The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913 Page: 179
464 p. ; 23 cm.View a full description of this periodical.
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Repudiation of State Debt in Texas Sinoe 1861
of 1866 in regard to these claims be confirmed. The recommenda-
tion of the board in regard to the bonds was adopted by the Leg-
islature and appropriation for the payment of interest on the
claims was made in the Act of November 13, 1871.'1
This legislative validation of the action of the board of 1866
extended only to the bonds based upon the certificates of indebted-
ness issued by that board. But for this validating act some $40,-
000.00 of the 6 per cent bonds issued under date of January 1,
1867, would have been held null and void, because they repre-
sented either debt to disloyal persons or were on account of an
exchange of interest warrants for non-interest warrants during the
war. It will be remembered that there were some $24,045.34 of
unfunded certificates issued by the board of 1866. The Act of
November 13, 1871, validated these also, subject to the provisions
of the constitution of 1869. The board of 1866 had reported
that the estimated valid portion of the outstanding and unaudited
debt amounted to $183,290.83. These claims were also subject,
in auditing by the boards of 1871 and subsequent years, to the
provisions of the constitution of 1869. It will thus be noted that
the Act of November 13, 1861, observed the distinction between
bonds and unfunded claims. Although some of the bonds issued
during the war and based upon liabilities incurred before the war
would be included in these unfunded claims, their amount was not
known and they could not be properly classed as a part of the
bonded debt of the State until they had been audited. The life
of the auditorial board was extended by the Act of November 13,
1871, to January 1, 1873, and it was also provided that all in-
terest-bearing claims should be presented on or before March 1,
1872, on pain of not bearing interest after that date.
The Act of May 2, 1871, provided for the issue and sale of 6
per cent, twenty-year bonds to secure the money needed to. pay the
valid claims ascertained by the auditorial board; it was also pro-
vided that holders of claims might exchange their claims for these
bonds. The claims subject to. payment from the proceeds of the
sale of these bonds, or to funding in them, were the valid certificates
of indebtedness issued by the board of 1866 and the other valid
claims of the same period. The Act of November 13, 1871, not'General Laws, 12th Leg., 2d Sess., Chap. 32.
179
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913, periodical, 1913; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101058/m1/187/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.