The Waco Daily Examiner

THE STATE FINANCES.

"When Gov. Coke came into office the financial affairs of the State were in a condition not merely of suspension, but of utter demoralization. Not only were the current liabilities of the State not met with cash, or with State warrants, afterwards paid with any order or system, but these warrants, were the subject of an organized system of speculation and peculation, which kept them indefinitely in the hands of the parties in whose favor they accrued, or compelled their sacrifice at as low as sixty cents on the dollar, to the "rings" of purchasers who had the side entrance to the Treasury. The credit of the State was so impaired that nothing could be bought on the use of the State except at exorbitant rates.

The policy of Gov. Coke was at once adapted to retrieve the credit of the State, and put all its current transaction on a cash basis.

Taxation was as high as could be borne. But it did not furnish revenue sufficient to pay up the outstanding warrants and carry on the operations of the government and to attempt both would only continue the embarrassment in which the State was placed.

The Governor in his message suggested two remedies, the first that the floating debt and outstanding warrants should be funded in bonds bearing ten per cent., payable semi-annually, to be redeemed as fast as the surplus revenue of the State could be applied to them: the second to issue bonds and borrow money to pay the matured debt; which he did not think could be done immediately in the financial stringency which then prevailed, but believed practicable in a few months, as money became easier and confidence in the State should be re-established.

Either plan would leave the incoming revenues to be applied to current expenses and bring the administration to a cash basis, so that it could "pay as we go"-the true philosopher's stone, not only according to John Randolph, but to all sound experience."