Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-02-22
WHAT Is THE MATER WITH THE
STATES FINANCES


The IateIigencer is shrieking ard hiss.
ing like a brood goose over its last egg,
because the State has used Its constitu.
tionsl privilege to borrow from the
school Fund" When a Republican
administration did the same thing its
Chops" were closed as tight as an oys-
ter shell, and il was not heard TO chirp.
Register. A.
Will the Register explain the necessity
for the States borrowing money from
any source? The State is not engaged
in any public Improvements that re-
auires the borrowing Of money, then
why not levy a sufficient amount each
year to pay the annual expenses OF car
rying on the State Government.-droJ-
ton SSatiRe
The Satinsl makes two pertinent In
ouiries, which we will endeavor to an
swer.
l. What is the necessity for the
States borrowing money from any
source?
The simplest answer to this inquiry
is, that with the most iudicious and
economical administration OF the finan.
ces, the revenues in the last few years
have not been sufficient to meet ths ex.
penses Of the State government. The
revenues have not increased in proper
ton TO the increase in population and
material wealth. The cost Of maintain
ing our public institutions are neces-
sarily increasing every year as the State
develops. The expenses in some OF the
departments of the government have
increased one hundred per cent. in the
last ten years. Yet there has been no
increase OF taxation TO meet these new
demands. More than It's, some OF
the revenues OF tn State have
largely diminished. Ii the mat
ter Of personal property alone.
the last assessment showed de-
crease of over SIX millions OF dollars be-
low that Of the assessment OF 1871.
Notwithstanding these deficits in the
revenues, the ordinary expenses OF the
State have been regularly met out OF
the annual revenues from taxation.
But there have been extraordinary ex-
penses in the las. ten years for which
the annual income OF the State has not
been sufficient-such as the appropria-
ton for completing the Hospital for the
Insane and the Capitol at Charleston.
These extraordinary expenses are
chiefly responsible for the money bor-
rowed of the school Fund" 1t is
made the duty OF the Board OF the
School Fund to invest said fund in State
securities when it has the opportunity.
There is always more or less OF this
fund lying idle in the Treasury. bearing
no interest for the want OF proper OF
portunities for investment. In the
past few years, when deficits have &C.
Cured in the revenues, the State has
simply used its privilege OF borrowing
this unemployed fund and executing an
interest bearing bon1 therefor. The
States liability to this fund is all ac-
counted for in bonds bearing interest at
the rate Of six per cent. per annum, and
is just as sure to be paid as any other
loan Of the School Fund.
.. "why not levy sufficient smount
each year to pay the annual expenses OF
carry ing on the State government
We answer the SeI.idlei, that We know
OF no reason why such levy should not
be made. Ii we were running the gov
eminent we would, probably, make
such levy, but the Legislature being
entrusted with this business, We are
happily, not responsible whether they
DO or do not make sufficient Ievy. We
shall continue, however, to give them
our advice in the matter, which is, and
always has been, in favor OF the levy.