The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-01-16
Indiana university bonds,
Si4,Oo az 5 per cent.
interest, payable May
] and November -.
25s.4ss %
sSszs61 90
Failure 10 Make Appropriations.
Total interest on do
me site debt...........


for feeble-minded youth, the Soldiers and
Sailors Orphans home and the soldiers mon
ument. At first it seemed as though the failure
TO enact such legislation would leave the state
in such financial condition that it would be i'm
possible to meet the current expenses OF the
state and the additional obligations which
the state had incurred by so many
public improvements, or TO complete any
OF the new institutions; but contrary to the
most sanguine expectation, nearly all the obli-
cations of the state have been met. The inter
est on the public debt paid under provisions OF
the net of 1852; the Soldiers and Sailors
Orphans home at Knightstown rebuilt; the
land for the institution for feeble-minded
youth at Fort Wayne purchased and the con-
struetiOn OF the building commenced; the hos
pital for insane at Logansport completed,
equipped and opened for reception of patients;
the hospitals at Evansville and Richmond
completed ready for equipment and furnish
ing.
state Finances.
This is a subject that should always receive
the fullest investigation and consideration in
order that an intelligent understanding may be
had of the financial condition of the state, and
q wise and well-directed fiscal policy pursued.
The present law fixing the tax levy for general
purposes at u cents on each 500 in value Of
taxable property has been in force twelve years
without change. At the time such levy was
fixed it was only deemed sufficient to meet the
usual and ordinary expenses of the state and
its institutions. During that period the popu-
lation OF the state has greatly increased, which
has made necessary the enlargement and i'm
prOvement of the institutions existing at the
time of the passage of the law, and the con-
struction of new buildings for additional needed
institutions nv M tho nrfiuo ~
current expenses OF the administration OF the
state government.
OF the improvements made and the new
buildings constructed together with the
spective costs of the same the following may
be enumerated as the most important:
The female department OF the Indiana hos
pital for the insane, at indianapolis, $4,000.
The hospital for the insane, at indianapolis,
S70.j0000 The three additional hospitals for
the insane respectively located near Rich
mOnd. Evansville and Dogansport, 81, 49, 02.5S.
The Soldiers and Sailors Orphans home,
near Knightstown, 500, 1868 On the partial
construction and furnishings of the Indiana
school for feeble-minded youth, S1S,22S.17.
The state-hOuse, in addition to the state-house
tax and loan, 500, 900. Indiana state uni
versity, at Bloomington. 100000. Purdue
university at Lafayette, $4,000
1t is suggested that the state cannot establish
new Institutions and construct extensive and
elaborate buildings for the same, without in
creasing the tax levy or borrowing the neccs-
sary means.
BY reference to the statement OF the public
debt, 1t will be seen that the interest on the
foreign debt is only S79,575, while the interest
on the domestic debt is sos, 1852, nearly the
whole of which, to-wit S234, 1860, Is the inter-
est on the per cent. school fund bonds issued
in 1867, 1868, 1871 and 1873. The annual IN
terest on the domestic debt equals about one
fifth OF the entire revenue of the state
IL ~ til
interest paid equals about one-fourth OF the
revenue. Of the total amount Of annual in
terest paid by the state, less than One-fOurth is
on the foreign debt on which the average rate
OF interest, deducting premiums received, is
less than 3 per cent, and over three-fourths
Is on the domestic debt, on which the rate OF
interest is per cent.
From this condition of affairs it will appear
that upon the domestic debt which the state In
fact owes to herself, she is paying per cent.
interest per annum, while on the other hand,
when the state has sought competition, she has
been able 10 procure money at less than one
half that rate. The credit of the state has so
improved during the last few years that she
has been able TO Negotiate loans by selling her
bonds bearing per cent interest, at premium
that reduced the rate of interest below per
cent, placing the credit of the stc5e nearly on
par with that of the federal government, and
as high, If not higher than that of any other
state in the Union. Considering the excellent
financial standing of the state, i have no
hesitaacy in recommending that said
school fund bonds, amounting in the ag-
gregate to $500, 1882, be paid and
to the counties in the manner heretofore
provided by law for the distribution of school
funds, and that the same be loaned in the man.
ner now provided, at the rate of per cent. in
terest per annum. This would not reduce the
revenues to the school fund, and would furnish
81.
people al a fair rate of interest. The borrower
would then pay the interest on the school fund
instead of the taxpayers of the state, and the
state save on account of interest, $117, 1850
each year, sum greater than the entire ex-
penses of a regular session OF the general as
sembly. For the purpose OF making payment
of said bonds, a loan should be authorized at a
rate of interest not exceeding per cent. per
annum, which, In my judgment, could be ne
gOtiated at a premium.
For the final extinguishment of the state
debt, tax OF cents on each 500 should be
levied and collected, which tax when collected
should constitute public debt sinking fund, 10
be applied inpayment of the public debt under
such directions as may be prescribed by law.
Said tax would only take the place of the state
house tax OF cents, which has now been dis
continued.
state House.
BY the authority of an act approved March
II, 1877, the governor was authorized to appoint
four state-house commissioners who, together
with the governor, should constitute the board
of state-house commissioners. The duty i'm
posed upon the board to build new state
house has been fully performed, and they will
ask TO be discharged and released from any
further obligation upon their res pective bonds.
The board has deemed il prudent TO continue
in charge OF the building until the general as
sembly shall have made some provision by law
for its acceptance, care and custody.
The final report of the board will give you
full information as TO the acts of the board
from the time of its organization TO the time of
the completion of their work. including a de-
tailed statement OF the expenses incurred by
the board in the execution OF the duties en-
Joined upon them by law.
The building has been fully completed within
the original specified limit of 3, 100000; has
been carefully and substantially constructed,
aud Is in keeping with the dignity and standing
of the state.
Additional Hospitals For the Insane.
My immediate predecessor, on the 2sth day
of March, 1888, appointed DeForest Skinner Of
Porter county, Joseph Il. Gray of Hamilton
county, j ohm G. Robinson OF Owen county and
William GrOse Of Henry county to constitute q
board OF commissioners to superinten6 the
construction and equipment of three hospitals
for the insane.
The board as thus constituted was continued
by me and has so remained TO the present time
with two exceptions. On the 25th day of Octo-
Der. 1856, William Crosse resigned and Eugene
ii. Bundy of Henry county was appointed to
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