The Montgomery advertiser., 1901-06-30
going up.

II $500. 900 behind on account of 8 mistake of judgment, with tax limit of i've and half mills, that administration went to New York and borrowed on call $510,000, payable on the install- ment plan, borrowed 1t on the faith and the credit of Alabama and con- trary to the Constitution, If you will, and against the opinion of Mir. Cleve- lands MT. Hornblower, borrowed it be- cause 1t was well known in New York that when Alabama promises to pay It Is good notwithstanding what facts or circumstances surround it, and l de- sire to tell you that that $5l0,000 was every cent paid, even in that year of pressure. with that low assessed valu- ation and with that five and half mill limit every farthing of that $510,- 900 was in bank in New York before 1t fell due. Now what has been done can be done again. The need for econ omy stared us in the face. Many and many time in the councils of the of ficers of the State during that admin istration when we were discussing ways and means, we did not See how we could pull through, but there never did an appropriation fail for the want of money in the Treasury. There never was default in the payment of any in- terest on the bonds. because having to cut the garment according to the cloth, 1t was cut.
 Gentlemen of the Convention, some body has said you can depend on the Legislature to reduce this, leave the limit and let the Legislature reduce it. It has further been said that there Is nothing so certain as that the Legislature delights to reduce taxation and will reduce 1t. l say to you that 0f ic Gn q when there Is surplus in the Treas ury the Legislature delights to appro- priate it. The way to administer a government economically is just like administering a house economically. Having an income, you must not go beyond it. Force upon a family the necessity of living within their income and they will live within 1t. Another proposition is that experience is the only lamp by which our feet can be guided. 1 speak from personal experi- ence and know that in those years of depression with valuations and assess ments lower than they have ever been and with only five and a half mill rate. we got through.
 Now something has been said about the bonded indebtedness. It is true that the bonded indebtedness to the ex- tent of about $s,000.0o0 natures and is the subject of refunding in the year 1906. But It is also true that right now, notwithstanding those bonds have but four years to run and they can only be attractive to investors on account of faith in the credit of the State, those bonds with only coupon life of four years are selling for $110. The people who buy bonds delight in buying bonds that are not going to be paid for fifty years. Every man who knows anything about State bonds knows that the confidence of the world is best secured by having low limit upon taxation, fair assessments of val ues, the interest promptly paid and by having no immediate intention of paying the principal. That makes the best bond the world knows anything about. So I say fix this limit as low as you can safely. That tends to bring out to assessment the hoarded and hid den property.
 Mir Smith (Mobile)-Referring to the price of Alabama bonds which you say is $l10. Is there not included in that price two and half per cent interest, which will be due next month?
 MT. Fitts-The July coupon natures July 1st, but with the coupon off, the price would be at least $10S.
 Mir. deGraffenreid-How much were they worth in 1886?
 MT. Fitts--$i04 and $105.
 MT deGraffenreid-I sold some at $97.
 MT. Fitts-Somebody asks me this question: Did Alabama bonds depre- ciate in the Dates administration any more than other securities on account of the panic?" l desire to say they did not. that Alabama bonds have steadily increased and gone on up un- til they are selling at $110.50 or with the July coupon off, for at least SOS. So there is no falling off of the credit of Alabama. and nobody Is raising that point anywhere in the world. These Alabama bonds will not only be taken up by the holders if you waat to reel fund them but the markets of the world will be ready buyers of Alabama bonds and this limitation will not hurt or im- pair the credit of the State so far as refunding the bonds. If this can pos sibly be done and the Committee sol emnly says 1t can, 1t is your duty to do 1t. We all know when applied to private affairs that the only way a man ever has anything who starts with nothing is by knowing his income and living within that income and saving something out of that income. There fore when you fix this income within certain limits. more than 1t was in the OL PlOSSuIGs anu say OldlC must live within 1t, the State will live within 1t and nobody will suffer and the public affairs will be administered as well as they have been in the past.
 Now what are the future promises for tax values? There has been an in- crease in seven years from $241, ,000, ,0Oe up to $28O, ,000,0 900 and they are gradual Iy rolling on at rate of increase of S15,00O00n a year. Is there any prom ise of that being stopped? Is there any promise of a backward movement in Alabama? Is there any promise Of decay? Is there any promise of death and destruction to the great improve ments and great material interests that are being developed? None whatever. All the sky is bright, all the land is full of promise and we stand on sure footing counting continually Qh a con- serVatiVe increase in the valuation of the property of the State. It Is grow ing steadily at $15, ,000,0 900 per annum, but we can put 1t safely at $1O,0O0, 900 and we would be we'll within the bounds of conservatism then without any guilt of reckless extravaganza. A surplus in the treasury invites reck- less extravaganza in expenditures. A State government Is just like a family. fifty pounds of lard he will get along with 1t. If he puts up three hundred pounds he generally has nothing at the end of the year. So 1t Is in all life and experience. Now some gentleman asks this question:
 MT. Lowe Gefferson)-Can ask the