The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-20
", R. HougiIOn in Favor Of
Yearly Payments
The INSTALLMENT PLAN
Thinks state Should Cancel Bonds
Nearly to the Amount of $4,000
If the Condition of the
Treasury Warrants.

w. r. Houghton thinks that 1t is time
Alabama was making some effort to pay
off its bonded debt He thinks the state
should pay at least $4,000 per year II the
condition of the states finances warrant
1t. The following letter and proposed act
explains his idea:
To the Editor of The Age-Herald:
The people of Alabama have been pay
ing interest on the bonded debt of the
state for 26 years. 1t now amounts to
about s45O,000 each year, The state was
unable to pay when this debt was funded,
and 1t was said posterity ought to pay 1t.
Posterity has come and grown gray, and
has paid nothing but interest.
Several states have no bonded debt,
and one southern state has but a small
debt. They are fiourishing, and taxes are
light Our taxes are burdensome. There
is money enough In the treasury to COM
mence paying off this debt
1 have framed a bill which I ask you
to publish so that the matter may be
discussed by those interested, and il the
plan is faulty, let a better one be sug-
gested The bill is framed so that after
the first year no more than SIS, 900 if pos
sible, per annum, besides the interest
which would have to be paid anyway
will be expended If the condition of the
state finances do not permit 1t.
w. R. HOUGHTON.
The Proposed Act.
AN ACT to provide for the gradual ex-
tinguishment of the bonded debt of
the state of Alabama.
Section l. Be 1t enacted by the legisla-
ture of Alabama that it shall be the duty
of the state treasurer to purchase at the
lowest price offered during the months
of January or July of the year 1903
bonds of the state of Alabama of the par
or face value of $4,000.
Sec. 2. Be it further enacted that each
year after the year 1908, during the
months of January OF July, that the state
treasurer shall purchase bonds of the
state of Alabama of the par or face value
of $4,000, at the lowest price offered; pro-
vided, however, that If the governor, au-
ditor and attorney general of the state,
or any two of them, shall certify In writ
ing to said treasurer that in their opinion
the finances of the state will not permit
such purchase then only $4,000 of such
bonds will be purchased in the year such
certificate is made. exclusive of those pur-
chased with the sinking fund herein pro-
vided.
Set Aside Money.
Sec. 8. Be 1t further enacted that 1t
shall be the duty of the state treasurer
&c set aside an amount or money equal
to the interest on the bonds purchased
under the provisions of this act, and
when the amount thus set aside is sur
hcient to purchase with said moneys rep
resenting the interest on purchased bonds
another bond or bonds so far as the same
VIII purchase, and the balance of such
money not so used in purchasing bonds
Will be kept in the treasury as sinking
fund until enough is accumulated to pur-
chase another bond or bonds, such pur-
chases always to be made in the months
or January or July of each year
Sec. 4. Be 1t further enacte. that the
treasurer shall keep In well bound bool,
an accurate description of all bonds pur-
chased under the provisions of this act
the amount paid for the same and shall
make report of his action under the
provisions of this act at the time he is
required to make his report as treasurer
Cancel Old Bonds.
Sec. 5. Be 1t further enacted, that It
shall be the duty of the treasurer to
mark, write or stamp the word paid"
across the face of each bond and the
coupons attao-4ed to the same and to
so deface or mutllate such bonds and
coupons so that they cannot be again
used, and after the close of the session
of each legislature, 1t shall be the duty
of the treasurer In the presence of the
governor, auditor and attorney general
after comparing said bonds with the re-
cord of the same, to burn the same.
Sec. 8. Be 1t further enacted that the
sum of thirty thousand dollars or so
much thereof as may be necessary to eff
feet the purchase of bonds as provided
herein, is hereby appropriated each year,
to be drawn out of the treausry on the
warrant of the treasurer, approved by the
governor of the state, but such warrant
shall not be drawn except for the
amounts actually paid for onds pur-
chased under the provisions of this act.
and such further amount necessary to
purchase bonds with the money accumu-
lated as sinking fund, is hereby appro-
priated to be drawn as herein before pro-
vided.