Arizona republican., 1912-03-19

the present fiscal year, July l. 1911,
 the general fund contained a balance
 of $I76.49914. Deduct from this $44.-
 45227. which was taken from the
 general fund to wipe out deficits of
 that amount in the prison and asylum
 funds. and there was still a surplus
 in the general fund. from the preced-
 ing year. of $l32, ,047.45. with which
 to maintain the state government un-
 til the receipt of taxes in December.
 Contrast this with q certainty of a
 deficit at the close of the fiscal year
 on the 30th of next June of from
 $75.0OO to SI0O.000 and l think my
 meaning will be made quite clear. IT
 not. one more comparison of figures
 will make it so on February 2S,
 1911. the general fund showed a bal
 ance on hand of $195 560.64 Leave
 out nf consideration. then. the mus
 ual and extraordinary expenses men
 toned above. compare this balance
 with the balance of $l0l. .539.37 shown
 by the books on February 29th. just
 past. and the discrepancy amounts to
 Sq4. .02127
 If not full one, this is clear statement of the financial status of
 the state. Us il relates to the current and necessary general requirements.
 and discloses a condition which calls for your most careful attention. and
 for wise and prompt. action.
 Limitation of Debt.
 \ conflict of construction exists in the case of Section .. Article IN. of the constitution. limiting the states indebtedness to three hundred and fifty thousand dollars. While in my opinion this was meant to refer only to unsecured indebtedness caused by iusufficiency of revenue to maintain the running expenses of tn" govern ment. and was not intended to in clude pr limit the states bonded in debtedness. it will be prudent to sub init a constitutional amendment clear ing this ambiguity. and I so rccom- mend
 Fund Bonded Indebtedness. From the report of the state auditor I gather the information that Ari- zona'S bonded indebtedness. exclusive of the funded debt of counties and towns. at this time amounts in round figures [" one million dollars. These bonds. owned in eastern centers of capital. are bearing in practically every instance. five percent interest Not only is this interest rate to my mind unnecessarily high, but Arizona is losing d considerable sum of money. which might just as well be kept at home. My plan is this: that you enact law authorizing the re- ! funding of the states bonded indeht- ! bonds bearing four per cent interest. the bonds to be in small denomina- / tions-say of $5o0. OF even less-and 1 to be offered to the people of Ari- zona. I believe they will he readily 1 bought up by the general public as highly desirable security. as safe as bonds of the United States gov ernment. and bearing a higher rate ! of interest Certain it is that the | bankers of Arizona would he glad to subscribe for them. under provi- sion of law permitting their deposit with the state treasurer as security ] for like deposit of state funds. ! Thus would the banker realize d req ' son1ble rate of interest on his in- vestment in bonds of the state. as well aS the profit which would ac- { crue [" him by means of the state | funds in his possession. and in addi- ton the state would save. on the l basis of the present bonded indebted ness. something like ten thousand ] dollars per annum. while instead of
 sending over fifty thousand dollars : yearly tu eastern bondholders. this money would be kept at home. In order to include the entire bonded i debt for which Arizona's credit is i loaned to various counties and towns, these figures may he multiplied by | three.
 : Changes Required.
 1 AS this administration is pledged, 1 by d pledge in which you and have 1 practice of economy. l wish to sub init a number of pertinent suggestions 1 having for their purpose the full ! fillment of our obligations. These suggestions are based upon a more
 or less intimate acquaintance with the | rules of successful business practice, l and their comparison with the sys- ! tenn now in use in the carrying on of ! the states business affairs
 1 Business on Business Basis. 1 | would recommend the abolishment of the board of control and centrali- 1 Zation of the business management i of the state institutions and depart ments in the governor. Instead of the i board of control l would establish q l purchasing department directly under 1 the governors supervision, where. 1 through d skilled purchasing officer | or agent all supplies. for whatever i institution or office desired, should ! he secured The state, aggregating | the needs of its various institutions ! and departments, is very large ! buyer. and there is no sound reason why this fact should not be taken advantage of. for the benefit of the |