Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1897-02-15
GOVERNORS MESSAGE.
Special Communication to the
Legislature.
Present Condition of the States Finances
is Outlined.

Madison, Wis, Feb 11-[Special. J.
Gov Scofeld this morning sent to the
Legislature the following special mes
sage ealing attention to the state hnan-
ces and making recommendations to the
Legislature:
To the Honorable, the Legislature: a
more thorough Investigation into me nna I
cial condition of the state than had Deen
practicable at the date of my blennlal mes
sage makes it my duty to supplement- the
statements contained therein upon the SUD
iect by this special communication.
This is a subject which ought to be clear
ly within the comprehension OF every IN
the financial condition of the state may not
be as clearly and definitely ascertained at
any time as may the status or CONSTITUTION On
of the business of a private corporation OF
private Individual; and Desldes, eAact
knowledge by the Legislature OF the con
dition OF the treasury is Indispensable TO a
wise and economical exercise of the power
of making appropriations.
Condition of the General Fund.
The Legislature has provided for the levy
of special taxes each year for the support
OF the public schools, the normal schools
and the university; but the general expenses
of the state government are PAID from WnaI
els known in the reports as the general
fund This fund consists OF the money
received from railroad license fees, fees
collected from insurance companies, from
street railway companies and OF other pay
ments into the state treasury OF similar
character These receipts by the general
fund and the disbursements from the same,
for the five years ending September ~,
1896 were as follows:
September 80, lS92-Receipts. $1,646, 724;
disbursements, 81 ,413, 1921. September 30.
1S93-Receipts, $1,609, 31484; disbursements.
81, 1856 50l.55. September 3d. 1894 RECEIPTS,
81, 226 1874 "a; disbursements, Sill, 81.
September 80 1895rReceipts $178S, s09.52;
disbursements, So 729, 506.73 September 30,
1S96-Receipts, $2,124, o67.57; disbursements,
it should be explained that the fiscal year
of the state ends on September 30, and on
fhe general fund of $49, S15.56 As was
shown by a report to me from the state
treasurer, made on January 2, there was.
on the 31st day of December last three
months after the close of the fiscal year,
apparently cash on hand to the amount of
IS, 1000, but there had been en4t ADVANCED to
Der. 1896. by The Chicago, milwaukee, Il st.
Paul Railway company $4,000, and on the
I'd day of December by the Chicago, st.
Paul Minneapolis & Omaha Railway com
pany. $4,000 on December TO- by the Chi
cago 4 northwestern Railway ,o company mp;
$780, 600, making total of 100000 OF
moneys not due from these companies until
the 10th of January 1897.
1t is obvious that if the railway COM
Danies had not been SO situated in the pres
ent financial depression that they could
advance to the state of Wisconsin the sum
December 81, 1896. SIS. l4O09. there would
have been an actual deficit of $241, s59,91.
Nor Is this all On the LIST day OF Jan net
obligations then due, to oyerdraw the
states account at one OF the banks TO the
interest was paid, by an arrangement to
leave on deposit for time when practical
BILE a sum belonging to the state without
interest
A Deficiency of $500, OGO.
1t is plain to be seen from this statement
that while the general fund was on the
3lst of December apparently solvent, it
was in fact not only exhausted but in debt
HOY nftn iS hnS
been kept good by bank Overdrafts, if at
all, or by advances obtained from the rail
way license fund, l have not yet aScer-
tanned, nor is it now important.
This statement is made solely upon the
theory that the people are entitled TO know
at all times the exact condition of their own
financial affairs
1t is manifest that the $25O,000 advanced
by the railway companies and the $500 600
advanced by the bank to make good deficits
for 1896, will be needed for the same pur-
pose at the end of 1897. 1t has seemed to
me that every principle of public policy
requires that the finances of the state
should be placed upon a different
bass; 1t IS not belieyed that the people
owe from year to year the protection of
their treasury from insolvency to the ac-
cOmmOdatlng disposition OF either the rail
roads or the banks
If the railway companies could not. or
would not; advance, and if a condition of
panic rendered it impossible to overdraW
at the banks, the credit of the state might
easily be imperiled. Nothing is clearer
intended that state officials should not be
permitted under any circumstances of their
motion to involve the state in any indebted
ness. The power Of taxation with which
the Legislature is clothed was intended to
render unnecessary the borrowing of money
for the ordinary purposes of the state
Article 8 of the constitution provides
in what cases the Legislature may borrow
money. Section of this article authorizes
invasion, suppress msurrection, or defend
the state in time of war The borrowing
power authorized by this section is without
Section of the same article provides that
the state may contract public debts ''for
the purpose Of defraying extraordinary ex-
penditures," but limits the aggregate to
100000, and specifically defines the man
her in which it is to be done
That a neglect to levy sufficient fax To
maintain the general fund authorizes state
officials to borrow money from the banks is
certainly without foundation in the consti-
tuition. If the Legislature had passed law
authorizing the state treasurer to borrow
100000, from a bank for an indefinite
period, without specifying the purposes,
etc, it would not be valid, #, for the ordinary
purposes Of the state. But, the state treas
urer under the existing state of affairs has
repeatedly found himself in the dilemma
OF having large Obligations to meet and no
money in the treasury to meet them with
and has therefore been compelled, in order
TO protect the credit of the state to resort
10 these eXpedients.
Law to Levy of Taxes
The condition of the law as to the levy
Of taxes for the general fund seems to ME
unsatisfactory. Section >, of article VIII
of the constitution, is as follows: The Leg
islature shall provide for annual tax suf-
fcient to defray the estimated expenses of
the state for each year. and whenever the
expense of any year shall exceed the in
come the Legislature shall provide for levy
ing tax for the ensuing year sufficient
With other sources of income to pay the de-
ficency as well as the estimated expenses
OF such ensuing year The Legislature has
Berrymans annotated statutes, that the
secretary of state shall annually apportion
the state tax levied for the year and all
other taxes which he is directed by law to
levy in the manner Of a state tax among the
several counties according and in pro-
portion the relative valuation of each
county to the aggregate valuation of the
whole state, etc.
1t will be seen that the succeeding section
1071. is the exercise by the Legislature of
the power granted by the last clause of
section ), of article VIII. of the constitl1-
lion above cited and authorizes the sec
rotary Of state to levy for any apportion-