Daily Arizona silver belt., 1909-01-21
DAMH ARIZONA srLvRB BBrR

 to be in better financial condition than at any previous period, with no obliga- tions that are due Tor past due, and every current obligation promptly met, but, "as a matter of ordinary business prudence and to assure continuation of this happy condition, the governor, submitting a long army of figures from the records of the last ten years, con cludes:
 "It would appear from this state ment that the burden imposed upon some of the counties would be somewhat heavy. But it must be remembered that the burden is that originally ere | ated by the counties themselves. The time of reckoning and of settlement must come whether the debtor is a private individual or a public corpor- ation; as the debt may have been inn providently incurred. the burden seems the more onerous.
 (" But further examination will show that the burden will in all proba- bility be less than I have computed it to be. l based my computations on the present value of property for taxa tion in the several counties upon the hundisputed valuations for 1908. It is hardly to be conceived that at least in most of the counties these valuations will be less during the tentative period of twenty years that l have suggested, and in most instances it may confidently be expected that they will be greater, and as they do become greater the bur den will become lss. l used the figures that 1 have used for Illustrative pur. poses, assuming it to be designed that the debt is to be retired in twenty years. Instead of imposing the fiat rates which l have suggested, computations should be made upon such basis as will result in revenue each year equal to one twentieth of the debt to be retired. Thus. if during the twenty years the total valuation of property in the ter ritory should reach $l20,000, ,000. .00-and if it does not we have all been grevious- ly mistaken in our estimates and hopes of the prospective development of the resources of the territory and will be as grieviously disappointed--theu the tax rate necessary to provide the requisite funds for retiring the territorial debt will be reduced one half or to three instead of six cents. An so proportion ately will be the reduction of the rates in the several counties and cities.
 ''We have heretofore ignored every constitutional limitation imposed as to the extent of obligations We may as sume, and defed them--we should be- gin to learn to respect them. The liar rison Act expressly limited our indebt- edness to per eent-we have gone be- yond that--our territorial debt was nearly, if not quite, 10 per cent of our taxable property when it was created. l do not mean that We have done this illegally, but upon slight and wholly in sufficient pretexts, we have asked con. gress to raise the limit, and congress has eomplaisantly done so.
 "'There is limit, however, more ab. solute and wholly irrefragable than any constitutional one, and that is the point of the exhaustion of our credit. We have been travelling at a somewhat rap i'd rate, in that direction, and always in that direction. Happily we have not cached that point, but we win do so inevitably unless we change our direc- tion.
 CT very earnestly recommend to you that you make provision for an early retirement of these bonds. without too greatly burdening the people with tax ation
 Speaking of the territory s resources and taxation in general, the governor admonishes the legislature that, "A high rate of taxation is not only bur den upon the people, but often oper ates as deterrent upon the develop ment of our resources,' and he con eludes by urging great caution in seru- tinizing any claim made for appropria. tions
 The interest amount credited 10 the territory for the biennial period ended June 30, 1908, was $ll, ,2sO.99, and for the six months ended December 3l, 1908, $3,S43.09.
 Speaking of banks and corporations, the governor said:
 Banks
 "There are g territorial banks and ! l3 national banks in Arizona. Included in the list of territorial banks are two commercial houses, which, in addition to general merchandise business, carry on banking business.
 "The called statements of all the banks of the territory for November 27, 1908, showed an aggregate capital, surplus and undivided profits of $l,- 99S, ,3S0.O9 for territorial banks, and $1 ,557 ,40l.55 for national banks. Depos- its in territorial banks amounted to $S,025 ,975.79, and in national banks, to $5, 1928 ,238.92 Loans and discounts of territorial banks amounted to $5,463, TYPOS, and of national banks, $3,S95,- 470.S7.
 "All the territorial banks are closely examined by the territorial bank comp