Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1890-01-09


This table shows that, with the exception of
the year 1885, when the appropriations
amounted to the unprecedented sum of S3,52 :
1885, they have never exceeded the sum of
$S 1876 45l 2S except only last year. when, for the
reason already mentioned, they reached the ag-
gregate of IS, 1888 S37 IS. During all these years
since 1885, this fund has been subjected to an
extraordinary burden occasioned by the con-
struction, furnishing and maintaining of the
Toledo Asylum for the Insane, the construction
of the Soldiers and Sailors Home at
Sandusky, the Working Home for the Blind
at lbera, the enlargement Of the Soldiers and
Sailors Orphans Home at Xenia, and the con-
struction of the intermediate Penitentiary at
Mansfield.
The building of the Soldiers and Sailors
Home at Sandusky, and the intermediate Peni-
tentiary at Mansfield, will occasion still further
extra expense for this year. But it should not
be more than small proportion of the amount
borne on such accounts during these recent
years.
with the exercise of only ordinary prudence and
economy the aggregate of appropriations to be
paid from the General Revenue Fund will not
exceed the sum of 80 150 900, or a sum less by at
least S300,000 than the receipts will amount to-
Considering the small balance yet remaining
to be paid of the principal Of the public funded
debt, and the low rate of interest on the same,
the financial condition of the State is less bur-
densome than it has ever been before. If the
next decennial revolution of real property, soon
to be made, should increase the duplicate, as it
doubtless will, in the same proportion such re-
revaluations have heretofore increased 1t, the
rate of taxation for State purposes can be again
in 1891 still further reduced at least two-tenths
of one mill.
While these burdens for State purposes are
growing less,
LOCAL INDEBTEDNESS
Is constantly and rapidly increasing. Our
county. city, village, township and school dis
trict debts have reached the amount Of $780, 22S-
1913. The net increase fc the past year was
50 448. .097.23. These obligations are contracted
for local improvements which the people doubt
less need and get value received from. They
consist Of public buildings, bridges, gas plants
water works street pavements, road imple-
ments. etc, They are usually sufficiently neces-
sary to make it difficult to persuade those in
terested to delay contracting debts to secure
them. Hence the steady growth Of this class of
Indebtedness. Something should be done to
check this increase. Otherwise the rates of
taxation for local purposes will soon become 80
heavy as to unduly oppress the business and
industrial interests of the State. While, there
fore, the enactment by you, OF statute fixing
the maximum beyond which such debts cannot
be contracted, would not bind succeeding Gen
eral Assemblies, yet it would probably establish
a standard beyond which no one would seek to
go except in extraordinary cases and the result of
such measure would thus be highly beneficial.
For this reason repeat again the recommended
tion made in my annual message for the year
1887, repeated in 1888 that no county, township
or municipal corporation be allowed to create a
taxable valuation of its real estate, and that in
no case where they may already be a debt in
excess Of this restriction, shall the creation of
any further such debt be allowed until it shall
have been reduced below this Limitation.
TAXATION OF UNINcoRpoRATED BANKS.
have several times called attention to the
fact that private or unincorporated banks are
not taxed as the law now stands equitably with
other banks or other property OF any kind. The
trouble is not with the banks, but with the
To- Sn1,O pf fha Routuo tint taa 1f
Ohio, governing the returns OF unincorporated
banks, provides that liabilities may be de-
Quoted from cash, cash items, bonds, stocks
and securities held as Investments. No indi-
vidual or Incorporated company engaging in
any other kind of business Is allowed any such
exemption. No one has ever given any good
reason why such a favor should be extended to
this particular business 1t is denied to all
other taxpayers including incorporated banks
both State and National. The provision Is not
only exceptional to the extent indicated, but
its validity may well be doubted. Section
2730 of the Revised Statutes defines the term
credits" as used in the constitution to mean
only the excess of Credits as the term Is ordin-
arily used, over liabilities. This definition is
thought by many to be in conflict with the con-
Stitution, but 1t has been considered to be so
equitable that 1t has been acquiesced in by
common consent, and all classes Of taxpayers
enjoy the privilege 1t extends 1t goes no
further, however, than to allow deduction Of
liabilities from credits 1t does not allow de-
ductions from cash, cash items, stocks, or
property OF any kind. While no one would COM
plain If Section 2759 went no further than to
extend the benefit of the definition OF credits
rs given in Section 27s0 TO private banks, yet,
even that exemption would be questionable
when applied to banks, because of the provis-
ions of Section B. Article 19 Of the Constitu-
tion, which provides as follows:
"The General Assembly shall provide. by
law, for taxing the notes and bills discounted
or purchased moneys loaned, and all other
property, effects or dues Of every description,
without deduction) of all banks now existing or
hereafter created and Of oil bankers SO that all
property employee in banking, shall always bear
a burden Of taxation, equal to that imposed on
the property of individuals. =, M .
This requirement of the Constitution would
probably work q hardship II strictly enforced
but certainly there cannot be any Just COM
plant II Section 2759 be SO amended As to pro-
hibit deduction of liabilities except from
credits. This would be appl yinglt the same rule
to unincorporated banks that IS. applied to
other banks and to other citizens. Common
Justice TO other Taxpayers demands such Q
change and it should be made.