The Progress., 1893-07-29
TREASURER PICKETT ON The PUR-
CHASE OF STATE 8ONDS.
His Position Clearly Defined.

His Position Clearly Defined
Treasurer Pickett who was recently
called to the bedside Of his sick wife,
at their home in Bossier, was seen
Thursday by The PROGRESS man re-
garding the editorial in the Plea
yune. OF the 2lst. under the head of
The Purchase of State Bonds"
The treasurer said that his atten
ton mad been directed to the editorial
in question few days ago. The Pic
ayune made al erroneous statement
at the beginning by stating that l was
opposed to using the interest surplus
in retiring of State bonds. This has
been 3 pet scheme oe mine i-r long
ne. aud shat ! an IA perfect accord
with the board Of liquidation upon
that poilt. but We differ widely in the
manner III which it shall. be drawn
from the treasury. I hold. as bond
"a officer who i responsible fer all
money illegally paid cat Of the treas
Ury. that article 43 Of the coAs:itu-
ton, which speaks direct to the treas
urer. md says that no money shall
b. drawn from the treasury except in
pursuance Of specific appropriations
made bv law; nor shall any appropri-
ations ofmoney be made FOX longer
term than two years
l have made no threats about lot
honoring the auditors warrants, but
merely stated that the warrants must
be drawn in conformity with article
IS of the State constitution, and if ]
am wrong in my Interpretation of the
law. let the court SO decide.
! Yes sir: when the State enters the
market to bay up her own paper the
bonds that are worth AZ will go to
par at once, as matter Of business,
and the State will be forced to pay
face value of her bonds, yet this
would be a good investment for the
State. as she would save a large
amount Of interest. But | have grave
doubts relative to the bonds remain
ing at par after the State withdraws
/ from the market. The me1e act of the
State in retiring 100000 or 100000
worth of bonds, is not sufficient to
establish confidence with the capital
ist. when he knows of S2250,000 of
outstanding debts without any pro-
visions made for its payment which
he looks upon with suspicion as Il
partial Reputation. Now look upon
a States liabilities in the same light
that l do An individual, and in order
TO establish a credit above reproach
the State should pay her valid obliga-
tions. which would establish the value
of her bonds at par and maintain
them.
If the Legislature at its next ses-
sion would authorize the board OF
liquidation to settle up all valid out
standing debts of the State by fund
ing them into the new consolidated
bonds, the indebtedness of the
State would be concentrated under
one head, confidence would be re-
stored and our State bonds would be
eagerly taken at par in New Orleans
New York and all other money cen
ters.
No sir, there would be no increase
of taxation, as the tax that is fixed
by the constitution and that has ere
ated this enormous interest tax anC
general fund surplus, which would bt
sufficient to pay all additional interes
besides retiring several hundred thou
sand dollars worth Of State bonds an
nually. The State constitution tha
has fixed an annual appropriation c.
S4S0,000 to pay the interest on her re
cognized debts should be amended
! and the amount lncreasedto meet th'
interest on the newly funded obliga
tions.
You now have my views about wha
: will be necessary to make the Stat
q credit as good as gold and keep tn
= State bonds at par.