The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-08
DIFFICULTY DESIGNATING
THE SCHOOL WARRANTS
NOTWITHSTANDING A HIGH
RATE OF INTEREST BANK
ERS HAVE COLD FEET.
ISSUE FOR s.5OO.OO0 DOLLARS
Growing Doubt That Successful Bid
der Can Handle Them. Urgent Need
OF Reform in Georgia's Financial
Management Is Evident.

Management Is Evident.
ATLANTA, Ga.-That the state of
Georgia may experience difficulty in
discounting its school warrants tor
1921, as now seems likely, is further
evidence of the necessity for putting
Georgia's financial affairs on business
basis.
Recently the state invited bids tor
discounting school warrants for 1921.
The total school Appropriation for the
year is $45OO,000. The total school
warrants to be discounted are $780,
600. The state obtained very few bids
and all of those were at high rate
of interest The lowest rate offered
was by an Atlanta, broker represent
ing certain New York banks. His bid
was accepted. The warrants were sold
to him last year and the year before.
Can He Handle Them?
Since the bids were opened, it now
develops. there is serious doubt
whether the Atlanta broker will be
able to handle the warrants with his
New York connections. The bankers
up there have read in the newspapers
about the depleted condition OF the
treasury, the growing deficit between
revenue and legislative appropriations,
and have got cold feet on Georgia's
paper The times are not suspicious
for any institution, public or private,
to sell its promises to pay when its
treasury is depleted.
| Governor-elect H vi c k S an
| Il g n Nypf
all deficiency appropriations and in
sist upon appropriations for 1922 and
! 1923, which are to be made by the
Forthcoming legislature, on very con-
servative basis, has aroused favorable
comment throughout the state. Tax
payers generally are not in mood
to countenance Legislative extrava-
gance.
Budget System.
The establishment of budget sys-
tenn, as provided by Governor-elect
Hardwick, is another suggestion meet
| ing with strong favor All of the gov
ernors for the past ten years have
! favored a budget system, but the
legislatures in that period have never
been willing to surrender their pre-
negative of making large appropria-
tons, just as they pleased and to
whatsoever departments and institu-
tons they pleased.
The limited state tax rate OF mills,
as written into the constitution dur
ing Governor Terre1rs administration,
has not had the predicted effect OF
reducing legislative appropriations.
On the contrary, it has furnished the
! Legislature a convenient cover under
which to take refuge. With a limited
tax rate the Legislature can merrily
proceed to appropriate all the money
is sees fit go back home and brag
about doing this and that for the
common schools and various depart
ments, while somebody else has the
bag to hold.
Promised Pensions.
County and municipal boards of ed
ucation make their plans with the ex-
pectation of drawing from the treas
ury the money allowed them by the
legislature When they go to get the
money it is not there. The legislature,
meanwhile, had adjourned and gone
home, and the school authorities have
to shift for themselves.
Confederate pensioners are promis-
ed certain pensions which they think
they will get When the time rolls
the money is not there and they must
wait. Pensioners who became eligible
under pension law which went into
effect last year are waiting to draw
the pensions of $475,000 appropriated
to them for 1920 They will wait in
definitely. The money is not in the
treasury to pay them and will not be
there when the treasury is next heard
from, according to State Treasurer
Speer.
Two Ways
There are two ways under laws
now existing, to produce revenue, and
only two ways. One is to increase
the state tax rate, which cannot be
done without a constitutional amend
ment. The other is to increase the
tax assessments.
Governor elect Hardwick is smart
enough to know where the trouble
is. He will therefore, exercise the veto
power, if necessary, to put a stop to
continuance of it.
Georgia" says he, has got to pay
her way as she goes while | am gov
ernor, at least. She is not going to
have her paper hawked around in
the money markets. She is going to
pay her school teachers, her pension
ers, her departments and institutions
out of revenue collected into the treas
ury, and not by kiting checks and bor-
rowing constantly from Peter to pay
Paul"