Savannah morning news. [volume] (Savannah) 1868-1887, 1884-11-07


Monetary Relations with the Railroads
The Bonds of the Commonwealth
Taxation and Chances for its Reform
Agriculture, Education and State In
stitutiOns.
EXECUTIVE DEPARTMENT,
ATLANTA, GA, Nov. 5, 1884
To the Senate and House Of fReDresentatiges:
The people of the State, since the adjourn
ment of the preceding Legislature have stead
ily gained in all the clements of material
| prosperity. 1t would be too much to sav that
there have been no losses, or rdisappoIntments
or disorders: Our crops nave not met the eX
pectatiOns Of those dependent upon the re-
wards of agriculture, but there has been no
disastrous failure in any section of the State
improved methods OF husbandry, increased
industry and thrift. and the steady tendency
TO greater diversity OF crops, have kept the
farming intere SITS fairly prosperous There
mas been gratifying increase in
| manufactures. INDUSTRIAL enterprises
| are constantly sprnging up and
furnishing more varied means of honest live
llhood, and adding to the number of skilled
artlsans-an important class of citizens which
| contributes much to the wealth of a State
| We have not escaped the depression which
mas affected manufacturing interests through
| out the Union and the effects of the financial
! panic of the past spring and summer have
| been severely felt in our commerce and finan-
ces: Yet the strain mas been admirably borne,
and there has been no such increase in the
| number and amount of failures as to destroy.
| or seriously impair, confidence. Crime has
| not increased, while the laws have been vigor-
| ously enforced. There has been a perceptible
! increase in the number of convictions and
| executions Of the death sentence, but this is
| attributable to increased vigilance on the part
OF o1nclals OF the courts, sustained by an en-
| hghtened public opinion. We may not hope
to suppress crime altogether. No people have
| nVed under conditions which rendered such a
! result attainable. But we NAV hope to rem
| der punishment more certain, and protection
to life and property more efficient.
transmit herewith the reports of the vari-
/ nUru sfff4 rsa1a tod
Girectly, or with institutions supported by the
State, which give satisfactory details, showing
the operations of their departments.
STATE FINANCES.
| The report of the retiring Treasurer. Hon
| ID. n: Speer, contains gratifying exhibit of
| the financial condition of the State. Cash
! balance in the Treasury, Oct. l, 1882 was $780,
| 472 10. Receipts for the year ending Sept 30.
! 1883, $l,327 ,05l O.; disbursements for same pc
| rod $l.47S,3S4 Al. Cash balance in the Trea-
su y, Oct l, 1888, was $3.50, lS9 80. Receipts
| for the year ending Sept. 30. 1884, amounted to
| l,533, 220 80. Disbursements for same period
q ,259 0O-leaving balance Oct. l, 1884, of
| 1t Will be seen that the bonded debt of the
State on Oct. l, 1882. was $9,6A, l35, and on
Oct. !, 1888, was SO 454,635, and on Oct. l. 1884,
was SS, 704,635, showing reduction of $780, 500
in 1888, and of $750,000 in 1881
The interest on the public debt for the year
1883 was $645, 44O 90; for the year 1884 it was
$633,495 49, and to be paid in 1885 is $685.
| III 90. showing a reduction in the interest
charge upon the State of $ll, ,944 go for 1884 and
of $5l,374 90 for the year 1885.
The public debt on Jan. l, 1878 was SIO644.-
| 800, and the amount of interest paid for the
| year 1878 was $723.53 co. showing a reduction
OF $l4l.4lI 90 which represents reduction of
Tl,939,S 500 W OF the principal. The amount paid
on the public debt appears to be $556 $40 20 for
1888, and S939,50S rs for 1884. This arose
from change in the practice Oftl e Treasury,
by which all payments made on bonds and
coupons during the quarter ending Sept 30
1884, were entered on the books, reported to
the Executive office and covered by warrants
before the end OF the quarter. The Treasurer
having but one assistant, finds it difficult to
do this, as the coupons are paid in different
cities, and are not always promptly sent to
the Treasury.
The balance in the Treasury Oct. !, 1884.
was actual, not apparent, as heretofore bv
which Is meant that it contains no bonds or
coupons paid off and held cash. because not
recorded on the books of the Treasury re- |
ported to the Executive Department and
covered by warrant. The former practice
accounts for the large balances reported in |
the Treasury at the end of previous years.
