The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-02-16
WAS MUCH EXAGGERATED
The Effect Of Taylor's DefaIcation
on South Dakota.
Treasurer Phillips Points Out the Absur-
dt,y of "a Loss of ssso,o0O Pros.
trating the state---Cssh
Payments.

Pierre. $. D. Fob. a.-The Taylor defal-
farlSn has seemed ZEN eas, to tb create se a feeling g
bankrnpt and It's govern nrae 'd In a st Critical Il
condition, That this is not so is evident
to all well posted people. The following
Phillips Will set the public mind at rest
upon that. score. TIL loss of the STATE
through Taylor amounts to $4,000. less
what Is recovered from the b~ondsmen,
that is only n dollar q head of popu-
!ation. 1t amounts to very much less
state tax cuts practically no figure. with
foiies% seple' Mr. Phillips today spoke as
1.-THE idea that the state is embarrassed
at the default of the late treasurer is alb.
surd. 1t was no doubt aroused by the
knowiedge OF the stringent, Limitation to
tuition. That instrument limits the an.
nual levy to 2 mills and the limit of debt
as soon as the state was admitted. in fact
the legacy from territorial days. The state
levy of 2 mills produces barely enough to
pay the ordinary running expenses. The
loss of nearly a years income appeared
to many people to place South X In
an embarrassing situation: but the condi.
credit being impaired or Its obligations
lessened In value We have already offers
them n nafIoms P een,er 81 fors s Suate S Marr ason
to far more than the AMOUNT needed
Within sixty days there Will be ampie
presentation, and there wifi be no trou-
| BILE about maintaining oil the state insti'
tutions on any plan the legislature may
brief statement of the resources and prob.
able expenditures of the state government
to .o, shoT that t not only n y Is IN th fhe sizes Best n f3na m.
cial condition.. Between the first of Janu'
airy II the first Of July It will be neces:
seventy-five Will come from the general
| appropriation for maintaining the various
Mstisa,ions, s75,eoo Nh be n nressnary se Sc
sion of the legislature, slo. 600 to
print the reports and 5000 for DEFICIENCIES
a Hnen 1dftaret to july Hh i Of Ix sas5, CO., % Agains,
this the state has resources amounting to
S65. 900 as follows: There are outstanding
a large part OF 1t will come within the
time mentioned. The counties will pay
the state for the maintenance OF the IN,
pay In taxes $4,000 and there will be re-
ceived from other sources $4,000 making a
total of s650.0Oo. There was on hand on
the 1st of January $4,000 SO that the state
has $4,000 of income to meet $26o,ooo OF
outgo. OF this amount the insane tund,
the insurance fund, tina cash on hand ana
the $40, 600 from miscellaneous sources VIII
certainly be received entire. This leaves
only sl55, 900 to be made. To furnish the
cash for the immediate requirements me
has approved the bill empowering the
state treasurer to sell authorization war.
uncollected taxes. The treasurer is there
fore able If necessity should arise to raise
S56, 600 in cash bearing 6 per cent interest.
OF course no such action will arise but
this law makes it possible for him to OBJ
tain the cash for anything likely to be re,
qutred. Besides this, beyond a question
thA,iegislature will authorize the eGualiza-
tida board to levy a deficiency tax sur
ficient to wipe out the Taylor shortage.
This Will be levied in August and while 1t
Is not payable until December warrants
can be sold against 1t II necessary. The
constitution empowers the board of equal
ization to levy taxes in excess of 2 mills to
cover deficiencies and this will unquestion-
ably be done.
no show the feeling of financial men
upon the situation l will further state
that Treasurer Taylor had 1oated 100000
OF funding warrants with the Chase Ma.
tional BAN 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 sufficient
funds to pay them or the LIST OF January.
When the default became known i wrote
to these Institutions asking them to extend
the time of payment for one year, withou,
delay they I'LL 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 a k the states warrants
in any reasonable amount. We have $685..
5000 0 of assessed valuation. The loss Of
$3.50, 900 to South Dakota Is insignificant SC
far as our credit is concerned or our abil.
ity to provide for the state institutions"