The trust funds (domestic debt) draw interest at the rate of eight per cent per annum, which is provided for by special appropriation. The railroad indorsements are a first lien, in behalf of the State, on the roads aided. Although several of the companies place these bonds on the market as gold bonds, the State is only liable for their currency value. They are all eight per cents, and are payable, principal and interest, in New York. Upon nearly all the bonds issued default has been made by the several companies in the payment of interest. The State has taken and still holds possession of the Alabama and Chattanooga Railroad, but has taken no steps toward paying the interest on the bonds guaranteed for this road. Since the close of the last fiscal year, the State has issued bonds to the amount of $1,500,000, “in order to maintain the credit of the State." These bonds are dated March 1, 1873, and are payable in 20 years. They bear interest at the rate of 8 per cent, payable March and September. ARKANSAS. (Amount of debt November 1, 1871, $9,885,000.) The debt of Arkansas is composed of its old (bank) debts refunded, and bonds recently issued to railroad companies, and for building levees. The old State debt, with accrued interest, amounted to about $4,400,000. Of this amount, $2,800,000 have been retired by an issue, to an equal amount, of new bonds. The balance of the old debt is held chiefly by the United States, and the nominal amount may be largely reduced in the adjustment of accounts between the State and the federal government. In the adoption of the new constitution, provision was made for aiding, by an issue of bonds, in the construction of the following railroads, to wit: The length of line to be aided was restricted to 800. The amount of bonds to be issued for this purpose was restricted to $10,000,000. The Cairo and Fulton RR., however, will not avail itself of the State aid, thus reducing the mileage to be aided to 580 miles. The amount of such aid is to be 15,000 per mile to such roads as have no congressional land-grants; $10,000 per mile to such as have. The amount of bonds to be issued for railroads, consequently, is not likely to exceed $6,000,000. The bonds, which are plain State bonds, issued and to be issued, are a lien on the 'roads aided. The State also holds large tracts of lands secured to it by its interest in the banks for which the old debt was created. It is estimated that these lands will produce $3,000,000, or nearly enough to pay off the bonds issued to fund the old debts. STATEMENT OF DEBT IN DETAIL JULY 31, 1872. Six per cent funded debt bonds representing total of funded debt when all outstanding bonds are exchanged........ $4,520,000 Deduct unfunded bonds held by Government of U.S. for account of Indian Trust Fund, and offset by claims due from General Government to State of Arkansas... Deduct also unfunded bonds in hands of creditors or destroyed..... $1,200,000 Leaves funded debt bonds issued or exchanged to date.................. (limited to 850 miles of railroad). . · State aid bonds issued to date.... Seven per cent levee bonds issued for the construction of levees, being total of issue authorized..... 470,000-$1,670,000 $2,850,000 11,400,000 4,350,000 $3,000,000 Less amount retired and cancelled by conversion into lands to date... 815,000 The State is in default in the payment of interest on all its bonds. CALIFORNIA. (Amount of debt April 1, 1872, $3,312,500.) The debt of California was created chiefly for domestic purposes to defray expenses incident to the foundation of a new State. In addition to the above amount, the State pays till 18- the interest at 6 per cent on bonds to the amount of $1,500,000, issued by the Central Pacific Railroad. Principal and interest payable in coin. Interest payable January and July. The bonded debt has been absorbed gradually by the School and University funds. The amount of bonds purchased for the School fund in the biennial period 1869-71 was $556,500; and the amount of bonds redeemed from the sinking fund was $522,000. The total amount of bonds invested in the School fund at the close of fiscal year was $1,133,500, and in the University fund, $57,500-making a total investment of $1,191,000. The reports of the State officials are made biennially. CONNECTICUT. (Amount of debt due April 1, 1872, $5,769,300.) The public debt of Connecticut was contracted for war 'purposes. The original amount contracted was $10,000,000. By the operation of the sinking fund, the now outstanding debt is reduced in the amount of $4,230,700. The redemptions last fiscal year amounted to $756,600, and for interest the payments aggregated $380,304making a total of payments on account of principal and interest, $1,136,904. The 10-20s of July 1, 1861, are redeemable at the pleasure of the General Assembly after July 1, 1871; and the 10-30s of October 1, 1864, after October 1, 1874. All other bonds run to maturity, the General Assembly having no authority to call them in for prior payment, except as they may be purchased by the sinking fund. Any of the State bonds are interchangeable at pleasure of holders into coupon or registered bonds without cost for transfer. DELAWARE. (Amount of debt January 1, 1873, $1,462,000.) This State has investments which are paying 6 per cent interest to the amount of $936,720, leaving the net indebtedness of the State at $525,280. FLORIDA. (Amount of debt December 31, 1872, $5,512,268.75.) STATEMENT OF DEBT IN DETAIL. Bonds of 1871 (7 per cent). $350,000 00 All other bonds (exclusive of those due Seminary and School Fund). $314,000 179,296 493,296 00 Due School and Seminary Funds, interest paid to July, 1872.. 