Savannah morning news. [volume] (Savannah) 1868-1887, 1885-02-16
THE STATES FINANCES.
A SOUND AND STRIKING RE
VIEW BY JUDGE REESE.

me recent Action OF the Legislature in
Reference to the Finances of the state
Reviewed and Contrasted with the
Requirements of the Constitution of
the state.
This Is a most OppOrtune occasion to
ascertain what is the exact condition Of
our finances. In order that the matter
may be understood, L propose first to re-
view certain provisions of the constitu-
ton Of 1877, respecting finance, taxation
and the public debt, and then compare
with these requirements the action of the
present Legislature.
Article :, section 3, paragraph 1. the
constitution Of 1877, declares that no debt
shall be contracted by or on behalf of the
state, except to supply casual deficiencies
Of the revenue, repel invasion, suppress
instruction, defend the State in time of
war, or to pay the existing public debt: but
the debt created TO supply deficiencies
IN the revenue shall not exceed in the
aggregate 100000. In the same ar
ticle, section y, paragraph l. il is declared
that the bonded debt Of the State snail
never be increased except to repel in
vaslOn, suppress insurrectiOn or defend
the State in time of war. Section IA of
the same article based on the idea that
provision had been made by laws in force
in 1877, OF would be made by law to raise
sufficient funds by taxation to pay the in
terest on the public debt, and portion Of
the principal yearly, until 1856, declares
that the General Assembly, after 1856.
shall raise by taxation each year, in adj
ditiOn TO the sum required to pay the pub
lie expenses and interest on the public
debt, the sum Of 500, 600, which shall be
held as a sinking fund to pay oil and re-
tire the bonds of the State, not now ma
tured.
The term Except to supply casual de-
tclencieS in the revenue" is twice used
IN the constitution, and in the same sense
at each place. Whenever the revenue
raised, or TO be raised yearly by taxation,
from some accident, chance or uneXpect-
ed event, is lost OF cannot be collected,
then there is a casual deficiency. If the
State Treasurer should embezzle the pub
lie money, or robbers break into the vaults
OF the Treasury and steal, whereby an in
sufficient amount is left To meet the claims
on the Treasury, a casual deficiency
would happen. So, If through drought, pes
I thence or storm sufficient taxes for the
year could not be collected to satisfy the
demands against the Treasury for that
year, then there would be a casual def
cheney. Under our practice a casual de-
ncIency Is held to arise when, after sufii-
clent taxes for the current year are levied.
1t is necessary for a short period of the
year to anticipate the collection of taxes.
W hen. however. the revenue was INSULT
cient from the beginning, that is, from
the time the tax was levied, to meet ap-
preparations, and was known TO be so,
then a casual deficiency has not occurred,
and temporary loan, provided to meet
such deficiency, is simply without con-
stltutiOnaI sanction. The provisions of
the constitution prohibiting an increase
Of the bonded debt of the STATE, except to
suppress instruction, repel invasion and
defend the State IN time of
war. as 1 understand, refers not
only to the debt existing in 1877. but to
the debt as it may be reduced at any time
by payment. When sOreduced. its amount
cannot be increased except for the pur-
poses therein named. The bonded debt OF
the State cannot be increased to absorb
temporary loans, even when properly
made; nor to pay appropriations beyond
the amount Of revenue when not changed
into a temporary loan, unless they are
made for the objects set forth in section
u of article 4. Temporary loans, unless
saved by section y, article :, must be
provided for by taxation, and it is fOrtu-
nate that il is so, as this is certain to
secure attention and inquiry into the ac-
ton of the representatives of the people.
