The Birmingham age-herald., 1921-07-07

" .FAl lAS tSVhf u VI l1ihtClOIS Ol kHt Junior Chamber of Commerce:
 Tn view of the fact that the board of revenue now has under consid- eration important financial plans that will determine the financial status of the county for the next decade, your opinion that an expression from this body of 800 voters is quite in order.
 Before going into the present questions, it is deemed advisable to present a short resume of the present financial condition of the county. In doing so. the present phase of nonn collection of taxes from corporations is not considered, as this win un- questionably be promptly worked out.
 Under the constitution of Ala bama, counties are permitted to con- tract indebtedness to the amount of 3a per cent of assessed valuation of real and personal property. This is an extremely conservative figure, limit of per cent being generally recognized as quite safe. Certain ad- ditional temporary indebtedness may also be contracted in anticipation of the next years taxes.
 Based on $200,000,000 assessed values, the county may contract an indebtedness of s7,000000 It is ,es- timated that Assessments for 1920 when finally arrived at will be about s225, 900, 900. but this Is matter to she determined. In 1919 they were approximately $170,O 900. Indebted ness, other than tax anticipation loans. is about $s.500,000, leaving about $3.500.000 authorized
 Amendment Suggested
 Bonds of Alabama municipalities are difficult to sell, because the l&ad- ing insurance companies and savings banks will not purchase them and most of the large bond houses re- fuse to handle them. This is due to the fact that our system of tax ation and debt contracting is con sidered entirely unsatisfactory. The principal objection Is that the taxing power is limited to certain percent age of value and no provision is made for payment of principal or in- terest on indebtedness if taxes raised should prove insufficient. This could
 
 the constitution providing that the tax limit shall not apply to taxes levied for the purpose of paying prin- cipal or interest on indebtedness; in other words, guaranteeing that every municipality will raise the funds to pay it's just debts. This situation probably cannot be remedied until q constitutional convention is held, out must always be kept m mind as be- ing the greatest contributing cause to the difficulty in marketing Ala bama municipal bonds and the higher interest rates that Alabama munict- palities pay.
 "Jefferson county's credit has al ways stood very high. Early in 1920 it's per cent bonds commanded premium, and it's financial condition up to that time was very easy
 History of Road Bonds
 'In the spring of 1920--after a bond issue of $5,000.000 for gool roads had been authorized. the board of revenue received bids for $2,O0o,- 900 bonds to be issued April l, 1920. as a part of the programme. These bonds were sold at par, but legal complications arose preventing de- livery of the bonds. While the case was in the courts period of very high money set it The United States government found it necessary to pay 6 per cent for money and the 5 per cent bonds of Jefferson county which had been worth par. became worth less.
 "The original purchaser of the $2,- 900, 900 bonds was unwilling to take them after the delay and could not be forced to do so. An attempt was ntalae by the county to sell $500, 900 bonds at par, paying 10 per cent commission for sellins thsm- The