"NO FUNDS."

Auckland Star, Volume LXIII, Issue 124, 27 May 1932, Page 7

"NO FUNDS."

TEXAS SHORT OF TAX MONEY. NEW YOKK, May 20. Texas, one of the largest States in America, is so much in need of money that it cannot even meet one of its own cheques for one dollar. A cheque for this amount, signed by the State Treasurer of Texas and the State Comptroller of Public Accounts, was lately returned "R.D." to an astonished New York resident.

The cheque was drawn in favour of Mr. Frank Menke, in payment of a copy of his annual sports record ordered by the State. He said he paid the cheque into the bank and was amazed when it was returned to him with a note from the bank stating:—"The State Treasurer advises that the general revenue fund of Texas is deficient, and until sufficient taxes are paid into the Treasury the cheque cannot be paid."

The State of Illinois is virtually bankrupt, and bo are the cities of Chicago and Philadelphia and many towns, but this is the first known instance of a great State issuing worthless cheques.

Texas, with over 5,000,000 inhabitants, ranks fifth among the States in order of population, and according to the "World Almanac," its capital wealth amounts to nearly 11,000,000,000 dollars (£2,000,000,000 at par).