The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-01-23
DEPLORABLE FINANCIAL
CONDITION OF THE STATE

Treasurer's Report Most Important
Matter Confronting Assembly. s40,-
600 Borrowed for Bo0ze-Hunt and
Added to Taxpayers Staggering
Burden.
Columbia, Jan. 19-The general
assembly having adjourned over from
yesterday afternoon until Monday
night at o'clock, in order to take
advantage of the invitation to visit
Winthrop college today, there was
an atmosphere of quietitude about the
State capitol, in strong contrast to
the busy scenes of the past two weeks.
When the legislature conyenes next
week it will receive the report Of
State Treasurer S. T. Carter The
facts which will be recited in this re-
port have already been called atten-
tion to in this correspondence. eve
regret, however. to report" says the
State treasurer, on behalf of the State
finance committee. composed Of the
governor, comptroller general and
State treasurer, that the snount au-
thorized to be borrowed was more
than s30Oo0O short of the amount
necessary to meet the appropriations" :"
Seven hundred thousand was au-
thorized to be borrowed, under the au-
thority Of the appropriation act OF
1916.
"In addition to this loan of $780,
600, and claims Of about $3U0,000 tax
en- care of by banks above referred
to- the report says, "the officers bor-
rowed $4,000 for enforcement of the
prohibition law.
The heavy loan to the State hospi-
tai for the insane was alse called at
tention to.
eIt became necessary" says Treas
arer Carter, "to call upon some of the
banks to carry claims for State in
stitutions until sufficient taxes with
which to meet them could be collected.
The banks responded promptly to the
call of the State" etc.
Summing up" he says, eve find
it was necessary to borrow or arrange
for funds to carry on the government
until taxes We're collected" giving
the figures, aggregating s1,120,0 ,00o."
Treasurer Carter calls this an
enormous total" /
'To meet all obligations promptly,
authority should be given to borrow
approximately one and quarter mil
lion dollars, in anticipation of the.
collection of taxes to be levied for
the year 1917" he says.
Treasurer Carter says that he deems
it his duty, with the conditions now
confronting us, to suggest to the law
makers that something be done to.
check this rapidly increasing con-
of the surplus fund" |
Further in his report he says that
*'money will have to he borrowed
on or before the 1st of April and un-
less appropriations are reduced, OF :
more revenue provided, We will have
to borrow in 1917, in February, to pay
the legislative expenses, and within
two or three years the surplus will
be wiped out and money will have to
be borrowed at the beginning OF the
year" !
The report, which goes to the
comptroller general, and will be by
him transmitted to the general as
sembly, shows in concrete form the
deplorable5 financial condition Of the
State at this time.
This is the most important matter
confronting the taxpayers Of South
Carolina, and for that reason full
synopsis of the report is given, as fol-
lows:
SLoans for Ordinary Expenses.
Under authority of the appropria-
ton act of 1916, the State finance COM
mittee, composed of the governor, the
comptroller general and State treas
urer, called for sealed proposals to
be submitted April 18th to loan the
State 100000 to pay ordinary ex-
penses in anticipation of the collec
tion of taxes. Two forms Of bids were
asked for. One to place the entire
loan of 100000 at once, and the other
for the loan to be made in installments
as the money was needed. The bid OF
the Palmetto National bank for the
entire amount at per cent G per
cent? interest, being the lowest, was
accepted. 1t is gratifying to the COM
m:ttee charged with handling this
matter to report that this is the low
est rate of interest at which State
loan has ever been placed, and it is
an indication of the high standing Of
the States securities. The States
credit at this time is second to none.
1--WE regret, however, to have to re-
port that the amount authorized to
be borrowed was more than 100000
short of the amount necessary TO
meet the appropriations. 1t became
necessary to call upon some of the
banks to carry claims for State in
stitutions until sufficient taxes with