The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-03-07

rants from to 10 per cent, let alone
a stilllarger reduction in their salaries
beforehand. However, taking the house
bill as d basis it will require the following
amounts to pay past deficiencies and run
the government for the year ending FEB
ruary 90, 1896:
Outstanding registered war ooo
| rants. .....'''', Ploo'ooo
| Additional expense accrued
prior to Feb. %, not yet is $4,000
| sued-about. ........ oo'ooo
| Additional expenses OF leSls- .oooo
Deficiency appropriation bill. $4,000
General appropriation bill. e. 2,5oO,OOO
Total .... .$2,97O,OoO
X Il u
Now, in order to place the state upon
q cash basis as soon as possible, the
earnest attention of the legislature should
be carefully given and these matters
should be thoroughly weighed and I'M
derstood. Whatever increase in the tax
rate and revenue laws may be made,
no material benefit will be derived until
the three months beginning December
next consequently it will be impossible
when issued before next February or
March, and not then unless great
change is made.
What should be done?
To begin with, there should be, as
before stated, cash balance on hand
March | of at least $1,000,000, to which
should be added the treasury appropria-
tions, ETC., of $2,970,000, making an
amount of $3970000, which should be
provided for in the ensuing year. An
Ierroneous impression prevails in the minds
of many that provision only has to- be
made for the amount to be appropriated
for the necessary current expenses OF
the ensuing two years, which is not the
case, if the state intends to be put upon
a firm and sound cash-paying basis, and
unless provisions are made for sufficient
receipts to cover these other amounts
lin addition to the current expenses, the
warrants of the state will be haWked
upon the market at a big discount and
the state will sooner or later have to
pay the penalty, for every warrant has
to be paid, dollar for dollar.
Why not meet this question? Let the
Legislature make proper provisions to
remedy the existing evil at once, for 1T
is not benefited one cent in failure to
do so. There is no other business-like
way.
In conversation with one of the best
posted men on states finances today,
he Sulu. L lcSlSldIuIc hOI
hesitate one moment to raise the tax to
l3O cents, as recommended by eX-Comp-
Itroller Mccall. A failure to do so means
dire distress to our states finances.
We have seen the result of the legisla-
ture refusing to take the advice of Nc
Call before, and the condition of the
states finances today lis the penalty.
Now, why not meet the question face
to face, consider well and heed his rec
Concentrations, as he is the best posted
man on the financial affairs of our state,
having devoted % years service to that
line"
In this connection it will be well to
read the following interesting extract
from exComptroller McCalPs last re-
port:
1t will be observed that the cash bal
ance on hand Aug. 81, 1894 was S3S,
1885. There was outstanding against
this balance registered warrants amount
ing to $43O,993.57 The state should at
all times be in position to protect her
, credit and pay all adjusted claims and
demands when presented at the treas
ury; and to enable her to do this, she
must have sufficient money in the state
treasury. The legislature does not seem
. to understand the difference between a
cash balance and a surplus.
The bulk of the taxes reach the state
treasury during the period of four months,
leaving eight months to be provided for,
! during which time the disbursements
greatly exceed the receipts. If we have
not O cash balance on hand sufficient to
nav warrants when presented against
the fund, the condition of affairs will be
, as they are now; the state will be unable
, to meet her obligations, and the officers
and employees of the state will have to
! sell their warrants at discount. Line
purchaser reaps the benefit of this con-
dition of affairs, for the state will have
, to pay the warrants dollar for dollar
SlWhy not make provision beforehand fol
! taking care of the states financial i'll
! tegrity? First find out how much money
J is needed to run the government et'
} ficiently and economically, and, when
] this is done, levy a tax sufficient to meet
the demand. No taxpayer will object
} to paying the tax on his property which
is judiciously expended for the best in
D terest of the state. Our tax rate, IL
cents on the 500 valuation, is too low
0 to meet the just demands against the
general revenue fund, as evidences the
0 Inresent condition of this fund in the
state treasury; and the only way L see
0 how to relieve the pressure is to increase
0 the tax rate; and the sooner it is done the
0 better it will be for the people, for eacf
0 wear will find us getting further ant
y further behind.
= In my report in 1890 it was shown tina
q 1.-THE tax Of 20 cents on the 500 valuation
y Ihad provided ample revenue to meet ex
q listing appropriations, and cautioned
4 against the reduction of the tax. as il
q shown by the following extract, viz:
1t is not wise policy to pile up casl
4 balance in the state treasury, and IL l
q equally unwise to attempt too RAPID
q reduction of taxes because of health
o cash balance. The state is growing
O values are increasing, yet it should D
remembered that the demands upon tn
o state for appropriations may grow i
o proportion.
0 To the casual observer it may seer
ID unnecessary, if not unwise, to carry 5
= large a cash balance, and it would lnd
ID cate that the present rate of taxation 10
D. general revenue purposes might stand
h reduction; but great care should be e.
4 ercised in this matter. The state trea!
10 ury should at all times carry a sutflcieT
n, cash balance to tide over any emergenc
,r that might arise. Demands for extr'
lie ordinary expenditures will no doubt b
1t considered by the legislature which al
al not included in the estimates for appr
70 priations in this report for the next tw