Centre Democrat. [volume] (Bellefonte, Pa.) 1848-1989, 1883-10-04

ANALYSIS or THE TREASURY re
rRrs ANp SOME SOLID FACTS.
The passage during the regular scs.
sion of the legislature of the llumes
bill. to compel the Investment of the
81 700 900 cash in the sinking fund in
State or United States bonds, has again
brought to the front the past disgrace.
ful management of the State Treasury.
1t may be true, as asserted by the Re.
publicans, that the state has never
lost a dollar of the money belonging
to it through the practices which pre-
vail. 1t this bc true, why did state
Treasurer Mackcy refuse to answer
the questions prupouudcd to him
several years ago 10y Senator Wallace
when his management ot the Treasury
was under investigation We simply
refer to this as one Of the many futile
effort, of the Democrats 90 g., at The
bottom facts concerning STATE luauces.
We believe il ], Il duty the people owe
to themselves. without regard ip party,
now that they have elected an honest
Democratic Governor, 10 also elect m
honest Democratic State Treasurer,
that these stories Of pccuIatlon may be
forever set to rest.
That they may see the necessity OF
this action, we desire briefly u call
their attention TO Mr. Bailcy's mis-
management Of his official trust But
first. let us call attention to the present
condition of affairs concerning the
state debt, brought about by Republi.
cans soa as omakc pcculation easy ard
possible for years to come. The policy
of funding the debt in longtime bonds
at low rate of interest, 50 far rs the
state is concerned, was for the purpose
of indefinitely continuing our debt on
the idea that "a public debt i a public
blessing" The state debt Is $780,
600. The constitution requires $500
600 OF the principal to be paid annual.
ly. The debt was refunded by the act
of 1877, SSuOOOOO reimbur-abIe in
1892: by the act of 1879, S2,O0o0DD
reimbursable in 1894; by the act Of
1881, SG,9iO,0OO rcimbur-able in 1912.
and S2,5lOOOO, S250,00D of which
falls due annually, SO rs to enable the
Treasurer to annually redeem the
S250O0o required by the constitution.
As TO THE SINKING FUND.
We then have the 100000 Agri-
cultural College bond due in 1922 It
will thus be seen that our state debt i,
so placed that but S25O.OnO falls due
annually till 1892. Now the proceeds
of the sale of the public works, which
is the constitutional sinking fund, and
one-half of certain corporation taxes
which belongs to the sinking fund By
the act Of 1879, bring to that fund
annually at least Sl,5oO,pDU. The in.
terest on the public debt and the $3.50
600 of the principal which the con-ti-
tuition requires to be paid annually
calls for S1.12l,i 400 for the year end.
ing Nov 80, 1888, thus leaving u
surplus in the sinking fund this year
OF $4,000 With the law q, it now
exists that surplus will increase next
year $4,000 or in lSSj $4,000, lS>J
$4,000. and so on till 1892 Thus
We see if there had not been a dollar
in the sinking fund Nov. 30, lSs2,
under existing law that fund would ON
the 3Oth day of November lsg2,
amount to Si,S3i,OuO.
Add to this the S2,Ol1,01@ cash in
the sinking fund November 30, 1SS2,
and we find the Republican policy
and management Of the Treasury Will
have accumulated in the Treasury bv
November 50, 1892, sG,s5i,O75. There
fore we see by this outrageous Repub.
iican management thta the sinking
fund moneys alone enable the State
Treasurer to control the politics Of the
whole state BY his judicious distrbu.
ting Of this money among the banks,
together with the money in the general
fund. But so far we have only dealt
with the sinking fund But it must
be remembered there is another source
from which the sinking fund may and
should be replenished By the act
May 9, 1874, it is made the duty of
the State Treasurer on the first busi
ness day Of January, AIril, July and
October Of each year to carry to the
account of the sinking fund all moneys
in the general fund in excess of 5000. |
900. This law has never becn obcvcd, |
and Mr., Bailey told the senate in
written communication ia answer TO
resolution Of inquiry offered by Sena.
tor Humcs that he would not obey it.
Yet by virtue Of this law Treasurer
Butler on April ], 1882, turned over
from the general to the sinking fund
100000.
4 HUMGLATGNG confession.
There has been Mt no time during
Mr.. Bailey's administration less than
Sl,OSi,000 in the general fund. And