Arizona republican., 1893-02-15

Territorial interests combined.
| | recommend that levy Of SOC on the
500 be authorized, providing the same
is necessary in order TO meet the expen
ses OF Government payable out OF the
general fund. OF course so high levy
will not be- necessary nor be made il the
taxable property OF the Territory in
creases under an improved system Of
assessments, as confidently believe it
will, but the ability to comply with the
law should not be denied. The general
| fund liabilities can also be reduced by
requiring special Tax levies for the spec
ific interest charges now paid out Of the
general fund.
When the Funding law OF Congress
was originally passed, in June, 1890, It
was contemplated that the bonds would
be sold before the end Of the year, and
ali Of the existing fundable Indebtedness
provided for thereby, and that subse-
quently no new Indebtedness should be
created. The wording of the law was
such as to only make it applicable TO the
Indebtedness having accrued prior TO
December 81, 1890 As you are aware
the bonds were not finally sold until a
few months ago, and The proceeds sp-
Piled as authorized. The floating in
debtsdnsss which has accrued since
December 81, l890,which represents toe
excess VI lB)l'i aflE DJ,' receipts,
must be met by taxation. 1t is believ-
cd by many thst sufficient tax leVies
should have been made in 1891, and
subsequently,, to date, TO carry on the
Governu snt on a cash basis, but such
levies we're not made, and the floating
Territorial Indebtedness which has &C.
crued since that time is evidenced by
ten per cent bearing wsrrsoss as stat
ed in the Tressursr's report. II was
suggested that as it was impossible TO
sell bonds aud make the funding law
operative az soon as contemplated in
the Act, shat Congress should he re-
qusssed to extend the provisions OF the
Law so as TO cover the floating indebt-
edness which has accrued since Deoem-
Der 81, 1890. This proposition, however
oontiioted with the question OF State
hood, and was abandoned.
trust that you will give careful at
tention to the financial matters OF the
Territory, as believe they outweigh 10
importance all other subjects, before
you for consideration.
THE FUNDING LAW OF 1890.
Although the A1s OF Congress au-
thorizng she funding Of the Territor-
ial debt WAS approved June %, 1890, the
bonds we're not finally sold until Aug.
ust, 1892 aud shs proceeds from their
sale were not available until Dscsmber
u che sans yeAr-sbout two months
sgo-since which time the Treasurer
aud Auditor have been actively at work
complying with the provisions OF the
Act and adjusting Territorial fnance
in accordance Herewith.
As you are no doubt advised, much
difficulty was encountered 10 disposing
OF the bonds, owing to the misspprehsn
sion which has prevailed in Eastern
money oenters as to che financial con-
dition OF tina Territory. A ssls was
partially affected in March, 1892, at 97c. |
which, after long controversy and
the passage OF a supplemental act Of
Congress, fell through. Several trips
had to be made east by Governor John |
N. Irwin, Treasurer Wm. Christy, and !
myself, until fual sale was effected at |
par, after the most careful and exhsus. |
tive investigations by the purchasers,
which 10 itself is complete vindcation
OF the Territorial credit aud its stability
financially. Considerable labor and ex-
pense, however, was necessary in order
tn complete the sale. The bonds we're
required to be re engraved several times
to comply with the supplemental law
uhd Idloou O1 III
ves:ors, and much clerical labor has
been employed, but wlthsl the gross ex-
pense according to the reports OF the
Auditor and Rrsssursr amounts to less
than one per cent. of the value OF the
bonds sold.
Ths annual saving in interest at pres.
emit under the operation OF the sunding
law amounts to s32,s73 80, and more will
be saved as securities mature and are
funded. The Territory is to be con-
graduated upon an exceptionally bene-
fetal financial transaction. ~
The reports Of the Auditor and Treas.
urer show the nature Of the expenses
incurred in connection with the bonds,
and disposition made Of the proceeds Of
she sale, and the yecords aud proceed
ings in detail of the. Loan Commission
are ready for examination at any time
by committee OF your honorable body.
EDUCATIONAL,