Savannah morning news. [volume] (Savannah) 1868-1887, 1886-11-05

ttiE lhtttT. Inc resolution ht4-t4oA t@~Nt -
deliver. after Jan. !, 80, Of any part OF
the ~ per cent. bouts, and 'hs application
/ OF the p oceed- 10 the payment OF maturing
! b pds. where holders OF such bonds Would
surrender hem Def re m aturity for The prln-
cIpa AMI difference III interest between the
oid sud new bonds, provided tnat such uellV-
cry OF new bonds and payment before ma
tnrity o. maturing bonus "shou eniall no
greater expense upon the State than that
contemp ated in the present contract for the
sale OF new bonds y Aftrr fun consultation
/ win the Urea -urer anu Attorney General.
decided TO make a supplemental contract
with the purchasers to carry ont such pro-
visions OF the resolutions as II ght be practi-
c. bic.
On Feb. Is, IS g. an agreement, pre-
pared 10y the Attorney Genera. was made
vita he-sr-. Wolfe and associates for the
de livery OF az much q, $685. coo "a per cent.
b nds. or more a. the option OF the state. at
any time az er March !, 1885,, on condition
tHat the laiter should surrender an equI oient
amount Of Oh bond before .urther tclverles
would he made, the state paying prime pal of
such mat ring bonds, ami the difference OF
Interest ~ Aforesaid, and retaining the cpu-
pons uut!l matur ~ as dditionai guaranteel in
the Transaction, and on he further condition
that the purchasers snouid pay he interest
on the new bonds SO delivered until the pre-
seniauon Tor payment Of maturing bonds, as
provided in the agreement. Ii was further
/ stipulated that adjustment Of interest between
the State and purchasers. growing out OF the
early delivery OF the new bon :, should be
made AS provided IN the resolution. The
benefit 10 the state consisted ~ the fact that
ttAN '4 W OO=lt VI D. Is rGt lI ~
Tor the performance o! the contrscf. was not
lessened by de iyeries Of bonds from time
10 time. nut remained IN the Treasury until
the contract should be fully performed, the
perez tage OF the guarantee being increased
vi h every bond ne lyeTed and paid for. and
III the fact that the Treasury wa, enabled TO
re ire maturing bonds .radualiy VItnout the
nee s'Ity OF carrying more tnan three mil
Hons Of money At one Tine. Cnder this agree
ment 900 was delivered prior to May /,
l~eb, and the pure nasers presented $4,000 of
] L
amount Of $l,9'20C0 remained for delivery on
MAJ !, 1856. ON that day the purchasers re
c-iyed and paid tor this rema nler, and the
! Treasurer returned 10 them the sum OF money
Whicn had been deposited guaran ee Of the
contract, with interest, as tue State had used
the money in pursuance OF the contract as
L. mp1rary loan authorized by law. Up to
OtloJer 1, 1855, date OF the Ireasurer's re-
por', al Of the matured bonds aforesaid had
been presented and paid, except the amount
OF 1918 10, since which time large portion
OF this amount ha. been paid.
Inasmuch as the purchase money of the
above amount of bonds was In The Treasury
ami repositories, held for pawn mt of prInci-
pal Of the maturing bonds, | instructed the
treasurer TO advertise that he would pay at
he Treasury, or at the state agency in New
/ ork, Inc principal OF sucn bonus presented
| before maturity, the holder retaining the last
c upon for in crest, to be paid at maturity
out OF otner money appropriated for that pur-
pose. 1t was believed that such disposition
OF tue idle money, VIII Oh could not be other
vie used, would beueht the credit OF the
state and facllltate the operations OF the
In all these transactions, no commission
whatever has been paid, either in the
sile Of bonds or in the payment of ma
tured bonds. The beneficial effect Of the
10 egolng trans ctlons has been felt not
| 40 IN appreciation of the states
credit, and IN the reduction of annual inter
| est to e amount OF s.. 1913 80. but muniCipal,
corporation ami individual credit has been
m materially improved. since the state loan
ana IN consequence Of II one OF our cities,
| which has per cent. bonds outstanding. has
recently sold ~ per cent bonus az par. This
| fact and The hlgn premium when our IA per
| cent. bonds now command ia open market
furnish perhaps the best illustration of the
states financial cDndIllln.
