Savannah morning news. [volume] (Savannah) 1868-1887, 1883-01-04
I1ALL IIN = OFFIJE-
TALLAHASSEE, FLA, January 9,


1t will be seen from the reports of the Comp
troller and Treasurer that the total amount of
warrants issued for 1881 were $2Sl POI 03, and
for 1882 $l70,302 OS. For the first time in the
history of the state we have ample funds in
the treasury to pay all drafts for current eX-
penses-nO floating debt, and no deficiencies
asked for. This simple announcement is a
sufficient commentary upon our financial
status.
The bonded debt is as follows
Seven per cent bonds 1871 $350,000
six per cent bonds 1878 ~ 925,OOO
Eight per cent Convention
bonds ............. ........ 1,5OO-$l, ,276, 500
OF these bonds there are in
School Fund ............. S2S5,600
Seminary Fund ...-......... S7,400
Agricultural College Fund 134, 200
Sinking Fund Bond 1871 ~ $1,000
Sinking Fund Bond 1873 M 100000 666, 700
Leaving in hands of indi-
viduals ............. 5000, 800
Showing a decrease of amt.
i'll hands of individuals dur
ing the past two years .... $62,5OO
Decrease of public debt during past two
Bought Sinking Fund Bonds
1871 ..-.......... -........ $500
ForS Singing Fund Bonds 1873,
$l7,55O 90 I. 5. per cent.
bonds equivalent to 6 per
cent.FlOrda Bonds at 81 10 $40, 100 $4,000
The laws Of Florida, chapter 1898, under
which was issued the per cent. bonds, and
cndplef 1854, unuef WnlCn was Issued lne U
per cent. bonds, provide that the Treasurer
cannot pay over their par value in the pur-
chase of any of said bonds for the sinking
fund. The bonds of the State have advanced
so much in value since that time that the
Treasurer cannot purchase the same at their
par value. Indeed our Z per cent. bonds are now
quoted at l30, with none in the market. The
last Legislature. amended in this particular
chapter 1888, relating to the per cent. bonds,
but by an oversight, omitted to amend chap
ter 1897, relating to the per cent. securities,
which precludes the Treasurer from purchas
ing them for the sinking fund. / therefore
recommend that section of chapter 1889 be
so amended as to allow the Treasurer to pur-
chase said bonds at their market value.
TAXATION.
There is no subject of greater moment to
the people than that of taxation. In order to
secure proper appreciation OF the question
it is necessary to refer back few years.
At the change Of administrations in Janu-
airy, 1877, the State tax was twelve and half
mills. The Legislature was deslrous of re-
ducing the same, but difference of opinion
existed as to the proper reduction to be made,
and that body adjourned leaving the law as
they found it. In October of that year, Gov.
Drew, ascertaining that a reduction could be
made, directed the collectors, through the
Comptroller, to collect ten mills in place of
the twelve and half authorized by law. In
August, 1873, he directed further reduction
of one mill, and the collectors were directed
to collect nine mills for that year Thus the
matter stood, with nine mill tax, when the
y
The question of a reduction of taxes again
occupied the attention of that body. Gov
Drew, then Governor OF the state, pressed
upon the committee the necessity of having
eight mills, and requested them not to go be-
low that figure if they desired the State kept
upon a cash basis and the interest upon the
public debt punctualy met They thought,
however, that by suspending the sinking fund
tax.for two years, seven mills would be sufi-
cient to carry the State through on cash
basis. Hence a seven mill tax was passed and
the sinking fund tax suspended for two years.
This was the rate assessed and collected for
the years 1879 and 1880.
