Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-19
GOVERNOR To DRAW
ONLY WHAT MONEY
TREASURY CAN PAY

Until the legislature brings up the
revenue of the state to the level of
appropriations, or brings down appro-
priations to the level of revenue, Gov
ernor Hardwick will establish a level
by drawing his warrants on the treas
ury for only such amounts as the
treasury can pay.
Discussing, Saturday, the subject
OF the states finances, the governor
made it known that he had formu-
lated a plan whereby he would be
able to forestall any further increas Sc
in the current treasury deficit by pro-
rating the states revenue among
the various appropriations authorized
by the legislature, and drawing his
warrants on this basis, according to
the ratio of the states revenue as a
whole to the legislative appropria-
lions as a whole.
For example, as the governor ex-
planned:
If the revenue of the state for the
present year figures 70 per cent of
the appropriations for the present
year, Governor Hardwick will draw
his warrants on the treasury for 20
per cent of each appropriation, treat
ing. all departments and institutions
exactly alike, with the exception of
such institutions as the state sani-
tarium for the insane, where food,
clothing, housing and medical atten-
ton are obliged to be provided for the
insane
The same yardstick will be applied
to appropriations to be made by the
present legislature, now in session,
for the year 1922, Governor Hard
wick further stated. That is to say,
If the legislature appropriates for
next year a greater amount of money
In the aggregate than the state col
lects, the governor will not draw his
warrants for the whole amount ap-
propriated to any department or in
Stitution with such exceptions as
that noted above, but will pro-rate
to a common level. In other words,
all will be treated alike.
TO Stop overdrafts
iHe time has come. the governor
Tlaoe 1t plain. to put stop to over
I1taIIs on the state treasury. If the
legislature will not do it by lifting
revenue to the level of appronria
IONS, or reducing appropriations to
the level of revenue. then he will
40 II DIV applying the pro rata yard
SUCK TO his warrants on the treasury
ny mat method he expects to pre-
the treasury deficit.
heretofore. as the governor point
60 OUT, there has been kind Of foot
ments and institutions to get their
rsqulsltlons to the governor. and to
get ms warrants on the treasury for
tne rul! amount of thier several an
preparations. so that those who got
IN early drew all they were given
Dy the legislature. while the late ar
rivals were obliged to wait
>, governor Hardwick does not be-
neVe that this is fair. He believes
az departments and institutions
should share alike in whatever reve-
that no special favors should be
given to any.
Under the constitution and statute
law, of Georgia. the governor is not
authorized to exer else mis- veto upon
appropriation bills in such a way as
to scale them down. He must take
them or leave them in toto as the
legislature passes them up to him.
But Governor Hardwick's plan of
drawing treasury warrants on a pro
accomplish the same purpose, he be-
I1eVes. since not dollar can be paid
out of the treasury except on the
warrant of the governor.
Of course. Governor Hardwick is
insisting on a complete reorganiza-
ton Of the states financial system.
In order to put an end to the neces-
Sity for such an eXpedient as the
one he has devised. and as Just eX-
planned above. He has recommended
tional amendment doing away with
ad valorem taxes for state purposes
and substituting in lieu thereof a
state income tax.
He has come to the conclusion that
ad volorem taxation for state pur-
poses is complete failure, and could
never be so administered as to dis
tribute equally to the needs of the
state. He has come TO the further
conclusion that state income tax
would bear alike upon all classes of
property. both real and personal,
would be more simple to administer
and cheaper to collect than an ad
valorem tax, and would produce
whatever revenue was needed by the
state.
Indicates Extra Session
The governor will insist, he has
repeatedly stated, on the passage of
the income tax or some other meas
ure that will meet the requirements
Of the state. and his intention is to
call the legislature in extra session
Immediately at the close Of the pres
ent regular session, If the necessary
legislation is not enacted at the pres
ent session. This intention he clear
1y indicated Saturday.
But an income tax or any other
revenue measure involving a con-
stitutional amendment cannot be SUBJ
mitted to the people until the gen:
eral election of November, 1922, and
enabling acts to carry out such an
amendment as the people ratified in
that election could not be passed by
the legislature until 1923, and hence
the governors problem is to establish
and maintain a balance between rev.
enue and expenditures pending that
time.
This he proposes to do by means
of pro-ratinC his warrants, as ex-
planned above.