fey, the presidents Of the bank q
New York, who Was acting 10 the agent of
the treasurer OF the sta.o (d0n, II. Il. Lub-
bock) IN puying Ga Interest upon our bonds
payable 10 New York. Upon his cOusoll-
ing 10 do 30, executed to him q ul power
OF attorney TO sell aid bonds, and took the
necessary stops to place those then IA New
York under his care and control. la This, as
well aa 10 all Of tie subsequent transactions.
In relation TO the ssie Of sid h0uds, / had
the valuable mid of the treasurer, the Hon.
+. Il. Lubbock, Immediately afser full
representation, made by mo 10 said Charles
Fry of the financial condition of Texas, Of
our resources, and Of the policy that had
been inaugurated, he III once took $4,000
of the bonds on his own 0ccount--of when
he gave notice promptly to tho state treas
urer. That ut once brought our five per
cent. bonds in demand in tho market; and
all that we could sell, to retire the oustand.
ING ten per cent. bonds, we're sold promptly
in New York and in Texas The state OF
Texas is under obligation to Mr.. Charles NJ
Fry for his generous and Intelligent
confidence In our ample capacity
TO meet our engagements, and for
the interest in which he took in
sustaining our credit by his influence, when
the amount OF compensation of one fourth OF
one per cent could not have been an ado.
qusts inducement for his effort in our be.
hall.
The four per cent bond', of tho denomi.
ntton Of SIS aud $40, were provided for II
the act under the expectation that they could
be used at the treasury, in the payment o
the current debs of The state, in the absence
OF sufficient money as revenue, to meet thu
demands presented.
IL happened, however, that from and nc
ter the ayst day Of May, 1879 (whicl
WAS before any of tse said bonds had beoi
engraved and delvered), there was and Ina
been n tho state treasury money autllcien
to pay all claims against the state 70
which there was an appropriation--and con
sequently no one having sail claims desire,
TO receive said four per cent. bonds Ia pay
ment The small n0mber OF them that hay
been sold, though held subject TO BIO sold al
the time on demand, have been sol
mainly to those who purchased @
received them upon some fancy @
their Own, quite foreign to any idea of An in
vestment. The money for which they wer
sold haa been in other state bonds bearing
higher interest except few dollars now o
hand, being only IS 40. While the Eve DC
cent. bonds were in the market for sale. IN
Tour per cents could not DO sold as an inyes
ment.
This business of the sale of the ha,
ing been transacted in the treasurer's ofio,
here submit his account and statement {
the same;
TREASURY DEr'MT, STATE OF Texas. !
AUSTIN, January l, 1881.
Hon U. NJ Roberta, Governor;
DEAR SIg-ln compliance with vour p,
quest, hand You the following coneernin
the bonds engraved and sold under an a,
approved twenly-iirat of April, 1879, to.wit
FIVE PER CENT. BONDS.
$1,000 bonds engraved. ... s67eooo,
sltO bonds engraved .........,,,,,, I,C05uuSI
Total Ave per csnt. bonds en-
sia'su'''',,'''.',',.,., ..,.,.. s., 1913 900 4
Ofthe $1,000 bonds S97SOO we're rol
leaving 100000 unsold, which arc no
stored IN the vaults of the Bank of Ne
York NJ the rate of 500 per year. STORE,