The Montgomery advertiser., 1905-02-02
He Asks For Bids on
 Renewals. WILL RETIRE OLD BONDS Suggests Investment by Citl- zenS of Alabama.
 -e~- Application Must Be Made for Cola Certificates Before Aprfi-Tnter- esting History of the Out
 standing Securities
 of Alabama.
WILL RETIRE OLD BONDS

His plan for refunding sS.40s.se0 of the public debt of Alabama was an- nounced yesterday by Acting Governor Cunningham who has proceeded already to advertise An the State papers and financial journals of the United States for bidders for renewal bonds.
 The Governor will issue in substitu- tion for the thiry-year bonds of the State a series of fifty-year gold bonds in denominations of $100. $500 and s1 900. The renewal bonds will amount to $s,403, 500 which represent the face value of all the thirty-year consols divided into classes A. B and c.
 The bids on the new bonds will be received in the office of the Governor year and notice of the acceptance or rejection of the bids will be given not later than April 1s. 1905.
 The old bonds will mature, $T.43T,60O nf them on July list 1906, and $s66,000 on January i 1906.
 An Important Event.
 The funding of this part of the States debt marks an important event in Alabama history as 1t Is the first act of renewal undertaken by the Legislature or the Governor since February 27. 1887, when there was an issue of $s54,00o worth of thirty-year bonds to redeem that amount of six per cent bonds then outstanding. These funding bonds. bear { per cent interest and mature on January 1. } 1920
 The funding bonds of Governor Cum ningham will bear interest at either per cent. or 1-2 per cent. bids for the entire issue or any part of 1t not less than for $10o, being invited. They will be coupon of registered bonds according to the bidders wishes.
 The Governor fin an address to the people of Alabama issued yesterday. makes a special appeal to their patrio- tism and investment wisdom. The terms of the bids are such that the bonds arA open to the smallest inves- tor as welI as to the great syndicates. The hope Is expressed that the bulk of the renewol bonds should be bought by Alabama citizens and corporations. The confidence of tine Governor in the future prosperity of Alabama is al- most unbounded. his prophecy being that the assessed values of the State will reacn the enormous total of $400,- 100000 within the next decade.
 proposition is included in the ad- vertisement of the Governor which will interest the holders of the bonds to be refunded. If the bond-holders desire to bid on. the new issue or any fraction of 1t, they can do SC by specifying the amount of old bonds equivalent to what Is bid on the new ones. The bonds or the money of ac- cepted bidders must be paid into an approved depository sixty days before the maturity of the present bonds.
 The advertisement which appears in another part of The Advertiser, is emphatic fin the declaration of tho Governor that no bid less than par for the renewal bonds will be com sidered. certified check for five per cent of the amount bid must ac- company each offer.
 The Governors Address.
 The written address of the Governor to the people of Alabama, an interest ing paper. is as follows:
 All our people are interested in the public debt of Alabama and have no doubt will be interested to know what is going on in regard to the funding of that debt.
 'SThe law provides a bond. gold or currency, that may run for not ex- ceeding fifty years, which must be sold at par, and bear no interest greater than 4 per cent. Two policies present themselves for consideration. One is the maximum rate of interest, which would no doubt bring a large premium, covering that premium into the State Treasury as part of the general fund; or a bond with the lowest possible rate of interest, and the premium, whatever there may be. applied to the retirement of so much of the public debt as the said premium will liquidate. The lat ter is the policy that has been adopted. Alabama is a very rich State and is growing richer every year, and it is no optimistic illusion to prophecy that within the next decade. the assessed values of the State will approach S400,- 100000. The question of providing a sinking fund for the public debt Is not involved in the funding of the debt. ex- cept in so far as the rate of interest is concerned. If the bonds are foated at the lowest possible rate of inter est the premium in them. in the future, will not be so high. which will enable the State, should it so determine, to retire as many bonds as 1t may be able to. That policy is best, in my judg- ment, which costs the people of Ala bama the least and allows us any sur plus that we may have in the Treasury for the development of Alabama.
 The plan adopted will be seen in detail by referring to the advertise ment. Fifty year gold bonds, in de- nominations of $1O0. $500 and Sl0OO, registered or coupon. interest payable semi-annually, are offered. Bids are desired upon bonds bearing both 3 per cent. and l-2 per cent, in amounts from $l0O to the whole amount. This gives everybody an opportunity to in- vest in these bonds. The great sym dicates can bid on the whole amount, if they desire, and the small investor can take as little as $1OO. This means great opportunities for the people of Alabama. and sincerely hope that they will take advantage of the opportunity offered. A great deal could be said as to the advantages of Alabama bonds for collateral for short loans; it would be a great convenience to farmers and others who occasionally borrow money to have such ready collateral at their disposal, and when they do not need money, they would have the bond that would be constantly bearing interest There are Ss0.O0O.000 deposited in the State banks and. I presume. more than that much in the national banks of the Fu fo f,a hnnad Hkat4 -r.-