The Progress., 1893-08-12
State Purchase of State Bonds,

In our columns this morning will bc
found the views of State Treasurer Pick
EFT on the proposition that the State shall
invest the surplus of the interest fund in
the purchase of her own bonds. We re-
produce the treasurer's utteranCes from
the Shreveport PRoGRLss.
In our opinion the treasurer has aiken
the correct ground Waving here any
discussion of the constitutional obiCc-
tOns he raises 10 the manner of carrying
the proposition Of the State Board OF
Liquidation into effect, it is impossible TO
see the wisdom, or the common honesty.
of eXppndiug this interest surplus Of
s3!j. roo or say. 54OO, 200. to boom State
obligations which Will not he due for iit-
teen Years, when ;he : ate has Ouistaud-
iug and lon" past due obligations, ere
atrd aud recognized by her own Leaisla-
turss aul governors, elected freely by
her own people. unprovide1 for; obliga-
tious, too. which are held by her own
cit.Z-nS who, trusting i'm tine faith OF the
state. have received them as pay for
honest work done for the state or by
usr who purchase and paid for them
in good money.
Ca this point Treasurer Pickett, con-
cediug that the proposed purchase would
cause the state bonds 20 20 temporarily
10 par, SAYS:
But have grave doubts relative To the
bonds remaining at par after the state
withdra VS. from the market. The mere
act of the state in retiring $500 o0D CT
400 900 worth of bonds, is not sufficient
To establish confidence with the capital
ist. when he knows of O., 80 600 of out
standing debtS without any provisions
made for its payment. which he looks
upon with suspicion rs Il partial repudia
tiou. Now look upon q states iiabiliss
ties in the same light that | do upon
those of an individual. and in order TO
establish Il credit above reprOach the
State should pay her valid obligations
now ana past due. which W Iuld establish
the value of her bonds at par and main
tain them.
III the Legislature at ITS next Session
would authorize the board of liquidation
20 settle up an valid outstanding deUts of
the state by funding them into the new
cOnsoiduttd bonds. the indebtedness Of
the State would be concentrated under
one i.;c,:s.H confidence wou,i De restored
aad our state bonds would be eagerly
taken at pa iu New Orleans, New York
ana all other money ceuteTs.'
These are sound views, clearly eXpr So
ed: thouah Treasurer Pickett belongs To
party that il accused of being favor
able TO wild. cat schemes OF finance, We
are bound TO confess that, in the brief
compass Of the two paragraphs above
quoted, he hes expressed the only sound
views on the proposition of the State
/ bond purchase that have been given "a
the public. We earnestly commend them
| TO the consideration of the governor ana
the 9th members Of the board Of liqui-
dation.
| A desperate effort has been made to
work up great enthusiasm over this lit
tie scheme 10 sink $50 900 or siO' 900 sur
plus into the whirlpool of eleven or
/ tWtlNt mllbOus Vi uOitdIr VI Obatf IA
debtedness, due by another peneration
! A great noise too was made over its en-
dorsement by the Stock Exchange; but
that endorsement amounts TO nothing
when IL is known that il was carried by Q
bare ma si)rity OF the members present
aud that number OF the largest brokeri
i'm the city were absent.
I The scheme, if carried out. will do th,
public no good; it may temporarily rais'
the quotation Of stat bonds. and son'
brokers make some money out of IT.
But, as Treasurer Pickett well says. th'
rise will be temporary. so long as no pro
vision is made for the floating debt. ion;
past maturity. and which is just as hon
est and righteous an obligation as is The
consolidated debt.-N. o. States, Aug q
! We will always find Treasure