When the Legislature met in January, 1884,
and l entered upon the discharge of the duties
of Governor. we found, Notwithstanding the
most rigid economy, that the State was behind
over 100000. The deficiencies for 1880 and
previous years which had to be met amounted
to S35. .6S5 10 (see acts of 1881, chapter 3225) I;
floating debt, S5,335 %; jurors and witnesses
certificates outstanding, $25,95l 6S; interest on
bonded debt due January l, 1881, $52,2 sala-
ries for the last quarter of $780, Sl3,06S, making
a total of 1882, 29O y that was due, with only
S29. .GS3 Is in the Treasury to meet the same
In other words, after trying a even-mill tax
for two years, with the sinking fund sus
pended, and S22,121 81 of the sinking
fund of former years used for gem
eral expenses, the State was unable by
$l02.60 "a to meet its obligations past due. 1t
may be said that we had the taxes of 1880 to
apply to the expenses of 1881, but every one
familiar with the practical financial opera
tions of the government for years knows that
the expenses of each current year are really
met with the OccupatiOnal taxes of that year
and the property taxes of the preceding year;
and, moreover, it will be remembered that the
Legislature was in session in 1881, and its eX-
penses had to be, and were met, out of the
taxes of the previous year. Are we surprised,
then, that Governor Drew, on January 3. 1881,
the day before he left the Executive office,
addressed the following language tOthe Legis-
lature;
''These deficiencies were anticipated, and
the necessity of increasing the assessment
urged upon the last Legislature, but they
failed to carry out the suggestions then made,
and to this fact, as well as to the increased
demand on the several appropriations, is due
the scarcity of funds in the Treasury. In pri-
vate interviews with prominent members of
the last Legislature | urged the fixing of
sliding scale rate of taxation upon the ground
that if the assessment was increased largely,
as anticipated, the rate could be diminished;
or, if it failed to be increased as much
as expected a rate high enough to raise
sufficient money to meet the interest and pay
all appropriations could be liked. But this
they failed to do, and fixed the rate at seven
mills, expecting the assessment to run up to
49,, ,00O 600 or $40,000000; but instead of this it
reached only $50, ,3S2, ,209, rendering it absolute
ly necessary for myself and Cabinet, in order
to maintain Inc cgedit and keep the State at
a cash basis. to borrow on our own responsi-
bility enough money in part to meet the inter
est on the State bonds for January, 1880, and
for the interest, 1890 rs on the amount bor-
rowed, which will require an appropriation
At the present valuation of prop
erty and rate of taxation, the State cannot be
kept at a cash basis and the interest on the
public debt paid"
Such was the condition Of GgT fnences when
the present administration entered upon its
duties, and the Legislature in session, with
the increaped expenses necessary to the meet
ing of that body. The StateEas compelled,
under Legislative sanction, to 60 into the mar
ket to borrow large amount, in order to pre-
serve her credit.
The question was then, should the Legisla-
tlrvrr Atafn Isu
sis, and its credit depend upon scrip specula-
tors, and its expenses be necessarily increased
thereby-or should they place an additional
mill for one year and keep the State on a cash
basis? The Legislature wisely concluded that
it was much better for a tax payer to pay an
additional ten cents upon his hundred dollars
Of property for one year, and thus maintain
the State upon cash basis, than to allow its
credit to depreciate, with all the attendant
evils Of an over issue. Of scrip, To ''pay as you
go" is homely adage, but one equally appli-
cable and beneficial to States as to individ-
uals. viii not discuss the evils Of the credit
system, as illustrated by a scrip issue beyond
the income Of the State. The $4,000 which we
are called upon yeaIly 70 pay in the shape of
interest upon our State debt, Is the legitimate
and necessary offspring of such policy, and
should be warning that the most thOughtless
should heed.
DEDUCTION OF TAXES.
The act of March, 1851, TO secure an equal
and uniform rate of taxation, and to pay the
current expenses of the State for the years
1881 and 1882, and for the general school fund,
and for the interest on the bonded debt for
said years, levied tax OF eight mills with the
following prOviso: ''That If the Governor
should discover from the aggregate assessment
Of the property of the state, and from other
sources of revenue, the reduction of the eight
mills State tax of 1852 will be justified, he
is hereby authorized to direct the Col
lectors OF Revenue to collect only
seven mills State. tax for 1882" Owing
to the increased development of the
State, the assessment showed a considerable
increase for the year 1881, and felt warrant
ed in exercising the authority given me by the
Legislature, and directed the tax to be re-
duced to seven mills for 1882
The sale to disencumber our internal i'm
provement fund has necessarily placed e large
amount Of lands upon the tax books, and the
great impetus thus given to railroad building
has largely increased that source of reVenue
The natural Increase Of wealth and population
growing out Of these great enterprises, as well
as from other sources, has increased the rev
enue OF the state 30 largely that am more