The Montgomery advertiser., 1904-10-17
Eetters tc tbe Gdftcr
The states Bonded Debt.
Editor The Advertiser:

Guttot ne. A1NeFIIBeT.
 In your Issue of the 9th inst appeared communication under the head, "The State Debt" written by John E. Morriss from Saginaw, Ala, which deserves more than a passing notice.
 His insistence that the new bonds to be issued in 1906 to refund the bonded debt of the State be offered to the peo- pie of the State first or in preference to non-residents and bond specu- lators. is worthy of serious considera- tion. The State can, if there be no fiuctuation In State credit between now and July, 1906, liquidate the maturing bonded debt by new bonds bearing but 1-4 per cent, if the deal be made with great New York bond syndicate. But 1t would he worth more to the State, as a State. composed of people, to make the new bonds bear 8 1-2 per cent, If thereby the people of the State would buy even four millions or one entire bonded debt of the State and then would patronize home life and fire in- surance companies, millions and mill lions of dollars which now go to New York and elsewhere in payment os in- terest and premiums would be kept within the State and every year greatly increase the aggregate of our wealth.
 Let the State set the example-offer the inducement and the business hab- it's of the people will be found in &C., cord. Wherever any citizen would be- come the owner of a State bond, say $1,000, though it would bear but S35 per year in interest, 1t would be free of taxes, and that man would be on the road to prosperity. though his &C., cumulations might be small and his progress slow, but the investment of his earnings would be safe. It would be better than hiding away little gold in old stockings every year, for the bond would bring an income of 3 Ia per cent and be safer than the gold, for the law of their issue should provide for their registration, so that they could not be those registered and held in Alabama payable at the Treasury.
 do not agree with MT Morriss that they should mature in thirty years. ty of the State will double in value within that time is too roseate a view to take. It may, and doubtless will, making allowance for a panic in the meantime, increase 80 per cent. But 1t does not follow that the bonds should all be called in and retired within thirty years. This generation will have borne It's burden of Government and financial troubles growing out of war and a changed labor system manfully and he- roically. and the rising generation will have no good reason to complain and would not hesitate to meet the respon- sibility of few millions of bonded debt bearing a low rate of interest Those
 
 gin to worry over the vast amount of revenue the increased tax values would bring to the Treasury. But that Is a matter of easy solution.
 Whenever the Treasury, after amply providing for the schools, the asylums and necessary institutions, Is about to overflow, reduce the taxes on the prop erty of the people and they Will remem- Der you in their prayers,
 MT. Morriss is also mistaken in sup- posing that it is necessary to call an extra session of the Legislature to au- thorize such an issue of bonds and to erence to others. The whole thlng Is III the hands of the Governor. He has the power to do that under existing law. The expense of the experiment could be paid out of the contingent Iund and would not require any addi- tional appropriation. The old bonds af- ter their maturity could be called in, million at a time, as the State re- eeived the money for the new Gonds, This process would work smoothly if the people of the State would take all of the new bonds. While that would De consummation devoutly to be wished, l appreheud that they would not buy one-half of the new bonds. If they could be induced to purchase even as much as three millions, it would be we'll worth the effort.
 Every creditor of his State--to be a holder of her bonds-would make a cit- lzen feel more lively interest in the States public affairs. her growth and development. in the wisdom of her leg islation and the proper administration of the laws. In other words 1t would make our people more patriotic, to take more active interest in the selection of good and capable men for offices of all kinds; it would stimulate their State pride
 I heartily agree with Mir. Morrfss as to the fine effect it would have upon the people. If the Governor will make an earnest effort in this direction he will do a great thing for the people as well as for the finances of Ala bama.
 William c. Oates.