The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1904-10-14

STATE FINANCES
An Impartial Statement OF the Finances
OF Indiana For a Period OF
Forty Years.

debt are 10 be found in the reports Of
the auditors OF state. but are not col
lected at any one place. II has been
customary for the auditor TO publish
tables. showing the comparative total
assessments OF state property, by
years. for number OF years back,
together with the state tax levies. The
last OF these tables appeared in 1901,
and the auditor now prints only the
tax levies. presumably on the theory
that these make better showing for
the administration when taken alone.
In the report for 1903 the table OF
tar levies will be found at page 100.
but II contains so many errors that
none OF it's statements can safely be
taken without verifcation. For eY-
ample. II shows no state school levy
prior to 1865. though in reality there
was a state school levy Of 10 cents a
year from 1853 10 1864 inclusive.
Aside from the waste OF public money
In the publication OF erroneous Stats
tics. this particular error is not so
material as some others. for present
purposes for the state finances before
and during the civil war have no con-
nection with the present questions.
though they are sometimes dragged
debt OF the state was created chiefly
by the Whig party in the effort TO de-
velop . state system OF internal I'm
provements. but the Democrats did not
show any especial hostility to this un-
I'll 1t had proven a failure As a mat
ter OF fact the internal improvement
scheme was right in theory. and was
generally approved. The dlficulty
was that the state undertook TO do too
much at one time. and had the mis-
preston before II got through.
After the civil war times were
good" for several years, and the peo-
pie we're accustomed TO high tsIes.
There was no serious objection when
the state sinking fund was increased
from 5 cents 10 10 cents In 1868. and
20 10 cents In 1867. II was dropped to
10 cents In 1869. and Discontinued In
1872. the state debt being practically
ertinguishsd. II may be observed In
this connection that there is seldom
ANY way OF paying public debts eI-
eept by taxation. From the attitude Of
some OF our state officials, one might
imagine that they had been paying the
state debt out Of their own pockets
This Is q delusion. II has been paid
by the people through taxation. and
the state officials have merely collect
"a and paid ont the money. as re-
ouired by law.
The old state debt had scarcely
been extinguished when we came into
an era OF hard times" The panic
and Industrial depression following
the demonetization OF silver and prep
aration for the resumption OF specie
payments In 1873 turned attention TO
the reduction OF local burdens. The
state levy for the general fund was re
duced from Is cents TO 13 cents In
1878 tnot ~ cents as stated In the AL.
ditor's report for lp03). and 10 10
cents In 1877 (Acts OF 1879. .. eos:
acts Of 1878. p. so: acts OF 1877. p.
400 Al the same time there began
. reduction Of assessments. the valu.
alton OF property in the state drop
ping from Ss5l.s57.475 in 1874 10
o13s.e<<.i3 In 1880. In consequence
OF those reductions the state did not
collect enough taxes 10 meet current
expenses. and began going In debt |
There was also a growing need for
state institutions. and these were
built with borrowed money. the more
notable ones being the new insane
hospitals at Evansville. Logansport |
and Richmond. and the one for women
at indianapolis. and the Soldiers or.
phans home at Knightstown. There
were also extensive additions 10 the
older institutions. This necessarily |
meant an increased charge for main
tenancc. the states expenditure for
benevolent and reformatory institu.
tlons increasing from ta40.0 900 In 1873
(auditor's report. p. l3) TO t1.l11. 400
in 1890 (auditor's report. pp. 11-i2)
This debt.making process went on
under the administrations OF Cover
nors Williams. Porter. Gray and Ho-
yey, until there came a general real
ixation that the danger point had been
reached. In his message TO the legis.
lature OF 1891 Governor Hovey said:
"sinoe 1877 a sufficient revenue has
not been raised to pay the expenses OF
the state. and every year has added
10 our indebtedness. until today the
state debt has reached the enormous
sum OF Ss.s40.6l5.1f. with q still In
creasing Indebtedness. until some 70
lief can be obtained by Legislation.
with the same system that has here
tofore prevailed. We will still have to
borrow money 20 sustain our institu-
sions and expenses OF the state. with
an annual denoit OF about $500. 900
Surely the day OF borrowing for such