The leader., 1897-05-05
-.66FffSoR.s trssaGE.
Mississipprs Executive to the
State Legislature.
An Exhaustive Review of the States
Financial Condition-The Common
School system--A $4,000
Capitol Favored.

Gentlemen OF the senate and House OF Repre-
sentatlveS;
The condition Of the finances of the state Is
such as TO make 1t imperative that convoke
your asscmhlage In extraordinary session.
section i22 Of the state constitution reads
The governor shall, from time 70 time, give the
legislature Information OF the state OF the gov
eminent, and recommend for consideration such
measures as may be deemed necessary and ex-
pedient." l proceed at once to this daty, and
put YOU in possession of the condition that con-
fronts US.
Financial.
II was expected by your honorable body when
in regular session last year that levy OF mills
state tax, with the contingent collections for
which you provided, and the sale of $500 600
bonds, would realize revenue sufficient to meet
all appropriations made for the years 1895 and
lssI: ms expectation failed to materiallze, and
on the 18th day OF July, 1895, the treasury was
first unable TO pay all claims as presented, and
this condition prevailed until about the first Of
January, 1897. The receipts for the fiscal year
from Oct. ], 1895, to Sept 50, 1896, inclusive,
were Sl,T17.5sd.Oi, and the disbursements for the
same period were Sl,TJ9 000.33, as shown by the
treasurer's books. In the foregoing receipts for
the fiscal year 1895 and 1896, ending Oct I, 1896,
are three items. viz; Special loan Of $4,000 and
proceeds from The sale OF 100000 bonds TO the
amount of SAB ,69ss5, under chapter "a, page ~,
OF the acts OF 1896, and IG60.3f balance from
account 1894 and 1895. Deduct these three items,
TO S57i 35a 90 from the total receipts,
and there remains Sl,l9S.I5, which represents
the receipts from all other sources from the first
inclusive.
In the disbursements are two items, viz: Re-
funding the aforementioned special loan OF $3.50,
Co., and 81 ,653.32 interest thereon. Deduct these
two items. amounting to Sl5l ,633.32, IRON the
total disbursements, and there remains the sum
OF sl,6o7, 9iG.Oi, which amount represents dis
bursements for all other purposes; 19,319.55,
the difference between 81 ,607, 9i50l and ST. 1885,
40, represents the amount of regular dis
bursements over regular receipts.
In the disbursements Is an item OF St95, 49, OF
special warrants OF 1891. Deduct this amount
OF the Indebtedness OF the State paid during the
fiscal year, and the amount of other disburse-
mentS is 81 ,iI2, 45l01, which is the amount OF
current expenses. anu the interest on the public
debt, being S1i5 SS4.55 more than the regular col
lecttons. This statement OF receipts and dis
bursements is taken from the treaSurcr's books.
OF the S1S,0J66S on hand on Oct. /, 1896, only
Sj066S was available. the remainder being do
nation from the United States to the Agricul-
tural and Mechanical College.
On the list day OF April, 1896, by authority OF
section II, chapter "a of the acts OF 1896, the
State treasurer, on the approval OF the governor,
borrowed from the Merchants Bank OF Nichs-
burg SlJO000, payable the first OF July there
after, with interest at the rate OF per cent
per annum. In July, after giving then office
required by this chapter for so doing, the
State Treasurer, with the approval of the gov
ernor and attorney general, sold 100000 OF state
bonds, bearing per cent interest. at premium
OF Sl3,O3s 50, and out OF the proceeds OF the sale
returned the loan of $50, 900 from the Merchants
Bank OF Nicksburg and the interest. These
bonds were all taken in this State, and | am OF
opinion that they could readily have been sold
at par IL the Interest named in them had been
4 instead OF per cent.
The receipts of the treasury from the first day
OF October, 1895, to the 3lst day Of March, 1897,
$lS,n06.6s on hand the 1st of october, 1896, to
which have alluded, the amount is 81 200, 40 %
The disbursements during the same period were
1872, 1887, OF which s6sj was for special war
rants for 1894.
AS shown by the auditors books there were
issued during the fiscal year from Oct. l, 1895, to
Sept. So 1896, warrants TO the amount OF $685.
6I3l6, and from Oct |, 1886, to March 81, 1897,
inclusive, warrants to the amount of $40, 565.57
1t can be seen from this that $50 T27 10 more war
rants were issued than paid during the fiscal
year; and from Oct. l, 1896, to March 81, 1897,
S3i, 1880 more money was disbursed than war
rants issued.
Gulf s. Ship Island II. Il.
Last year the Gulf & Ship Island Railroad
being in the hands of a receiver and being APP
prehensiye that the $4,000 of bonds OF that rail
road company held by the State would be lost
by the State, as the trust OF the receiver was
about to be discharged and another company
organized 10 take charge OF the road and its
assets and business, put the bonds in the hands
of the Hon. Writ Adams, State revenue agent,
with instructions 10 him to see that the interest
OF the state was protected in the adjustment OF
the affairs OF the Gulf u Ship Island Railroad
Company. The bonds held by the State did not
bear interest.
