Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1891-04-18
oHlo,s FINANCIAL CONDITION.
Special Message From Governor Campbell
Recommendation ms to tho Disposition
of tho Direct Tax Fund.

Special Message From Governor Campbell
accommodation ms to tho Disposition
of tho Direct Tax Fund.
COLUMBUS, April S.-Governor Camp
bell to-day sent to the general assembly
the following special message concern
ing the condition of the state finances,
and making recommendation as to the
disposition of the direct tax fund:
To the General Assembly:
Your attention is called to the fact that there
has recently been deposited in tho state treas.
ury the sum of 81 ,SS2 OBS. 90 being ohio's share
of the direct tax" recently refunded to the
states by the federal government In view OF
the doubt arising as to tho validity OF section
three OF the act Of April u, 1888, providing for
posted in the state treasury under le title
OF the Direct Tax Trust Fund" 1t will be-
come the duty of the general assembly,
provided said section is void or not in
| conformity TO tho present views OF that
body. to appropriate this large sum. 1t
were IL not that 1t is now possible, for the first
time in many years, to restore the state treas.
ury to healthy condition. Prior to 1885 the
| general revenue fund OF the state was solvent
| but in that year owing to unusual necessities
| II became exhausted ana the state auditor in
augurated the system OF drawing advance drafts
on the county treasurers. Upon the August
settlement OF that year. the sum OF 100000 was
| found to have been advanced. In the succeed.
amounted to s6O0,OO0; and every sc ni.annual
| settlement since shows that
LARGE SUMS WE'RE ADVANCED
| to the state treasury before the statutory time
| for payment from the county treasures. In
| February, 1895, the sum so advanced amounted
10 sgio'po, since M that time the settlements pe'
clnded the state portion OF the Dow tax, which,
by an amendment to that law, is permitted to
the settlements. Since the first collection OF
the Dow tax as thus amended, the
average amount, of advance drafts, at
in round figures, s9l5 600. OF which amount
$2i5,0O0 arises from tho Dow tax, leaving an
average Of 500. in excess OF the Dow tax,
other words the state has for several years
been compelled to anticipate its revenues to an
average of more than 100000.
In addition to that, in order to prevens paper
lawfully drawn upon the state treasury from
going to protest for non payment, the state
the general revenue fund out of monies belong
ing to the school fund or the sinking fund. Tht.
has been done by him from necessity, withou
any fault on his part, and for the laudable pur
pose of protecting the financial honor OF tn'
state.
SUCH TRANSFERS OF FUNDS
and enormous advance drafts have been justi
fable only because of the straitened condition
OF the treasury; but the large addition to th
funds OF the state growing out OF the direct Ia
refunder, obviates the necessity for such pro
ceedings hereafter. Such practices, under ex
listing circumstances, would be wholly repre-
newai should be made by law and through ar
propriations from the direct tax fund.
There is yet graver reason why the genera
revenue fund should be repaired ut this time
The cash balance in that fund on the lst @
l April was 1858, ,796S0 and the estimated amoun
due from the counties prior to June is SEQ, ,0OC
making the total receipts slS,796so. TIL
outstanding warrants are S23.272 5a leaving
net available total for that fund up to June G
sss5; h@as5 The amount OF expenditures is IS, 70 Q
: The state treasurer estimates that the amour
to be expended for the months of Anril an
May OF this year will equal or possibly be II
excess of that sum- so that n deficit of not les
than $4,000 will occur in that fund before tn
, first of June. But little ii any money could b
obtained from the county treasurers befor
that date, even II advanced drafts were to
drawn.
The cash in the sinking fund on the first
April was SiF4, sol lS, and the amounts due fro'
> county treasures before June is estimated
; be $4,000. making total OF sl14,5Ol. lS Th
amount in the school fund on the first OF Apr
= was 97.06l.l7, and the estimated amounts du
. before June from the counties $4,000, maxim
= q total of sl37, Oily, or q grand total of bot
!, funds OF 1911 .662.35. 1t will thus be seen thi
u the entire amount OF
a MONEY NOW IN THE STATE TREASURY,
i or to be derived from all its funds betwee
now and the first day of June, will not be su
o tlcient to pay the necessary expenditures fro
d the general revenue fund alone and, In the a
sence OF legislation, payment OF warrants upo
|, the state treasury will necessarily be refuse
| The payment OF warrants on the general re
d enue fund out OF moneys to the credit OF 9TH
funds will not avert the danger, for there is nj
!, money enough IN AL OF Ineul 10 meet ING L
q qu;red expenditure. This condition arises par
a ly from the decreased levy for sinking fur
purposes and increased school appropriation
q II is the obvious duty OF the executive to mar
q this mat er plain to the general assembly al
q TO the people, especially TO the latter WI
were not so well informed upon state affair
a 1t is OF vital consequence that the good name
/ the state be maintained. The general revenl
> fund should be fully reimbursed out of Il
I money which stroke OF good fortune has Civ,
n us. Laws ought to be passed which would fo
ever forbid the return TO that policy Of evasit
n and subterfuge which have heretofore made
o. possible to avoid bankruptcy, or to leave u
70 state at the mercy OF tho county treasure
~ from whom advance payments have been d
II manded. The time to do this is now - befo
ID the direct tax fund is disposed OF while a rene
q is at hand, without resorting to further tax
N tion OF the people.
~ The foregoing figures are extracted fro
re statements furnished by the treasurer of sta
m 10 the governor, which are added to this me
nj sage as an appendix.