The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-12-24
ALABAMA'S CREDIT
FOUND TO Be GOOD
Governor Cunningham Talks
of New York Trip
STATE IN EXCELLENT SHAPE
Understood That Supreme Court Is
Divided on Constitutonality of 18th
and 18th Circuits-Other
Montgomery News.

Montgomery, December 2S.-(Speeial)-
Acting Governor Cunningham gave out
statement in regard to his trip to New
York this afternoon, in which he said
that while no arrangements to refund
the state debt were made, 1t was found
that the credit of Alabama was among
the very FIRST of the state of the union.
He said:
My visit to New York was in refer
ence to the public debt. My purpose was
to ascertain at first hands the conditions
as nearly as possible as a guide to what
should be done, the plan to be adopted.
ETC.. in tho funding of the debt l gained
a great deal of valuable information, not
the least of which is that the credit of
Alabama stands among the first of the
states, and about that there seems to be
no question whatever. | have made no
definite arrangements nor are .nefe pend
ing any tentative propositions. The mat
ter will be taken up formally in the
near future. Farther than this l do not
care to discuss 1t at this time
Very Pleasant Trip.
1t was gathered from the talk of the
governor that he and his private secre-
tary Mr.. j. Kirk Jackson, had very
pleasant trip and not only gained much
knowledge of the financial world but
some other things as we'll. Prominent
among these was the fact that Alabama
is one of the best known states in the
union. More people are talking about the
state than any other 1t seemed and there
was keen desire in every walk of life
to know more OF the great industrial
commonwealth, which is building fur
naces and opening mines and erecting
steel mills and has taken the first step
south of Pittsburg In the making OF steel
products.
Andrew Carnegie said once that the
successful making of steel rail establish
ed the fortune of any state. Alabama
has, therefore, become the most talked
of of all the southern sections. Questions
are asked about the Mobile harbor and
the inland rail facilities and the outlook
for future development, and there Is n
desire everywhere to hear of the state.
Many courtesies were shown the acting
governor and Mr.. Jackson while they
were in New York.
Needs No Protection.
Editor Charles Greer of the Marion
BthNSNA VI
every state question, seems to have
Slipped a cog on the debt status of the
state, especially with reference to the trip
of the governor to New York. He says:
Governor Cunningham went to New
York last week to arrange to borrow some
5000 GEO to protect the state debt. This
seems to US to be a good opportunity for
the governor to make a ten-strike with
his constituents and seal his nomination
by proving his ability as a financial
schemer"
What this means no one at the capital
rs able to figure out. If ever there was
"a debt to stand alone and dispense with
protection It Is the present state debt of
Alabama. And what state or individual
would want to borrow money when Its
Golfers were full and all debts paid. In
a report on the condition of the treasury
made by assistant state examiner on No
vember g. It was shown that the balance
on that day was S7s2,06 SO, or at least
the state had that much cash on hand.
In addition 1t was shown that the money
was en- deposit In New York to pay the
January interest on the state debt over
and above the amount stated to be in
the treasury. That does not look as II
the state had to borrow money to take
care of anything. The fact Is there are
many who wish there was a plan by
which the idle money OF the state could
be made to earn interest instead of lying
idle.
Gives Some Advice.
The Standard then goes ahead on the
supposition of its story and advises in
the premises as follows: THE Standard
is informed that there is now in the
state banks a deposit of about $6S, 900, 600
1t is well known that money matters
M civ he
Money can be borrowed from almost any
bank In the state at per cent on good
collateral and in some instances 1t can
be obtained at per cent. Now why not
let the governor issue interest bearing
bonds for term Of years adequate and
satisfactory, say at per cent, and sell
them in $1,000 blocks, arranging a plan
so as to prohibit a few men buying up
all those bonds to the exclusion of the
smaller investments These bond4 of
course, would be non-taxable, and we be-
lieve that every dollar of the $500, 900 would
be taken up right here at home in as
short time as 1t will require the gov
ernor to obtain the money In the east
or elsewhere"
All this is good finaneiering, probably
If there were any use for It, But the state
does not want to borrow 5000 900 from It's
citizens or any one else. 1t has the
money" The last paragraph of the Stand
ard article calls the attention of the gov
ernor to his opportunity as follows;
Here is your opportunity, governor, to
demonstrate your financiering ability, and
go Mr.. Cleveland one better by giving the
little fish q bite at the nook on an OPP
portunity to make the talent multiply
without burying it."
Said to Be Divided.
While it is a delicate thing to speculate