The Democratic advocate., 1882-04-08

NtIlt GuUiiltTOlitE- Hc NtAhlliAtAft NioNtttlihe
any feeling whatever as regards either party,
and desires only to put the State financial de-
partment fairly upon Its own merits.
Ii must be borne in mind that when the
democratic party returned to power they found
a treasurs depleted and the sinking fund abso-
lutely destroyed; they had then to set about 10
rebuild financial system which, If not annihi-
lated. was at any rate so injured that its lite
and vigor we're gone. The people most inter
eSted in the subject of taxation seemed salts
lied SO long as the tax rate was kept down.
whilst their Legislatures, regardless of the
future. acceded to all demands upon the State ;
resources, and permitted all sorts Of cxpeRdi-
lures 10 be ordered without one thought rs to
how said expenditures were to be met or pro.
videdfor. Charitable aud other eleemoSynsry
institutions became, through their friends
in the various Legislatures, applicants for pub.
lie money to assist them IN their various un-
dersakingS, and institutions Of private instrue.
ton throughout the State soon followed their
example. In 1872 Acts Of ls72. chapter
276l the accumulated sinking fund was again
destroyed. In ISIS. when the present comp
troiler was elected, the tax rate was l7l cents
per one hundred dollars, and che treasury had
been cmpIiad there was ne money on hand or
due within a reasonable period a. pay current
expenses OF the State: the expenditures order
ed by prcyious legislation aud to he paid for
oai of a depleted treasure chest were far ia
excess Of what the States resources cuuld
meet, and IL Vas clearly Necessary that the
State should borrow oT close up The eou-
tracing Of treasury relief loan Of hye hun
Jfed lhousaBd dollars vas then ordered aud
the tax made 10 pay interest. &c.. upon said
loan increased by y cents per hundred dol
lars. thus makiRg the levy Isl cents. as Il nuw
stands. i-arge sums Of money continued 10
be appropriated for varioas purposes, though
the snarve of supply under the then existing
tax rate vas by no means hoandless. The
tax levied % provide for The interest ulSou and
a sinking fund far the defeps,, loan. which had
been ten cents on the hundred dollars in isssg,
was reduced IN issSS to 81 CENTS. aud The i.sg.
islainre failed. for very obvious reasons, h ia
crcase taxes IN other proportions "a ussst their
rrceatly ordered heavy expenditures. lhe
position forced npou the officials Nlts that shsV
shouid obey the Instructions as regarded the
sinking fund. alre3aiy rr,laes.d one lalf or the
special or,lers II the representative Of The
people. Who presumably kpe~ shat they sere
siuing when they vs;sti especial appropriation
When oar Legislatures voted their fsenpie' s
money they should have had the courage ~
tace that most olsnoNioas IT al thinxs-aa in
ereasg Al the levy. That this was aos ds,,s Is
greatly io b. deplored. and Is clearly nus tise
iauls 81 the administration II the financial
oificers- Had such cours. h-cca adnss;esi
attention u0uid have h-en called io The Eacs
that the STATE cs aiosry vas being frtteFed
away ia many cases f,w private purposes stsleF
especial aets, and pnhlic condemnation xoal3
aavc stepped in and q sop bs.en Ipat ,o sach ;
condition II affairs-
Ia order 10 meet the heavy outlays ilie suop
cys collected under sI.cSaal tax lespes sssrr pat
iutn thr general trcaEury, and 50 much was
possible under the circumstance ~ rrsiaeed
csVruars wns used - purchase ard rssicrm
securities ofthc state. Evcu hcrv the ofiiCials
wcrv halupvrcd hy the fac, II restrictions a. 10
how any sarpius rvvenn,ss VERY 20 bc invested,
as sell a. by the iadisposi;ign 0f holders os
State securities 90 IsaFt With their investments
4oar committee, finding - q fact that the
money set apart ior Interest upon and a. pro-
VISION fur redemption of the yarsoas loaas sss
noi used exclusively far the latter paFtsase. has
shown Why L vas Impossible thai this essaid
have bcva fully carried out
Taxing the defense iuau' ~ an example.
year eoalfui,ict inds tha; caeh rear shouid
havc seen cne-tiflreufh Of a Stteeu- yesF losa
laid aside % redeem that loan. set ihs lax
levied Cor that purpose eoald net. ever and
above the Interest ,sl b. met, produep Sufficient
10 provide sDg ihis yeariy reslempsioa II one.
ifiecnth, with either expenses 70 be provided
for theEcisula and 4 ]. clearly evident that
the speeiai Legislative appropriations nsasl
ceasc AZ uaee, or The tax rnfr nsnsf tae in-
creased.
