The Montgomery advertiser., 1901-06-25

AHiOunb pdiQ Ou hnC ucifCiL
 during fiscal year ending
 Sept. 30, 1901. .. ........s .$s2. 900. %
 Amount of extraordinary appropria- tion for present fiscal year:
 Refunding licenses paid un- der invalid law. ..........$ 10000. .00 Montevaiio Girls School
 Building. ............ S2,0OO.O0 Expenses Constitutional Convention ........ bO,OOo.DO Half of legislative ex- penses.. ........... 25.OOO.OO
 $147, 900. .0O
 Total gain. e. ......... .$2sS, 900. .00 Deduct bookkeeping deficit.
 october 1, 1901. (esti- mated).. .. .. ..............$ 5000. %
 Net gain. .. .. .. $279, 900. %
 These figures show:
 First-The deficit which was sev- eral years ago. in round figures, $70o.- 900 co. has been practically wiped out. and the Treasury will. in 1902. be re- lieved of the burden imposed on it by such deficit to the extent of the amount by which 1t was reduced in 1901, namely, S71.000.00.
 Second-The gain to the
 Treasury In cash on Octo-
 Der 1. 1901, over the same
 period in 1900, as above
 shown, will be-. .........$ 59,000. % Third-Tne gain to the Treas
 ury in addition to above
 for 1902 over 1901 on account
 of extraordinary appropri-
 ations for 1901 will be...... 1f7, 000. % Total gain for 1902 over 1901. .$27e, 900 % Should taxable values for
 1902 remain the same as
 for 1901 and the rate of
 taxation for general pur-
 poses be placed at 45 in-
 stead of 55 cents on the $100
 the decrease from property
 tax would be about. $247, GOO. % Excess of lessened expendi-
 lures over lessened re-
 ceipts.. ................S 32'OOO. %
 The foregoing statements and figures show that the rate of taxation for gen. eral purposes could well be reduced from 55 to 45 cents for 1902. and there would then be a surplus of receipts over expenditures of about $32. 900. without counting upon any increase of receipts from property and license taxes. But the increase of taxable property values for 1902 can safely be estimated at as much as the increase
  ly. $8.000.000. From such increase the tax at 45 cent rate would be $36. 900. The excess of receipts for licenses for 1902 over 1901 are conservatively esti- mated at $20.e0s. Adding these figures we have a total excess of receipts over disbursements for 1902 of at least $SS, 600 with a rate of 45 cents.
 But out of strict conservatism the Committee decided to recommend that r only go into effect beginning with the year 1903.
 In fixing the rate at 65 cents 1t was contemplated that 45 cents thereof would be sufficient for general pur- poses, leaving the special one mill tax each for school purposes and for pen- sions unaffected.
 With the rate at 55 cents for general purposes for 1902 it will be seen that there will be an actual surplus Gin ad- dition to the actual cash balance) in the Treasury on October 1st. 1902. of not less than $279, 1000 with taxable val ues and receipts from licenses remain ing at a standstill, and of not less than $S21 zee should receipts from taxes and licenses increase for 1902 in the same amount as was such increase for 1851 over 1890. But there is an actual cash balance carried over in the Treasury on October 1st. 1900 of $S21, 600 Gin round figures), against which 1t is true there were chargable liabilities in an amount somewhat (but not greatly in excess thereof. But. as a matter of fact, this cash balance remained practically un- touched and those liabilities were large ly paid in October, November and De- cember, 1900 out of the tax and H. cense receipts of the Treasury during those months.
 There will be an actual cash balance in the Treasury on October 1st. 1SOl, of $679,000 It makes no difference whether this amount Is called sur nlus or not. In one sense it is a sur plus, in another sense it. Is not a sur plus. It certainly has the same force and effect to ali practical purposes as a surplus in the event the State con- tinues in business and continues 10 collect sufficient other monies to pay the liabilities chargable against these balances without resorting to them. IL is a cash balance with no outstanding warrants against it. Should the state government be dissolved October 1st, 1901. there would be payable but of this cash balance the October, November and December liabilities. in amount about the same as the balance. While these liabilities are chargable against that balance, they are as matter or fact not paid out of the Treasury fas- ter than are the tax receipts of Octo- Der November and December, 1901, paid into the Treasury. So long as yearly disbursements are not in excess of receipts, and so long as the State continues to levy and collect taxes, this actual cash balance will remain in the Treasury uneXpended and might be considered a safety fund to be used in case of some unforeseen misfortune
 The condition of the Treasury on Oc- tober 1st, 1902, will be as follows: Cash balance Cat leasD .....$ 6I9,oOO.OS Actual surplus in addition
 (at leaSO ................ ozl,uVO'OV
 Total cash balance. ......... $l,OOO, OOo.oO
 Against which there will be liabili- ties (book -keeping) payable in October, November and December, 1902. about equal to the first item of $67S,oOO But the receipts of the Treasury during those months will be more than sufti- cient to meet these liabilities without drawing out 1 cent of that casn pal snce.
 In the foregoing statements and de- Auctions 1t has not been taken into consideration that the state can' ny refundinR it's bonded indebtedness, which natures in 1906 diminish us m ln terest expenditures by about $lZO'ooo. Neither has it been taken into consld- eration that under the law exempting cotton factories from taxation until 1907. there Is being invested In sucn ln- dustries in Alabama about $S,OOO,0OO year. Nor has 1t been taken into con