The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1882-08-24

Hon. Ashbel Smith, President Board of Re-
gents, State University, Austin, Texas,
SIR: i have the honor TO acknowledge
the receipt OF your inquiry of yesterday
asking for the condition of the perma-
nent and available university fund on
this date, and in reply furnish the fol-
lowing statement
1.-PERMANENT FUND.
On July 1, 1882, there was to the credit
ofpermanent university fund:
Five per cent bonds. ...........S 69.O9l 63
Six per cent bonds. ............ 1I5,0OO w
Seven per cent bonds. ...... 81, S44 O3
Comptroller's certificate of
debt. 10000 Al
Cash for investment ........... 81 $50 60
Total ................... 1884, 75 70
2.-AvAILABLE UNIVERSITY FUND.
On September /, 1882, there will be to
the credit of available university fund:
Fiveper cent bonds. ........... , sos ~
Seven per cent bonds. ..... 24,793 81
Seven per cent bonds. ........ 1852 60
Interest on coupon bonds. 400. 2,660 90
Interest on manuscript bonds. 81 ,965 90
3. From the above amount OF S59,OS0.34
the following disbursements already
made are to be deducted:
Expenses OF free students in the n. and
NJ. college, building fence on university
grounds, surveying, expenses of direc-
tors. etc., Sl4 ,9S6.G6, leaving net balance
of ga, 102.6S.
4. From this net balance of S44, 1O2. IS,
II the bonds belonging to available uni
versity fund be deducted, there will be
actual cash for immediate use, S963S. "a.
The bonds referred to set out in item
two, above, amount to S34, 464.34, and
while belonging to the available univer-
eli e.xL h.
TO place their value in form to be used.
These bonds can be sold ut a premium
estimated as follows:
$S,30S.37 per cent bonds at Sl.1S
..... NEUTRALITY-SUSPICIOUS.. 9,S03 81
s24, 1881 per cent bonds at
$780, 60 per cent bonds at SIio 1907 q
Total value of bonds lat pref .S41, 1853 30
Add above net cash from inter-
est In item above. 9,63S "a
Gives available fund of. SOL, 1O1 80
that your honorable board OF regents
can consider as subject to your orders
for disbursements when the bonds desig-
mated are sold.
AS noted above in item one, there is
now on hand, belonging to permanent
university fund, cash in the treasury
$3l, $50 SO.
The available university fund bonds,
amounting In principal and premiums to
$4l ,463.55, can be sold at once to the per-
manent fund to the extent of $3l 1890,
and the Increase of permanent fund will
soon give cash in the treasury sufficient
to purchase the balance of the available
fund bonds. The transaction Is advisable
in this form because the bonds belonging
Ito the permanent and available funds are
In manuscript and consolidated.
This renders these available fund bonds
inseparable for sale except to the perma-
nent fund unless, perhaps, some legisla-
tion be had on the matter.
In this statement no notice is given to
the $134 ,472.2G state bonds issued to the
university fund in 1866.
According to the views expressed In
letter from this department addressed
to your honorable board. through the gov
ernor, on November IA, 1881, this 1884 =
472.26, with interest thereon up to April
IL, 1876, 1.-THE date of the adoption OF the
constituti0n), amounting to 2,4I30S,
total, $190, 9l5.S4, belongs to the perma-
nent university fund, and the interest on
same bonds from April II, 1876. to 1879,
date of maturity of the bonds, amounting
to sis, 200.77, belongs to the available fund.
Should the legislature make provision for
the payment of these bonds, the perma-
manent fund would be increased by $780,
945.S4. This VIII give total, after deduct
ing cost of investing the S3l ,539. SO cash in
bonds, OF $563,772 80, and available fund
above given of SOL .l0l.S9 would be in
creased by SlS,209.71, making total avail
able university fund, after deducting bal
ance due appropriation for free students
in A. and Nj. college, of S325S 0S-SG6, 05S.-
90. find no warrant in the law for
characterizing the bonds issued In 1866
amounting to Sl34 ,472.26 "as of doubtful
validity" and this department has drop
ped the term in specifying these bonds.
The term doubtful validity" are calcu-
lated to mislead and prejudice the stand
ing OF the bonds, and have been officially
used without any authority whatever.
Respectfully.
w. NJ. BROWN, Comptroller.