The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1902-08-28

Concise History Of Its Creation and
Its Reduction.
MONUMENT TO MISMANAGEMENT

OF the States Fiscal -.ffairs-How the
State Expended Fortune In Inter
est and Interest on Interest During
the Two Decades Preceding the
Present Era of Republican Control
Some Facts Which Every -ax-Payer
Ought to Know.
When the Republican party first
came into power in Indiana in 1861 1T
inherited from a Democratic admins
tration a state funded debt of $10,179.
asa debt which, the financial re-
sources of the state considered, would
million dollars at this time. For ten
years thereafter the Republicans had
control of the governorship, and most
of the time of the legislature. During
this period the state debt was reduced
$6,011,76o, and left at $4,167,507, a
wonderful result when 1t Is remem-
bered that this era covered the war
period, when the states expenditures
were necessarily unusual in amount.
For the next ten years the state was
under the practically uninterrupted
control of Democratic leadership. The
debt-paying policy was abandoned,
and during that decade the state debt
was increased $83O,671. With con-
tinuance of the policy maintained by
Republican state officials during the
preceding decade, 1t would have been
entirely wiped out. Instead, 1t rose
to $4,e98, 1884.
How II Was Done.
A remarkable fact, is it not, some
thing more than coincidence, in all
human probability, that during each of
three periods of Democratic control
the state debt has been increased.
while during each of three periods of
Republican control, the state debt has
been largely decreased? Every dollar
of Indebtedness contracted for half
century is Democratic. nearly every
dollar of Indebtedness discharged dur
ing the same period Republican,
1t is not possible to shift from the
shoulders of Indiana Democratic lead
ership the direct responsibility for this
piling up OF the states Indebtedness.
particularly that accumulated from
1883 to 1891, when the state debt grew
with swiftness unprecedented. Dur
ing all that period the states eXpen-
ditures were largely exceeding its rev.
enues, yet. despite the recommends
tons of successive governors, Demo
cratic legislatures refused to make pro-
vision for the deficit, handing down
to posterity an obligation created for
meeting current expenses, and result
ing not only in an enormous interest
charge, but one extending to interest
on interest. The excess of receipts
over expenditures from 1884 to 1889
amounted to more than three million
dollars. which was provided for by the
simple process of adding it to the
state debt. In 1880 the ordinary ex.
penses of the state amounted to $S44.-
285. By 1889 they had increased to
81 ,320. 500. and yet the tax levy rate
fixed in the seventies was maintained
by legislatures too cowardly to meet
the situation face to face, preferring
to throw the responsibility upon their
successors in Office, and compel the
state to meet the enormous cost of
their expensive demagogy. On July
81, 1890. the Indianapolis Sentinel
said: 1.-The state debt itself is not
of alarming dimensions. 1t is only
sS.54O. 61512." Yet it was higher than
it had been for thirty years; it had
been doubled in decade. and at that
time the total interest payment of
seven hundred and fifty dollars day
aggregated annually one-fourth of the
states revenues. In 1889 alone the
deficit was 1882 .9629S.
In 1881 and 1882 two years of Re.
publican management ensued. During
this period the state debt was reduced
$12f,570.
Then followed, under Democratic
management, what is by all odds the
most discreditable period in the fiscal
history of the state. During the de.
cade ending with 1890 only five states
in the entire, Union increased their
bonded Indebtedness. In these f1ve
states the total increase was 1886.
AIS. In indiana alone the Increase az
areQated more than four million dol
lars, three times a. much a. the tota
Increase Of bonded indebtedness In all
other states combined. During the
same period thirty-two states decreas
ed their bonded Indebtedness sixty mil
lion dollars In 1895 when the pres
ent era of Republican management be
gan, the debt was $7,52o,615.12.
In the seven years of Republican f1s
cal management which have ensued
the state debt has been decreased
$4,326, 900, until 1t stands today at the
lowest figure in a half century of the
states history, namely, $2,ss7, 61at2.
The New Tax Law.
On August 25, 1890, the Republican
state organ predicted that regardless
of the complexion of the next legisla
ture, the disclosure of the facts con
nected with this era of fiscal misman
agement would compel action with &
view to preventing the making of large
appropriations without providing the
means of paying them. There would
be, it predicted. a new departure II
financial legislation and management