Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-01-20
HOKE SMITH TELLS HOW TO
IMPROVE STATES FINANCES
Increase Borrowing Power of Governor to S5OOOOO and Ad-
vance Payment of Taxes by Public Service Companies
Would Brine S750000 When Badly Needed

enue and it's Appropriations. were very
much less in 1871 than they are now.
The proper management OF the states
finances does not materially differ from
the proper management Of the finances
OF any other large business enterprise.
and as large business enterprises need at
some periods of the year a borrowing
power proportioned to the volume OF bus
mess done. so the state can properly be
given larger borrowing power now than
was permitted by the constitution Of 1871
BY increasing tire temporary borrow
ing power of the state TO s500,000,t the
opportunity viii be given to the COVER
nor. or those authorized TO use this
power to provide funds during such por-
tons OF the year as the treasury may
need to be replenishsd7 If the further
SUGGESTION have made OF advancing
the time for Ts4yfng railroad and public
service companies taxes Is carried out
The loans should be made for only. a
short period OF time, TO be repaid as
soon as the money comes in from ad
vaIorem taxes.
Railroads and subtle service companies
make their returns 70 the comptroller
general and epayathefF taxes directly to
me state treasurer. 1.-The money which
they pay forstaszes Is Immediately avail
able as il ia not required to go through
ehe hands OF locaE4ax collector before
reaching the state treasurer.
These companies pay. now, about s75O,OOo
a year taxes. o.
December % has been made the time
for payment OF taxes generally because
50 large a number Of our taxpayers are
farmers and they depend upon their fall
crops for cash with which to meet their
taxes. q ~
This reason does not apply to rail-
roads and public service companies. One
period OF the year would suit them for
payment about as well as any other
period.
BY advancing the time for payment of
taxes on the part of these companies to
about the first of September, the state
would receive their taxes three months
earlier than il is now collected, and it
would come at time when the state
especially needs the money.
do not think It would be a hard
ship upon these companies to advance
the period of payment for their taxes
to September /, and5.I do not believe
they would Object 10 such change, but
II it is thought such an advance would
be a discrimination against them as other
taxpayers are not required to pay their
taxes until December 20, then discount
OF / per cent might be allowed for the
earlier payment
With $4,000 OF more paid into the
treasury by the railroads and public
service companies on September !, and
with a temporary borrowing power of
$4,000 given to the state, and with APP
preparations properly guarded so that
they wIlI not exceed the revenue of the
state. there should be no dificulty in
future to meet every liability OF the
state promptly and we will no longer
have the InekcEisabls lPfaetice Of employ
ing school teachers and not promptly
paying their sslarieSt ~ II SD
8 To further facilitate the intelligent
handling OF the business of the state, 1
suggest that the governor, the comptrol-
Ter general and the. treasurer be made
a finance board with. q general super
vision over the colleetiol OF taxes, the
deposit of money IN banks and the ,bor-
rowing Of money when that is neces-
sary. ~ses .--fss r.<rte
This board could also wisely be given
authority to employ an auditor and one
or more assistants The-state today has
generals Office and the streasurer's Office
system BY which the comptroller
are checked against each other. but there
is no audit system of any kind by the
state OF disbursements OF money by the
various institutions and agencies that
spend the money and in whose favor
warrants are drawn.
Nearly every business man has reaIiz-
ed the benefit which comes from care
fui system of auditing. The advantages
are not limited 10 the prevention OF
defalcations.
A careful auditing system discloses
unintentional waste and unwise expendi-
lures. Such a system adopted by the
state would prove a saving far beyond
a
methods of the state in the line Of
progress which has been made by pri-
waite business enterprises.
4. The governor and the state house
officers should be inangurated the first
OF January and should have charge Of
the business OF the state for the entire
fiscal year.
To inaugurate the governor the last
week in June, when half of the year is
over and at the very time when the
finances of the state begin to be short,
is to put upon him the responsibility of
intelligentiy handling the finances of the
state without the opportunity to prepare
his work during the months when the
treasury is full.
CHANGE OF INAUGURATION.
There are a number of ways by which
the Inauguration of the governor and
installation of the state house officers
can De Changed 10 the uTSl OF january.
Under the constitution of the state the
governor and most of the state house
officers can only take Office after the
legislature has met ana declared the re-
suit of the election. 80 ~ sass
/ If the people of the state are welded
+ to summer sessions, the plan I would
suggest is to let the Legislature meet
the first Tuesday In January after the
regular election. and sit for ten days.
During this. period both bodies or the
! Legislatures could organize. DECLARE the re-
suit Of the election as TO governor and
I slate house. officers, sinaUgurate7 the gov
eTnor. elect a United States senator when
an election is. necessary. appoint commit
( tees. Introduce and refer important Leg
1 islatioR. adjourn TO. the first Monday In
July, and then sit for 40 days. z-s-,.f
The number Of days that the Negisla-
ture would sit for the year would not
be Increased. The so days would be di-
vided into two sessions. The sessions of
the legislature during the second year
could meet as heretofore on the last
Wednesday in June.
ADVANTAGES EXCEED EXPENSE.
This change as to the sessions of the
] farisfaf.tra for fha first wear after their.