The Birmingham age-herald., 1918-01-14

 l ly with a return of prosperity and the I state deficit lessen in the same ratio?" i Governor Henderson'S statement ad- l dressed ito the public follows:
 GOVERNORS STATEMENT 1 This condensed statement of the l states financial affairs is presented l for the purpose of affording the citizens | correct information as to the amount of i the states revenues how they are ob- ' tained and for what purposes expended. { Many cross entries in the auditors re I ports make for confusion and are often 1 misleading, except to one who has the l time and will exercise care in their ex- animation. The accounts have been elas- l sified and are offered in the form in l which they are kept tabulated in my of ] flee for reference.
 i After long years of criticism and fault 1 finding the states annual revenues again exceed it's expenses. While the l floating debt, which is commonly called ] the states deficit, is large, 1t has been reduced during the past year s14l, ,114. i2. ] This IS 8 small sum compared to the i amount of the deficit, but it is encour- aging, and especially SO when we con- sider tie depression through which We have passed. It is true we had good harNests last year and obtained good prices therefor, but these were of slight
  ing. this result.
 AS TO TAX VALUES
 Under the present law revaluations ot real estate were made only every four years When the present valuations were made in 1916 we were in the midst of depression. Notwithstanding this, by careful and painstaking work on the part of the tax equalization boards, un- der the guidance of the state board, we caught up with the loss which occurred to valuations the previous year and have
 exceeded the valuations of 1914 by about
 SIP, 900 000. The net increase in tax
 values during this administration will be much less than for any similar period during the past 12 years. This was be- cause of the unprecedented depression following years of good crops and fair prices. While prosperity has returned, the present administration will not re- ceive any benefits therefrom in work ing out the states financial problems. The increase that has come in personal values by reason of this prosperity and the assessments now being made there on will not increase the receipts of the treasury this year, as the revenues en- suing therefrom will not be collected un- til the fiscal year 191s-1919
 CONVICT DEPARTMENT In the results as presented the con- vi4t department contributed the larger share. While the maintenance cost of this department has increased rapidly in the past two years, due to the high cost of living, and continues to do so. little benefit has been re- ceived from the present demands for labor, as all contracts we are work ing under are either old ones, or were made before the tide of prosperity set in. Notwithstanding this, there has been a substantial increase in net revenues therefrom. There have been many other causes in a smaller way which have contributed to the change from an annual deficit of three to four hundred thousand dollars to an ex, cess sof revenues of $140.o0o. but too
 much space would be required for their enumeration.
 FACTS GRATIFYING
 While I believe the facts herewith presented will be gratifying to the cit izens of the state, it is we'll to advise them that it is going to be more diff
 ficult to obtain as good results for the current year. The appropriation for
 school purposes. which automatically increases, will be quite large enough to absorb the full amount of the sur plus as shown last year. Then there are the institutions to which appro- priations are made on a per capita basis; these have increased to more than $l00,0O0 over what they were three years ago. The outlook, how ever, is not discouraging and our best efforts will be put forth to make an equally as good statement at the close of the current year as the one pre- sented herewith. If such results as are shown in this statement can be had during times such as were experienced in 1915 and 1916, does it not appear that our financial problems have van ished, and with a continuation of tho same policies the surplus will rapidly increase annually with a return of prosperity and the state deficit les sen in the same ratio?
 NO SCIENTIFIC SYSTEM While we might say the state has changed it's financial course, it has not
 been through any scientific arrange
 ment of it's affairs, but could be bet
 ter expressed in the vernacular of the
 wrestler, .catch as catch can" In my
 opinion. by far the best plan by which
 the state can be reasonably guaran-
 teed of an intelligent arrangement of
 it's finances, is along lines repeatedly
 urged upon the last legislature, but
 x~r.k kI< A F.