Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-07-13
TREASURY DEFICIT
IS AN ILLUSION
Instead Of Deficit, Ex-Governor
Shows There Is Now Available
$4,000 More Than Necessary
to Meet Ordinary Expenses.

14GU,UOO MOIS 4udu NOSOS00AJ
to Meet Ordinary Expenses.
Former Governor Hoke Smith, Friday,
gave out statement in reply to what ne
calls IAN effort in certain quarters TO
misrepresent the condition Of the state
treasury" In his statement, which Is
printed in full below, Mr.. Smith shows
that the treasury is in excellent condition
and that in reality instead of there being
a deficit in the treasury in the next quar-
ter Of something like 100000, there is, TAX
ing into account the power of the COVER
nor to borrow, 100000 now available more
than sufficient to meet the ordinary ex-
penditures.
The statement follows:
There has been an effort In certain
quarters for several days past to misrep-
resent the condition of the state treas
ury. =. Misleading statements have been
published in the press, and 1 wish again
to call the facts to the attention of the
public.
In my message to the legislature
compared the condition of the treasury on
June 80. 1907, after 1 was inaugurated.
with the condition of the treasury on
June 10. 1909, at the time 1 completed
the message.
from the treasury department has been
made public, making acomparison of the
condition of the treasury on June 70, 1907,
when i was inaugurated, with the condi-
ton of the treasury on June &c, 1903, when
retired from the governors ONCE. !
will discuss these figures, rather than
those In my message, as they apply to the
exact dates under consideration. could
not use them in the message, as 1t was
necessarily prepared several days before
l retired as governor:
This treasury statement shows:
Available cash June %. 1907. >. .S1S9. S75.o4
Available cash June 20. 1909. $500. 1sS. s20. ss
In addition to this available cash
balance on June rs. 1909, were
the near-beer fees, amounting
to-. -. -. -. 5000. 227, 800 "a
These near-beer fees were collected as q
result Of legislation passed at the extra
session of the legislature in the fall OF
1908, and were at that time appropriated
for the purpose of handling the convicts
to prevent renewal of the lease system.
AS the convicts have been successfully
handled without the use of this money,
1t Is now In the treasury available for
use, requiring only a resolution by the
legislature to authorize it's use.
On June 26. 1909, when 1 retired
from office of governor, there
was In the treasury available
cash for Immediate use.... -. .s19S 900 98
Total. 80. .... zee. .... ...... $42O. 221 %
This money was in the treasury. The
legislature will beyond question make the
near-beer money available, and II was
this sum which was left when 1 retired
as governor as against when was inau-
surated the sum OF s1ss, $500.
Omitting these figures entirely, certain
newspapers are using the letter written
by Treasurer Brown to the governor to
create the impression that there will be
a dificit of 800 900 in the treasury during
the next quarter. and they seek to create
the impression that this is an unusual
condition OF affairs, to the discredit of
the management of the states finances
during the past two years.
The letter of Treasurere Brown shows:
Estimated receipts for the third
quarter, l. e., from July ito Oc-
tober l, Of the present year. $3.50, 900. %
Estimated disbursements. ... $780, 900. 90
Available for general purposes
after payment of July inter
est-... -. -. -, ........ A,726. Is
Eear-beer fees in the treasury. or, 800. "a
July Interest,". &C.. .............. las 577.50
Disbursements by the state always ex-
coed receipts during the third quarter OF
each year. 1t is a quarter in which no
heavy collection OF taxes is made and
disbursement of about s150,OOO for interest
on the bonded Indebtedness Of the state
must be made at the first of the quarter.
A NORMAL EXCESS.
An excess OF disbursements over re-
ceipts for this quarter Of the year
amounting to $685. Is a normal excess
for the third quarter.
Treasurer Brown made his estimate
because from the statement of the treas
ury last year for the third quarter it APP
peared that the disbursements exceeded
the receipts $40, 10000
AS stated before, the treasurer in his
estimate of excess of disbursements over
receipts for the present quarter, used the
treasury statement for 1908 as the basis
for his estimate. There are a number of
items of expense not included in that
statement, but there are also a number OF
items of revenue not included in It, which
offset the same and leave the comparison,
taken as a whole, a fair one.
The mistake the treasury alarmists
have made is not to understand that the
interest payment of $145,577.50 is one Of
the disbursements for the quarter, which
0eipS 10 make lLle SACGCu
the receipts.
There was on hand, July I,
before the July interest was
paid. ....... ........... .$l9t ,5oo 20
II the estimated excess of dis
bursements over receipts for the
quarter OF 100000 is correct,
then the disbursements would
exceed during the third quarter
the cash on hand. -. =. .......... 12,296.25
But there Is on hand in the treas
nry from the near-beer money. 221'SSS.4
Deduct the estimated excess OF
disbursements over receipts and
cash for the auarter.........'. 12'ZS0-z'
And the treasury still has on
hand................ 80. ...' .'''.'|z4O'VSo'S'
Which sum would be available In ex-
cess Of what would be required to make
I'D the excess of disbursements over re-
ceiptx during the next three months, and
could be paid at once upon the amounts
due the teachers.
IN GOOD CONDITION.
with this large and unusual surplus
IN hand. and with the power given 10
90 horrov S2O0.0 900, IL Is