The Birmingham age-herald., 1911-01-18
DiShIlrSe-

Total years . SIS, TIP. 74s 20 s20, 233, ,S54. 5s
 The total excess of disbursements over income for the four years being $1,521,- 1cS.93.
 The cash in the treasury at close of business September 90, 1910, as shown by the reports of the treasurer and of the auditor, taking outstanding warrants into consideration. was s370, 739.34. As the state treasurer does not, In the usual course of business, receive remittances from the tax collectors in the various counties until after January l, it has teen necessary during the months of November and December for the past two years to resort to unusual expe- dients to enable the treasury td meet its obligations during those months. Un- der the constitution S3o0,0O0 is fixed as the limit that the state can borrow on | its note, but arrangements were made with various banking institutions to pur- 1 chase warrants drawn on the state treas ury and to hold maturing coupons on state bonds, so that the obligations of the state have been promptly met and it's credit maintained.
 The legislature that convened in 1907 found a large surplus in the treasury and it made more liberal appropriations, chiefly for educational purposes and for pensions to the old soldiers, than any preceding legislature had done The ap- proprations made by the last legisla- ture were in the main meritorious and tfere is no disposition in this messag to criticise any of the expenditures made Y,ur attention, however, is called to the fact that your immediate predecessors in making appropriations anticipated. in a great measure the requirements and the resources of the state for a period of about eight years instead of four. so that strict economy will be necessary on your part to enable the present admin lstration to leave a fair working balance in the treasury. We should avoid. if possible, any increase in the burdens of taxation. With the normal growth of the state, taxable values will be ample for ordinary requirements It should be borne in mind that the state govern ment belongs to the people; that taxes, being collected from the people, should | hc expended for their protection and benefit. An ideal condition, therefore. would be to obtain revenue just suf- fcient to meet the requirements of a | progressive state, avoiding a surplus as well as a deficit.
 | There has been tendency in recent | years toward prodigality in national. state and municipal affairs, but there is Tow a universal demand on the part Of | the people for retrenchment.
 The total amount of general taxes paid into the state treasury during the year 1890 was sl,042, ,61S.O3, against s5,36s.14424 ln 1910, an increase of over 425 per cent ll the 70 years, during which time the population has increased less than 40 per cent. Yet during the same period there has been an enormous increase in tax able values and wealth. Our entire rev. erue system needs careful revision Men who will scrupulously comply with ev- cry financial obligation, are too much in :. cllned to evade the payment of what they honestly owe the tax collector. The great bulk of personal property escapes taxation and the necessary result Is that l real estate must bear more than it's just proportion of the burden
 I suggest that a joint committee of the senate and house be appointed to carefully investigate and report the pres ent financial condition of the state. ITn- Gil this is done we cannot intelligently determine what reduction should be made ia our expenditures. The state now faces q deficit and it's exact amount should | be ascertaned
 l State Banks
 The growth of the banks of Alabama. both in numbers and in deposits. has
 
 sion of the state in population and in- dustrial development. Unfortunately this growth has been marred in the recent past by some failures of a most inexcus- able and dsgraceful description and | through the shameless violation of the commonest rules of sound banking I am persuaded that these failures and all the harm to many hundreds of depos itors, could have, and would have been prevented by a department of banking properly equipped and clothed with au. l. thority and charged with responsibility
 It is the well settled policy of the gen. eral government and of the states tc provide by law for the regulation of all
 trusts and trustees and wherever any rerson or corporation is given authority ' to invite and to handle the money oi
 the people, the general government and , the states accept a corresponding duty to guard and protect the 1T nocent and
 unsuspecting multitude from abuse oi
 their confidence. It is we'll recognize
 that banks are one of the most import. ant agencies of business in promoting the . l md ,f