262,045 08 Due on hypothecated bonds of 1868 and 1869 in New York and elsewhere, estimated at $165,000 00 Due National Bank Note Company.. Due lunatic asylums.... Outstanding comptroller's warrants and treasurer's certificates Total Railroad bonds, $4,000,000. 5,100 00 12.000 00 224,827 67 $1,512,268 75 Bonds issued to the Jacksonville, Pensacola and Mobile Railroad Company, in exchange for the 1st mortgage bonds of said company, under act of January 28, 1870.... 4,000,000 00 It seems that the State proposes to take no action in reference to the bonds issued for railroad purposes. The other forms of indebtedness (excepting the bonds of 1871, and the school and seminary funds) it proposes to retire by an issue of 6 per cent gold interest bonds to the amount of $1,000,000, payable in 30 years from January 1873. GEORGIA. (Amount of debt January 1, 1873, $15,961,500.) The State is sole owner of the Western and Atlantic Railroad, which has been leased to a company of capitalists for twenty years for a rental of $300,000 per annum -the road to be returned to the State at the end of that period in as good condition as when leased. The lessees give bonds to the amount of $8,000,000 for the performance of the contract. In addition to the direct indebtedness, the State has authorized the pledge of its credit, by indorsement, on the railroad bonds of certain companies within its limits, taking a first lien on the railroads as security for the guarantee. The amount of these indorsements up to July 31, 1872, was $7,775,000, given to the following companies : In reference to these issues of bonds, the following extract is given from a late message of the Governor of the State : "The report of the Treasurer shows the amount of State bonds issued, and of railroad bonds indorsed, during the administration of Governor Bullock. Of the $3,000,000 of gold bonds issued under the authority of the act of September 15, 1870, $300,000 have been returned to the Treasury and cancelled. Certain others of the same series-the numbers of which are specified in the act approved August 23, 1872, and amounting to $102,000-have been declared void by legislative enactment. The balance of the series, amounting to $2,598,000, are recognized as legal, and are included in the amount of the public debt, already stated. The gold bonds, issued under the act of October, 1870, amounting to $2,760,000, have been disposed of as follows: 880,000 have been returned to the Treasury and cancelled: the balance, amounting to $1,880,000, have been declared void by legislative enactment. Of the issue of currency bonds under the act of August 27, 1870, $500,000 have been returned to the Treasury and cancelled; and the balance, amounting to $1,500,000, have been declared void by legislative enactment. The State currency bonds, issued under the act of September 16, 1868, amounting to $600,000, have been returned to the Treasury and cancelled. The indorsements of the bonds of the Alabama and Chattanooga Railroad Company, amounting to $194,000, have not been declared invalid. The indorsements of the bonds of the South Georgia and Florida Railroad Company, amounting to $464,000, and the indorsements of the bonds of the Macon and Brunswick Railroad Company, amounting to $2,550,000, are admitted to be binding upon the State. The indorsements of the bonds of the Brunswick and Albany Railroad Company, amounting to $3,300,000, also the indorsements of the bonds of the Bainbridge, Cuthbert and Columbus Railroad Company, amounting to $600,000, and of the Cartersville and Van Wert Railroad Company, amounting to $275,000, and of the Cherokee Railroad Company, amounting to $300,000, have all been declared void by legislative enactments." INDIANA. (Amount of debt October 31, 1872, $3,905,906.27.) The debt of Indiana, which was contracted chiefly for works of internal improvement, undertaken many years ago, has been reduced to a nominal amount, as far as the public are concerned, the outstanding issues having been taken up and held by the State as a school fund. The balance held by the public will be paid on presentation. In the adjustment of the old debt in 1847-8, the creditors took the Wabash and Erie Canal for one half of their debt. This work has proved almost wholly unproductive, so that this portion of the old debt remains virtually unpaid, though discharged by the consent of the holders. |