The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1861-01-30
VOL. 6, NO. 3l.-WHOLE NO. 3Ol.

Should the taxable valuation be fixed at $780,
600. 900, the State tax for 1861 and 1862 would
be stii further increased $40, 600 for each year.
leaving surplus at the close of 1862 Of sS,S5e
IS, and at the close of the fiscal year ending
November so, 1868, a surplus of :2ls,s09 SIS.
The debt Of Michigan is comparatively small,
the State has steadily advanced in population,
prosperity and westh-few States possess SO
many advantages 10 ensure . continued increase
in population and prosperity as does Michigan,
Yet truthtulness Compels US 10 saw that the pres.
ent condition of the State is not free from fnan-
cial embarrassment, but this condition of our fl.
finances can readily be accounted for;
lst. From the fact that during the last six
Yeas very large appropriations have been made
TO the Asylums and other State Institutions, with.
out providing taxation sufficient 10 paw them
Your committee have been not little surprise
at the facts which examination has brought 10
their notice, and they have prepared table
herewith submitted, marked +, showing the
amount of the State taxes for the last six wears
Isis TO 1860 inclusive, and also the sums paid
during the same period, 10 the six State insIifu-
tOns. From this table il will be seen that the
aggregate State tax for the SIX Years amounts TO
the sum of S632, ,i56 40; and that during the
same period there has been paid from the Treas
ury, including the sums now due upon appropsi-
tioDs, and included in the estimate of ex.
penses for the present year, to the syums,
Reform School, Normal School. Agricultural
School and State Prison, the large sum of $780,
SIS IL, showing that the State has paid to these
six institutions during the last six years s29s.-
057 81, over and above the whole amount of the
State taxes for the same period. 1t is true that
during the six years the debt to the trust funds
has been increased-to the Primary School
Fund, S2O3, 100 9S
University Fund. 1909 o2
Normal School Fund, HOP ~
Total, :21i SAP "a
But, on the other hand, the funded and fund.
able debt of the State has, during the same Pc
riOd, been reduced in the sum of Sl29, ,40z o..
The deficit at the close of the present year
may also be accounted for in another wav. The
Legislature of 1859 appropriated the money
thereafter to be received from the sales OF the
swamp lands to the opening of roads and bitches,
and to the reclamation of these lands. But the
Auditor General, in his estimate of the revenue
of the State for that year, included estimated re-
ceipts from the sale of these lands, Sl01, 900 90
Add to this, the deficiency in the ac-
counts of the late State Treasurer,
as per table A, S0,043 "A
And the sum included in same table,
among the expenses of the pres.
ent year, for interest on floating
debt, caused by the failure of the
two items above named, 10000 90
Making sl9O,oiS Al
Which more than covers the estimated deficit
at the close of the year.
With States as with individuals, il is much
easier to an embarrassed condition, than, once
there, to get out This is particularly the case
under the Constitution of this State. The State
tax of 1860, which does not come into the Treas.
ury until 1861, and is not Yet realized, cannot
be increased. No relief from present erlbarrass-
ment can be derived from this source
For the purpose of providing in part Cor the
dcgciency Of the present fiscal year, your com
mittee have prepared joint resolution authoriz-
ing the State Treasurer to enter into an arrange
ment or agreement with some party or parties,
TO purchase and hold the coupons of the bonds
| of the State, falling due in July and January
next, until such time as the finances of the State
will allow of their payment; and to authorize the
| Treasurer to draw from the Treasury during the
present year, sum not exceeding Sl2, 600. for
the payment of such interest as may be neces-
sary on the coupons so purchased and held, and
opon such other floating debt as it may be nee
essary to pay; and in like manner in 1862, a
sum not exceeding $4,000, for the same pur-
pose.
Your committee are of the opinion that every
Legislature should provide by taxation, a reven-
ue sufficient to meet all appropriations and con-
tingencies. This duty is doubly imperative be-
cause of the constitutional prohibition to borrow
money or create debt When the Legislature
exercises a wise prudence in its appropriations,
the people will sustain its action by cheerlully
paying such tax as may be necessary to meet
them.
From the best information your committee
has been able to procure, the following is the
rate of the State tax in the States named:
Ohio, in 1851, which is the latest your COM
mittee have been able to find, l-5 mills, and i
is believed to be as large at present time.
Indiana, 1856 and 1886, and Ii mills and
poll tax OF So cents.
Missouri, 1857, 2 mills, and poll tax of 81
cents.
Illinois, 7-l0 mills. since 1853
Iowa, 3 mills.
Your committee are of the opinion that the
people of no other western States have been 20
lightly taxed as the people OF Michigan.
For the purpose OF paying the expenses Of the
government for the years 1862 and 1868, and &c
meet the deficit Of the presen. year, your com
mittee recommend State tax of two mills OF
the dollar valuation OF the real and persona
property of the State.
Your committee also recommend that a sink
ing fund be commenced in the year lo63, for the
gradual lessening Of the State debt. They dc
not deem it essential that this fund shall be sui
fcient to Gquidate the entire Indebtedness o
the State in twenty years, but they deem it o
much Importance that fund should be com
I menced, continued, and faithfully appropriated II
! to this purpose. They therefore recommenC
that S25, 900 year, commencing with the State
tax of 1862, be annually raised over and abov,
the ordinary State tax, and irrevocably set apar
, for this purpose. This amount. in twenty wears
with its accumulatiOns, will pay about tWo-thir,l
, of the bonded debt Of the State.
Respecting appropriations by the Legislature
your committee recommend that they be limited
8 to such sums as may be necessary TO defray th'
current expenses of the State Institutions, in
most economical manner, aud to such other in
considerable appropriations the Interests of ;h'
, State plainly demand.
The following items, included in the estimates
, expenses for 1861 and 1862, will, If approved
3 need appropriations to meet them:
, RrIss1.
Asylum for Deaf Dumb and 81 nd, eurTen;
Ag leu tuIa al College, current expenses
aaa above balance Of appropriation of 1859, 1900
syuaal hai