The Denison review. [volume] (Denison, Iowa) 1867-current, 1900-09-21
FARMER BRONNAT9 SCHOOL
MILLION DOLLARS, SURPLUS,
Instead of a Deficit In the General Fund
of the State, the Treasurer Has
Much Cash on Hand.
Fifth Lesson.

From the Office of the railroad COM
missioner, John directed his fathers
steps to the Office of the state auditor.
Here you will find, father he said,
"a veritable mine of information con-
corning the financial transactions OF
our state. The records in this office
give more statistics, showing the
growth and development of the state,
!. and also the effects of hard times upon
our people. than any other of the state
departments. The reports of all the
, collection and disbursement of state
funds are shown here The amounts
received from the various counties in
taxes, the collections from insurance
| companies and other organizations for
fees and fixed charges, and. in fact, all
| the sums which come into the state
| treasury and are disbursed therefrom
| in payment of the expenses of the
state and of the various state institu-
lions are recorded here. This office
has also supervision in the way of in
! spection over the various insurance
companies which do business in Iowa,
the state and savings banks existing
|, in the state and the building and loan
associations who have stockholders re-
/. siding in Iowa. So you see, father,
| that this is one of the most important,
as well as, possibly, one of the most
complex departments of state govern
ment
/! Democratic Statements Disproven.
| "You will remember that few years
ago there was good deal said, by the
Democrats especially. to the effect chat
large state debt had been incurred,
and along about 1885 or 1896, as re-
| member it, Cato Sells and other Demo
cratic orators claimed that Republican
extravaganza had brought upon the
state an Indebtedness which was in
creasing rather than diminishing as
the years went by. OF course this was
all campaign talk and l have doubted
whether those who made such state
! ments really believed the awful pic
lures which were drawn therefrom.
Now am going to ask to see the books
and make little comparison for you
| of the situation at the time when our
state debt, as they termed it, was in
existence, with the present time" At
Johns request the records were pro-
duced and from them he derived the
| following statement, which he handed
| to Farmer Brown:
The biennial report of the state aud
itor Of Iowa for the two years ending
June 80, 1897, showed at that date the
total receipts of the state treasury for
two years were $4,414,234.25. The
biennial report for June 80, 1899, just
two years later, showed total receipts
for that period to be $5,116, O76.25,
showing an increase of receipts for the
latter period, as compared with the two
years ending with 1897, of .$7O1, $40.
The receipts since June 80, 1899, show
| an increase over the receipts for the
same months last year an indication
| that the next biennial period will make
fully as good a showing as the one
ending in June, 1890 At the end of
the biennial period, June 80, 1897, the
amount Of cash on hand in the state
| treasury belonging to the state general
fund was $36,672.96. while June so.
1899, this balance in the general fund
had grown to $445, O02.37.
Debt Paid and Big Surplus Left.
| In regard to- the state debt John
asked for some figures, which Were
given him as follows: On June 80, 1897,
there was net deficit in the general
fund Of the state, after deducting cash
on hand, of $41O,S27.77. Warrants out
standing which We're drawing interest
represented this deficit During the
prosperous times which have come
since 1896 that state debt has been en-
tirely wiped out, and instead Of trifie
over $4,000 cash in the treasury OH
June 80, 1897, there was in the gen
eral fund at the close of business, June
| 8, 1900, cash balance in the treasury
of $1,013 ,561.33, and on two Other
dates, May and May 26, 1900, this
balance had reached the million mark
! while on no day for months past has
the balance in the treasury belonging
| to the general fund fallen below 5000
0OO
Farmer Brown was greatly aston
ished at this showing. He remem
bered that his son had correctly stated
the arguments made by the Demo
cratic speakers in 1896 and 1897, wher
the charge was made that the state
debt would be increased rather thar
diminished until it should become Gar
inheritance for our children's chill
dren." He remembered to have reat
that this debt had been paid, but he
had no idea that the money for the sup
port of the state government and it,
institutions had been coming in Sc
freely.
'sBut hasn't the rate of taxation beer
increased to produce this amount Of
money!" he asked. mo, it has no
been increased" answered his son, "o1
the other hand, the rate has been re
i duced. In 1896 the rate of taxation
for state purposes, which, however, dit
not produce sufficient funds to proven
the state getting debt on it's hands o.
nearly half million dollars, was one
tenth of a mill higher than it is this
year. The rate of taxation for STATE