The Birmingham age-herald., 1904-12-07
LETTERS TO EDITOR.
Plan to Pay State Debt.

To the Editor of The Age Herald:
 I enclose herewith a copy of the law of Tennessee creating fund for the payment of the state debt.
 At the time the law was passed the state owed about s1500O, 900 bonded debt besides ss5o,0o0 floating debt, and it's bonds were held at 52 In six years three mil Hons of the bonds have been paid off, there is no floating debt and the bonds are at par. This has all been accomplished without increasing the tax rate. In other words, 1t has not cost the taxpayers anything in the way of increase of taxes. E. B. Craig originated and advocated the plan. The petty politicians who wanted to raid the treasury and many short sighted men opposed the law vigorously, and his life was even threatened, but he persevered. was fnaly victorious, and was elected treasurer of the state for two terms, and now many officials and candidates claim the honor of hving ad- vocated the measure.
 The law provides that 10 per centum of the net revenues of the state shall be set aside to redeem bonds. and a sum equal
 
 bonds should also be used in redemption, so that the fund Is constantly growing. Alabama has been paying interest on about & GOO 900 lost in it's venture in the banking business for about sixty years. During the war the state sent gold through the blockade to meet the interest on it's bonds. If there is a surplus in the treasury the politicians will make raids on it to make gifts to friends or create unnecessary offices with salaries at- tached. There are notable examples of such jobs in our statutes.
 The net proceeds of the earnings of the convicts, or even half these earnings will be sufficient with the interest on re- deemed bonds, to create a sinking fund which will rapidly pay off the state debt. If the people will only insist that no man goes to the next legislature unless pledged to vote for paying the debt. 1t will be done without any increase of taxation.
 w. R. HOUGHTON.
 Birmingham, December g. 1904.
 An act to create sinking fund for tho liquidation and retirement of the funded debt of the state of Tennessee.
 Section l. Be it enacted by the general | assembly of the state of Tennessee that for the purpose of providing means for the nquluatlon ana retirement or the | funded debt of the state, sinking fund | Is hereby created into which shall be paid. commencing on the. first day of Jan uary, A. D., 1900. 10 per centum of all taxes, revenues and collections from all sources received by and coming into the treasury of the state; provided. that none of the receipts from the labor of convicts or from the penitentiary shall be paid into said sinking fund. The state treasurer shall. at the end of each month, out of said taxes. revenues and collec- tions, except those from convic labor and the penitentiary. received during said month, deduct 10 per centum from the aggregate thereof and deposit the same in one or more of the state Repositories to the account of sinking fund.- and he shall open and keep on his books. in his office, an account designated sinking fund account which shall show accurately and specifically all payments made into and all disbursements made out of said sink ing fund: and no disbursement out of said sinking fund shall be made for any pur- pose except as herein after directed.
 Sec. ?. Be 1t further enacted, that the moneys paid into the sinking fund as aforesaid or payment of, any outstanding