The leader. [volume] (Brookhaven, Miss.) 1895-1905, 1904-07-02
MISNsSIPPI'S FINANcES.
The New Bond Issue and 0ihe Mat.
eers Of. Interesl.

Il
jackson, June 25. The fact
THAT the treasury funds are SO low
las to necessitate a postponement
Iof the June distribution Of the
common school fund does not ar
Igue a condition Of bankruptcy
or anything approaching it, as
seems to be the opinion in some
scctions. The facts are that Mis-
sissippi was never in better finan-
cial condition than today. Her
lcredit was never better abroad
and the taxpayers never more tln-
complaining at home. Property
values are steadily rising and the
aggregate taxable wealth Of she
State is greater than at any period
lof her history. The temporary
shortage in the treasury means
nothing more than that the States
income has been slightly oyeres-
Itlmated, while at the same time
the treasury has been subjected
during the past two years to an
enormous strain.
Before the last Legislature met
the treasury had been drawn upon
for 81 900, 900 in cash to build the \
new Capitol within the period of
two years, and had been drawn
upon for a half million more to
pay of an outstanding issue of
bonds, making a total of 81 ,50O,-
600 of cash within two years, over
and above the current expendi-
lures. This enormous sum had
been Withdrawn from the treas
ury without any increase in the
tax levy, and in fact with de-
crease Of a half mill.
The last Legislature added to
this strain by large increase in
the school and pension funds,
making a total additional yearly
expenditure of about half mil
lion dollars, over and above the
regular expenditures. No increase
in the tax levy was made to meet
this extra expenditure, which the
tax payers of the State were more
than willing to have made, and
the only provision made to meet
the shortage which seemed inev-
liable, was the authorization Of a
half million dollars of bonds, |
which Gov. Vardaman will sell on
July 8. When these bonds are
sold it is confidently believed that
there will be sufficient funds to
meet all expenditures in sight un- |
til the tax settlements are made in |
the fall and winter. Next year
something like the same situation
will result, and to meet a proba-
he shortage in the expenditures
for that year, the Governor is au-
|thorized to borrow $500 900 of
cash.
If the bonds should fail to bring
a premium, as it is believed by |
some of the State officials, it will
be no reflection on the credit of |
the State, as the scores of IN
=quiries from all parts of the State |
fully attest; but it will simply |
mean that the bond buyers do not |
want low interest-bearing bonds,
that may be matnred in ten years.
The issue of these bonds will put |
the State exactly where it was be-
fore Gov. Longino called in the
half million issue two years ago,
with the difference that two years
interest will have been saved. In
other words, it, is much the same
as if those bonds had been refund
ed. There was a strong sentiment |
in the last Legislature to issue a
million dollars bonds, and Gov.
Vardaman suggested this in his
message. As a compromise, the
half million issue was authorized, |
and the Governor was given au-
.thority to borrow $500, 900 more |
next year, if necessary.