The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-15

Governor Wells sent the legislature
a second message yesterday 1t will
be remembered that the executive
promised in his first message to deal
with other matters of Importance
later in the session, and this is the
document.
It refers exclusively to matters of
finance The executi YES language on
all points is plain. He recognizes that
a condition is TO be met. and indicates
his views ON the best methods TO be
1employed.
his plan is to issue bonds for the
funding of the states indebtedness,
the bonds 10, be 4 per cents, running
ten and twenty years. In fact, &C
cording to the showing made, bonds
must be issued as the needs of gov
eminent require greater tax levy
than is permitted by the constitution.
However. this condition of affairs IS
not expected 20 continue any great
length OF time. a large increase in
revenue being confidently predicted
The governor concludes with an ap-
peal to the members of his party to
carry out the IDEAS suggested.
The text of the message is as fol-
lows:
To the Legislature of the State of
Utah:
In accordance with my previously ex-
pressed intention, I respectfully sub
nit for your consideration some Sug-
gestions in relation TO the financial
problems which at present confront
the state.
MUST PROVIDE REVENUE.
81
the legislature and the executive to
provide IL some way sufficient revenue
10 meet first. the deficiency existing
at the present; and, second, the proper
aud necessary expenses CT government
for the current year.
BY reference to the very able and
comprehensive report Of Territorial
Auditor John T. Game for the years
1S94-95. pages 32-53. it viii be seen that
She deficit left us by the territory at
the assumption Of statehOod-that Is
TO say, the excess of liabilities over
available reS0urceS-WaS $3.50. 3SO.ll. and
that other obligations incurred by the
territory falling due before July l, 1896.
amount TO 7G.54104. making the actual
Indebtedness Of the state July l next,
S906. T2l15. Of this amount there have
been issued territorial bonds mot yet
duel amounting TO 100000 leaving the
net amount of Indebtedness for which
revenue SEQutQ De liON1Q6Os S-UOs a-l-1J
ONLY TWO METHODS.
There are but two methods Of rails
ing funds 20 meet this indebtedness at
this time viz: BY taxation, or by the
issue Of state bonds. If taxation is
resorte6 10, ii will be necessary to fix
the tax rate at such a figure that the
revenue to be derived therefrom will
pay the debt and also meet the cur
renL expenses of government. The tax
rate for the years 1S94-95 for general
territorial purposes was two mills on
the dollar and for district school pur-
poses. three mills on the dollar Owing
TO the increased burdens of state gov
eminent, the tax rate for the current
year, as viii be hereafter shown, must
necessarily be increased for all pur-
poses TO at least six and one-half mills.
In order 20 pay off the floating indebt-
edness by taxation. it would be neces-
sary to increase the rate two mills
more. or to eight and one-half mills for
all purposes, and as this would exceed
the limit authorized by the constitu-
ton. which is eight mills. for all pur-
poses. it IS obvious that at least
portion Of the debt must be met by
the other method, that is, by the issue
OF bonds.
PEOPLE PREFER BONDS.
II is my opinion that the taxpayers
of the state would prefer. rather than
10 bear this excessive increase of tax
alton in one year, that bonds be issued
TO pay of the floating debt and that it
is the confident expectation of the peo-
pie generally that before the maturity
Of the bonds. increased revenues arts
ing from increased population and
wealth. and proceeds of sales of lands
for the benefit of the state institutions
now supported from the general
fund, Will enable the state to retire the
bonds without increasing the tax rate
On that account.
CAN SELL AT PAR
AS previously expressed to you, it is
my belief that new state bonds can
readily be marketed at four pei. cent
and sold at par. have pleasure in as
sUring you that very able fnanciers
both in Salt Lake City and New York
have quite recently corroborated this
view. 1t is my recommendation then.
with reference to this territorial def
cit of say 5000, 000 that it be paid off
by the issue Of $780, 900 of ten-tWenty
year coupon bonds, and that authority
for such issue and for the disposal of
the bonds be given by You without I'M
necessary delay. ] also suggest that
authority be given the proper officers
to refund al four per cent the oSit-
standing issue of five per cent bends
of 1885. which are redeemable in 1898.
Holders Of these bonds will doubtless be
willing TO surrender the five per cent
territorial bonds. having but two years
10 run, for four per cent state bonds,
having ten TO twenty years to rum
and from propositions already in my
possession, I am led TO believe it
among the possibilities that negotia-
lions looking to the rsfunding Of the