The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1916-12-22
Issue Emergency Bonds
To Pay Dry DeGcit
.SoufhernSto fesErcu-Creot
Debt Under Prohibition

Nashville, Tenn, Sept. 13.-"That
the adoption of prohibition by a mum
Der of Southern States during the
past few years has largely Increase
bonded Indebtedness Of the States,
counties and cities," says a local
authority, dis shown by statistics
gathered here By parties interested
in such secu1ities The States mos
affected by the prohibitive laws are
Tennessee, Alabama, Georgia, North
Carolina, Mississippi and West Vir-
ginia."
Before tie prohibition laws were
passed, an average Southern State
collected from the LIQUOR traffic in
privileges licenses and property tax n
half million dollars year. Under
Southern tx laws TIC counties and
cities were agthor.gad TO collect taxes
from the same so-lce equal 20 thos-
collected, c. imposed, by the Stat
So, while a Statewide prohibit
law destroys State revenue IL Z.
destroys revenues of counties anu
cities.
"Since adopting prohibition, u
State of Tennessee has been cor
PEELED to increase its bonded de6'
more than million, and To increas
taxation. SIX years ago the bonde
debt Of the State was approXiDate
$11,OOO,OOO. At the present tine
IS about SIC 100000, counting sOi
notes that are TO be funded Int
thirty year bonds.
"The city of Nashville sold bon
early III the present year to ts.-
amount Of $9S7 600 to make w
deficit in lis revenues, caused, accorc-
ing 20 the officials of the city, 0y the
prohibition law cutting off revenue
from the liquor traffic. At the same
time an issue of $625,000 was offered
to MAKE up deficit in the public
school fund.
memphis, Chattanooga and Knox-
vile have also experienced trouble
with their finances, and bonds were
issued to cover deficits. The books OF
the city of Memphis are now befng
audited to ascertain how much thss
city owes. Chattanooea Issued bonds
to the amount of $250,0OO to cover
floating Indebtedness caused by loss
of revenue through the operations OF
the prohibition law. Knoxville lost
about $4,000 q year by the same
law, and this loss has been repaired
by higher taxes or borrowing. The
State, counties and cities OF Ten
nessee have issued bonds to the ap-
proximate amount of Sl0,000,000,
largely to pay floating debts, since
prohibition was adopted.
"0nly a few weeks ago, Governor
Henderson Of Alabama sent mes
sage to the Legis' ature IN which he
called attention to a deficit of ap-
proximately S3,0G0,000 in the rev.
enues OF that State. He recon-
mended that bonds be issued % ny it.
Alabama's deficit has been hanging
on for several years, originating IN
der a prohibition administrpt tion.
The increase in bondcd Indebtedness
in that State has been equally as
]: ree as in Tennessee.
GEORGIA sold bonds to the amount
of $3.500, 600 last fall to pay its foat-
ing debts. North Carolina was driven
to bond issue last year @ s. ,500,00
to pay floating debts, the oencit IN heJ
revenues being about what h21 been
lost through the operation Of the pre-.
hibition> law.
Mississippi for some time has beer
discussing q bond issue to cover e
deficit that exis.S III her revenues
The proposition n that Stacc IS "a
issue bonds TO the amount O. SEQ :
600. 1t Is we'll known that 4. nm cI
of these Southern States are OF tn
London slow list because of Scne tx
faults IN the past and t'-cir secur;-
ties are not considered gilt edged iI
some markets.
"West Virginia has just chanCe
the custom of taking care OF dcaci',
in revenues. Finding that prohibi-
tion laws had caused n less of $3.50,
600 a year 10 the State treasury
Governor Hatfield recommended (
the Legislature that taxes be n
creased 20 cover the loss. Three S.
sionS of the Legislature were noccs
sary 10 get satisfactory increase CT
corporations engaged In developing
the resources OF the State. How
ever. the tax rate or real estate va
increased from six nils C1 the d5lla
to fourteen mills. Honey ) beir'
borrowed from tirne t. time on snoI
time notes at nolk - ri tAe s-ct
Government until returns are TC
ceived from TIE rev tax loa 1t ~
be necass2r- for he stale r lnr
row sonlet'iag 4 excess of al
million dollars before taxes ean y
collected und tie new law.
at IS considered notcUoi ~ se"
that all of t.e Southern Se.es ho
have adOpte' prohibition =, = s
policy re e..lc t-s
finances. Hov slecA < -. lcrse
increased psbfe eet .s 5,c
TO the proa zion .lHa -et