The Montgomery advertiser., 1901-06-23

AOfh 1u0 etseWnere, ana kHOW " ao very troublesome thing. and do nor want the State of Alabama to go into the loan business at all, at any price.
 They say there is no danger, you have United States bonds as collnt- eral. Well. am just from New fork only few days ago, and If man in Alabama owns United States bonds. he can go to New York and borrow his money at per cent. per annum. If he owns Alabama bonds he can get 1t very cheap. Under all the circum- stances 1t is a dangerous thing. we have never opened the treasury, and We have never loaned the credit o' the State of Alabama, without being paralyzed. so to speak. and I am op- posed to 1t. I think 1t is bad pre- cedent to set, and l hope that this Convention will strike out that Section 27, and knock out the minority report and amendment. and let us establish, sir, this idea: That if the treasury or the State of Alabama is overhowing let it be the duty of the Governor to notify the Legislature or the fact, and then reduce the taxes. l understand that our treasury has got some money in 1t now: later on they will have more money. My idea Is for the people to hold 1t in their pockets. l do not want a rich government and poor people. l would like to have rich government though, and rich people.
 Now, sir, I know the point is going to be made, that you want this money in circulation. Well, I have had great deal of experience along that line. I have loaned money and nave borrowed money. and my idea IS when you loan out large sums Of money that 1t Is sometimes very difficult to get It back, even if yon do have gilt-edse se- curity. Then there Is a chance for llt- igation, and long litigation to come up, and we have never, until this day. opened the vaults of the treasury of the State of Alabama without we lost money. That is my experience, and l have been watching 1t long time. l do not want to loan her credit CT her cash. If we ever get too much cash in the treasury, I want the taxes reduced, and collect less from the people.
 Now that Is my idea, from busi- I ess standpoint, but I know the point will be argued that 1t will flow with the people. Yes, and 1t is dangerous It is hard to get back, when you get it out and 1t gets to circulating for hundreds of miles over Alabama or somewhere else.
 
 States Bonds in Alabama, and they are registered and registered bonds would not be worth a cent as collateral. De- cause they are registered at Washing ton, and some expert lawyer might pass on the collaterals and make mistake right there. Then there Is an- other fact which is. that money Is a thing that takes wings and flies away It Is dangerous article to handle, and do not want Alabama to go into business. and I trust that 1t will not do so. Now, sir, 1t looks just like we would hold the strings all the time, but the political world Is sort of like the financial world, about every ten years there Is a collapse. one way or the other. You know the finapctal world about once in ten years gets down to rock bottom, and everything is hard and hard to manage and 1t Is hard to get money at any price or In any way, and politics Is pretty much the same way. There might come a tidal wave. like in 1892, and do some harm. and somebody else might have charge of the Treasury. and the doors would open.
 Now. sir. I am opposed to it. l am emphatically opposed to this measure, and I have got substitute that sim ply means that if you have got an Nverelowing treasury. reduce the taxes of the people. and that is the way l stand on 1t. It IS dangerous to do oth- erwise.
 I might say something else, I sup pose, but I think you understand my position. The State of Alabama issued fourteen millions of bonds. and sold them. and went into the banking bus mess. and then way back in sixty eight or seventy they signed bonds for the railroads. sixteen thousand dollars a mile, and they got bit again. It is a dangerous thing. How many banks, and loan institutions, with millions De- hind them. with the best talent that Nan be found, men of experience to conduct their affairs, have gone into bankruptcy in the last few years? l just ask that question. How many banks have gone into bankruptcy, or Iiouidation. with millions of dollars behind them? I will tell you, gentle men. there is nothing sure about large amounts of money. There are schem- CTS and sharpers, and others who will get control of it. and If they cannot do it one way, they will work some other way, and 1t is a dangerous experiment., and I trust you gentlemen, and espe- cially you grey headed men that have had some financial experience, Will consider this thing. and vote against this resolution. Loud applause)
 MT. Sanford-I ask that the suostl- ute be read.
 The substitute was again read.
 MT. Sanford-The proposition in sec tion 2 is to loan the money. when there is a surplus. to any individual who has State bonds or United states bonds. I am utterly opposed to the class legislation which that of itself promotes. No man in Alabama. if he IS worth millions, could borrow a dol lar from the Treasury of the state. un- less he should own State bonds. or United States bonds. How many men in this Convention hold State bonds, or United States bonds. It is in favor of a particular class of men. who usu- ally are too wealthy to require the loans. The poor man. for whose bene- fit it might be made, Is unable to TUT nish the security. He may nave land' hut that is no security under the zitn section. It must be State bonds. which he Is unable to purchase; 1t must De limited States bonds, which he cannot buy and therefore he is shut out en- tirely from what is intended to oe privilege granted by the state TOT II is a privilege. for the benefit or the people. 1tc ,.,.,. tenn here in 1887. We must remember at that time that the Stete -of Ala bama issued five millions of bonds. ana 10 this day, we have never paid the depI that was incurred by lending them. w have never been able to collect It en- tirelv. As a basis of the indeotedness of the State, five millions Of dollars largely arising from the issue Of Donus for the purpose of raising money lo