Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-02-15
TERRITORIAL INDEBTEDNESS
Measure Introduced in Congress Pro-
viding for Payment of Outstanding
Indebtedness of Territories.
TERRITORIAL LOAN COMMISSIONERS
This Board May Issue from Time to
Time Negotiable Coupon Bonds in
Denominations of 81 900.

house of representatives on February
by Mr.. Knox, authorizing the funding OF
Indebtedness in the territories. As this
measure ia of interest to the people OF
New Mexico, brief review of the same
is given herewith.
The bill provides, that for the purpose
of the territories the governor Of each
territory together with the territorial
auditor, and territorial secretary, shall
constitute board of commissioners for
the territory in which they hold office, to
be known as the "loan commissioners of
the territory" whose duty it shall be to
provide for the payment of territorial
debts by issuing from time to time
negotiable coupon bonds of the territory,
when the same can be done in harmony
with this act. Said bonds shall be issued,
as nearly as practicable in denominations
of $1,000, but bonds of lower denomina-
tion, not less than $3.50, may be issued
when necessary, bearing rate of interest
to be fixed by the loan commissioners,
payable semi. annually in gold or its
equivalent.
The bill provides that the territorial
or exchange them for any of the indebt-
edness for the redemption of which they
were issued, but in no case shall said
bonds be sold or exchanged for less than
their face or par value and the accrued
interest at the time of disposal. All
moneys received by said treasurer shall
be applied by him to the redemption of
the indebtedness, for the redemption of
which bonds were issued.
The bill provides that there shall be
levied annually upon the taxable property
of the territory, in addition to the levy
for other authorized taxes, sufficient
sum to pay the interest on all bonds
issued, and disposed of in pursuance of
this act, to be placed in the territorial
treasury, in the fund to be known as the
''interest fund.-" and forty years after
such bonds shall have been issued, such
additional amount shall be levied annual.
Iy as will pay ten per centum of tho total
amount issued until all the bonds issued
under the provisions of this act are paid
and discharged. The tax rate, as above
provided for shall be determined by the
territorial board of equalization, or upon
the failure of said board, by the terri
torial auditor. As to the payment of the
principal of the bonds, it is provided,
that all moneys remaining in the interest
fund after the payment of the interest,
and all moneys remaining in the redemp-
tion fund after all said bonds shall have
been paid and discharged shall be
transferred by the territorial treasurer to
the territorial general fund. After the
expiration of the forty years from the
date of issuance of any bonds under this
the interest as provided in the preceding
section, surplus of $4,000 or more it
shall be the duty of the territorial treas
urer to advertise, as in the manner of ad-
vertising by the loan commissioners for
bids for the sale of bonds, which adver-
shall state the amount of money
in the said redemption fund and the
number of bonds, mum bering them in the
order of of their issuance, commencing
1T the lowest number then outstanding,
which such fund is set apart to pay and
discharge, and if such bonds, so number
ID in such advertisements shall not be
presented for payment and cancellation
at the expiration of such publication,
then such fund shall remain in the treas
nry to discharge such bonds whenever
presented, but they shall draw no interest
after the expiration of such publication.
Section 16 provides that the provisions
and requirements of this act shall apply !
20 and be in full force and effect in all
The territories of the United States, and
III outstanding bonds, warrants and
,ther evidences of indebtedness of said
and counties, school districts
md municipalities within said territories
heretofore authorized by legislative en-
Ictments of said territories, or by con- +
,ress, and which said bonds, warrants and
,ther evidence of Indebtedness have
,een sold, donated, or exchanged in good
aith and which are now held by innocent
purchasers, by purchase, donation or ex-
,hange, shall be funded as in this act pro-
,ided; and all of said bonds, warrants and
,ther evidences of Indebtedness so au-
horized issued, sold, donated or ex-
irmed, approved and validated, and
shall be funded as in this act provided.
MILITIA WARRANTS ExoEpTED.
Section 2 of this bill, which, however,
8 not the so.called Avery bill, specially
'xempts the following: "except such in
lebtedness as has been recognized or
overed by an act of the legislative as.
emily of New Mexico approved Jan
lary 2S, 1867, entitled San act to amend
N act entitled militia and acts amenda-
ory thereof"
This bill passed the house of represent
tives last Friday, with the clause re-
luiring bonds and interest to be paid in
old, stricken out.