Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-03-24
How Georgia MayWipe Out All
Outstanding Indebtedness
Director Harris Offers a Suggestion Concerning
the Finances of the State and
Its Towns and Cities.
Rv WILLIAM J. HARRIS.
Director Bureau Of the Census.

Would /, not be great thins
for the people OF Georgia II the
present debt o. the state. 'ne
counties and the Incorporated
cities towns and villages
amounting to nearly. II not quite
$50. 600 600. could he wiped out IN
neriod OF . years without any
increase in taxation for that Pur-
pose and without any special as
sessments? Would it not ne
worth while il future county ana
municipal bonds could be Hoa'eu
practically without cost in the
vav OF commissions, etc. ana al
the same time at a rate OF IN
terest from l 10 > per cent lower
than at present With the pres
ent debt-as now estimated-thiS
alone would amount to saving
Of from half a million 70 one
million dollars a year. l oelieNs
this can be done
one of the mos; interesting as
we'll as one OF the most important
investigations which Is assigned
to nv bureau by Congress Is re
ferred to as the inquiry. w ealtn'
Debt and Taxation The inves-
tigation covers each State IN the
United States by counties, cities
towns and villages and even
smaller subdivisions. II mas 10
do with the assessed value OF al
propertv taxed. whether 'persc n
al or real. 1t also has TO GO
With the true value OF property,
whether assessed for taxation or
exempt. The same inquiry IN
wolves a detailed study OF DEBT oE
character of outstanding OolIga-
tions, character and amount OF
funds and investments held oy
each unit of government, and
sinking fund assets accumulated
10 offset debt. II covers also al
details with reference to the an
nuaI cost OF government, whether
national, State, county or city
and this involves an analysis OF
the sources Of revenue as well 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
,sntion in connection with this
inquiry is the fact that zen years
ago over one hundred cities and
towns in Georgia had an out
standing indebtedness which
amounted 10 about Sls-oue-eoV'
with almost no sinking fund as
sets. The same general SITUATION
prevailed among the counties
The investigation which l am
now undertaking for the entlre
United States. including Georgia
shows that the outstanding OOii-
cations of Georgia, including
those Of the counties and cities,
towns and villages, are rspioly
increasing. and little or no proVi-
sion Is being made for their re
ductfon and final discharge In the
form of sinking funds Il would
not surprise me il. when the in
vestixation now under way IS
completed. the reports showed a
totsI debt OF this character
amounting TO s50.Oo0.Ooo for our
one State.
But the most unfortunate Tea
tYre OF the present situation IS
the fact that in selling bonds and
negotiating in general for FUNDS
from outside districts the ecun-
ties and cities are forced to ex-
mend an immense amount o.
money in the form % commits
zfons 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 constitutionallty
Of the bonds. the character % the
local authority uader which they
we're issued the foundation or -
~rtritv for the same the method
OF repayment at maturity. etc.
and when the issue Is small as Il
necessarily must be for most in
dividuaI counties. cities and
towns. il is not surprising that
tine rates are so high and the
costs. including commissions. etc
are so great, frequently amount
ing TO a very large percentage OF
the total issue.
An inspection OF the Iatests re
ports from Georgia shows that on
the average the counties, cities
and towns pay from 10 : per
cent more for their money than
does the state. Thus, when the
state gets money for from ) to
A per cent, the counties, cities
and towns pay on the average
from 70 per cent, which IS
from % to 50 per cent more than