The condition of the state trcAsary was care.
fally pointed ont BY the present comptroller
IN his hrst report, Jannary ,. ls1g. ard pre-
faced hy quotation from the report 0f hts
predeccssog in the following language '.Ihe
deficiency which must accrue ko the treasury
for the (then current year VIII embarrass ali
financial opeafiuns of the state When the
present comptroller entered ap1n his duties
the cntirc h9lancc ia the treasury vas about
sft,00o. The Legislature, thea entering erssn
is fourth week, had for per dieals drawn out
uf the banks more than she above balance.
Here Is the warning note sounded as early as
1879, and the yeyy difficulties there foreslad-
owed have arisen. The state fiscal depart.
ment had this officially to face, sRd they faced
it % the benefit Of the state, even though she
special requirements were liseegarded.
The state tax in 1864 was II cents IN iSlsJ
It Was 30 ecnis. This increase was owing 10
the fact that :he depleted eoniiiiou 81 the
treasury neecssitaied the creation of loans To
relieve embazrassmcnss caused hy oar pzeie-
ecssors- The state ta4 steadily aHa surely di-
minished with each Successive year until fresh
legislative enaciments for special purposes
stepped in IN 1874 aud raised the levy 10 -
5-l6 cents. This rate vas diminished for the
next period, and was down 10 Ia cents, 10 b.
raised again in 1878 20 its present rate of is3
cents per SOD. The accompanying table,
gwen above, viii show what extra levy should
have been made TO preserve the sinking fund
and pay the appropriations The increase oi
levy OF 1873 over the levy Of 1876 was the re-
suit Of loan Of SJO0, 600, already alluded TO.
imposed by reasOa OF the failure Of customary
revenues hitherto received from works of in
ternal Improvement aS well as hy lavish an
preparations.
The admission Of the fact that the sinking
fund was not kept up, and the reasons there
for, without any palliating circumstances,
should act as a warning to deter other Assem-
blies hereafter from following the easy but
downward financial course.
The comptroller, since his assumption Of
office, has had disastrous condition of inan-
cial embarrassments TO contend against, and
your committee consider his course under the
I circumstances as the best for the interests Of
/ the state, whilst they do not pretend TO decide
any R9iPt Fegarlipgthe constitutional require
meGfs, After the private and school appro-
priations Eere made the tag levy should have
/ been raised az the same time and in similar
I proportions; the special funds would never
/ haze ieea dragn upaH rs they were 10 fill IN
/ the drainS upon the State money.
The constitution Of 1857, article p states,
I IN section 81 "Np debt shall De hereafter
contracted by the General Assembly unless
such debts shall be authorized by law pro
/ viding for the collection of an annual tax or
( taxes sufficient to pay the interest upon such
debt as it falls due. and also to discharge the
principal thereof within fifteen years from the
time of contracting the same and the taxes
levied for this purpose shall not be repealed
or applied n any other object until the said
debt and interest thereon shall be fully dis
charged. The credit Of the state shall not in
any manner be given or loaned to or in aid Of
any individual, association or corporation. :
The above p0rtpn Of the ARTICLE was in the
constitution Of 1864, and was frsi contained
in that Of 1851. At the lime these provisions
were first adopted the state had just passed
through the contest inr the resumption Of the
payment of the interest on is debt, and the
purpose Of those who framed them was to put
the security of the state debt entirely beyond
the reach Of any attack and yet what did the
Legislature proceed to DO? In 1868 the tax
for the defense loan was reduced from 10
cents TO 81 cents. Now this levy of 10 cents
was barely enough to carry out the provisions
of the constitution as regarded the leyying of
taxes sufficient to pay the interest upon the
public debt and to provide for the redemption