The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-09-04
THE MAYORS FINANCIAL POLICY.


Mayor Taggarts message to the Council
submitting estimates for appropria lions
for the city government for 1902 is chiefly
remarkable for the GOODNESS with which he
ignores the financial plumbers of his ad-
ministration and the amusing self-compla-
cency with which he urges temporary loans
as permanent financial policy. He really
seems to think he has discovered a new
principle of finance in his plan to keep
taxes down and promote economy by Dor
rowing money at interest to meet current
expenses-a sort of automatic scheme to
replenish the treasury by creating deficits.
To begin with. Mr. Taggart virtually adj
mits the failure of his demagogical 59-cent
tax levy by now recommending a T-cent
levy for city purposes. cents for firemen's
and police pension funds. with a special 3
cent levy in addition for a sinking fund-a
total Of 70 cents. at will require a levy OF
Il cents and 80 cents on each poll" he says,
ito cover these estimates" and that on
the largest total assessment of taxable
property ever made. But even 7l-cent levy
will not include any provision for paying
the temporary loans already made or yet
to come Having compelled a resort to the
policy Of temporary loans Mr.. Taggart feels
obliged to defend it, which he does as fol-
lows:
On account of the low tax levy the city
has been required, during the year 1900, 10
make temporary loans, which have been Sc
cured at exceedingly low rates of interest,
averaging about per cent Had the tax
levy been made enough have a
times sufficient money on hand to meet de-
mands the levy would have been largely In
excess Of the actual needs of the city, for
the reason that taxes, constituting two
thirds of the city's annual revenue, are
payable semi-annualIy, SO that with a tax
levy commensurate with the cityS needs AT
all times there would necessarily have re-
NAMED In the treasury large sums of
money for which there would have been no
immediate use, resulting in the well-knoWn
and invariable tendency TO increase ex-
penditures and exhaust the surplus, which
would require higher tax levy and tempo
rary loans in addition.
/, therefore, believe that low tax levy,
even though a temporary loan is occasion
| ally necessary, is proper and just to the
taxpayers and is the business-like way liz
which to manage the financial affairs Of the
| city. With a low tax levy more economy
| is practiced in the administration of gov
eminent than when the levy is high and a
surplus of money is in the treasury.
The reader who succeeds in mastering the
| the mayor argues in favor of an insufficient
| revenue and a resort to temporary loans
| because an adequate revenue begets extrav-
| agance and thus necessitates a higher
tax levy and temporary loans in addition.
He seems 10 think there is a sort of end
less chain relation between an adequate
revenue and deficits, and that the only
like administration of municipal affairs is
to be under the necessity of borrowing
money to meet current expenses. 1t is a
great scheme, but Mr. Taggart was a good
while evolving it. In his first statement
to the Council of the finances of the city,
that of February. 1896. he said: while ]
dislike to see any increase in the tax levy
L fear there is no other way at present to
| meet the expenses, which are constantly
| increasing" The better way of temporary
loans had not yet occurred to him. Nor
! had it when in a public speech on Sept. 81
| 1s99 he said Not during the four years
| L have been mayor of this city has it been
| necessary to make a temporary loan in
order to pay the running expenses of the
CITY government anu snail not COM
| mence doing so now" A week later he
| said: II want to say to you that 1 will run
| the city on a 59-cent levy and will not make
| any temporary loans, either" But now
| that temporary loans have been made to
the amount of $4,000 or more Mr.. Taggart
| suddenly discovers that it sis proper and
| just to the taxpayers and is the business
like way to manage the financial affairs
| of the city," AS the creator of the temper
ary-loan policy he looks upon it and pro-
| nOunces it good 1t certainly harmonizes
| with his zigzag financial policy