The policy of the State for many years has
been steady reduction of the rate oil taxation, |
In order that no more revenue should be coll
lected than might be necessary to meet the |
legitimate expenses of government, and paw |
the interest on the bonded debt, and the |
principal of the per cent. bonds as these |
matured. Accordingly, the rate was, from |
time to time, reduced from mills $50 cents on |
SlOOl for le43, to mills for 1881 and 1882. This
gradual reduction was facilitated by the |
collection of considerable sums due the State |
from the Government of the United States, |
and of railroad taxes suspended by litigation. |
The General Assembly, IN the Act of Dec
y, 1882, with view to further reduc- |
tion, authorized the levy of two and One-half |
mills for general purposes for years 1888 and |
1884, leaving the TAX provided for by act of |
of February, 1873, to meet maturing Der cent
bonds to be levied, if found necessary. The |
condition of the Treasury seemed to justify
the belief that the reduction contemplated |
could be made. The usual estimates of re-
ceipts and expenditures submitted by the
treasurer and Comptroller General and based |
upon the information then available
indicated that 2% mills on the increased re.
turns for the year 1888 would raise the neces-
sary amount, with other sources of revenue,
TO meet the expenses of the s. ate and paw the
8 per cent; bonds maturing in 1884. The levy
OF ~ mills was accordingly made August
1883, upon the returns for that year.
A that time the sums of $82, ,2lS "a and $22-
2O6 %, deposited by the State in the Citizens,
Bank of Atlanta and Bank of Rome respec-
lively, and due from the banks, appeared as
cash in the Treasury. These amounts were
charged off ana left as debts due the State on
Sept. %, 1888, under the resolution of the
General Assembly approved Sept. 10, 1888.
The General Assembly made special ap-
preparations of large amounts, subsequent to
the levy, notably for completion of the en-
largement of the lunatic asylum; for supply
ing disabled Confederate soldiers with arti-
fetal limbs, and for the erection of the new
state capitol-fOr which provision was
made, and which could not be anticipated.
For reasons which appear elsewhere the
amounts due from the Citizens Bank and |
Bank of Rome have not been available. The
cost of the session of the General Assembly OF
1883 was $42,65O 6S in excess of the cost of the
session of 1882.
The money required to meet appropriations
TO support the government, and the lnstitu-
tions under the care of the State, and the in
terest on the public debt, and per cent.
DO dis maturing in 1884, not being fully d o.
Vlded Tor, l resorted, reluctantly but neces-
sarliy, TO temporary loan to pay portion
OF the interest. In al ticipatOn of the ne
cessity, and in order to pay promptly the in
terest due On July / last, the Treasurer, by
my direction, went to New York on the first |
indications of the financial embarrassment, |
TO arrange the necessary loan. He was
assured by the President of the
Fourth National Bank, through which
the State has, for many years, paid
the interest on bonds payable in New York
that the amount needed would be advanced, |
unless the financial condition grew much |
worse than he anticipated. In June follow
ing the Treasurer was notified that the bank
could not furnish the money. The Presidents
of the Western and Atlantic Railroad Com
pany, the Central Railroad and Banking
Company, Georgia Railroad and Banking
Company and Southern Bank of Savannah, |
and prominent citizens, on learning that the |
state needed temporary loan to meet a por-
tlon OF the July interest, promptly rendered
amounts largely in excess of our needs at
per cent. the legal rate of interest.
accepted from the Western and Atlantic
Railroad Company $4,000, reduced by dis
count to net amount of $4S,S74 o. and $50, 900
from the Georgia Railroad and Banking Conn
pany, and $4,000 from Central Railroad Com
pany, and $4,000 from the Southern Bank of
Savannah.
The patriotic spirit manifested in this
transaction by these gentlemen and CORPORA
tiOns deserves, and doubtless will receive. |
grateful appreciation and remembrance bv |
the people. The high credit and abundant
resources OF the state and the public spirit OF |
her citizens were eXemplified, and every law
full demand upon the Treasury was promptly
paid
This experience, while creditable to the
watchfulness and financial ability of the |
Treasurer, admOnishes the General Assembly |
that it Is wiser not to limit taxation below a |
reasonable reserve fund to meet exigencies
1t became necessary to levy % mills for
general purposes dncluding payment of tenn
pOrary loan), and one half mill to meet the
per cent. bonds in 1855 upon the property re-
turns of 1884.
The last installment due the State bv the
East Tennessee, Virginia and Georgia Rail-
road Company for the purchase of the Macon
and Bruins wick Railroad, being 1926. .OOO with
per cent. interest from Feb. q, 1880,
and amounting to $750.000, principal and in
terest, matured Feb. %, 1854. The purchas-
ing company proposed to paw the amount in 4
registered per cent. bonds Of the United
States, and inquired of the Treasurer a few
weeks before the maturity of the debt
whether or not such bonds would be received
The State Treasurer asked for direction i'm
the matter. This involved a construction of
the law and contract of sale. The constitu-
tiOn requires the application of the proceeds
of sales of public property to the State debit
Accordingly, the act of Sept. 8, 1879 which
authorized the sale of Macon and BrunsWick
Railroad, provided that the purchase money.
$l,125, 900, with interest at per cent on de-
ferred payments, should be paid in the reeoS-
nIzed bonds Of the State. A prOyis-
ion for paYment in money was rejected in tho