The Birmingham age-herald., 1916-01-10
BEST INTEREST OF STATE SERVED BY ISSUANCE OF BONDS Ex-Governor Jelks Effectu- ally Answers Arguments That Rate Is Too High BOND ISSUE SOUND
 FINANCIAL WISDOM State Not in a Position to Borrow Money, Says Mir. Jelks, Who
 Declares Bonds Would
 Be Cheaper

William D. Jelks, former governor of Alabama, whose administration is noted for the successful manner in which the finances of the state were administered, is an advocate of the bond issue Gov ernor Jelks points out that the deficit at the beginning of the fiscal year was more than $2,250000. It is impossible for the state to borrow enough money even for a short time to take care of this pressing indebtedness, according to Governor Jelks, and even if it were possible for such a | loan to be made the bonds would be cheaper. Governor Jelks in his prepared statement, voices his antipathy to the is- suance of bonds, as shown by the record of his administration when the state re- tired and burned more than $500, coo of old state bonds But under the circumstances now existing, he holds the opinion that sound financial wisdom dictates that the best interests of the state will be served by the issuance of these bonds.
 Governor Jelks in his statement answers very effectually the argument that the rate of interest provided in the bonds is too high, and at the same time lie points out the difficulties of taking care of the pressing indebtedness at this time with out the bonds. He goes into the details of the state finances, shows the income and the necessary disbursements, and upon these figures bases his claim tha the bond issue is for the best interests of the voters of Alabama The statement of Governor Jelks in full follows:
 Editor Accidentally Dear Sir: Will you allow me to contribute line to the bond controversy?
 The state examiner has shown that the deficit in the treasury last October 1, beginning of the fiscal year, was $2, ,236, ,OO0 The figures are approximately correct. There has been no effort on the part of those opposing the bond issue to dispute them
 Governor Henderson asks the people of the state to allow him to sell and issue bonds in the sum of $1, ,5OO,OOO and promises to try and see that the further shortage of $7OO.00O is taken care of by the savings Of the administration in the coming three years. It seems to me a reasonable re- quest.
 
 tax is 61s mills only; that mills go to the schools and mill to the old soldiers, and it must be remembered that the in- terest on the public debt and the cost of maintenance of the Hospitals for the In sane and Blind take another mill. The fund out of which this deficit must be cared for gets only IF mills of the total levy. There is an additional income from licenses, but inasmuch as this is prob- j0F npxrf ffox- ing item, we need not consider it; there is further to be sure a net income from the convict department That income will not be approximately larger than the average income for the past five years. This income had never exceeded $50 net when the Jelks administration went into office, but did amount to $40O,OOO net when that administration went out of of fice We may treat the convict item. then, as we do the item of license, and assume it will not be appreciably greater than heretofore; and disbursements cover Ing both items have been abundantly pro- vlded to cover the aggregate income from them. Any treasury deficit made up, then. must be made up out of the income of 11a mills on the total assessment; so that to pay $l on the deficit there must be levied at least $4 in direct taxes
 Governor Henderson says he will talxe
 
 so he must collect from the taxpayers more than $3,000,000 in three years in excess of previous levies. That will be enough If he should consider talk ing care of the whole deficit in three years there must be levied an assess ment which will bring in four times as much as the amount of the deficit or sum of about $9,000,000, $3,OOO 900 extra each year. We want no increa SC in taxes. All the people clamor for equalization of taxes. We have dreamed Of equalization of taxes for 100 years While we hope for equalization, we do not expect any increased burden of taxation, nor would the people of the state suffer increases with equanimity.
 We mustspay by bonds or we cannot pay at all. The governor of the state cannot borrow s2.O0O,OOO from any source. I am amply fortified in this opinion by bankers of this city. The bankers of the state have all recog- nized this, and a large majority of them, I understand, and notably here in Bir- mingham, favor the issuance of the bonds. I suggest to any hesitatins voter that he confer with his banker The banker will tell such voter that the governor cannot borrow a very large amount, and in the present di- vided condition of our people that he may not be able to borrow small part of the deficit It must be remembered that taxpayer may consider that in- terest on warrants is unconstitutional. taking it into his head to mandamus the treasurer from paying interest,