Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-03-24

borrowed tnan mas New York, the
Empire State of the North" thus
adding another half million dol
lars 2 year 10 the taxes of the
people OF our State.
Now. in view of these few lets
set down hurriedly and in a very
general way, 1 propose to have
compiled as rapidly as possible
all data bearing upon conditions
in Georgia at the present time.
and lay them before the Legisla-
ture al the next session. At the
same time 1 realize that merely
10 point out the unfortunate facts
might do no more than TO make
the people who bear the burden
feel unhappy because OF the bur
den, unless some plan can be
presented to change this situa-
ton. This shall attempt to do
and 1 an confident that a great
change can be speedily made
which Will result in wonderful
good
Other States Active.
I find that some other States
have already broken very ad-
vanced ground. and have bene-
fited immensely from The expert
ment- For instance, it has come
70 my attention that. to use prob
ably the best illustration, Massa-
chusetts has already made won
derful changes in this respect. In
1855 the State committed itself
70 the policy Of loaning its credit
to minor civil divisions for max
ing certain improvements. The
debt assumed on this account is
termed Contingent" while that
incurred for state purposes
capitol building, insane and 9TH
er institutiOns-is termed dis
trict-" over ten years ago the
direct debt Of Massachusetts
amounted to s27. 900. 900, and the
contingent debt which had been
incurred amounted TO about s57,-
100000. The various cities and
towns benefited refunded this
amount 10 the State by means OF
sinking fund assessments levied
by State Boards Of Commission
ers. and paid at the same time
ard in the same manner as Stats
taxes, the annual payments being
sufficient to accumulate, al the
maturity OF the bonds, a fund
equal TO their face value. The an
nusl interest charges on these
loans are borne by the munich
palities and are paid in the same
manner as the sinking fund in
stallments- The money raised in
this method by the munlclpali-
ties has been used for the build
ing OF armories. the establishing
Of parks. the building OF sewerage
systems. the construction OF wa
ter works. etc. Indeed, the State
goes farther than this and in the
case Of Metropolitan Park, loans
the State assumes One-half OF the
amounts borrowed. and the bene-
fitted civil division assumes one
half. il being believed that the
State is benefited by the estab-
lishment OF these park districts.
BY the accumulation Of a sink
ing fund in small annual Install
ments the debt Itself is gradually
wiped out so that at the maturity
OF the bonds no debt exists
Investing Sinking Fund.
1 believe that we have here one
Of the greatest opportunities
which can come 10 Us in a llfs-
time. u the State OF Georgia.
BY a change in her ConstituttSz.
could assume responsibility for
these bonds Al the rate Of inter
est now current probably 90 per
cent on the averaged. and refunA
and resell them a. q rate whieh
the state could command fproh-
ably 80 per cent on the AVERAGE
the state could in fifty years buiIa
Up a sinking fund BY the aocumu-
lation from the Interest saved
sufficient 10 entirely wipe out the
present city and county dsbs.
without receiving any interest or
the sinking fund as d accumu-
lated, and u the sinking fund
were properly invested A., say ;
per cent. and the amount com
pounded. IL would be sufficient
in about twenty i've years 10 pay
or the entire debt In contrast
the people viii continue under the
present system 20 pay the hign
rate o. interest. and after tWeu-
ty-fve or hfty years the debt
will be as great as nov II the
state should taae over these
debts provide. as In Masszchu-
sstts and other States for sPs-
ctaI assessments on each county.
city and town for tutsrss, ami a
sinking fund IN pr1paTtIon 70
debt. and issue ClutInEsnt-
bonds With the guaranty q ths
State behind them investors
would come 20 the STATE seeking
bonds knowing that they wers
absolutely safe and sure whera-
as now our county and citF al