The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1886-04-20
Governors Message ON Finances
and Taxation.

Governors Message ON Finances
and Taxation.
ExEoUTlvE DEPARTMENT, 4
- OFFIcE OF TIE GoxsRNoR,
HCoLUMBUs, D., April 8, 1886.
To the General Assembly:
T. The fuaDcIal conultion OF the State
needs attention 1t is estimated by the
State Auditor that the expenditures Of
the State up TO the fst day Of next July
will amount TO about $500. 900, and from
that date until the 6fstday Of next jan
nary they will smoant to about 81 500,.
600 making a total expenditure of S2.-
300, 600 to be provided for ont Of the
general revenpe fund.
To meet this We had on the 1st day of
April cash balance In the treasury Of
only about $2OO,OOO and it is estimated
by the State Auditor that our total reye-
nues from the taxes to be collected in
June and all other sources will amount
Ito only about sl,10O,0OO, or in round
numbers the casual deficiency OF the
State will aggregate about 81, 600. 600 on
December 81, 1886 q @
The Constitution provides that the
State may borrow money for the pur-
pose OF meeting such deficiencies, but
that such Indebtedness shall never ex-
ceed S760. .000. ---.--.
1t has become necessary not only to
use but to exhaust this power, aod bill
has accordingly been introduced author
izing the commissioners Of the sinking
fund to issue and cell certificates OF 10.
debtedness OF the State 10 that amount.
The necessity for this step is 90 appar.
eut ii is hoped the bill will be promptly
passed. With even this help il will be
necessary to anticipate the revenues OF
next year to the amount Of e250000.-
Hence, Notwithstanding this loan there
is imperative necessity for the strictes,
economy. s Efsst
But you are invited to look further to
something more important.
Our State is rapidly growing in both
population and wealth the demands on
our treasury are correspondingly 10.
creasing. For the next ten years this
will probably continue more rapidly than
heretofore, owing to the fact that emf
grafton to the Western States is decress.
ing in proportion as that country tills up
and its lands enhance in value.
But while this demand has been in-
creasing our sources OF revenue have
been diminishing. In 1883 the value for
taxation of the personal property OF the
State. as shown by the grand duplicate,
was S542. 207, ,12l. 10 1884 it shrank TO
S528, ,298 87l. and for 1885 dvindled
again to S5G9 9l3. 1856. This loss has
been made up largely BY the steady
growth of the valuation of real estate
on account Of new structured, etc bot
the loss was greater than the increase
last year, and the result is shown in the
fact that the grand aggregate Of all the
property Of the State, both real and per-
sonal, amounted in 1885 TO hut ol. .670..
079, 1858, against 81 67a, ia, ,08l for 1884,
or loss OF S3,694,213.
This indicates that our wants and our
ability to meet them are travelling in OPP
posite directions, and that unless the
tax rate or the valuation OF property 10
increased, the caausl deficiencies will
continue and grow larger without pow
er to provide for them because OF the
extreme limitation allowed BY the con
sti.ution hsving been reached under the
bill above referred to, providing for the
issue and sale Of the hOnds OF the State
to the amount OF $3.50, 900 to meet the
emergency now upon us.
The rate OF taxation should not be In
creased, at. least aot until other meas
ures that seem more just have been tried.
The last election indicated Q desire OF
the psopls'to - sFe 4e.sr.
TAX THE LIQUOR TRAFFIC.
1t is hoped this Legislature will not
adjourn until an efficient measure 10 that
effect had been enacted. Although such
a tax can be levied only for the purpose
OF police regulation, yet it does not fol-
low that the revenue, when collected.
must necessarily be devoted to anv par
ticular purpose. On the contrary, it is
entirely competent to do with it 40 the
Legislature may see 6t, and il is thought
to be only equitable and Just that at least
25 per cent. of the revenues 90 derived
should 60 to the general fund Of the
State. And it is recommended that any
law that may be enacted ON this subject
shall 80 provide From this source the
State would in such event realize probs.
bly, s500,000 to the great relief OF oil
present classes OF taxpayers.
roREIeH CORPORATIONS.
Foreign Insurance, telegraph and ex-
press companies dong business in this
State are now taxed upon their gross re-
ceipts. There is no reason Why foreign
telephone, transportation, car trust and
car equipment and sleeping and parlor
car companies should not be similarly
taxed. II the policy be right In the one
class OF cases It should be equally go 10
the Others, and equity and justice TO the
State and to the other companies that
are 60 taxed require an amendment oi
the laws 10 that effect.
The most important matter to which
il is desired TO call your attention yet re-
mains 10 be stated.
CUR TAX LAWS.
Our tax laws are, 10 the main, per.
haps, ss wise as they can be made under
the present constitution. II it we're no,
for its positive injunctions much might
be said IN favor OF exempting from taxa-
tiOn the bonds of our State and munich
pal gosernments, 10 the end that We
might not tax our credit and drive our
securities away, bat keep them at home
and pay the interest upon them TO our
own people. But that is impracucable
and unnecessary TO be discussed.
The requirement Of the constitution is
that all bonds, stocks, investments, etc
as we'll as real property. shall be taxed
at their true value in money. Our laws
have been framed with view to eecur
ing thisresult, but 1t is manifest to oil
acquainted with our resources that they
have lamertably failed for ell such know
that instead OF . grand duplicate Of o.,