The Worthington advance., 1879-01-23
TATEAUDITOR'S REPORT
he FINANCIAL CONDITION OF THE
STATE.

Whitcomb will present a comprehensive state
ment of the financial condition Of the State.
We give such extracts as our space will per-
NIT this morning.
It has been necessary during the last year to
constantly discriminate and ut times to as
sumo authority in drawing warrants upon the
treasury in order to prevent their being forced
upon the market at excessive rates Of discount.
The current expense If the State government
had to be paid, but all expenditures under ex-
traordinary appropriations have been met with
time warrants.
OF these warrants there were outstanding
against the revenue fund at the close of the fis-
cal year S97 754l.8A, besides $24, AGO. 10 of over
drafts, making total of 1922, ,0O1.N floating
debt.
overdrafts on the revenue fund have entirely
exhausted the balances of the interest and
s hiking funds and the state treasurer he been
obliged to make special arrangements viii tue
banks to cash warrants drawn for ordinary
current expenses. while the several State
institutions have taken time warrants and dis
counted them to meet their current expenses
The treasury has never been in quite so de-
pletcd condition, nor has it ever been neces-
sary before to manage in so many ways to tide
over the State credit since the memorable time
in the financial history of the State, when
auditors warrants were first redeemed by the
treasurer on presentation.
lucEe ute uO luuuS III tue tEcaSuTy available
for the current expenses Of the State govern
ment, even the State institutions fund is ex-
hausted; something which has never occurred
before since it was established. An inspection
of the preceding statement of disbursements
from tho revenue fund will show the cause of
this unusual condition of the funds. The ex-
traordinary disbursements of the wear amount
in round numbers to 100000.
The payment of this large amount and the
failure to receive any income from the labor of
convicts in the State prison, which was esti-
mated for the year at $50.0O0 with the bur-
dens entailed by the excessive expenditures of
the previous year, have altogether caused the
present embarrassment.
This may be temporarily relieved by special
act authorizing the use Of the general school
fund until the March apportionment. The re-
ceipts from railroads and insurance companies
and from collections of State taxes before that
time will meet the ordinary legislative and
other State expenses, but it may be found
necessary to authorize small temporary loan
to pay expenses from March to June, when the
largest tax collection of the year will become
available. The prospective receipts Of the
treasury from all sources during the ensuing
year will not admit of any large appropriations
for building or other extraordinary purposes.
All such expenditure will have to be deferred
until next year, when the taxes for the year
1879 will become available.
TIE STATE DEBT.
Thee wee SztCttC Of Notwithstanding at
the beginning of the fiscal Year; of this amount
5l00, 600 loan of 1868 were redeemed ut maturi-
ty, July l. leaving $50, 600 loan Of 1862 n,atur-
ing July !, 1879, and $3.50, 900 loan of 1873
maturing 1853, outstanding. to be redeemed
from regular receipts of sinking fund from
general taxes collected. Under act IF the last
legislature q temporary loan of $2O0000 was
authorized, and 6 per cent. bonds were
issued to fund Indebtedness incurred in
1877 and 1878, in furnishing seed grain to
grasshopper sufferers for which special taxes
were levied against the parties receiving aid,
to be extended on the tax lists of 1877, '73 and
70. 1t is provided that all money received
from taxes for seed grain furnished in 1878.
amounting to $780, 900, shall 20 into the sink
ing fund Tor the redemption of these hunds.
1t should be further provided that $4,000 of
the amount received from taxes for seed grain
furnished in 1877 should also be appropriated
for this purpose, and thus provide for the re-
demption of the entire amount of bonds issued
on the temporary loan without resorting to
general taxation for such purpose.
THE RAILROAD BOND DEBT.
This debt incurred in 1858 to aid in the con-
struction of railroads amounted to 81, ,275. 600.
The accrued interest now amounts to So 9Sl,-
25O, making the total amount of $6,25G25O.
An act of the last legislature proposed to de-
vote the State internal improvement lands and
the proceeds Of those sold to the payment of
this debt. This act having failed to become
operative the indebtedness still remains unset
tied. The act provided for distribut-
ing the 100000 acres of land
in equal quantities, among the bond
holders, giving them about 22O acres for each
bond. If the land had been divided into par
cells of equal value instead of equal acreage,
the offer, as far as it went, would have been
fair and equitable; but considering the great
diversity in value of the different tracts, some
being worth many times more than
others, it was obviously unfair and objection
able. If another adjustment of this matter
should be attempted at this session, this sug-
gestion may be considc'e ed.
THE PERMANENT SCHOOL FUND.
The increase of this fund during the year
has been 1856, ,932.13, which is more than
double the amount of average annual increase
since the fund was established in 1862. 1t
now amounts to SO, $50. 1916. Of this amount
928,967. SO has been realized from profits on
purchases and sales of bonds, while the bonds
now held by the fnnd have cost S2l, ,246 90
more than their par value. It will be seen
that when all of these bonds mature. the fund
will be reduced by this amount, and that the
actual increase of the fund on this account
will finally only amount to s7,72O.94. To pre-
vent ultimate less to this fund the premium
on all bonds purchased during the year 1878
has been paid from the general school fund.
and this policy will be pursued in the future,
so that the actual income of the fund will be
reduced to the amount of premium paid on
bonds.
PERMANENT UNIVERSITY FUND.
This fund amounts to 1924 i,647.74 the in
crease during the year being $70,657.92. The
fund has been augmented during the last five
years $50, 900 on account of reimbursement for
proceeds OF timber sold and used for current
expenses Of the university prior to the passage
of the act providing for such reimbursement
= ka f11fn r1,p1n 1nks re
this fund will be derived from proceeds of
sales of university and agricultural college
land.
COUNTY ASSESSORS.
For several years have urged a change in
our assessment Hystem providing for county
instead of town assessors. The general incom-
potency of township assessors and their utter
disregard of the provisions Of law in reference
to the valuation Of property are matters Of
public comment and among county auditors
and other persons who have carefully consid-
cred the question, the opinion prevails that
the assessment law can never be properly ex
ecuted under the township system. An exam
lnation of the assessment returns to this office
and the proceedings of the State board of
equalization for the past and previous years
will Justify this conclusion. I earnestly COM
menl to your consideration the following reso-
luton in reference to this subject unanimously
ly passed at the last meeting of the State
board Of equalization.
''Resolued, That whereas in examing and
equali1ing the valuations of real and personal
property IN the State, the State board of equal
ization have found their labors greatly in
creased and complicated by the apparently
loose and inefficient manner in which the az
sessment Of property is made in most of the
towns, and believing that great saving of la
bor to the State and local boards of equaliza-
tion as we'll as a saving of expense to the tax
payers and more just and equal valuation of
property can be effected thereby, would re
spectfully ask the legislature to so amend the
law creating the Office Of assessor a. to make
e z b county an assessment district; a:d pro.
vide for one assessor in each district to be ap.
pointed by the district Judge, the auditor and
register of deeds of each county for term Of
years, thereby making the Office one of such
Importance and duration that peEso>s appoint
Cd thereto can afford to qualify themselves
to fulfill the duties intelligently and eff
GENTLY"
The following resolution, offered by Mr.
Dawson. wns adopted:
RESOLVED, That the legislature be recon-
mended to pass law, whereby it shall be pre-