The Muskogee cimeter. [volume] (Muskogee, Indian Territory, Okla.) 1901-19??, 1916-11-25

James C. Rice. Of Chattanooga. after
. visit and personal investigation o!
five Southern States. declares In tn,
Meinphis Herald that prohibition has
nearly bankruItei them. In . letter
10 \. l.. Rowe. editor OF the Herald.
Rico says he has tho official records
to back him Up. Tho article says:
The policy prevailing In a number
OF Southern States of enactlng laws
that dostroy revenue.bearln. property
and failure or refusal on the part Of
tie legislatures to provide ways and
means for covering the loss back into
the public treasures. through other
forms OF taxation. Is causing public
concern and Z great deal OF worry on
the part OF pablic officials.
Resort to bond issues and other
srrms of borrowing has become moro
frelue'.s OF Tecent years to pay deficits
In public revenues, and many counties
In some OF the states have suffered
their warrants TO depreciate In vaiue
until the discount on them IL as high
as 20 Fer cent. TllS depreciation
causes much loss to the taxpayers, for
the reason that when contractors make
bids on public work they include the
discount on the warrants In their bids.
Conducting Business On Credit.
Three Southern States are now con-
ducting their business on q credit basis
In the absence OF sufficient revenue In
their treasures TO meet the current cx-
renses OF government. All five are un.
der prohibition laws that deprived tho
public treasures OF revenues approx.
mating 100000. year each. without
making any improvement. SO far as
records show. in public morals.
For example Alabama has had
trouble with Its finances ever since tho
state began experimenting with pro.
hibition. The deficit In the revenues
OF the state at present Is about $4,000,
900. and 1t Ia being Increased. The
state has q bonded debt already ap
proxlmat.ng sll.oo0.0OO, and II the
floating delcit Is added, the total debt
OF the state Is about $4,000, 900.
Early In the present yoar. Governor
Henderson went 10 Now York and
made arrangements with large nnan
cial Institution to pay the current war
rants OF tho state that could not be
paid out OF tho treasury. Interest II
paid On these warrants from tho date
OF Issue until they are taken up by tn.
state from proceeds OF future
bond Issues. The next leg.sla
ture OF Alabama will be ask.
e. TO authorize bond issue In
sufficient amount to cover the deficit
In state revenues, and the amount will
be about S1.0oo,o00. Really, Governor
Henderson recommended a bond issue
In that amount to the last legislature,
but Sl,500,000 was as far as the legis.
laturc would go In that direction. A
provision was incorporated In the
enabling act. submitting the bond Is.
suc TO q vote OF the people. In the
referendum tho Issue was defeated,
and the administration was left with
BIG debt on its hands with nothing
to meet il.
Arkansas In Chaotic Condition.
The fiscal Affairs Of the state o.
Arkansas are In such chaotic condition
that It IL difficult to say with certainty
how much that state owes. II 10 dit
fcult TO determine how much of the In.
debtedness 10 due to prohibition laws.
However, It is q recorded fact that
when the prohibition law OF that state
deprived the treasury OF near q half
million dollars year that collapse
OF public credit resulted. 0Iovernor
Hayes was forced to veto many needed