The daily palladium. [volume] (Richmond, Ind.) 1904-1905, 1904-06-22
In the Matter Of Debt Reduction
In Indiana.
TAX LAW is NOT RESPONSIBLE
For the Rapid Scaling Down Of the
States Obligations by Republican
Financial Officers-Cause Is Found
In Economical and Conservative Ad-
ministration Of the States Business
Affairs.

At the recent Democratic state con-
vention Republican leadership was de-
nounced for claiming credit on account
of the reduction of the state debt, and
the presiding officer declared that this
reduction has been effected as the re-
suit of tax law enacted by Demo
cratic state legislature" An exam
ination of the record reveals the utter
indefensibility of this position. Dem
ocratic officers had charge of the fiscal
affairs of the state for two years after
the state began to derive the increased
revenues resulting from the new tax
law, and were unable, il they were will
ing, to begin to wipe out that monu-
ment to their own methods of finan-
ciering, the state debt.
When the Republican financial off,
GERS went out of Office in January,
1891, they left the debt at S,O56, 615.12.
At the end of that fiscal year the
Democrats had increased it to $685.
61512. at the close of the next fiscal
year 1t was the same, the increase be-
ing due to money borrowed for cur
rent expenses, Notwithstanding the
new tax law added to the revenues of
the state $1,419,77S in 1891 and ST.
461 1877 in 1892. Thus in two years
k they had an increase of revenue OF
$2,830,975 and no reduction of debt
until 1893, at the end of which fiscal
year the debt was $8,0O6,615.12, a re.
duction of only $4,000 from what it
was the year before and the year pre-
ceding that.
From the debt of 1890 there was
reduction of only $4,000. Democratic
state officials paid just $4,000 more
| than the sum by which they had in
creased the debt, when the state reve-
nues were millions more than they
were under their predecessors.
When the fiscal year of 1894 was
closed Democratic state officials had
paid on the debt $4,000 additional,
or since taking charge in 1891, in all
| 100000 That put the debt at 1885,
615.12 That amount was 100000 less
than the debt the Republicans left
and 100000 less than the debt was
after the Democrats had increased it..
They paid $500, 900 more in January,
1895.
The total of 100000 reduction Of
state debt by Democrats will bear the
following analysis:
| In 1893 there was paid $50 900 on the
original debt and $3.50, 900 borrowed by
Democrats. Total, $4,000.
In 1894 there was paid $570,000
In January, 1895, there was paid
100000.
ciering, with the two preceding, 1891
and 1892, when the Democrats increas-
ed the debt, the revenues Of the state
were, on account of the new tax law,
$4,4S6,92S more than they had ever
been. In addition to this they had the
use of $578,224 sinking fund, created
for the sole purpose Of paying the
debt. In all they had at command
$5,O0O,00O in excess of revenues and
sinking fund with which to reduce the
debt But out of this vast sum they
used for that purpose only $5S0,0J0,
the greater part of $1,3OO,OOO state
debt reduction by them being made
with money paid the state by the gen
eral government for equipping troops
during the civil war.
Alongside this record place that of
the era of Republican management
which has succeeded. Here are some
OF the results:
The state debt reduced $500 900
an average debt pairing of considerably
more than a half million dollars a
year.
An annual saving of interest pay.
ments to the people of Indiana
amounting to more than $4,000 a
year.
Two million dollars spent in en-
largement and improvement of state
institutions.
A saving of millions of dollars to the