The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-01-10

To the Honorable, the Gentlemen Of
the General Assembly.
The annual meeting of your honor
able body brings a season of respon-
sible duties, Of acduous labors. In ac-
cordance with the requirements Of the
constitution, herewith transmit to you
my annual message, with the assur-
ance that am ready to cooperate with
you in advancing the veal and the dig
nifty Of ov nmonwea;th. AS mat
ter Of p importance, shall first
direct your> :ention to the condition Of
5saur States finances.
Financial Condition of the State.
For a number IF years past the State
has been under the necessity Of bor-
rowing money to meet it's current ex-
penses. The amount borrowed has been
annually increasing, until last year the
State treasurer was compelled to bor-
row the sum Of $500,000. The reason
for this increase lies in the fact that
since the year 1900 the expenditures of
the State have annually exceeded the
revenue.
+: In 1900 the expenditure exceeded the
revenue by $10,045,42; in 1901 the ex-
pepditure exceeded the revenue by
S13,924.29; in 1902 the expenditure ex-
ceeded the revenue by $20S, 1928.
In 1908 there was an apparent excess
Of revenue over expenditures amount
! ing to s56,304.29, but in reality the ex-
penditures exceeded the revenue by
S32,833.57, for the reason that the sum
Of $S9, 1886 was then received in set
tlement of claims against the United
States government, and was placed in
the general fund. Last year again the
expenditures exceeded the revenue by
at least 100000, making a total excess
of expenditure over revenue of $780,
598.51 for the past five years.
In 1903 the general assembly, reallz-
- ing that this condition of affairs should
no longer exist, appointed a committee
to consider how best to put the State
upon cash basis, what additional
sources of revenue for the State are
available, and what changes should be
made in existing laws for the assess
ment and collection Of taxes
This committee reported at your last
session, makingAseveral recommends
tions, the only one adopted, however,
being a license tax upon all corpora
tons This law becomes operative this
year, and it is estimated that it will
add $4,000 to the States revenue The
estimated revenue from the fVe-mlll
levy for the present fiscal year-Wlll be
81, ,G50, 900. The insurance license fees
and the fees f, ON the Office Of the Sec
retary of state may be estimated at
$4,000. To this we may add SS0.00O
from license fees, making total rev.
enue for 1905 Of $1,1S0,000.
It will thus be seen that, if the ex-
"a
there Will again be a deficiency, with
no provision made to place the State
upon a caSh\ basis.
Tn this connection beg to call your
attention to an article of the constitu-
ton: The general assembly shall pro-
vide for an annual tax sufficient to
defray the estimated expenses Of the
State for each year, and whenever 1t
shall happen that the ordinary eX-
penses Of the State for any year shall
exceed the income of the State for such
vide for levying q, tax for the ensuing
year sufficient, with other sources OF
income, to pay the deficiency Of the
preceding year, together with the es-
timated expenses Of the ensuing year. -
(Article 10, Section 2)
Had this provision of the constltu-
ton been observed in the past. as It
should have been, the State would not
now be in its present financial condi-
ton. and deem it needless to impress
1,pon you the mandatory terms of this
provision.> The constitution requiring
that you shall make provision to meet
the deficiency Of the past yeeT, and
such having been ignored herezsSore.,
it is but fair to assume that th' =$SS ~
port ot ;ile constitution imposes si1
YOU the duty of making a like pro as
ion for previous years.
have laid before you as briefly as
nossibIe the very unsatisfactory con-
dition Of the States finances. This
serious status Of affairs calls for
prompt and efficient action. It is your
paramount duty to meet this ah1as
. fion and u6i6oi1oifla xa131sa
earnestly seeking to reInedy a. Zcondi-'
tion which has rea ached a point Yhare
action "annot longer be evaded or dis
regarded. You are the sworn repre-
senratives of the people, and upon you
alone devolves the duty and response
hility Of SQuarely meeting this ur-
healthy condition in the most irnpor-
tant department Of our government.
In my last message, dealing with this
: subject I said:
.AThis is the most important function
of the State. so far as it's business al
fairs are concerned, and it is not only
On unwise, but a suicidal, policy 10
S o.. Continue eXpending more money than
4he revenues Of the State amount to-
nrba QUESTION resolves itself into this,
Not expenditures must be curtailed.
-, more 3evenue raised. The former. ]
eaar is anpracticable. and the latter
aan only pc done in one Of three ways:
Trst by requiring the county author
;t;es ies upon whom devolves the duty of