SINKING FUND.
The time has arrived for carrying into eff
feet paragraph :, section IA, article Z, of the
| constitution. when provides That after pay
| ment Of the per cent. bonds Issued under the
act OF Feb 80, 1873, the sum of 500 eco shall be
raised by taxation each year in addition 10
the SUN required to pay the public expenses
AMI interest on pubi' debt, to be he'd as Il
sinking fund 10 pay on and retire the bonds Of
The State not yet matured, and for no other
purpose whatever
II the fund cannot be applied to the pur.
cha Of DO is of the STATE at or below par
/, authority IA " be granted by law to the Gov
ernOr and Treasurer TO loan it from time to
time on the security OF outstanding bonds of
the state.
Duty aud interest combine to render i'm
p-ratlvs the requirement of legislation to ef-
feet tins important object. Nothing contrib
utes more improve the credit of the State
than he annual reduc ion OF the principal of
OF the pubiic deb under the operation OF a
suitable Jaw. The fact that from Jan. !, 1878.
10 OCT. !, 1884 the principal OF the public d, bit
had been reduced by payments from time to
time, the sum OF 81 .939 sj5 con ributed largely
to the recent sale OF "a per cent. bonds at a
premium.
MATURING BONDS.
IN this connection it is necessary to bear in
m will 6pyOlvn hp
present General Ascend of providing for
the payment Of -, l4l 900 per cent. bonds, is
sued under tue act of Feb. H. 1>77, which m a
lure Jan, l, 1883. There is reason to believe
that bonds can be sold for that purpose, bear
ing even a lower rate of interest than AZ per
cent.
Itmav be well to consider the propriety of
arranging the dates Of maturity OF portion,
or OF all these bonds, SO as to meet the re-
quirements ana facilitate the operations of
the sinking fund,
Inasmnch as III these bonds mature at the
same time, II will be practicable to afford the
holders OF such bonds the opportunity TO fund
7 or exchange them for new bonds bearing a
| lower rae Of Interest. To THIS end | recon
mend suitable legislation for the issue of bonds
maturing within not less Than thirty years,
subject to earlier payment at the option OF
the state, in such amounts aud AT such dates
as may be deem Il advisable, and bearing in =
terest at IA rate not higher than AZ per cent.
I | with proper provisions for funding the ma
| turing bonds, a. the option OF the holders, by
| exchange before maturity.
COMPTROLLER GENERALS REPORT.
p The Comptroller General furnishes com pre-
= | heustve details OF the condition of the Insur-
anCe companies doing business in the state, al
e | we'll as of our system OF taxation. Fire IN
| surance companies have done n prosperous
p business during the past year, their rrceipt
I for premiums amounting to $lil6,S4 80, an
e. their loses 10 $iS6,279 o., There has been al
r incr" ase in number and an Improvement II
r character OF the com i'anie- registered. The
o laws regulating the insurance business nee
a thorough revision. Uniess the supervision
"a exercised over the b ,siuess by the State i,
# efficient. it were bet er to have none
The Comptroller Gen 4ral makes val
= liable suggestions on this subject. HIS OK.
h perience and devotion To duty, mantle ed
e during seyera terms of office, entite them {,
- careful consideration. The entire cost Of col
lection of taxes, ana loss from failure t,
collect amount to u fraction over q pei
cent. Of the levy. The increase in an
e nual return for taxation which ha
10 attrac ed attention from year TO year ha.
been maintained. Amount returned in 1885,
, was S37.074.27l; in 1885, S32l.6G,6l6 and II
1855, 1929 4s9 sos. an Increase of $952jl51 since
- 1873. This Is FAR below tue actual wealth o
; the state. The provisions made fr IN time *
time to secure correct re urn and valuation
,, OF Or ,perty have not been effectual. No SUB
< ject will engage your attention OF more i'm.
,, pOrtance. A simple plan OF assessment. " it'll
out change IN the number prc-cnt officials
10 would produce desirable results. Time woul
8 rrmpd defects. Ii nothing moro should bt