The Montgomery advertiser., 1904-10-07
CetterS tc tbe Gdftcr
THE STATE DEBT.
OHer the New Bonds to Our Own Peo-
 nle First.

tmC lNCW DUmub tO OuE O"h w
 pie First.
 Editor The Advertiser:
 As citizens and tax payers, we all feel more or less interest in the fund ing of $S.400,000 State bonds which mature in 1906. Without commenting suggested. I respectfully sumbit the following plan for the consideration of the taxpayers of the State:
 Issue three and one-half (3 1-2) per cent. thirty year bonds, in denomina- tions of s1OO, $500 and $1,OO0, principal sell the bonds by popular subscription at par. Provide in the act of the Legislature. that the citizens and banks of Alabama shall have preference over the bonds. All subscriptions from S1oo up to $25,000 to be allotted first Bonds remaining after allotment to State subscribers. to be allotted pro- rata to foreign subscribers. Provide for advertising bond issue in State papers, and in Eastern financial papers. Let the State Auditor or Treasurer dis tribute through Probate Judges in the State, and direct by mail to persons and banks requesting same, subscrip- when, how and where, money Is to be paid for the bonds, and bonds to be de- livered, with as little cost as possible to the subscriber and the State. There dI c dt tliHCS dS iuilllOH uOlAdi D lying idle in the treasury vaults in the capitol at Montgomery and a large per cent of this money could be kept in circulation by allowing banks in Ala bama to deposit with the State Treasu- Ter State bonds and the State use the banks as Repositories to the amount of bonds deposited with the treasurer The bonds might be fioated at a lower rate of interest than 1-2 per cent. on account of being free from taxation. hut Nk N- 2 L. gested on the basis of the present rates of interest on good State, coun- ty and city bonds, and rates will proba- bly remain about the same for several years.
 The most optimistic, thirty years ago, never dreamed of wealth increasing in this State as 1t has, and taxable values being what they are now. With the vast rich mineral resources in this State still undeveloped, with hundreds in cotton factories and other manu featuring industries, it is a conserva- tive estimate, to say the taxable values in Alabama will double in the next thirty years. It would therefore. not be advisable to issue bonds for a longer time than thirty years, as the States income at that time will be such. that a very low interest bearing bond can be foated at par, and ample provision made for paying off the bonds. The percentage of illiteracy in Alabama must be reduced, and the State will need every dollar 1t can possibly spare for the next twenty-five years. for educational purposes. We need better counties will have to increase their tax rates, and have better roads. For these reasons, and in view of the fact that the States income in thirty years will in all probability at the present tax rate, be double what 1t IS now. no sinking fund for the retirement of the bonds is suggested. An educated citizenship, and good roads throughout State. make State and county bonds very safe investments without sink ing fund.
 There Is enough idle money in Ala bama now, without counting the profits from this and next years crops, and profits from other lines of business. to carry easily, one-half of the bonded indebtedness of the State. and if it were published to the world that the citi- zens or Alabama, by popular subscrip- ttoprhad taken 80 per cent of the bonds or the state, 1t would be the biggest advertisement we could haVe-an ad- vertisement that would cause Alabama bonds to rank with the highest.
 The people who pay the taxes should De given every opportunity to take the bonds, If they want them, and keep the money paid out for interest, at home It would stimulate State pride. and en- courage our people to save, When we nnally get fixed upon us the habit of saving, bank deposits will show mark ed increases, and there will be decided improvements In homes and farms.
 A few brokers for bond syndicates may attempt to ridicule a plan of this kind for funding a States indebtedness, but there need be no fear about sub scriptions not being sufficient to take the entire issue of bonds, and more be- sides
 It would require an act of the Legis- lature to make effective a plan of this kind. and this article Is submitted with the belief that an extra session of the Legislature will have to be called with In the next few months. No legisla- tive body can, within the time our last Legislature had, pass laws to cover every question presented by our new Constitution, and to meet for four years ahead, the growing demands of the State. without mistakes and omis- sions; and 1t would not only avoid a great deal of doubt and confusion but would be cheaper to the State to have a short extra session. and stralghten things out.
 The bonded indebtedness of Alabama Is a burden upon us. from which the State derived very little real benefit. Let us make the burden as light as possible. by taking advantage of the opportunity to show to the world the pluck and energy of the people of Ala bama. their confidence in their State make better known to the world than | ever, the wonderful resources of our