Let us see how the Legislature of the
state at its recent session concerned its
action to the constitution. During the
summer of 1884, on account of appropria-
tiOns beyond the revenue Of the State,
a large deficiency occurred, exceeding
S20O,O0O, and this amount was then
actually needed to pay interest on the
public debt. Large appropriations, such
as appropriations to the Lunatic Asylum,
10 pay for artificial limbs for the soldiers,
to pay expenses of the Legislature alone
amounting to $4,000, and other apprO-
pTiatiOns not necessary to enumeTate,
absorbed the entire revenue, and LEFT an
insufficient amount to pay interest on the
bonds of the State. In the midst Of the
panic of 1884 the Governor was forced
To borrow money to pay interest on
the bonded debt of the State. In his mes
sage to the Legislature he called special
attention to this emergency. With this
special notice before it the present Legis-
lature resolved TO meet it by another tenn
pOrary loan for 1880, for which no prOVis-
ION was made by taxation or otherwise.
This temporary loan viii, unless taken
care of at the summer session of the Leg
islature, 90 down to succeeding admins
tratiOns. when it will probably disappear
in a funding bill. By this new scheme of
excessive appropriation the bonded debt
will be increased and 4 scheme constant
" cOunteracting the sinking fund scheme
OF the constitution will be in operation.
The Legislature at its late session pass
ed a funding OF bond bill, to which the
attention of the reading and thinking peO-
pie of this State is asked. 1t requires the
Governor of the State to issue and sell
bonds bearing not exceeding > per cent.
interest to the amount of SO AS, l35 (three
million four hundred and fOrty-five thou
sand one hundred and thirty-fye dollars
to pay of bonds OF the State falling due in
1885 and 1856, TO wit: 1929, 100 a. and G..
per cent. bonds; $4,000 per cent.
Nutting bonds, falling due In 1886; 81, $685.
600 Western and Atlantic Railroad, : per
pent. bonds, falling due in 1886; 900 8
per cent. Nutting bonds, and SIS, 055 per
cent. bonds falling due in 1885.
The temporary loan resolution and the
funding bill $50 framed as to take up the
bonds falling due in 1851, considered IN
connection with other legislation of the
late session, show that the object OF this
unusual and unwise legislation, as l con-
ceive, was to leave sufficient supply Of
money in the Treasury to satisfy the capt.
tol APPROXIMATION without increasing the
tax levy above $40 of 1 per cent.
l say in connection with other legisla-
ton at the same session, by which is
meant the appropriation of $4,000 for
the wear 1885 and the same amount for
the year 1856 to be paid from the revenues
of these years to build the new capitol.
As it may be asked why such apprOpria-
providing for the erection Of new CAPT
tol contained provisions that the capitol
should be built only from surplus IN the
treasury, and that taxation should
never be increased beyond the rate exist
iugin the year 1888. to raise means TO build
the capitol, 1 will explain the cause OF
this ssneW departure" When the Legls-
lature met in 1884 It was ascertalned that
there was no surplus in the treasury, and
had not been for 10 wears, and that sys-
TEN Of keeping the public accounts made
certain amounts seem to be surplus which
had already been paid, but for which
vouchers had not been received at the
Treasury. 1t was further ascertalned
at the same session that the large
amounts paid into the treasury by
the purchasers Of the Macon ana
Brunswick Railroad in 1884 could not be
used as surplus, because such payments
had been made in bonds of the State.
Therefore, to avoid taxation for the year
1885 (and secure means TO build the capt.
toll. a temporary loan resolution for that
wear. with no provision to meet 10 from
the revenues Of 1885, and bill to fund
bonds falling due in 1888 to the extent of
S1Og C35. were adopted. These objects of
IN I legislature are made more fully ap-
parent bv an examination of the Treasu-
Ter's report, made Oct. 1, 1884, to the
Governor. and by him transmitted to the
General Assembly.
In this report it is shown If temporary
loan of 100000 for 1885 and the ponds
falling due in 1885 and the appropriation
of $50. 600 for the capitol should De pald
in ISS5 from the revenues provided by
tax- Of s-IO of 1 per cent, and the other
resources of the State during that year,
49,. ..-,,,1a Ia a efficiency at the end OF