Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1899-04-07
TERRITORIAL AFFAIRS
Row They are Affected by The AS
seSSment and Collection of Taxes

discusses the territorial revenue sys-
tenn and makes pertinent suggestions
for the benefit CT the public as follows:
The stability of government depends
upon the economic conduct of 1nu1iri-
pal and state affairs, the ability 10 pro-
vide an income sufficient fer necessary
expenditures, the proper recognition
and protection Of public obligations.
and revenues derived from taxation
for these purposes adequate and prep
erly applied. The equitable distgibu-
ton among the people of the expense
of organized government is always a
fruitful subject of discussion and con-
troversy in all civilized countries, and
the greatest political economists have
failed to find practical solution to
the problem. Conditions and theories
differ with different degrees of social
development, and no given rule has
proven effective under all circum-
stances. Arizona, rich in nearly every
natural product wealthy in precious
metals to an Incompatible degree, I'M
dergoing rapid development, progress
i've and advanced in civilized methods.
and justly demanding the rights of
self government, with property which
should be assessable OF upwards of one
hundred millions of dollars, and an in
considerable 'deIt, comparatively is 50
mdsmanaged as to be compelled to pay
high rate of interest upon a large
portion Of the Necessary expenses of
government. While the revenue laws of
the territory can no doubt be improved,
many CT the evils are due to the met
tcient and grossly Incompetent manner
in which these laws are executed. A
faulty system and the persistent neg
d a1Itx
assessment and taxation have become
| notorious to degree demcralizing to
society, good government and the pub
Tic credit. The ridiculous anomaly IS
presented that while the population
and assessable wealth of tbs territory
IS constantly increasing, as is the ex-
pense Of government, there is no COM
mensurate increase of income; and, as
rule, an insufficient income is OBJ
tanned by raising the rate of taxation.
instead of assessing the full amount of
asSessable property at a proper valua-
ton. Not only the a'0surdity of sI;cl
methods. but the direct injury to ter
rttorial interests. must BE- clearly ap-
parent to every intelligent citizen.
The rate Of taxation in every county
OF the territory CMaricopa exceDted) is
higher than the rate of interest reuuir-
ed upon call loans for money in some
parts CT the country, and in several
counties the rate is higher than is
asked upon time loans in eastern cities.
Such a condition is ruincus to the pro
gress and development of the coun-
try; it is misleading and viciOus cap
ltal is driven away, and investors nat
ur3lly avoid communities the affairs
of which are so poorly managed finan-
ciaHy. No justification can be found
Fl io1 Of Il;
kind, for thsre is more than enough 1
assessable property in every county +
of the territory to supply all necessary
revenues, and at a low rate Of taxa /
ton, III properly assessed. Some To- !
calities attempt to excuse themselves |
with the argument that if they in
crease values and the amount of taxa
BILE property, they will be required to i
pay more than their proper share of ,
the territorial obligations. This eX-
cUse can only be based upon the as
sumed misgCY6rnment OF other com
because if each locality per-
forms its full duty, taxes for territorial
purposes will certainly be fairly -ap-
portioned; such q pretense of justify
ing official negligence is unworthy and
The public credit should
be held more sacredly invi0lable by
good citizens than are individual OBJ
legations involving personal honor.
The income for territorial purposes,
under present conditions, is not suf1i-
cient for the needs of government, and
the annual shortage amounts, approx
imately, to the interest paid upon the
eating debt, evidenced by outstanding
territorial warrants. For Illustration:
There has been paid in interest dur
ing the six months ending March 3lst,
70
S77,412O9. The floating debt, evil
denced by outstanding general fund
warrants, amounts now to S130, 1856,
being the warrants issued in 1898 and
up to April /, 1899, upon the larger
part of which ten per cent interest will
have to be paid as the law reducing
the rate to per cent has just become
effective. This sum Will be reduced
somewhat by redemptions with money |
from incoming taxes during the year,
but according to the auditors estl-
mates the net Increase will amount to (
about S60.000 and it is reasonable 10 |
Judging from past eXper-
fence, that the floating debt OF the ter
ritory will amount to $500 coo by the
end of the current biennial period. The /
interest paid was upon OLD indebted
ness. nearly all of it having accrued
prior to january /, 1897. A large part
Of the warrants issued in 1898 are yet |
which, added to those
which must be issued for maintenance
purposes during 1899 and 1900, Will
under existing methods, increase tne
floating debt to 100000, as stated, by
the time the next Legislature meets,
1t is not necessary, for the purposes
of this communication, to refer 10 the
bonded debt CT the territory anu an me
annual interest paid thereon. The alb
surdIv unbusinesslille plan of carrying |
a large floating debt, bearing high |
rate Of interest, because of inadequate |
provision by taxation to meet the
current expenses of government and
maintaining the different public in
situations, is a dangerous menace to
the public credit, destructive to pro