Smyrna times., 1935-02-07
is VOTED;
PAY STATE HELP
Republicans Pass Measure
Over Opposition Of Demo-
Gratis to Borrow 100000
ACT is CALLED LEGAL

With the Democratic members
all voting against the bill the Re
publican members of the House
Thursday afternoon passed under
suspension of rules RepreSentatlv
Simon's bill authorizing the State
to borrow 100000 from the Farm
ers Bank to meet any deficit in the
general fund until the end of the
fiscal year June 80. Within an
hour the Senate Republicans took
similar action on the bill under
suspension of rules. In the House
Representative Hughes made a
speech against the bill as drawn
AS a result of passage of the bill
State officials stated that State
employees were being paid Friday
the usual monthly pay day. The
attaches of the Senate and House
who desire pay up to the amount
authorized under resolution adopt
ed by each house were able to get
their money today on orders signed
by Speaker Lyons and President
Protein Maloney. The bill as
passed by the two houses Thurs
day authorizes the State to borrow
the money at 2 per cent interest,
the State to give certificates of in
debtedness to cover the loan. The
Simon bill introduced and passed
takes the place of a similar bill
defeated twice by Democratic
votes, the last time on Tuesday of
last week. The original Simon bill
and the one passed Thursday were
identical except for the enacting
clause, and the interest require
ment. The enacting clause of the
original bill provided for a three
fourths vote of each house to pass
it while the one passed Thursday
provided for but a majority vote in
the enacting clause 1t is said the
administration has legal advice
that the bill required but a major
ity vote. This bill to borrow $780,
600 to bolster the general fund has
been a bone of contention practi-
cally since the session started. The
original bill was No. 2 on the
House calendar. Governor Buck in
his biennial message had explained
that nearly 100000 would be re
quired from some source to meet
the expected deficit in the general
fund for this fiscal year. Almost
Immediately after the House was
organized Mr.. Simon introduced
his bill to balance the budget for
this year by borrowing the $780,
600 as suggested by Governor
Buck The vote was then taken
with % Republicans voting for and
IL Democrats against the mea-
sure. 1t was then hurried to the
Senate where it was referred to the
Finance Committee which commit
tee a few minutes later reported it
out favorably and with rules sus-
pended it was placed on final pass
age. When the vote was taken
every Democratic Senator was out
of the room and the IL Republi-
cans voted for the bill Attorney
General P. Warren Green advised
members of the Legislature that
the action of the Republican ma
| jorities in putting through both
houses the bill authorizing the
State to borrow 100000 to replen-
ish the depleted general fund is not
unconstitutional He stated that
the Constitution provides that an
act borrowing money cam be pass
ed only by a three-fourths vote of
both houses except in the case of
casual deficiencies. Undoubtedly
there is casual deficiency at this
time" The appropriations for ex-
penses of the State were made by
the last Legislature, and there
were no funds by reason of the
lack of anticipated revenues. Mr.
Green pointed out that sometime
ago the State borrowed funds
without any action of the Legisla-
ture THE State" he said, 'iis in
need of funds and the State is big
ger than any individual or individ-
uals."