Savannah morning news. [volume] (Savannah) 1868-1887, 1885-07-09

/ old bond counting AS cash for its par
/ value, the purchasers paying the premium
OF J-lb OF per cent. and retaining all
unpaid coupons for presentation at ma
turity, while the State will retain
and cancel an equal number
Of the first coupons on the new bonds.
This provision is intended TO facilitate
speedy deliveries, not only without loss of
interest TO the State, but with actual saw
ing OF interest, because, TO that extent, it
would not be necessary TO place the
money paid for the new bonds in the
Treasury in advance of the maturity of
old bonds, so as to promptly pay them.
In addition to this saving Of interest, the
state would redeem and cancel maturing
bonds. and deliver new bonds in the same
transaction.
The security for this contract is in our
own hands. The bonds will not be delivered
except on payment of the pur-
chase money Times of delivery
are arranged to give ample opportunity
to sell the bonds to other parties so as
to meet maturing bonds, in case of fail
ure by the purchasers to comply with
their contract.
with the cash guaranty Of $172, 1856 -
IN the Treasury, there is little danger that
the purchasers Will not comply with their
contract; and to have postponed the sale
until next year, upon the near approach
OF maturity Of existing bonds, would
have involved the state in all the risks Of
untayoraDle changes in the money mar
kets.
Two important ends are secured, viz, a
reasonably sure provision to pay bonds of
the State at maturity, and the sale Of the
new bonds at price which should be
satisfactory to the people.
The terms Of sale, in comparison with
the best Of the bids submitted April -,
and rejected as above mentioned, viz
that of Wolfe 81 Rogers, present decided
advantages to the State. In interest alone
on sums of money placed in the Treasury
before maturity of bonds there
is a saving of more than
100000, which, added to the premium
$4,000, Will show the actual present cash
difference to be more than 100000. The
reduction of annual interest on the pub
lie debt, effected by this sale, deserves at
tentiOn. On the IS, 4j5, l35 maturing
bonds the State paid in 1884 S240, 427 40 in
terest. An equal amount of ~ per cent.
bonds, after july 1, 1886, will bear $780,
4Sl OF annual interest-ar reduction of $751;
GAG 80. To this, if we add the reduction
of interest in 1884, through the payment
of S750,000 of the principal of the same
series of bonds, $50.053. it VIII appear
that a reduction of $134,999 80 per annum
has been made in the interest charge
upon the State in the period from Feb.
%, 1894, TO July 1. 1886.
This sale of So, 392, coo of bonds at AZ
per cent. saves TO the taxpayers of Geor-
gia, annually, $S4 800 in reduction of in
terest below the average rate heretofore
paid; and this saving in the thirty years
the bouds have to run VIII aggregate the
handsome amount OF SS,544 900, without
making any allowance for the premium
received, or computation of interest on
the annual saving.
On July / the purchasers of the new
bonds received and paid for the first
100000 OF the Issue as provided in the
contract.
The only expense attending the issue
and sale of the AZ per cent. bonds will be
the cost OF engraving and printing, $1,000;
on account OF advertising for bids, 1896 So
and the necessary expenses of the Treas
urer in visiting New York and Philadel-
phia on business connected with the
| transactions, 1891 80.
1t affords me pleasure to acknowledge
! the valuable assistance rendered by the
Attorney General, Hon. Clifford Ander-
son, and the Treasurer, Hon. r. Z. Harde-
man, in the negotiation and sale of these
bonds.
The trustees of the University of Geor-
gia, on April 81 last, deposited in the
! Treasury matured bonds of the State to
the amount of $63,000, for which they
were entitled to receive the States obi
| cation, in accordance with the provisions
of an act, entitled San act to make per-
manent the income Of the University
| of Georgia." approved Sept. 30, 1881.
| For that reason the amount of bonds sold
was S3,392,000, instead of 3,i5j, 135, as
contemplated by the act. On May 10 last
a further deposit Of similar bonds to the
amount of $4,000 was made by the trus-
tees. And ON June u obligations of the
TIT Of no Atfr.
said, for $4,000, were issued and deliyere
to them.
The question pending before officials of
the State Of New York, whether or not
savings banks, under the law of that
State, could invest in Georgia bonds, was
made by private parties, after the sale of
the bonds. No official of the State Of
Georgia has had anything TO do with the
matter, directly or indirectly, nor is the
State in any sense party to that cOntro-
! yersy.
The steady improvement in the credit
| of the state should cause general salts
faction. All classes Of tho people share
in the benefits. It were better that the
thrift Of the people OF Georgia made them
lenders Of money to other communities.
Then they would not only supply the
private demand for loans in the State, but
would absorb public loans at home and
abroad, and all the interest would be
kept at home. But so long as our bust
meas men and corporations borrow money
in other States, il is a matter of cOngratu-
lation that the State can sell a large
amount Of a. per cent. bonds at pre-
MUM.
The success attending these transac-
tons encourages the belief that bonds
bearing even a lower rate Of interest can
be sold 20 pay the large amount OF public
debt maturing IN the years 1859 and 1890.
To secure this result provision should be
made by improvement IN the laws for the
return and valuation OF property for taXa-
ton, or by an increase in the rate Of taxa
ton, to raise money enough to pay of the
floating debt to meet the expenses of the
State and 10 create an annual sinking
fund OF 100000, required by the cOnstitu-
tion for the gradual CXtinguishment OF
TIE public debt. These duties are impera-
tive, and referring 10 the recommenda-
tiOns In this behalf, submitted IN my mes
sage 10 the General Assembly upon its
organization In November last, / invite
your earnest consideration of measures
best adapted 10 secure such result.
HENRY -. MCDANIEL.
DEATH or A LEGISLATOR.
TuoMAsTON, GA, July S.-Rcv. w. II.
Richardson. our present legislator, died
at his home. eight miles ia the country,
.tF a astt......s.