The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-06-21
SECURED LOAN
TO PAY INTEREST
THE STATE TREASURER Has
BORROWED $25O,O
Levy Was too Low this Year And
the Expenditures Will Exceed
the Revenue by $4,000
Says Comptroller Gen.
eral Jones.

Iuo' Otate treasurer 5 OIllCe mas
just negotiated loan Of $250,00O
from the Hanover National bank of
New York through the Palmetto Ma
tional bank Of this city. The Palmet-
to bank was the lowest Of number
Of bidders. The rate Of interest is
not stated more definitely than that
it was less than 5 per cent, which
is considered d decidedly favorable
rate in view Of the present state of
the money market, many banks pay
ing more than S per cent for money
in New York. The Sta!c has receiv-
ed money, Oh such note as it ad-
canved from this loan, as low ns 3 7-8
per cent, but that was three years
ago, when market conditions were
favorable.
Both Comptroller General Jones
and State Treasurer Jennings are of
the opinion that the state will have
to borrow $250,000 more before the
end of the year-will have to go to
the end of the $500,OO0 limit fixed
by law-and that next year on ac-
count Of this years levy being re-
duced the borrowing will have to go
merrily on.
AS pointed out by The State some
months ago, the last legislature re-
duced the levy one mill and increased
the appropriations by over 100000.
The result is that in spite Of the in
creased assessed values the deficiency
will be about $190,0O0, in the opin-
ion of Comptroller General Jones.
The habit the State has fallen into
of borrowing yearly to meet current
expenses is costing from $4,000 to
$4,000 in useless interest bills. Last
year the state borrowed $325,000-
100000 in May, $150,00O in June
and $4,000 in August.
The $250,00O just borrowed is on
deposit in the Palmetto bank, but
$KO0,OO0 Of it is to be sent immed-
lately to Charleston, where most of
the State bonds are held.
The States semi-annual interest
bill, due the 1st Of next month, is
$143,OOO. Checks for this will be sent
out as required by statute three
days before the interest is due, in or
der to reach distant holders Of bonds
as nearly on the day it is due as pos
sible. About $4,000 of the amount
borrowed has already been paid to
Clemson and the Citadel and about
$4,000 will be needed for current
expenses for July.
This annual interest account Of
$286,00O goes to meet the interest on
the State 8 bonded debt Of $6,500,0 900,
$6,000,000 Of which bears interest at
the rate of 1-2 per cent. Of the
remainder there are three perpetual
bond issues at per cent.--$58, $780, 80
on account Of Clemson college and
$4,000 each on account Of Clemson
and the negro college at Orangeburg.
This unsatisfactory condition of
State finances is discouraging after
the efforts of Gov. Hayward, Comp.
troller General Jones and others, who
struggled through sE'sral years to
get the Legislature to place the State
on a cash basis and stop the interest
drain on account Of floating debt.
, They persuaded the legislature to in
crease the levy in 1905 to 8 1-2 mills,
but the appropriations were so heavy
and the current expenses had so much
increased that in spite Of the increas-
ed assessed value Of property it was
necessary the following year to bor-
row $325.O00. In 1906 the levy was
put back TO s mills, at which figure
it had been for 10 years. with TIC re
suit that this year the deficiency
will be $180,000. Now for 1907 the
levy is 1-2 mills and the apprapria-
tions are much heavier than they
were last year.
The total taxable property last year
was $249, $4,000. 1t Is not unlikel,
that this will be increased this year
Already the railroad board Of asses
sors has increased the assessments
against the railroads by $32,000,000