The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-01-12
Finances of the State.

completed ready for equipment and fur
D1sbing.
Finances of the State.
Continuing, the Governor said the State
finances is a subject that should always re-
reive the fullest investigation and cOnsid-
grafton in order that an intelligent under
standing may be had of the financial con-
ditlon OF the State and a wise and we'll
directed fiscal policy pursued. The present
law fixing the tax levy for general purposes
at twelve cents on each one hundred dol
lars 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 Or
binary expenses of the State and its insti-
tutions. During that period the population
of the State has greatly increased, which
has made necessary the enlargement and
Improvement of the institutions existing at
the time of the passage of the law, and the
construction of new buildings for additional
needed institutions, thereby increasing the
ordinary current expenses of the admin
lstration of the State government.
OF the improvements made and the new
buildings constructed, together with the
respective cost 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, S722,-
900; the Hospital for the Insane, at Indian
apolis, S70,5O0; the three additional hos
pitfalls for the insane, respectively located
near Richmond, Evansville and Logans-
port, 81, 113, O02.5S the Soldiers and Sailors
Orphans Home, near Knightstown, $685.
196.43; On the partial construction and fur
nishings of the Indiana School for Feeble
minded Youth, SIS, 22S.17 the State-hOuse
In addition to the State-house tax and loan,
500, 900; Indiana State University, at Bloom
ington, $4,000 Purdue University, at La
fayette, 81, $50.
1t is suggested that the State cannot es-
tablish new institutions, and construct ex-
tenslve and elaborate buildings for the
same, without increasing the tax levy or
borrowing the necessary means; BY refer
enee TO the statement of the public debt, it
viii be seen that the interest on the foreign
debt is only S79, 375, while the interest on
the domestic debt is S25S, 1860, nearly the
whole of which, to-wit, $234, 2S6.99, is the
bonds, issued in 1867, 1868, 1871 and 1873.
The annual interest on the domestic debt
equals about one-fifth of the entire revenue
OF the State for general purposes, while the
total annual Interest paid equals about one
fourth Of the revenue. OF the total amount
of annual interest paid by the State, less
than one-fourth is on the foreign debt, on
which the average rate of interest de-
Quoting premiums received, is less than.
per cent, and over three-fourths is ON the
domestic debt, on which the rate of inter-
est Is per cent.
From this condition of affairs it will ap-
pear that upon the domestic debt, which
the State in fact owes to herself, she is paving
o per cent. interest per annum, while on the
other hand, when the State has sought
competition, she has been able to 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 bear
ing per cent. interest, at a premium that
reduced the rate of interest below per
cent, placing the credit of the State early
ment, and as high, if not higher, than that
of any other State in the Union. Con
sidering the excellent financial standing of
the State,n the Governor said, Il have no
hcsitancy in recommending that said school
fund bonds, amounting in the aggregate to
5000, 7S3,22, be paid and discharged, and
the money distributed to the counties in
the manner heretofore provided by law for
the distribution of school funds,
and that the same be loaned in the
manner now provided, at the rate of
d per cent interest per annum. This would
not reduce the revenues to the school fund.
and would furnish a large amount Of
money to be loaned to the people at q 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, SIT, 80 each
wear, sum greater than the entire expenses
of regular session of the General Assem-
bly, For the purpose of making paynen.
OF said bonds. loan should be authorized
at rate OF Interest not exceeding per
cent. per annum. which, In my Judgment.
eouid be negotiated at premium. For the
final extinguishment of the State debt n
tax OF two cents on each 500 should be
levied and collected, which tax, when col
iected, should constitute public debt sink
Ing fund, to be applied in payment of the
public debt under such directions as NAV
be prescribed by law. Said tax would only
take the place of the State-house tax of two
cents, which has now been discontinued"
Prison Reform.
After rehear5ing the salient points and
figures of the reports of the State-house
Commissioners and trustees o. the several
benevolent and reformatory institutions. the
Governor renewed the opinions concerning
prison reform he gave two years ago. Two
thirds of the prisoners in the State,prisons
of Indiana, he said, are under thirty years
of age. To expect To reform this class of
prisoners by forced association with hard
ened and confirmed criminals. murderers,
thieves and counterfeiters would be, he
thought. TO reason that evil associations do
not contaminate or corrupt. Those who
have had experience in the management of
prisons, and also those who have given
careful attention 20 the impress made upon
the character of the yonng convict.
testify 10 the hurtful influence of the ag-
gregate prison system, and the almost i'm
possibility OF effecting "a reformation; for
however excellent the character of the
young convict may have been prior TO his
conviction. or however real his intentions
may be 10 reform while a prisoner. vet
when discharged, hc finds that the world
does not look kindly on an ex-penitentiary
convict. IL Is with great difficulty he oh
fains honorable employment and finds still
greater difficulty in gaining admission 10
good society. The igaominy of the ex-penr.
Tertiary convict follows him like destroy
in6 angel, wherever he may 60. An admin.