The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-08-23
GOVERNOR MATTHEW'S ON STATE
FINANCES.


Governor Matthews. in his speech before
the recent Democratic convention. made the
following reference to State finances:
Our State debt, the largest part of which
was incurred by Republican administrations
and difficult to account for-tnat part that
may be justly attributed TO our party going
into the construction of necessary State
buildings and for improvements, and for
every dollar of which We can show full
value received, is now being diminished.
During the but little over eighteen months
Of my administration there has been paid
$4,000 of this debt, and / trust before the
fiscal year may have closed we may make
IL an even million. This, too, with the fact
that We have lowered the rate OF tax, in
cir ng a levy for a sinking fund to provide
debt 3 the gradual eA'insuiShment of the State
Ind he asked. SIS this not a magnificent
showing, a glorious history of legislation?'
1t is a very disingenuous showing. with
nothing magnificent about it except the gall
that claims great credit for the Democratic
party for its tardy change from a debt
making to a debt-paying policy.
The Governors statement that 1.-The larg-
est part of the State debt was incurred by
Republican administrations is not true, as
Noh NC easily SuOWh ny OlllCidl IcCOIuS VII
in two minutes walk of his office. The
State debt il. 1870 was 81 67, 5O7, and this was
less than it had been in forty years. Be-
tween 1860 and 1870, during most of which
time the Republicans had control, the debt
was reduced s6.O11. 76O. No part of the debt
as it stood in 1870 was created by Repub-
lican administration. Every dollar of it
existed when the Republicans first came
into power in 1861. From 1870 to 1880 the
debt was increased $S3O,671. The Democrats
were in control of the State government
during nearly the whole of this period. en-
bracing the administrations of Governors
Hendricks. Williams and Gray. and the in
crease in the debt was due entirely to bad
inanciering on their part. From 1880 to
1890 the debt increased from 1895, IFS to
$s,54O.615. and every dollar of the increase
was due to Democratic legislation and
hnanciering. During nearly the whole of
this decade Democratic legislatures were
making appropriations in excess of the
States revenue and borrowing money to
pay current expenses. The State was even
compelled to borrow money to pay interest
and at the end of the decade it's interest
account amounted to s273, sos a year. = Dur
ing the last five years of the decade, viz,
from 1885 to 1890, the debt increased from
$685. COS to s~S.54o.6l5.
The Democratic Legislature of 1891 recog-
-;-0I 4Lo 60 49, -o,,.4 - lo~a
to increase the revenue and reduce the
debt. They dared not go on borrowing
money and piling up debt any longer. The
people were clamorous for a change of pol
icy. This led to the enactment of the pres
ent tax law, under which the revenues of
the State nave been largely increased. Au-
ditor Henderson. in his annual report for
1892 said: Instead of an annual deficit of
half a million dollars as under the old
regime, we now have a net surplus of that
amount. Instead of borrowing money to
pay interest on the public debt, as was
done under the old order of things, we now
provide for our interest ana have a large
surplus besides" Thus a Democratic Au-
ditor virtually admitted the criminal folly
of the Democratic financlering that pre-
vailed prior to 1891, and congratulated the
people on the change that had been made.
II was indeed high time for reform.
When Governor Matthews came into of
flee the State debt, according to Auditor
Henderson's report for 1892. was $3.50. 615.
and the annual revenue was the largest
ever known. The Auditor said: 1.-THE an
nual surplus in the State treasury above
the ordinary expenses of the State govern
ment and the payment of the annual inter
est debt is $500, 600" The Governor says:
During the but little over eighteen months
of my administration there has been paid
$71o,OO of the State debt" AS there was an
| annual surplus of $500. 600 of revenue over
expenses there is nothing surprising in this.
The money came out of the pockets of the
people, and a Democratic administrator
could hardly do less than apply the surplus
to reducing the debt which the Democratic
party had made.
The Governors claim that in addition to
reducing the debt 1--WE have lowered the
rate of tax, including a levy for a sinking
fund to provide for the gradual e~xtinguish-
ment of the State debt" is buncombe. 1t
is true that the tax levy has been slightly
reduced. but taxes have not. Owing to the
largely increased valuation of property tax
es are heavier and the revenue larger than
ever before. People who pay taxes will not
be deceived even a little bit by the Govern
or's buncombe.
/
WHERE DEMOCRATS ECONOMIC.
The size of the annual appropriations of