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


Would it not be a great tning
for the people of Georgia II the
present debt of the State, the
counties and the Incorporated
cities. towns and villages,
amounting to nearly, If not quite
$50, 900, 900. could be wiped out in
A period of 25 years without any
increase in taxation for that pur-
pose. and without any special as
sessments? Would 1t not De
worth while if future county ana
municipal bonds could be foated
practically without cost in the
wav of commissions, ETC. and at
the same time at rate or IN
terest from ! to per cent lower
than at present? With the pres
ent debt-as now estimated-tnis
alone would amount to a saving
Of from half million to one
million dollars a year. l believe
this can be done.
One Of the most interesting as
well as one of the most important
Investigations which Is assigned
to my bureau by Congress is re-
ferred to as the inquiry, Wealth
Debt and Taxation" The inves-
tigation covers each State in the
United States by counties, cities
towns and villages and even
smaller subdivisions, 1t has to
do with the assessed value or all
property taxed, whether "perst n
al, or real" 1t also has TO DO
with the true value of property,
whether assessed for taxation or
exempt. The same inquiry in
wolves a detailed study of debt by
character of outstanding obllga-
tons, character and amount OF
funds and investments held by
each unit of government, ana
sinking fund assets accumulated
to offset debt 1t covers also all
details with reference to the an
nual cost of government, whether
national, State, county or city,
and this involves an analysis OF
the sources of revenue as we'll as
the amounts collected from each
source: also the expenditures and
the PURPOSES for which the public
money is used.
Obligations of Georgia.
one of the most significant
things which has come to my at
-ention in connection with this
inquiry is the fact that len years
ago over one hundred cities and
towns in Georgia had an out
standing Indebtedness which
amounted to about $1S,OOO,O00,
with almost no sinking fund as
sets. The same general situation
prevailed among the counties.
The investigation which | am
now undertaking for the entire
United States. including Georgia,
shows that the outstanding obli-
cations of Georgia, . including
those of the counties and cities,
towns and villages, are rapidly
increasing, and little or no provi-
sion is being made for their re-
duction and final discharge in the
form OF sinking funds. 1t would
not surprise me if, when the in
vestigation now under way is
completed the reports showed
total debt of this character
amounting to $50,OOO,OOO for our
one State.
But the most unfortunate fea-
ture of the present situation is
the fact that in selling bonds and
negotiating in general for funds
from outside districts the coun- =
ties and cities are forced to eX-
pend an immense amount of
money in the form of commits
sions and other costs. on top OF
this, the rates of interest paid are
excessive, because the outside in
weston is forced at great expense
to look into the Constitutionality
of the bonds, the character of the
local authority under which they
were issued, he foundation or Sc
curity for the same. the method
OF repayment at maturity, etc,
and when the issue is small, as it
necessarily must be for most in
dividual counties, cities and
towns. it is not surprising that
the rates are so high and the
costs, including commissions, etc,
are so great, frequently amount
ing to very large percentage Of
the total issue.
An inspection of the latests re-
ports from Georgia shows that on
the average the counties, cities
and towns pay from l to 2 per
cent more for their money than
does the state. Thus, when the
State gets money for from to
per cent the counties, cities
and towns pay on the average
from 3 to 6 per cent. which is
from % to 80 per cent more than
the rate paid by the State. You
will see at once that If the pres
ent debt Of the counties, cities.
and towns amounts to $50 900. 900.