The Birmingham age-herald., 1915-11-21

state, I hope to be able to so manage i the states affairs as that the income Will | at least equal the outgo not considering the natural and usual increase in reve-
 nue. This, notwithstanding the fact that l it appears that the incomes of the state
 have been 'reductd in some particulars.
 And while it is not to be absolutely de- pended upon, the experience of the state as estimated for four years under nor nal conditions, shows that the natural | increase in the income of the state IS approximately $3O0,0O0 a year which would be more than sufficient to take care of and pay off the deficit together with the bonds authorized by this act, before they mature. If the issuance of the .$1,50o0O0 of bonds shall be authorized, it woul5 leave a float 1 ing indebtedness of between $7OO,00O and i SS00,000 to be absorbed or liquidated from l the current revenues of the state, and II the ratio of increase should be maintained after this year, this floating debt would be absorbed or liauidated by the maturity of the first bond, which would be in about five yearF; consequently, after the issu' , ance of the bond, the present admlnstfa- ticn would be left a large floating ln- debtedness with which to grapple contln- ually, emphasizing the necessity ot econ- ony in so far as the administration was at liberty to interfere. A continuation or this policy through the succeeding admin istratior,s of the state would retire the entire amount of the snort-time bonds' without the necessity of raising the taxes and without impairing the efficiency of any of the departments of the state orI preventing the state from continuing m ] the advancement of the public school 1n- I terests, the taking care of the worthy Confederate soldiers and the development 1 of it's great institutions. EXPENSES REDUCED
 1 For the first time in many years, dur | ing the month of October of this year, the expenses of the state government nave | been reduced as compared With the cor responding months of former years. inc | indebtedness of the state had been pro- vided for up to the close of the fiscal year, when there were outstanding ob- l legations unpaid amounting to S2,2oo,OOo. | With the new year beginning october large payments become due, the pay ments for October, November and De- cember being the largest of any quarter ! of the fiscal year. The receipts during these months are very small it being the | beginning of the new tax year, and the collections of taxes not being enforcible until January 1, the treasury therefore IS not in position to meet the heavy de- mands made upon them at this time.
 After January 1, when the taxes begin 1 to come in, the payment of warrants that have been carried by financial insti- tutions are maturing and all of the sur plus cash, above the actual running ex- penses of the state, is required to meet these obligations, hence the excess eX- | penses over the revinues during the first three months of the fiscal year must be carried to a period beyond the payment
 of the obligations heretofore incurred, because these warrants must be taken | care of by the treasury when the obl1-
 cations to the institutions which have been taking them mature
 DIFFICULT PROPOSITION
 The procuring of someone to take 1 up and carry the warrants of the state 1 and having authority to borrow on
 1 the promise of the state to pay are
 quite different propositions. In the
 latter case, if the state did not have
 1 the money with which to pay, it might | secure another loan and take up US
 l obligation as evidenced by a note or l extend the payment of the note all
 | ready given In the former, however,
 where warrants are used. they must
 be paid out of the revenues or the
 l fiscal year for which they were issued,
 | and hence you cannot change them
 from one hand to another and there
 by expend liquidation indefinitely. The
 l collection of the revenues Of the state
 | is scattered over a period of l2 months
 and there is no time, under the pres
 ent condition or US lnuepteuHeSS, tHtl
 such indebtedness can be reduced to
 less than $1,500,000. You can therefore
 readily see how difficult it is, under
 the present arrangement for your or
 ficers to meet these obligations or the
 state, especially during the hrst three
 months of the fiscal year.
 Every we'll informed citizen Of thls state is more or less familiar with the condl- tion under which this indebtedness was
 cerated When I came into the governors office. I found this condition here. l knew I would fn1 it before assumed the
 duties of governor, and, as your servant transacting your business to the best or l my ability, am presenting to the people of the state what in my opinion is the best way of handling this difficult proposl-
 tion, without embarrassment to the state without additional burdens to the indi- , vidual axpayer and at the same time to provide for the different institutions re- }, lying upon the state for support, in such manner as not to reduce their efficiency l and in way that may permit the state to go forward in the development Of all :, of it's great ideas and institutions.
 yi It is evident to every thinking man that with conditions as they are. either the , revenues must be materially increased, which can only be done by the collection
 | of more taxes from the people, or the ex- penses of government must be largely re- duced so that the state may be placed upon sound financial basis.
 ON THRESHOLD OF NEW EPOCH T xk tx.1r Al,,< Il. kl,.x