The Montgomery advertiser., 1904-09-27
ALABAMA's BONDED DEBT.
$s,4O3, 800 Natures fin 10O6-Extrs Ses. sion of Legislature Urged to Con-
 slider Best Method of Refunding.

sion of Legislature Urged to Con-
 slider Best Method of Refunding.
 Communication In The Birmingham
 Age Herald.
 For sometime past there has been more or less talk of an extra session of the Legislature being called this fall to take action on the Judiciary system of the State. Whether or not such a call should be deemed expedient by the Governor. I would like to urge upon him the advisability of having the Legislature assemble in the near future to consider the best method of funding the bonded debt of the State, the great. CT portion of which is now approaching maturity, and to secure action that would result in a large annual saving of interest, and in the extinguishment of the States debt within the expectancy of the younger members of the present generation.
 Total Bonded Debt of Alabama.
 The total bonded debt of the State amounts to $9.357 500, of which amount S954,o00 was funded four years ago with per cent bonds maturing Jan uary 1st, 1920. Of the remainder, $s66,- 900, bearing 4 per cent interest, will mature January 1st. 1906, and 7,437, 500, bearing per cent interest, will mature July 1st, 1906. The annual interest charge on the bonds maturing within the next two years amounts to $410,52O, and 1t has been the laudable ambition of recent State administrations to re. duce this heavy burden upon the tax. payers of the State.
 History of RefundfnR LexiaIatiou.
 Nearly twelve years ago, on Feb. Fist. 1893, an Act of the General Assembly was approved by the Governor which provided that he should have author ity to open negotiations for the con. solioation and adjustment of the bond ed debt of the State on an interest basis not to exceed per cent per an- mum. Under Section of that Act the Governor was authorized If such nc gotiations proved successful, to pre- pare bonds not to exceed the then ex. isting debt of the State, to mature In not over fifty years from date of issue The Act provided that these bonds should be placed In the hands of the State Treasurer. who should exchange them for outstanding bonds with the proviso that no bonds issued under the Act should be disposed of at less than Tar. No practical results followed the passage of this Act as the bondh olders were unwilling to make the exchange of securities contemplated, and on Fe5. 18th. 1895. the succeeding Legislature authorized an issue of 50-year bonds. bearing interest at not to exceed 4 per cent, and for an amount not exec eeding the existing lebt of the State, all reve- nues of the State being pledged to se- cure interest and principal. These ponds were to be called Revenue Bonds or the State of Alabama, and were sub )ect to redemption at any time after fifteen years from date of issue in the inverse order of their exchange. vizt those that were first exchanged were the last to be redeemed. The same Legislature also authorized the Gov ernor before disposing of these bonds to advertise for popular subscriptions TOT per cent bonds in small denomina- lons. providing that these bonds should not De sold at less than par. Governor oates advertised for popular subscrfp- tlons Tor these bonds under this Act. put the rate of interest being too low no subscriptions were received.
 Tn February. 1899. the Legislature en- acted the present law, which authorizes the governor to appoint one or more nahks or bankers in New York or in Alabama financial agents to carry on negotiations and make exchange of bonds. authorizing him to pay such agents reasonable compensation for their services out of the proceeds of the new bonds. This Act contemplates a saving to the State in interest by ex- change for the outstanding per cent bonds, others bearing a lower rate of interest not to exceed 4 per cent. and does not provide for any increase in the present bonded debt of the State 1t being required that the exchange ha trade dollar for dollar. As tte stato Administration has endeavored to sub- stitute for the present Elves. a bond per cent 1t Is not sur.