The Birmingham age-herald., 1905-09-14
TREASURY SURPLUS
 IS MUCH LARGER Governor Jelks Explains the
 Situation LOWEST FIGURES IN FALL The Statute Approved March 5, 1901, Avoids the Appearance of Deficit By Consolidating All Funds
 In the Treasury.
LOWEST FIGURES IN FALL

Montgomery, September 13.-(special)- If money for two years schools must be collected before one years is paid out there will be no great surplus in the treas ury this fall, as the governor sees it. However. if the payments are made as they have been for years it is certain that there will be plenty of money at that time in the states strong box. To get at the matter straight the governor, at the request of the newspaper men, has given out the following statement:
 Every winter at some time near De- cember l, the income to the state from taxes is larger than the disbursements Just before that date the treasury holds fewer dollars than for any other time during that winter or during the fiscal year, running from October to October The treasury balances rise from that time to some day in early March and then ebbs again through the spring and summer months until December. There has been balance each winter with no outstand- ing debts orebligations since I came into office, rising from S53,00O in the winter of 1901 to $593 GOO in the winter of 1904 bitoS t0O DAl1iiSVS SoOhllHS lit Sllidl- lest number of dollars in the treasury for their respective years. This winter the balance will be larger. There will be no future call under the present laws for any part of that lowest balance and no use to which the money can legally be put Exactly what that balance will be this December cannot be computed ac- curately. Since there was on September 12 1905. $1S6,O0O moro than for the same time last year it is reasonable to as- sume that the balance of last winters lowest day, which was $593 OO0, will be increased by more than $lOO,OOO making something like $700,000 This is a mere estimate.
 "The statement that there is no sur plus grows out of the assumption that the money collected on year for schools shall be set apart for that use the next year. saving the three-mill tax of the next year for still another fiscal year. This position would force the treasury to carry at the lowest a balance of some- thing like a million dollars, a much larg- CT balance than We have had in the treasury for certain months of each of many years. To reserve this money has not been at all the practice of the state government As mere business proposi- tion, aside from the legality of the ques- tion, 1t would be a very foolish thing to do, indeed. We pay for this years schools out of this years receipts. This certainly has been the custom for some years This three mills is estimated, I take it, by the auditor from the tax returns which are in his hands in August, he notifying the superintendent of education the amount of money which will be to his credit for the fiscal year. It is an easy and simple method.
 "If there ever was any legal require ment for holding this large sum in re- serve, which I have said has not been the practice, the statute approved March 5, 1901, seems plainly to hove removed all such necessity. 1t was intended to avoid the appearance of deficit when there was no deficit. It consolidated all funds in the treasury.
 If we are to collect two years school tax before we can pay one years school expenses, the objectors are right: there is no surplus.
 q think there has been an actual sur plus In the treasury for each lowest day in each winter for the last four years, constantly growing. We may estimate from that fact alone, if there was no other reasons to justify the postion that there is an actual surplus of money unusa- ble under the present statutes.
 This surplus in the treasury is very complimentary to the state. It indicates the great progress which 1t Is making particularly when we remember that an amount equal to something over 8, 100000 has been paid out for schools and old soldiers alone in the last four years in excess of the sum paid out for schools and old soldiers during any previous four years of the states history. This vast extra sum of three-quarters of million dollars a year was raised on tax rate reduced from seven and one-half 70 six and one-half mills and in effect the past two years"