The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1891-04-18
oHIo's FINANCIAL CONDITION.
Special Message From Governor Campbell
accommodation As to the Disposition
ofths Direct Tax Fund.

OFiiO . FINANClRL CONpl IONs
Special Message From Governor Campbell
accommodation Ms to the Disposition
oftho Direct Tax Fund.
COLUMBUS, April 8. 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 oalod TO the fact that there
has recently buen deposited In the state treas.
uiy tho sum Of Lag, ,035 90 being ohos share
OF the direct tax recently refunded TO tho
states by the federal government. In view OF
the DOUBT arising as TO the validity OF section
three Of the act Of April H. 1sS8 providing for
the disposition OF saii money, the same was dc.
posted In the state treasury under 'hc title
Of the "Direct Tax Trust Fund" II will be-
come the duty OF the general assembly,
provided said section is void. or not in
body, TO appropriate this large sum. II
would be unnecessary TO comment upon this
we're II not that It is now possible for tho FIRST
tme 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,
IL 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
iounu w nave Oeen advanced, In the SuCCeeu'
Ing FEBRUARY sett ement the advance drafts
amounted to 100000; and every sc cmi-annual
settlement since shows that
LARGE SUMS WE'RE ADVANCED
70 tne state treasury before the statutory time
Tor payment from the county treasures, In
teDruary, 1889 the sum so advanced amounted
TO $e4OOD. Since that time the settlements be-
tween tne state and county treasurers nave In
clnoed the states portion OF the Dow tax, which,
by an amendment to that law, is permitted TO
be paid into the state treasury in advance OF
fnnn Nhn arc
the DOW tax as thus amended, the
average amount OF advance drafts at
the time OF the settlement has been
In round figures, s915 900, OF which amount
S2i5'OOO arises from the Dow tax, leaving an
average OF S670,C00 in excess of the Dow tax,
regularly anticipated by the state treasurer In
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 prevent paper
lawfully drawn upon the state treasury from
going to protest for non.payment, the state
treasurer has habitually paid warrants against
the general revenue fund out Of monies belong
ing TO the school fund or the sinking FUND; This
has been done by him from necessity, without
any fault on his part, and for the laudable pur
pose OF protecting the financial honor OF the
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 the
funds OF the state growing out of the direct tax
refunder, obviates the necessity for such pro
ceedings hereafter. Such practices, under ex
tsting circumstances, would be wholly repre-
newal should be made by law and through ap
propriations from the direct tax fund.
There IS yet graver reason why the general
revenue fund should be repaired at this time
The cash balance in that fund on the 1st Of
| April was 1858, $3.50, and the estimated amount
due from the counties prior to June is 100000
| making the total receipts S4lS, 1896. 80. The
outstanding warrants are S23,27255 leaving Q
net available total for that fund up to June o.
! 1895, ,525.25 The amount OF expenditures for
April and May of last year was S72S, 1884, 8
TO be expended for the months of April aud
May OF this year will equal or possibly be in
| excess of that sum, so that deficit OF not les;
than S3500j0 will occur in that fund before the
| first OF June But little ii any money could bt
obtained from the county treasurers before
that date, even II advanced drafts were to bt
| drawn.
The cash in the sinking fund on the first o
April was STA, 5O1. 10, and the amounts due from
| county treasures before June Is estimated tC
be $4,000 making total Of Sl74,50i.1s. Th,
| amount in the school fund on the first of Apri
| was S9706l.i7 and the estimated amounts du,
before June from the counties $4,000 making
total OF Sl37, 1871. H. or grand total of ootf
| funds of S3l1 ,662.35. 1t will thus be seen tina
| the entire amount Of
MONEY NOW IN THE STATE TREASURY,
or to be derived from all its funds between
| now and the first day Of June, will not be sui
| hctent to pay the necessary expenditures from
the general revenue fund alone, and in the alb
sence OF legislation, payment of warrants upoI
the state treasury will necessarily be refused
| The payment Of warrants on the general rev
| enue fund out Of moneys to the credit OF othe
funds will not avert the danger, for there is no
| money enough in all OF them to meet the re
| quired expenditure This condition arises part
| ly from the decreased levy for sinking funt
| purposes and increased school appropriations
1t is the obvious duty OF the executive to max
this matter plain to the general assembly AM
! TO the people, especially to the latter, VIII
were not so well informed upon state affairs
| 1t is Of vital consequence that the good name Q
the state be maintained. The general revenue
| fund should be fully reimbursed out OF tn
money which stroke OF good fortune has give
| u.s. Laws ought to be passed which would fol
| ever forbid the return to that policy Of evasion
and subterfuge which have heretofore made
| possible to avoid bankruptcy, or to leave tn
state at the mercy Of the county treasurer
from whom advance payments have been de
| Inanded. The time to do this is now - befor
| the direct tax fund is disposed OF while a remed
| is at hand, without resorting to further taxa
| tion Of the people.
The foregoing figures are extracted fror
| statements furnished by the treasurer Of stat
| to the governor, which are added to this mes
| sage as an appendix.
| Executive Chamber, April z, 1891.
Appendix.
m A1I