The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-04-27
PROBLEM OF STATE FINANCES.

: his platform promise of economy II
state expenditures, Gov. Osborn is in
dustriously welding his veto axe OF
appropriations, in consequence o
: which some state institutions are to b,
deprived of much desired funds tol
improvements.
That a serious stacy as implied BY
this action Of Gov. Osborn. has been
reached in the matter OF state tinan-
ces should surprise no one, for IL has
been plain for a long time that IL has
been coming. In order to create a
false impression and appearance OF
economy. for the sake of party sue
tions ana partisan legislatures have
more or less deliberately ignored state
treasury requirements. This, together
with the increasing demand for mon
ey from state institutions, has pro-
| duced a condition or chronic deficit
which must now be met either by ex-
traordinary heavy tax levies. or a
drastic cutting OF appropriations. Even
with the severe attitude taken by the
governor. as the situation now stands.
according TO state officers. there Is
| likely 10 be an actual deficit in the
state treasury by early next fall at the
latest when the board of auditors will
probably have to make another big
loan and trust in God and taxes for
money with which to liquidate 1t.
For an individual or a private cor
poration that kind of business would !
sound the alarm of approaching
bankruptcy. Creditors N<Nld be get
ting uneasy, and there would he a !
careful review of the situation for the /
purpose OF either cutting expenses or
increasing income. or both. But gov
trnment seldom gets excited over
such a matter; it implicitly trusts
that somehow. some time. the dim
Guilty will be bridged, and the fact that |
employees and other creditors may
have to discount their treasury orders
for several weeks each year is but a
small and relatively unlmportant in
cident in connection with the admin
istration of the states finances or i'm
comparison with temporary political
power. But no amount of legitimate
economy in government expenditures
can furnish the funds necessary to pay
additional bills. on the one hand the
people constantly demand that govern
ment. national, state and local. shall
engage in new activities. These OF
course take money: but on the other
hand, paradoyical though it mayI
seem, when IL comes to raising the
money the people often set Ip a wall
about extravaganza which is perhaps
taken up by candidates for office. who
catch many a taxpayers vote with
platform plank calling for more rigid
economy Legitimate and wise econ
1my is always to be commended. eth
r in governmental or private affairs,
and legislative appropriation bills will
Always bear close scrutiny and lit
lie pruning. for the legislators are
prone to favor their immediate friends
md constituents. forgetting that II "a
he peoples money they are spending
and that the people, after all Is said.
nave right 10 insist that their mon
~ be spent carefully and for pur-
POSES Of which they approve.
Yet (and here the apparent incon-
'istency Of the people again manifests
tselD about the most unpopular sug-
;estion that a legislator can make IL
hat some new source Of revenue be
lcvised or utilized. Immediately a
protest is raised that the people are
icing taxed too heavily, that govern
nent has no sympathy with the strus
gle Of the man who works Probably
or this reason institutions where the
states defendants must be cared for.
n organizations worthy of states
financial assistance, must be depriv-
II of or cut off for good from much
ieeded funds, although in some in
tances the amount required was com
'aratively small.
Legislatures will soon he Obliged 10
reat the questions of state finance
Ipon business. not a political basis
nd TO apply methods Of Increasing
he income of the state without in
tstice or hardships to either class
interests or the people as a whole
'opular complaint os the burden orI
aXation Is based, not 80 much per
APPS on the question Of tax rates. n,
N sense OF inequality in the wayI
ne distribution OF the burden falls
he State journal.