Daily independent. [volume] (Elko, Nev.) 188?-1915, 1912-12-20

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. four-year period: 1SoS-1e0S. Tho
total for 1911 II nearly two and a half
times a. large a. for 1901. and the
total for 1909. the year OF the greatest
expenditure. II almost twice az large
a. for 1905. only four years earlier.
Tho fact that tho population nearly
doubled In the course OF the ten years,
goes Tar to explain the increased exc
penditure. Tho average cost Of gov
eminent was not very much higher per
capita at tho end than It was at the
beginning Of the decade. An increase
OF population In q sparsely settled
state like Nevada would not normally
Increase the cost OF government In
equal proportion. The government In
this state has always come at q very
high per capita cost because the whole
machinery OF the state government
had to be supported by small popu-
lation. An important increase In
population would, other conditions re-
naming constant, decrease the per
capita cost. We must look elsewhere
for the explanation Of q part Of the
increased cost.
The years from 1877 to 1900 consti-
| tute q period during which the popu-
lation and wealth of Nevada were de-
creasing. The depreciation OF silver
and the general financial depression
Of the SOS had developed q high de-
gree OF conservatism as to public ex-
penditures. When people are making
easy money they do not mind taxes,
but in times OF financial depression
the burden Of taxes makes itself felt.
The whole tendency Of the period Of
1S77-1900 was to reduce the cost Of
government to the lowest practicable
amount.
With the return Of prosperity with
the discovery Of new mines, the open
Ing up Of new lands. the building Of
new railroads, and the consequent in
crease In property values generally, the
people began to take q more hope
full view of things and they were will
Ing to pay heavier taxes.
New sources Of revenue, too, were
discovered about this time. A new
corporation tax in the form Of a fee
produced an income rapidly, increasing
to over q hundred thousand dollars q
year, almost half as much as the
whole state property tax a few years
earlier. The burden Of this tax was
not felt because 1t was paid largely by
outside investors and by promoters
with high hopes. The liquor license
produced over seventy thousand dollars
in 1907 and this was paid easily, be-
cause Of the great increase OF liquor
sales.
AS a matter Of fact, the revenues In
creased much more rapidly than the
expenses up to 1907, and the accumu-
lation Of revenue stimulated expendi-
ture. For states as for individuals, ex-
penditures increase when there is
plenty Of money handy. This Is illus
trated In a striking manner by the
treatment Of the income from corpora
ton fees. These fees are collected by
the secretary Of state and are placed in
the state library fund. BY 1907 about
two hundred thousand dollars had ac-
cumulated in this fund, and most of II
was divided and transferred, half 60
ing to the state general fund and half
to the school fund. This division had
resulted in a gain Of about one hundred
and fifty thousand dollars to the state
general fund by January. 1909. 1t was
just like finding 1t. Largely as a con-
sequence Of this and other easy money,
the increase Of expenditures Of 1908
over 1907 was nearly four hundred
thousand dollars, or almost twice as
great as the increase Of the previous
six years.
It Is not to be inferred that all, or
even a large part Of this increase was
unjustifiable from the standpoint of
the public welfare. To q certain ex-
tent the growth of the state necessi-
tated larger expenditures. There was
more work to be done in the state Of
fices, more litigation in the courts, and
a larger population in the prison, the
hospital for the insane, and the
orphans home. The university, which
In earlier years had received very little
state aid, depending mainly on sup
port from the national government, was
now given the generous assistance
necessary for It's development. The
public schools, too, came in for an i'm
portant share Of the increase. Then,
too, there were new services provided
for, such as school supervision, inspec-
ton of mines, the enforcement Of the
pure food law and the work Of the
railroad commission and bureau Of in
dustry. Moreover, considerable amounts
have been spent for new buildings and
NhhCE at hlC
capital and the various state institu-
lions in recent years.
Allowing, however, for the great
value received for most Of the increased
expenditure, there is good ground for
the belief that at certain points a
habit OF extravaganza was introduced.
And unfortunately this habit con-
: tinued after the surplus was spent, 30
that the legislature Of 1911 apparently
spent about two hundred thousand
dollars more than the available reve-
nue.. This being unforeseen, It was
necessary to convene an extra session
Of the legislature to provide for loan
Of this amount.
For few years business has been
moro quiet, there have been fewer
speculative gains and the people are
asking questions about their taxes. The
income from the corporation tax is
much smaller, and the same is true
Of that from liquor licenses. Appar-
emily economy in public expenditure
will be considered q virtue for some
time to come.
What TO Do
Now that the public mind is favor.
ably disposed toward some action do
signed to reduce the burden Of taxation,
the question of method becomes i'm
portant. The answer to this question
will denend m, xuhafha1. a. In nm oidnrad