The Birmingham age-herald., 1920-09-15
STATE FREE OF DEBT,
 GOVERNOR RE VEALS N
 YESTERDAY MESSAGE
Nothing Going Out for Interest Except on State Bonds, Bills Being Discounted and All Business Being Done on a Cash Basis
By FRED H. GORMLEY Montgomery Bureau The Ape-Herald
 22l-2 First National Bank BuIldinc

indebtedness of S9,O57, ,OOO rec
 ognized by the constitution.
 This astonishing but pleasing
 condition of the state treasury
 was revealed to the state for
 the first time by Governor
 Kilby Tuesday afternoon in his
 message to the legislature (which convened in extraordi- nary session at noon. No per
 sons had suspected that the governor would be able to
 make such a report as the pub
 lie had thought Alabama was llaboring under a floating in-
 debtedness of upward of $1,-
 500,000.
 Not only does the state not owe one
 penny of borrowed money, but nothing
 whatever is going out for interest GA
 cept on state bonds; bills are being dis-
 counted wherever discounts are permitted
 and all business is being done on casn
 basis.
 This improvement in state finances can
 hardly be understood unless one knows
 the financial condition of the state at the end of the last fiscal year, September 30
 1913. The annual report of Fl. F. Lee. state auditor. shows that al the begin
 ming of business for the new fiscal year, October 1, 1919, total outstanding war
 rants were $i3l7,09i 99 and there remained
 in the treasury $15O, j9).O9, making an actual deficit in the states general fund of $1,l665 504. 90.
 In reaching this condition in financial
 affairs, the state did not receive the bene- fit of the increases In ad valorem and n hGr t.X lad t1,1.
 the new revenue law in 1919. These in-
 creases will not come to the state treas- ury until the tax-gatherng season this
 fall. Although the state operated with the
 old taxing machinery except in few cases throughout the present fiscal year, 1t was
 forced to bear the increased appropra-
 tions for public schools, public health and
 Confederate soldiers.
 HEAVIER APPROPRIATIONS Appropriations will be much heavier this year and the governor did not in- clude in his message any prediction as tu
 what will be the financial condition of the state at the close of the fiscal year, Oc-
 tober 1, 1921. However, to friends during
 the day he expressed the opinion that Alabama will be in excellent financial condition long before the end of his ad- . | ministraiion in 1923 Referring to the financial condition of ' the state. Governor kilby said; T am
 Igratlfied beyond measure that it is pos
 slble for me to inform you that, during
 the past year, there has been a marked improvement in our financial condition.
 The vision and effectiveness of the laws , enacted at your January and July ses- sions of 1913 are fast being demonstrated, and the state is beginning to reap the benefits. We are at the dawn of bright CT day. Indeed, the clouds that darkened our financial skies have rolled away, and the state government is in the clear sun-
 light of prosperity
 For the first time in many years the state Is not paying interest on floating debt, and it's obligations are promptly met We are operating on cash basis.
 discounting bills where discounts are al-
 lowed We do not owe a dollar of bor- | rowed money. and I have every reason to , believe that we can pass through the veal without borrowing. There are out ; standing unpaid warrants"
 Governor Kilby gave credit for the states condition to the efforts of state officials backed by the financial legis- 5 lation enacted by the legislature in l9l9 He said the adoption of the budget sys- tenn had led in relieving the state of debt : and declared that this system should be incorporated in the constitution. so no . Legislature can ever make APPROPRIATIONS | in excess of revenue. Business methods
 in the convict department also helped, and n the governor referred to the fact that l convict labor is now on the same basis as 5 free labor in point of revenue The c Speigner cotton mill has also increased A receipts, while the board Of control ana n economy has sytematzed buying in such a way that it has saved the state, accord- : ling to the governor not less than $l45.oo0 q since it's creation.
 o SHOULD REDUCE BOARD d The governor said he believed the board q of control should be reduced to two meic- V bers as that number can do the work.
 u,t, 1ar hl nOS- = tion has been vacant for several months
 and will not be filled by the governor even
 thought there be no change in the law. o Material increases in revenue have been
 shown by the pure food division, game and fish department, insurance depart- ment and from licenses and corporation . franchise taxes. Coal and iron taxes, im- : posed for the first time last year, brought in $426. .26l 90 during the past ten months
 1 Governor Kilby said much progress had
 been made by the tax commission in tho s equalization of taxes, and that few ap- n peais had been taken from decisions of ] the tax adjusters. However. he referred V to some protests and declared that lAx t dodgers will always cry out, but that q with the advance of education they Will |, become fewer in number as the years a go by. e Governor Kilby said there had been e no tax raises in the real sense of the l. term. as the adjustments made during Q the year have not placed the rate above . the SO per cent of the reasonable cash : 1 value of property. He challenged any f person to prove that any property had . been assessed at more than 50 per cent /, and promised to see that any such in-
 creases were adjusted without delay. h He said there is no such thing as the e burden of taxation and that the gov "a ernment is the cheapest thing in the ,- state today, and the only thing which fl has not doubled if not trebled in price h during recent years. With ten thou ,s sand school teachers working for wages ,e far below the wages paid common la ? borers and menial servants, this hue ,e and cry about the burdens of taxation r. is thing to be ashamed of" continued l. the message. "A casual glance is suf- e ficient to show that it proceeds mainly Id from communities notorious for higA
 property values and low tax valueA IS from people who have never done their J. share by the state and who are smart y ing under the necessity of assuming J. not all but fair portion only of their g lawful obligations"
 1T Governor Kilby in the beginning cV ;e his message said he regretted the ne- a cessity for an extra session. which was
 forced by the ratification of the suts 'e frage amendment. and urged the promps lc enactment of legislation which will give l. the women the vote in the general elec- v tion Bills proyiding for the recistras