The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-25
PAY SLASHES
FOR employees
IN STATE DUE
Checks Expected To Be
Approximately SO Pct.
of Better Times
By j. c. BASKERVILLE
The Tunes. News Rurcnu
SIR Walter Hotel

The Tunes. News Rurcnu
Sir Walter Hotel
RALEIGH, April 25. - While
Governor j. C. b. Eminghaus was
lot able to say yesterday just
how large the salary reductions
will be for state employees for
April, May and June, although
today is the April pap day for
most state employees, he did say
there was very little to indicate
that the pay slashes would not be
as heavy as at first indicated, or
approximately 80 per cent Of
what these employees have been
rC ceiving. Governor Ehringhaua
also said that it was exceedingly
distasteful for him to have to or
der these salary cuts. that all his
Sympathies were with the en-
ployes. many Of whose salaries
have already been cut to the
limit. but that the stern neces-
sity of keeping sufficient cash in
the treasury to meet Forthcoming
debt payments made the move
| imperative.
MANY people do not seem to
realize that there is definite
reason, and a very compelling
reason for our being compelled 10
curtail salaries and expenditures
for all purposes for April, May
and June, or until the new revc-
nue. we hope for under the new
revenue act begins To come III
after July ~ Governor Ehring'
hauS said. Il am naturally
sympathetic and dislike to do
anything that hurts anyone else.
So if it were not absolutely
necessary, ] would not have or
dercd this drastic curtailmcnL III
salaries for the last three months
Of this fiscal year.
"But the facts are these: the
state has approximately $6,OO0,-
600 in principal and interest pay
mentS coming due on its bonds
about July ]. This must he paid
in cash, from the cash in the
state treasury, since it is now
and will be for some time, Impos-
siblc to borrow any money at amy
rate of interest. If these pay
mrnt& are not made when due,
the state will default. its credit
will be destroyed, its bonds will
slump in value and lis business
and industry be paralyzed, and
chaos prevail generally. We eau.
not and will not permit such Il
disastrous thing to happen and
hence have decided to meet our
obligations first and then use
whatever is left over for Opnrat-
ing expenses. Accordingly we
have already put aside the So
100000 needed for debt service
in July, and have apporticncd
what is left for the expenses Of
the state for the remaining three
months. This is only about 80
per cent Of the amount usually
expended and less than that pro-
portion Of the amount originally
appropriated. But We are com
PEELED to operate OF cash bp%l:'
from now on, since it j. absolute
! ~ necessary.
''Thcrc is ,till another consid-
Grafton. That is that when we
renewed the &l2.50O,00O worth
Of notes in New York Il week or
50 ago for GO days. We did 50
ionly on the strict understanding
/ that these notes must be curtail-
ed by at least 10 per cent on
June IL before they can be re-
newed. That means that We
must pay 81. 250,O0O in cash on
! the principal Of these notes. in
addition to tn" interest, in order
to renew them again. We can
not trust TO hope and faith that
we will have this money on hand
June l5-wc must have It on
hand and we are going to have
! it. But that means we must
take $l,250,OOO that otherwise
would 90 for salaries and operat-
ing expenses, and use it to make
! this payment"
When asked if the state could
sell bonds with which TO fund
the $l2:5OO,OOO in short term
[ notes, as authorized in 4 bill
passed hy the general assembly
this past week. Governor Ehring-
haus pointed out that there IS
absolutely no market for bonds
at the present time and that
these bonds. though authorized,
! couId not he sold now even al t.
per cent. The result is that thc
| only thing the state can do now
| is TO continue to curtail and re
new these short term notes in ac-
cordance with the demands of
the New York hanks that hold
! these notes. and to hope That
conditions will improve eventually