Arizona republican., 1891-03-13
THE TERRITORIAL DEBT Great Need of Low Interest
 Funding. General Aliens Speech in
 the House. Resume of the Financial Condition of Arizona and it's Proper
 Remedy.

None other of the members of the Six
 teenth Legislature has devoted more
 study to the financial status of the Ter
 ritory than it's Nestor, General J. B.
 Allen, of Pinal. Naturally, then, his
 speech yesterday afternoon upon the
 funding of territorial indebtedness ex-
 cited much attention from all, and not
 little comment and opposition from
 those holding opposite views. The
 speech is herewith given in full:
 "Mr. Speaker: On February l7
 introduced House Bill No. 65, entitled
 An Act to Provide for Funding Terri
 torial and County Indebtedness It
 was read first time and referred to the
 Joint Funding Committee, and it's
 whereof the House knows not to this date.
 ''l beg leave to introduce said bill
 with slight and unimportant amend ments. In framing this bill, 1 accepted passed an act entitled of funding terri torial indebtedness; that said Act was submitted to Congress; that Congress amended said act and passed it as amended and made it subject to future territorial legislation, which, I under stand to mean that this Legislature will accept the amendment and pass it as amended and it then becomes law to us.
 "The bill l refer to (Iouse Bill No. 65) accepts the amendment of Congress and passes it as amended, and gives effect to its provisions; it recognizes the fact that the sale of our bonds depends upon the fidelity with which it adheres to the law of Congress, and any ma terial deviation from that law will make it void of effect. It directs with much minuteness the Commissioners and Treasurer how to carry out the provis- ions of the law and put it into practice 1t directs the several counties to execute bonds to the Territorial Treasurer for the amount of their respec- tive indebtedness, conditioned alike the territorial bonds that are issued for the redemption of the indebtedness of said counties, and provides that said county bonds shall be heid in trust for the pay ment of the territorial bonds, which must give strength and solidity to our territorial bonds. It also provides for the levying of a tax on all the taxable property of the several counties for the payment of their own individual in- debtedness, and such tax becomes lien on such property, and though the county may be divided, the lien holds on the | part detached. and the tax must be col lected and paid into the Territorial Treasurer and placed to the credit of the | county from which it was detached. It | also requires the Territorial Treasurer, | when he has received the money from the sale of the bonds, to give notice of | his readiness to redeem all territorial, | county, school and municipal indebted | ness that is redeemable, and that the | interest on such indebtedness will cease | from and after that date. It strictly fol- l lows'the act ofCongress, nor deviates there from in the slightest degree. Idesire to call your attention to the fact that the | recorded reports show that the outstand- 1 ing indebtedness of the Territory county, school and municipal-is s ,5)O,- 900, carrying an annual interest of $30O,- 900. One million of this indebtedness is in the shape of warrants bearing 10 per cent interest, amounting to $l00, 900 annually, and S2,500, 900 in bonds bear ing an average interest of per cent, amounting in total to S3O0,000 interest annually.
 By funding this indebtedness we will save over slO0,0 annually and be re- lieyed from paying the principal for fifty years. It IS very necessary for us to bear in mind that what this bill saves to the people is a reduction in the reve- nue which the capitalist derives from our embarrassed condition and they are putting forth energy to avoid the neces- receiving the cash therefor.
 '1It ic Ina tn tho Tpipt L,n1insr mittee to say they have labored honestly and earnestly to frame bill that would meet the requirements of the law, and to this end they have held protracted open sessions, and naturally and properly bankers, capitalists and shrewd fnan- ciers have been before them, and as a consequence they have been guided in their conclusions by such eminent ad- yisors, some of which were honorable and some not. The result was a bill introduced in the Council that re- ceived all the attention that it was en- ( titled to. They have now introduced {. another bill known as substitute, and IS now before the Council for consider ( atiOn. It draws largely from House Bill No.65, sufficiently so as to make it effective for all practical purposes, if there were not added to it provisions which make 1t void of effect.
 Substitute says in lines 2 and 3, sec- tion 2, that territorial bonds may be ; issued to county, municipality or school i districts, as authorized by said act of Congress. This is not correct reading of the act of Congress. It gives no such authority, but we will let that pass. 4 Substitute says in lines to 4, section 8, that the county, school and municipal s authorities shall have the same power I to sell bonds, liquidate or refund their 2 county indebtedness that Congress gave I to the Funding Commissioners, which c IS an absurd proposition, but let it pass. 2 Substitute says in lines to 8, sec tion &: The Funding Commissioners ( shall not deliver bonds to the county [ officers without receiving securities, and that such officers shall give proper se- d curties.' How the county officers can give from $l00,0 to $300,000 securities or by what authority of law does not appear, but let that pass. Substitute says in lines Q to II: And no bonds shall be issued to any county, munich pality or school district, ercept in ex- cept in exchange for the bonds. war rants or other evidence of indebtedness Tor the redemption of which the refund- TT