The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-03-31
GEORGIA TO FLOAT BONDS.
A Total of $242, 900 to BE Issued in
June to Retire Old Ones.

= From the Atlanta (Ga) Constitution.
About the first of June next Gov. At
kinson Will sell batch of Georgia bonds
amounting to $242 600.
These bonds will be fioated to retire old
bonds falling due at that time. Georgia at
the present time is in debt somewhere in
the neighborhood of $S000,O00, but of this
sum only $4,000 falls due this year. OF
this sum $4,000 will be paid in cash by
the state and the remaining sum- SAP 900
Will be paid by floating bonds.
Georgia has such confidence in herself
as to make law saying that the governor
snail not hoat bonds at all unless they are
bought at par value Her lawmakers, rec
ognzing that the credit of the state was
as good as bank, have made law to the
erect that the governor shall offer bonds
for sale when ordered by the general as
sembly, but that he shall not sell them I'M
less they are bought at par value. The law
also says that they shall not bear over
per cent. interest.
The bonds to be issued and foated by
the state this summer will be thirty-year
bonds, which means that they will not be
of the states hands. The last bonds solo
by the state were twenty-year bonds.
These bonds were fioated at an interest of
312 per cent.
After the bonds to retire the old bonds
coming due in June have been fioated the
state Will not float any more bonds untif
the year 1915. When this year rolls around
georgia must retire between three ana
four millions dollars worth of old bonds
This large amount will be paid by issu.
ing bonds and by paying out of the treas
ury.
The governor VIII attempt to sell the
forthcoming bonds at 3l5 per cent. inter-
est as the last bonds sold. He cannot
make the interest on them more than 4
per cent, as the law does not allow it. The
interest on the state bonds now fioating
is Kept paid up. 1t amounts to constd-
cradle sum yearly, and is paid twice each
year out of the sinking fund of the treas
ury. Inc law requires that a sinking fund
shall be kept up in the state treasury bv
raising by taxation not less than 100000 a
year. Out of this sinking fund is paid also
a large amount Of the maturing bonds
each year.
The bonds to, be sold in June will be
Dought by people who are willing TO risk
Georgia credit for thirty years. 1t is
probable that the individuals and corpor-
auonS now holding state bonds will buv
most of them. Some of them may be ac-
cepted by the owners of the retiring bonds
me last bonds fioated by the state were
noated last year. They were made TWENTY
year bonds and bear 49, per cent. interest
Gov. Atkinson thinks that it would have
been better had the law allowed him to
sell the bonds for a little less than par
value and at lower rate of interest
II Georgia manages to retire all the ma
turing ponds with bonds bearing only az
per cent. and selling strictly at par value-
she VIII have met her Indebtedness i'm q
good business-like way When 1915 gets
mere and when the big debt maturing thar
year is paid, the state will be about out al
debt, as many small debts maturing be-
tween pow and then will be met by the
sinking fund of the state.
Inc state IS now IN a good financial con-
dltion. Many debts have been met durino
the last few years and soon the state will
very probably be free from all debts.