Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-02-16
WAS MUCH EXAGGERATED
The Effect Of TayIor's DefaIcation
on South Dakota.
Treasurer Phillips Points Out the Absur.
dity of u Loss OF s35O.OOO Pros
trating the state---Cash
Payments.

Pierre, S. D.. Feb. 9.-The Taylor defaI-
cation has seemed 10 create a feeling
throughout the east that the state Is
bankrupt and its government I'm a critical
condition.. That this IL not so is evident
TO all well posted people. The following
Phillips will set the public mind at rest
upon that score. The loss of the state
through Taylor amounts to $780, 600. less
and that is only a dollar a head of popu-
lation. 1t amounts TO very much less
thah the ordinary years revenue. and the
follows.
at the DEFAULT OF the late treasurer Is ali.
suId. II was no doubt aroused by the
knowledge of the stringent Limitation &c
debt and taxes contained in the consti'
tuition. That instrument limits the an
nual levy to = mills and the limit of debt
to N,000.0o0. The latter one was reached
as soon as the state was admitted, i'm fact
the legacy from territorial days. The state
levy of = mills produces barely enough &c
pay the ordinary running expenses. The
loss of nearly "A years income appeared
to many people to place South Dakota IN
an embarrassing situation, but the condi'
tion is not at all SO. So far as the state
credit being impaired or it's obligations
lessened in value we have already offers
from various parts of this state and from
the financial %centers for state warrants
10 far more than the amount needed
Within sixty days there will be ample
cash to make every warrant payable on
presentations, ana tnpTe Will We 10 lTOu-
BILE about maintaining all the state insti'
desire. 1t may be of interest TO make o
brief statement OF the resources and prob.
tNshow that not only Is the state not In
solvent. but that IL Is In the best imam
cial condition. W the first OF Janu'
airy and the first of July IL will he neces,,
sary TO pay out $26s. 900. One hundred and
seventy-fve will come from the general
appropriation for maintaining the various
institutions, $4,000 Sln be necessary 70
cover the expense of the present ses.
sion OF the legislature, SS,v;S enc,e ee
and incidentals. This Will make a total
expenditure TO July ! OF s265,WO, AgaInst
this the state has resources amounting 10
S65, 900 as follows: There are outstanding
SIC. 600 I'm assessed but uncollected taxes ana
a large part of Il will come WITHIN the
time mentioned. The counties VIII pay
the state for the maintenance or Inc IN.
sane $50, 600. The insurance companies VIII
pay In taxes SIG. 700 and there Will be re-
ceived from other sources $1,000 nlaklhs a
total OF $3.50, 600. There was on hand on
the LIST of January 10000 so that the state
has $3.50, 600 of income to meet $Z0o'ooo OF
outgo. OF this amount the insane iunu;
the Insurance fund, the cash on hand ana
the $40, 900 from miscellaneous sources VIII
certainly be received entire. This leaves
only Sl55 900 to be made. To furrlsh inc
cash for the immediate requirements the
legislature has passed and the governor
has approved the bill the
state treasurer To sell anticipation war.
MI % lIt lltohl WI Wv 'fN
uncollected taxes. The treasurer is there
fore able II necessity should arise TO raise
$50, 900 Ia cash bearing q per cent interest.
OF course no such action VIII arise but
this law makes IL possible for him TO OBJ
tain the cash for anything likely TO be re.
quired. Besides this. beyond a question
the legislature Will authorize the equaliza'
ton board to levy a deficiency tax sut-
ficient TO wipe out the Taylor shortage.
This will be levied I'm August ana While IL
is not payable until December warrants
can be sold against IL If necessary. Ihe
constitution empowers the board OF equal
ization TO levy taxes in excess OF 2 mills &c
cover deficiencies and this Will unquestion'
ably be done.
ITO show the feeling OF financial men
upon the situation | Will further state
that Treasurer Taylor had hoated $2o.OU
of funding warrants with the Chase Ma
tional bank OF New York, the Albany Saw
ings institution and the Albany City Saw.
ings bank. These warrants were all due
and Mr.. Taylor had accumulated sufhcient
funds to pay them OH the LIST of January
When the default became known | wrote
to these institutions asking them TO extend
the time of payment for one year. without
delay they all replied promptly granting
the request. Word has also come that
the bankers OF this state and also OF Chi
cago, New York and other financial cen
tiers are ready to take the states warrants
In any reasonable amount. We have $l2S..
OOO. 900 OF assessed valuation. The loss OF
500, 900 TO South Dakota Is insignificant sc
far as our credit Is concerned or our abil'
fly 20 provide for the state institutions