New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-04-11
THE DIRECT TAX MONEY.
GOV. HILL SUGGESTS THAT 1T BE USED
IN PAYING BONDED INDEBTEDNESS.

ANXIOUS TO KEEP THE STATE TAX RATE HIGH,
SO THAT THE FARMERS WILL HOLD THE
REPUBLICAN SENATE RESPONSIBLE
FOR THEIR HEAVY TAXES.
! ryno, ,rr ,yart.n CORRESPONDENT OF rHE TRIBUNE.
Albany, April 1o.-Governor Hill would AFFORD no
relief IN taxation to the farmers Of the state atnoug
II Is the testimony OF every Senator ana Assembly, man
representing legislative districts In wnioh there Is
largo farming population that the hnancia distress oi
the farmers has not been great In many years as IL
Is this year. For years the farmers Oh uie o'ac
have had poor crops owing TO bad weather. In many
counties farms are unstable at any price approaching
their value In more prosperous times Unoer these
circumstances the farmers naturally look to the Legs
lare to usc every particle Of the States funds available
TO keep the State tax-rote low
Lately the farmers who are hoping for low state
tax-rate were cheered by the news that the ohVed
States Government had paid back TO the state the
large sum of SO o13330 So on account OF the Federal
Direct Tax Of 1861 Surely, they thought, this money
will be used 20 reduce the State taxrate be-
,ov that ~ last wear But Governor HM has
different plans for the disposition OK that money
He doesn't wish to have the State ta1-rate kept low
BY the economy Of a Republican senate' upon the
contrary he wishes 1t kept high, so that the FARMERS
will hold the Republican Senate responsible for hgh
rate In order to keep the state taxrate hgh ne has
come like a windfall into the State Treasury. Mr.
HIN desires TO elect Democratic Legislature this fall
by raising the cry that the Republican senate mas
raised the State tax-rate
He therefore sent message to the Legislature To-
day suggesting other uses for the S2,3Ooooo tnah
that of reducing the State tax rate. He would AL
ucpate the payment of canal debt not due until next
and ould se apart S4OO 900 Of the money to pay
Niagara Reservation bonds not due for several years
10 come He suggests that the canal debt, which Is
now paying per cent, be bought up ana palu on
II this IS DONE the State Government VIII nave TO pay
q pretty sum of money to secure those evidences OF
the States Indebtedness
The vicious feature of the Governors sugge'uoh
lies in this fact that the Legislatures OF previous
years raised by taxation sufficient money 10 meet tho
demand upon the State Controller on July l. lool'
for 81 645o5O together with interest amounting
10 s4O357 so, TO reduce the canal debt Oy thde
amount: and that this money Is now IN the oIVo
treasury TO meet this obligation But Governor Hil
suggests that instead OF using this money! an equal
sum be taken ont OF the 81 213,53O SO OF the Direct
Tax fund He confesses that this would leave In the
State treasury SO 764, ,000 so, (Which would be not
only sufficient to provide for the payment OF all inc
remaining outstanding canal debt but leave balance
TO the States credit Of ~ 055379 So" And so tho
Governor would set aside Sl,05537o 80 at tlmo
when the State tax-rate should be reduced and hold
IL I'm the State treasury without doing anything
with It, And the Governor also would have inc
state anticipate the payment OF the Niagara
Reservation bonds Of tho State There Is only
800 600 worth Of them due July Of the present
year but the Governor would not only pay them on
but would buy at high price the Niagara Reservation
bonds TO the amount of 100000; all OF which VIII
not be due until 1895.
Under no circumstances therefore, it is apparent
would he reduce the State tax-rate this year. His
message to the Legislature is given below, and its
/ IoAIn rafo
ton to all men who have thought David b. Hlh
nt TO DO President Of the United States:
state Of New-York, Executive Chamber,
t' Albany, N. y, April 10, 1901.
There Is now in the state Treasury, subject 10 ap-
preparation by the Legislature, the sum of 81
800 sd which the amount accreded M 70 inc 1tae
1861 and refunded in pursuance of the provisions OF
act Of Congress approved March :, lo9l. IT WI VIII
latures 10 provide by law for the disposition Oh tns
fund. Various suggestions have been made with WITH
reference thereto none of which, however, Is well
supported, or has seemed to command general popular
approval. The disposition of such large sum ot ot
money naturally prov0kes some contention, ana al
such time the present when the burdens OF taxa
tion rest heavily on our people. all proposals Tor eA-
pendture are closely analysed and carefully weighed
This critical temper OF the people and Legislature,
while extremely praisewOrthy may, however, prevent
any legislation the subject at this session OF the
legislature in which the people Will be deprived
for year of the benefits of the refunded money
/ would respectfully recommend TO the Legislature
method OF immediate disposition, which, in my oplhOn'
would satisfy all classes OF the people, aordlng con-
tinung flef from taxation, and still leave upward Of
81 100000 In the Treasury 10 be devoted to Such
special objects as the Lcglsaturc may hester agIO,
SHOULD SpS bo ' used to Guidate outstanding bonded in
debteness q the state most Of which G Is NOW
. per cent and ali of which is to considerable
tent an annual burden upon tho people. ,,,r rx+
he will be Obliged to pay toward the reduction OF the
canal debt and out Of the canal debt sinking fund inc
g4u q
money should be used in meeting TINS 0bhgauon uls
canal debt sinking fund would % 4 Sln H snS1t RthSs az
provide for the payment Of all remaining oytstandlg
Gf Dc but YOU'D % aTs to nS Of
OF tho direct tax money, moreover would make II uI
SSS ar Syy 90 aS o ii s Ts 1851 for
and the sinhlg fund, amounting to S447 $40, or to
levy any additional tax S sfTus dT % Of p @
s55o54O to the people next year and the year ioi
am also Informed by the Controller that there will
be due on July / next 100000 of the Niagara e Re
servaon bonds with interest amounting @ snnHy TO S
now pending The outstanding Niagara KespsaS1on oon
bonds July In addition will amount ncr Son To S49o he
balance of the direct tax money were used for tle
redemption Of these outstanding bonds o ana and for fv the
ppex next not only could this years supply bin be
diminished by S1o6250 but the entire Niagara heseP
appropriation for interest AVOIDED: The net result
Therefore OF such an appGanSn G De ggcS
10 yonr consideration would be 10 place the state
entirely out Of debt, and aford relief to the people
more than this. such operation wOld still leave
in the canal debt sinking fund over % aGd g aSGge c6n an
VA mainly of securities now well invested. which
conld be sold transferred to other trust nnds ana
the proceeds used for such purposes as the
mIght direct. Tho application Of any part OF tnls
money toward a reduction OF the tax levy 70 Grete,
tt tbap Is secured by doing awav with the annual
anrrnnriatons for interest and principal OF tle Su
Snbts nav well be deemed objectionaDie, ana ue
coyrea hera sucgested avoids TINS crltlclSnl.
Snch disposition Of the money as nave omIlnen m S
,e indorsed by the Controller, and reSpectinily ssN
-, ~ vonr serious consideration. 1t Is n good policy
as General rule for governments ss wei as lndl-
1idnas 10 pay their interest hearing debts when the
ara ahIe: and when, ms In this tho payment 9f
h Sott relieves the people from 81 100000 In taxa
Hnn and plqces Al 100000 surplus In the treasury,
wise Craftsmanship should not be slow In ad9ptng
that policy D.tN IN, ~ -. ID ~, q. 10.
when the message was read in the Senate IL was
referred 70 the Taxation Committee for consideration
Mr. Erwin addressing the Senate, said that ne nau