The Birmingham age-herald., 1911-06-01
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SOME WEATHER RULES

SOME WEATHER RULES 
 state, and while of course there may be
 unfavorable climatic conditions before
 September. there is no question that the
 crop has made a promising start, and
 that every indication now points to a
 record yield. It is gratifying to note that
 diversifcation continues. and that a large
 acreage has been planted in corn and
 other food crops. The value of farm products in Alabama in 1910 exceeded $780, O0O,OOo as against $62, ,OOo,Oo0 in 1899. an in crease of 119 per cent in Il years.
 Commission Making Good
 Birmingham's commission government lis making good, and is fully Justifying the hopes and expectations of advocates of that system. The commissioners have effected some sweeping economies result ing in saving to the city of more than $100,0O0 year, and in spite of deficiency in revenues of about s1,0000O0, have main- tained cash payments, by floating loans through a local bank to the extent of sSO0,000. Of this amount, the first loan of $500 GOO was at per cent, but because Of keen competition between local banks and abnormally low interest rates in New York, the commissioners were able. month later, to place the remaining $500,000 at 3sl per cent. making an average rate on the entire $sO000O of 42O per cent.
 A large floating debt is a. menace to any corporation, public or private, and the commissioners could not hope to renew these loans indefinitely at such low rates, so they have wisely decided to fund this indebtedness, and will call an election at an early date, at which the voters of Bir- mingham will be asked to authorize two bond issues not to exceed in the aggre gate $1,500000, one issue to provide for funding the floating debt of the city, and the other to secure money for much need ed additions to school and other public utilities. These bonds will run for 30 years and will bear per cent interest.
 Usually low interest rates are now pre- vailing In the large money centers and the present is an opportune time for floating these bonds. This bank is not a creditor of the city and has no selfish interest in the outcome of the election, but it feels that 1t cannot too strongly urge upon the public the importance of a favorable vote on the proposed bond issues.
 State Affairs
 The financial affairs of the state of Ala bama are beginning to cause some con cern. The present administration in- herited a deficiency which seems to have never been definitely determined, but which has been estimated to be anywhere from s"Oo,0oo to $7Oo,0o0. The legislature was not niggardly in it's appropriations, some of which the governor Is authorized to withhold. and although the states reve- Al -fpic enforcement of the statutory 60 per cent assessment basis 1t seems probable that the administration will be confronted with an empty treasury in September and 1t Is not unlikely that similar conditions will exist every year during the term Of the present administration.
 According to press dispatches the gover- nor contemplates arranging in New York for a temporary loan to be available in October, at which time he is reported to have promised to pay over some of the educational appropriations. which the leg islature left to his discretion. It is diffi- cult to see how the governor can ar range to borrow more than $100,000, as the |constitution expressly forbids an increase
 in the states indebtedness, except that the governor may be authorized to ar- range temporary loans not to exceed $SO0,- 900, to meet a deficiency in the treasury and until the same Is paid no new loans shall be negotiated The legislature has authorized temporary loans only to the extent of s100000, which sum therefore constitutes the limit that the state can legally borrow Recourse, however. can be had to the following methods of tiding over the state treasury: First, the tenn porary loan of siO0,000 authorized by law; second, the purchase of auditors war rants on the state treasurer by banks; third, frequent settlemets after October 1 by tax collectors; fourth, cashing and holding of maturing coupons by the states fiscal agent in New York. These are all makeshifts, however. and add no real strength to the treasury Besides, it is doubtful if there is any legal authority for payment of interest on state treasury warrants purchased and held by banks The purchase of these warrants, therefore, is not attractive a banking proposi- ton, and would hardly appeal to New York bankers. Should recourse be had to this method of financing, the state will no doubt have to depend upon home institu- tions. The continuation of this kind of