Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1889-08-28
HE CREDIT OF NEW MEXICO.


: Il duty 10 respond to it, although know
that YOU are already really in possession
If the iaCts
1t is SO difficult to imagine any goot
Object which such a letter could sui
serve that | am forced to believe that it!
intention was simply to depreciate TIT
credit OF the territory ut then moment whel
100000 OF territorial bonds are to be sold
so as to permit interested parties to bu,
them at a figure lar below their value. Ii
Is true that at the end of Your letter yuu
insert as a reason for its being written, 4
request that the newspapers addressed
will use their influence in securing the
. prompt payment OF the obligations of the
tcrritory;' but | can not believe that YOU
really supposed that the auditor or the
| treasurer could thus be forced to violate
The law or to use territorial funds for pur-
poses not authorized by statute; so that
that sentence, while sounding well, really
has no si3nitication.
You also state that I'VE have CORE
spOnded with the officials and as vet have
received no satisfaction" Ii that means
that your letters were not courteousv and
tu!lys responded to, it is incorrect
am informed that our financial officers
gave you and the Municipal Investment
20. every possible Information and explain
alton relative to those bonds, and | know
that i'll answer to letter received from Won
on May 70 | wrote Oh the very same day
as follows; Il AM in receipt of YOUR
favor OF May %, relative to the delay in
| paying the interest which became due
May ! on certain territorial bon Is, and
nave read it with much interest. ap-
| preclate fully the damage to our credit
caused by such default, and am glad 10
| ne able to say that the new financial
! system OF the territory inaugurated blythe
late legislature will, think, prevent the
possibility OF such an event occurring
again"
Now let us see what the facts are about
these bonds.
Chapter II OF the laws OF 1887 provided
Tor the Issue OF $l5J,OUO OF current eX-
PenSe bonds. OF Which not over $4,000
should lie used in any six months, and Oh
Which pc: cent Interest should be paid
annually.
They were subsequently issued as fo,
lows: November |, 1857, 10000; No
yembrr l, 1857, $4,000; May /, 1883,
800.
The law authorizing these bonds made
no ProVi>l)n 1Or ANY tax VI other means
to raise money to pay the interest. Thi,
'leleCt was known to every one. The law
VAS printed in full on every bond so that
there could be 10 mistake Every broker
Who thought OF buying them used it us All
argument Tor reducing their vauo, and in
consequence Ut this Walt-knOWn defect
the bonds had to be sold considerably
below par, While otherwise they would
nave brought premium. The SljU,0UJ
't bOnjs Was thus soil for less than Sl4J,-
OJ0. As careful financial agents, YOU un-
IerstoUd this perfectly when YOU bought, !
and YOU bought ~ II CORES ondingly los |
,Igdrt, because You knew that interest
could not be expected till after another
legislature met.
Vi course, the interest was not paid in
1888 Tor that reason, and no one ever eX
pected It would be, and the pathetic ac-
count OF your sending the coupons to New |
York last year and receiving them back |
unpaid loses Il good deal OF Its interest in |
view Of that fact To send on coupons |
when the law printed on ever, bond
showed that there was no possibility that |
money had yet been raised to pay them
was simply Il loss Of expressage.
Under Il provision OF the act Of con-
gress approved Jul Y %, 1888, intended to
cure the defect IN the territorial law, the
auditor endeavored last fail to raise tax
ut Il fifth OF mill to meet these coupons.
This has produced thus far $5,b44, with
which coupons have been paid rs fast a.
practicable. The interest due down to
this time is az folloWs
May J, 1888, 5000; Nov. /, 1888,
IS 900; May |, 1889, 5000.
In addition to the So ,644 raised hitherto
by tax. the sum of 1897 was placed in
the fund for the payment of this interest,
out OF the sale OF provisional Indebtedness
bonds, last May. This makes $y,G2l an
pIlcabe to the payment OF these coupons;
and this has paid the $1,000 due NAV |,
1858, the 5000 due November /, 1888
AMI Sd, 28J out OF the rs, 00J due MAY /,
1889; leaving S2,720 still due. OF course
we all regretted that any sum however
small Should remain unpaid, and | so eX-
PRESSED 1t IN my letter Of May %; but to
jay OH III few months 80, 26J out OF BIZ
JO0 OF accumulated indebtedness, at an,
ate, showed good intentions; and il
view OF the TACT that ample provision i,
made for paying that deficiency as ell
Is the Interest then due, on November
$50, scarcely jIsities much grumbline
N the part OF those who bouyhtthe bonds
'eIo" par Tor the very reason that DELAY
II these payments was certain.
lhv finance a. OF last February makes
I'LL provision for the future as to thi,
interest. 1t Ievles tax OF 27.1O0 of n
NIL Tor that express purpose. On u
OF T45 ,O0JU0o this will produce
over $4,000, or, allowing for all
osses and deductions, ut least $40 900 :,
HE the interest to lie met is 5000
he sale OF the remainder of the proyj-
lonal Indebtedness bonds will bring f.
his fund fully $4,000, probably before
october |. when the 81, 72O now due vii.
e Immediately paid. So that the outlook !
) not an unsatisfactory one.
As to the credit of the territory. while
course every default is injurious, vet the
nown circumstances connected Will =
hese bonds seem to have prevented Tn.
reduction OF any bad elect at least tina,
red.t seems to be remarkably good, judy
z rom orr failure thus far to find an,
older OF our penitent ary bonds Willing
sell them to the territory for canctla.
on. The treasurer has now over $25,- Il
% in cash for the pur base OF those o
onls, and nos make the direct Offer n
you to pay II per cent premium Nl2) {
N all such bonds up to 1900, fac, !,
iIue, which you will deliver ut Santa Ft e
thirty days.
Here is sold fact as to credit which ::
ltWeishs god deal OF theory. Yours "a