The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-11-30
FINANCES OF INDIANA
EXCELLENT CONDITION SHOWN BY
THE AUDITORS REPORT.
State Debt Is Being Paid on with a
Regularity and Rapidity That
VIII Prove Gratifying.
ESTIMATES OF THE FUTURE
STATE LEvIEs SHOULD REMAIN UN-
CHANGED At PRESENT.
Discussion of Insurance and Banking
Laws economy I'm ApprOpria-
tiOns Is Recommended.
ESTIMATES OF THE FUTURE
STATE LEVIES SHOULD REMAIN IN.
CHANGED At PRESENT.

The annual report of the auditor of state
has been completed and will be out of the
hands of the printer in a few days. AS has
heen predicted, 1t shows the finances of
Indiana to be in excellent condition. with
a fair prospect of wping out within a
reasonable time the debt that has hung
over the State for years. The report con-
tains running review of the operations of
the office and an intelligent discussion of
the financial condition of the State that
is extremely interesting. 1t Is as follows:
1t is a matter of congratulation that not
wlthSta nd1ng the business depression, SO
universal over the Republic, the financial
standing OF Indiana should not only be in
Such excellent condition, but auSpiciOuS
In promise for continued betterment. In
stead OF creating new debts and increasing
the burdens of taxation, the of paying
of the States obligations is substantially
progressing. The optional clauses in the
bonds being now operative. surplus revenue
the specific sinking fund practically en-
atles every idle dollar to be applied in the
curtailment of our interest-bearing obliga-
tions, SO that the saving, while apparently
SLOW, is In the aggregate of handsome pro-
portions. The reports submitted by my pre-
deceSsor two years ago showed a foreign
Indebtedness of s7.436, ,6l512 with an annual
interest outlay of $233525. Since that time
there have been paid off by refundment
Si,OSoO 600 OF 5la per cent. registered bonds.
lHO lclupOIdIy IOdH OI 1870, que Aprll i,
1895, was refunded in tweny-year 3la per
cents. by the Indiana Trust Company, of
indianapolis and the $500.0O0 31s per cent.
registered statehouse bonds, 1885, payable
May /, 1895, were refunded in 3h per cent.
twenty-year bonds by Blake Brothers SS
Co, New York. There have been paid
1895, the issue of 100000 3ls registered bonds,
temporary loan, 1886, was paid; on March 2.
ISS syUoIco g3 per cent registered sted ed bonds
cent, temporary loan bonds, issue of 1882
paid; 100000 April l. 1896: 900 Aug. l.
1870. making saving of $500 in annual
debt Is $6,436515.12, the annual interest of
which is $4,000 The domestic debt is rep
| resented by $4,000 OF Purdue University 5
per cent. bonds. and sl43,00O of Indiana Uni
versity per cent. bonds. the interest of
| which is s2i20O annually. The condition of
| the general fund is such that on the 18th
of December, 1897 $500. 600 additional will
be paid on the per cent temporarylOan
bonds The State has had an unenviabe
experience with deficits. one not consistent
/ with commendable pride or business SOL
vency. Based upon present assessment and
levies, prudence in appropriations by the
| Legislature for the necessities of the State
government, and strict fidelity and economy
| In financial management, will only make a
meager surplus possible. The finance board
| has carefully watched the general fund of
| the treasury, and. while making application
| of the specific sinking fund, has also drawn
| closely on the former revenue up to the
| line of most practical prudence to the end
| that the State debt shall be touched by a
| reduction to the extent of every available
| dollar. This policy of debt and interest re-
| ductiOn should continue. A debt-paying
| record Of $S00,00O in 1885, with its interest
/ saving of 1900 per month, commends itself
| without any words or argument and is a
/ practical application Of business methods to
| the financial interests of the people.
| STATE TAX LEVIES.
The present levies for State debt sinking
| fund, general and benevolent institution
| funds, should be maintained, as they make
| sufficient provision to cover all regular and
| specific purposes, and if surplus accrues
| not necessary for contingencies, can and
| will be applied to gradually reduce the
| bonded obligations, and at the same time
| i'm the aggregate will not prove oppressive
| taxation.
l do not deem it advisable. therefore, to
| recommend any decrease in the several tax
| levies. The expenses of the State govern
| ment are now as closely traced on the lines
| OF economy they well can be. The same
watchful care Is exercised i'll the disburse-
| ments of appropriations as characterize de-
| tail and expenditures in private business,
| and while the criticism often finds express
sion sion In the the allegations of superfiuous red
the spirit and letter of the appropriation
act are vigorously followed Indiana has
the most economically conducted State gov
| ernment, in all departments, of any COM
| monwealth in the Union.
There Is a far less outlay to meet the de-
mands of official business, and the State
derives more revenue from insurance and
other corporate sources. at a less expense
than characterizes the large majority OF
our sister States: The aggregate valuations
of the State are 81, ,2S6. $50 531, ard hence, any
decrease of levies will not be warranted
1t is better business Judgment, and on the
level of more commendable and correct
financering to continue levies that will GER
tainly provide for the necessities Of the
State, and If a surplus accrue, to apply it
whether much or little, to scaling the pub
lie debt. The present levies and incidenta
| revenues. as will be seen by reference tC
the statements Of receipts and disburse
ments, will amply provide for the State
government. with probably very sligh
surplus, sufficient to lessen annually the
burden of bonded obligations, and to thi.
extent the weight OF principal and intereS
| to the taxpayers.
In the disbursements authorized by the
appropriation bills. a practice had grown vi
of not isolating fiscal years, and hence i
the appropriations of year were no
sufficient, the deficit was charged and paiC
from its successor. The result was that il
several accounts the deficit by this shiftinl
process had grown so that If much Longer
continued would have depleted the fina
fiscal years appropriation to the point o
serious embarrassment, as the deficits wer,
in the maintenance accounts of institution
of extended necessities. The business polio!
of the practice was fallacious, and If au
thorized by law. would render the division
of appropriations into fiscal years by tn
Legislature, the acme of foolishness.
| Il
. eral on Nov. 4. 1885, asking for an opinion
as to the legality of appropriations of on
. fiscal year being applied for payment o
. expenses incurred in another. and was ad
vised by that officer that each fiscal yea
must stand alone; that the appropriation
for each year were invioate. Hence,
have declined to anticipate payments t
pay vouchers from the appropriations o
any fiscal year where the expenses wer
not incurred in that year. On this accoun
there are deficits in the maintenance of tn
Northern Prison at Michigan City and tn
: Southern Prison at JefferSonville. and ais
in the expenses for sheriffs' mileage i
taking prisoners to the penitentiaries. an
returning convicts TO places or convictio
for discharge on expiration Of sentence. y
adopting the principle authorized in IN
opinion of the attorney general the prison
entered upon the last fiscal year with a
appropriation unimpaired. and were ampl
able to live within their incomes-th
amount named by the Legislature.
The appropriation fixed for sheriffs mile
; age was $4,000 Had not the law bee
, | changed so as to include the mileage for re
: turning prisoners for discharge this woul
have been more than ample This item
however had the effect TO cause a deficit
which will have TO be provided for by
deficiency appropriation bin. IL the presen
laws are unchanged the appropriation 70
sheriffs' mileage should be increased {
$50 900.
r This office should be provided with a fun
| q cover the expense of special examine