The Birmingham age-herald., 1917-06-24
ALABADlA,S FINANCIAL HISTORY THROWS LIGHT ON NEW PROBLEMS Financial Expert Drifting and Points Out Import Having Able Business Men in Executive and Legislative
 During Administration

This debt originated in the states con
 nection with the old State bank.
 Tn 1861 the legislature appropriated $500, 900 for the Confectionery, the Confederate
 government levied a tax of S2,OOO,OOO against Alabama, and in addition the state issued $I, ,50O, 600 to aid the Confed- eracy making total war debt of s4,O0o. OCO. This made the total debt of the state S9,000,O00 in 1865.
 The constitutional convention of 1865 re- pudiated the s4OOO,OOO debt to aid the Confederacy, but the original $5,0O0,00 debt remained
 The constitutional convention of 1865 convened soon after the termination of the Civil war, with all of it's destruction, devastation and desolatioa, and the com plete demoralzation and disorganization of our state government
 Then followed the period of reconstruc- ton, which practically bankrupted the state
 From 1865 to 1874 nine years, the state debt was increased in round numbers from 5000, GOO to $30,0G0,000, an increase of s25, ,0O0, 0C0
 Most of this increase was for state aid in the construction of railroads.
 There has been much controversy as to the exact amount of the debt in 1874, as there is no le-ai record of the reglstra- tion of many of the bonds issued. The committee appointed during Governor Houston's administration to adjust and liqudate the state debt reported the di- rect and contingent debt to be $3,03 563.
 This debt was adjusted and compro- missed in 1876 for $9, ,67S, as follows:
 Old state debt, $5,034713 debt incurred since 1S6S $3,091 ,210; debt incurred for railroads, $1,542,5O0 cotton certificates, $37, ,255; total, $9,705,67s. The constitution .of 1876 ratified and confirmed this compromise and adjust ment of the state debt and provided that the debt of the state should never ex- ceed $10OO0,OOO
 This provision has been retained in all subsequent constitutions. In 1906, under the administration of Governor Jelks there was a renewal and redemption or the bonds of 1876 and the
 state debt was reduced from $9,705,67S to S9,057, GOO, a reduction of $64S, ,67S. The present bonded debt of the state is $9,O570O0, upon which $357, ,450 intEest s paid annually.
 From 1874 to 1907 there was much 1m- provement in the financial condition and management of the state. In this connection a statement of the receipts disbursements and assessments of the several administrations from 1874 will be interesting. Until 1884, the state treasurers never kept record of the daily balances in the treasury. and it is
 difficult to ascertain the exact amount in the treasury on the date of the inau- 1 gura tion of the governor prior to 1894. The fiscal years do not show exactly the | assessments, receipts and disbursements of any administration, as the fiscal year begins October l. and until 1901, new administration begun in November or De- i cernber. and since 1901 they have com | menced in January.
 | Governor Houston was inaugurated in l November, 1874.
 | On October 1, 1874, there was $2S9,- | 46422 in the state treasury. l In 1875, the first year of Governor Houston's administration, the assess ments, receipts and disbursements were 1 as follows
 | Assessments. s109,2 ,20S.7S4.s7; re-