The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1906-09-12
Consolidated Aug. 2. 1881.
STATES FINANCIAL CONDITION.
Efforts to Put the State on a Cash
Basis Have Not SO Far Been En-
tireIy Successful and Debt Is IN
creas;ng.

izatian and reform. With a general
fund Of an average balance Of about
100000 drawing not a cent Of inter
est, the state continues to borrow,
and is now paying on the last loan
of $4,000 just negotiated a few days
ago interest Of 5 1-2 per cent. The
states interest bill on about six mil
lion dollars of bonded debt row
amounts to s145,O00 twice a year.
Tis last loan brings the total OF
borrowings this year for current ex-
penses up to sa25,0oO, and still more
may have to be borrowed. The loans
last year amounted to 100000.
Governor Heyward and Comptrol-
Ter General Jones succeeded two
years ago in getting the state started
we'll toward a cash basis by having
the legislature raise the levy, but the
last legislature, which had: to face
new election. put the levy back TO
the original figure, with the result
that the state is heaping up its debt
and mourning a large interest ac-
count
Tho state has borrowed money on
its notes for as low. as IL per cent,
but in explanation Of the fact that the
interest this last time is nearly dou-
BILE that, it is said that money is ex-
ceedingly scarce on account Of the
cotton crop movement, because Of the
great quantities of money that had to
go west to rebuild San Francisco, and
by reason of the fact that the in
suram,e companies are now compelled
to keep invested large sums it for
merly kept in ready cash. New York
is over one hundred millions short
for these reasons, said bank man to
your correspondent today.
This last loan the state made could
not be secured directly at all. 1t had
to be gotten from q New York broker.
The state has been running on bor-
'roved money since May. In that
month 100000 was borrowed to fill
in enough to meet the 100000 pen
sion bill Of the state. In June $780,
600 was borrowed to meet the semi
annual interest account
An effort is now being made to-
pat what is known as the general
fund on an interest-bearing basis, but
when this will succeed is problema-
teal. This fund, which is distributed
to large number Of repositories
throughout the state, huctuates, from
month to month. Some idea Of the
average balance may be gained from
these figures secured from the state
treasurer's Office: On January 81 last
the balance in favor of the state was
s2S7,000; on February % it was
S330,00O; on March 81 it was $751;
600; on April 80 it was $265,000; on
May 81, after the pension bill was
paid, it was $4,000; on June 80,
after s145,O00 had been paid out in
interest, it was $4,000. and on July
81, before this last $4,000 was bor-
rowed, it was 5000 The figures
for August are not yet obtainable.
A few months ago there were
number of outstanding claims for
dispensary money. Many drafts were
returned unpaid. And for about a
year nearly million dollars worth OF
debts for whiskey have been held up
by the dispensary committee, some
of tnese accounts being finally par
tally paid. But the idea that this
situation operated to injure the credit
of the state is poo-pooed at both the
state treasurer's Office and the Pal
metto bank.
Other state funds in the keeping OF
the state treasurer bear interest at
the rate of 4 per cent. compounded
monthly.
The funds are as follows:
State sinking fund, from loans are
made to the counties and which
amount to about 100000.
Permanent school fund, accrulng
from escheated estates and amount
ing to about $4,000. This brings In
about 5000 interest a year.
a small fund of about $4,000 for
redemption of Brown consuls.
Insu .ance sinking fund with an
average balance of about $1,000.
About $4,000 is out to counties at
per cent.
1t should be understood from the
foregoing that the levy with the fran
chise tax and other sources Of income
fails by several hundred thousand
dollars to meet the current expenses.
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