The Pascagoula democrat-star., 1900-01-12
GOVERNOR M'LAURIN ON THE
STATES FINANCES.

In his message to the Legislature
Governor McLaurin makes the follow.
ing observations upon the finances Of
the State:
ITO provide for the immediate de-
mands upon the treasury the Legisla.
turs 10 March, 1896, passed an act for
the assurance Of 100000 OF five per
cent bonds, payable on the first day Ut
July, 1906, reserving to the State the
option to retire any or all OF these
bonds at the expiration OF five years.
These bonds were sold at premium
In June and July, 1896, the State real-s
iziDg therefrom s4l3,696S5. Under an
act Of the Legislature approved May
Is, 1897, SS5, 900 was borrowed in June
aud July, 1897, and covered into the
treasury by the lenders, and the
States obligations In writing were
given therefor, payable on or before
the 10th day Of January, 1899, as
shown in my biennial message OF Jam
uary 4, 1898. These obligations for
SS5, 900 and the interest thereon have
been paid, and are included in the
disbursements for the fiscal years
1898 90.
"On the first day OF July, 1901, the
State will have the option OF retiring
the 100000 bond issue, or any part
thereof, and the holders OF these
bonds will probably accept payment
now upon return Of proportiOnate
part OF the premium paid on their
purchase, this proposition being based
upon the calculation Of their running
five years. l think the State can safe
| ly pay at this time 100000 Of the
bonds without embarrassment to its
finances, and l recommend that this
offer be made to the holder Of these
bonds. 1t will stop the running OF in
terest on them and will give addition
! al strength to the credit OF the State.
At the expiration Of five years from
: their issuance the other 100000 can
be paid and five years interest On this
amount thereby saved. l have recon-
mended the offer OF payment Of only
$500, 900 now that there may be no sus-
pense concerning the treasury; but /
really think it will be safe for the
treasury to pay the entire S4O0, 900 at
this time and OF course to do so will
be an additional saving OF interest.
The preservation and strengthening
of the States credit should enlist the
interest OF all its citizens. The States
credit is preserved by the payment Of
its obligations at maturity, and
strengthened by readiness to pay
and discount them before they are
due.
"The payable bonded Indebtedness
of the State is 1905, 900; included in
this is the S400, 900 bond issue of 1896,
mentioned. BY its payment, as have
suggested and recommended, and for
which the money is on hand, the
bonded debt, as you will see, will be
$603,O00. or this amount bonds for
$500, 900 were issued in 1886, under an
act approved March IS, 1886, and are
payable January l, 1907, bearing six
per cent interest. Bonds for the other
100000 we're issued in 1888, undeFnpl
act of the Legislature approved
March 7, 1888, payable thirty years
after their date, and bearing four per
cent interest.
'"The obligations Of the State at four
per cent are easily at par now, and II
your deliberations can devise some
way by which the bonds for S500,0OQ
at six per cent bond interest can be
: substituted by four per cent bonds II
will save $l0.0 600 year to the State, a
!, saving OF nearly $4,000 for the timt
!, the bonds are yet to run.
:, "The non.payable debt Of the State
. is 81, ,635, ,lO2.2O This is to the Chicka-
:, saw school fund, the University fund
+, and Agricultural bonds. On this tue
', interest alone is payable.
y 1.-THE outstanding State WARRANTS
% were $40, ,9S2 80 October !, 1899. I've
J auditors report show that the issue
G NJ warrants from October I, 1897, TO
September 80, 1898, inclusive, amount
I ed to sl,46O,070l2; and 81, 425, ,3S2. IL
from October l, 1898, To September 80,
1899, Inclusive"