In the discharge of his duty Mr.. Adams OBJ
taned compromise, Whereby the Bradford
NOHStIucllOu company, Oh BfduIOTu, IA gave
the state three equal notes, aggregatng $4,000
payable in six, twelve and eighteen months
being the 18th of March aud September, 1897
ard the 18th day of March, 1898, and secured
with receivers certificates as collateral to tie
amount OF $4,000. The first OF these notes was
promptly paid at maturity, and One-third OF the
collateral was thereupOn surrendered to the
Bradford Construction Company, i'll accordance
with the terms or the compromise. The money
was covered into the treasury by Mr.. Adams,
after deductng his commissions allowed the
revenue COLLECTIONS
commend the prompt, energetic and efficient
action OF the revenue agent in this matter as
he compelled the payment OF the entire indebted
ness to the State while the same kind of bonds
held by Others were being sold at one half theiI
face value.
Condition of tho Treasury.
The total appropriations Of the years 1896 and
1897, less the school fund, made at the last SeS-
sion of the legislature, aggregate Sl473, $50. 50
the school fund appropriations for the two years
aggregaling slsi7,oO0; which added together
make So 320, 1898 the total OF appropriations fol
the two years OF 1896 and 1897. OF these appro-
priations the sums OF s95 900 year were appro-
priated for the support fund OF the State LunatiC
Asylum, which institution last year diSburSed
S65,6l267, covering back into the State treasury
SIS, 1856 So; and it is safe TO calculate that the
disbursements Of this institution in two years
will be $50, 900 less than the appropriations.
The appropriations for the compensation OF
assessors Tor last years assessment was ex-
hausted and left the assessors of some of The
counties unpaid. AS they had earned theiI
money and needed its use, paid these assessors
out OF the executive contingent fund and took
this in the action of Mr.. Jefferson, when out OF
a similar fund, he paid for bringing home
seyenty-two aeamen, discharged III foreign ports
from vessels sold abroad, and for the support
OF the territorial governments of Michigan and
Louisiana until an opportunity could occur oil
making specific appropriation for that pur-
pose" The first was in 1892 and the lattec In
1906
The appropriation for the payment of asses
sors was, think, sufficient, and the deficiency
was superinduced by mlsconstruction by the
auditor OF Chapter 50, on page Is, of the acts OF
1884, for which construction he had precedent
OF several years standing in the action of his
predecessor The lnisconstructOn was in treat
ing the two assessment rolls real and personal
as two assessments, when the law clearly in
tended that they should be treated as one assess
ment This resulted ia an oyer-payment of the
officer in many instances. 1t can easily be cor
rected as to last year, foT the assessors are
now in Office, and where they have been over
paid for last year the amount can be deducted
from this years compensation but for the years
preceding the last the matter is not so easy oil
adjustment.
On the I'D day of February l requested the
treasurer and auditor to make for me state
Inent of the then condition of the treasury and
an estimate OF the probable receipts and dis
bursemenis for the remainder OF the year, which
they did. BY that statement 1t appears that
there was on that day in the treasury 1891 1873 81
OF which sum sio1, s9s. II was due on the January
distribution OF the school fund, and $4,000 FOL
pensions, leaving in cash, to be applied TO other
expenditures, 500. 47479. Out OF this would
have to come the June distribution OF the school
fund, which, il reduced by the collection of the
$4,000 OF poll taxes, as estimated by the treas
urer and auditor, would be $277 1873 80.
After making close estimate of the probable
receipts and expenditures for the year. taking as
basis the receipts and expenditures for the fiscal
years 1894 and 1885, the treasurer and auditor cal
culated that q deficit would occur in July, and
that the shortage would be Sls4 SS7. 80 on the LIST
of December, and sec, 1885 on the LIST of next
January, and when the December collections
are received in January next the obligations OF
the State can be paid as presented. This condi-
tion, however, OF paying warrants as presented
could not last six months OF next year without
borrowing money. will submit to you copy
OF the statement OF the treasurer and auditor
mentioned. f r
With this condition of the finances OF the
State, 1t Is evident that the State, without some
further legislation, would not be able to meet its
obligations when presented, and 1t would be la
bic to fall short OF the payment OF the interest
on its bonds. 1t is OF the utmost Importance
that the States credit and good faith shall be
unquestioned and unquestionable. This can
only exist when all the obligations Of the State
are promptly discharged when due.
That the credit OF the State is good Is evil
denced by the fact that it has no trouble in Dor.
rowing money at low rate OF interest. This
should be guarded with jealous care at all times
and especially when 1t may be expedient TO Dor.
row money With which TO build a capitol. The
feople of Aississinni have the DrODerTy real and