The log cabin Democrat. [volume] (Conway, Ark.) 1901-1982, 1913-01-09

taxation and without running the state
in debt.
Nov, as to the present condition
of the states finances:
GAS a matter of fact, the state does
not at the present time owe anything
to anybody, except the few dollars be-
fore mentioned, and that item is
scarcely half of the debt which my
administration inherited from my
predecessors in office. AS further
evidence of this fact, no one can point
to a single individual or corporation
to whom this state does now owe one
dollar.
"The states financial condition is
much better now than when l took
charge of the governors office. On
October /. 1904, there was large
balance of more than 100000 re
naming to the credit of the general
revenue fund. but which, before the
beginning of my administration had
been reduced to almost nothing. The
cause of this was that the state had
been spending more money out OF the
general revenue fund than it had been
putting into it. There were several
WAYS at that time of shifting the ac-
count. to-wit: The d1 awning on sur
Mus of more than $500 900 left to the
credit of the general revenue fund In
1901. and the leaving of that account
in debt so that future administrations
would have to provide for its lqulda-
ton.
Former administrations also had
the advantage of the complex system
of keeping accounts and making set
Elements as heretofore set out. 'Bl-
enniai reports settlements ETC., new
err came at the beginning or ending of
an administration. Drawing on fu-
ture revenue also was practiced, and
if a bad showing was made the respon-
siblitv could not be located. The ex-
tent to which this fexibility of the
states finances could be operated was
limited only between these two eX-
tremes: That of exhaustion of more
than S5OO,OO0 remaining to the credit
of this fund on October l, 1904, and
the anticipation of the states incom-
ING taxes before such taxes were due
to be paid These alternatives being
exhausted, deficiency was bound to
occur. That crisis was at hand when
| took the governors office. The audi
tors report to the governor IN 1910,
and all succeeding reports, are proof
of this statement.
"Then | had the difficult task of run
ming a shrinking financial state of at
fairs into one of such increasing pro-
portions as would take care of nor
NAL condition But instead of its be-
ing normal, it resolved itself into an
abnormal condition. The resources for
revenue were depressed to the lowest
ebb, while the demands on the general
ryenue fund were at the highest stage.
| met all of these adverse conditions,
paid all the demands, kept the state
out of debt, increased the assessment
of property, stopped the downward
trend, provided for additional revenue
from other sources, and all without
increasing the rate of taxation.
"The situation, therefore, is very
much over that which existed when |
assumed the responsibilities of the Of
flee. Of course, it will yet require
much good work to complete the task
of rebuilding the states Anticipated
revenue system. But | have not only
laid the foundation for new, equit-
able and complete system OF taxation,
but also have the superstructure well
under Roadway. And it can be COM
pleted without an increase in the rate
of taxation. In fact, there is no ne
cessity for such move. There is far
less necessity for the increase in the
rate of taxation now than there was
when | was indicted into Office.
Notwithstanding the fact that my
hands were full with the increased la
Of tho Offion
as above referred to, when | became
governor | was confronted with the
additional task of building new state
capitol This was by far the biggest
ever attempted IN the
state. And if it had been simply a
question of purchasing material, let
ting the contract and constructing the
building, it would have been a much
easier matter. But it was necessary
to tear out and replace all of the de-
fective construction placed there by
the former contractors. This, hoWev-
er, was but the beginning of the
trouble. There occurred, as is well
known, the bitterest fight the state has
ever known over the completion of the
capitol. | was made to bear the brunt
of it all. But in spite of the many
difficulties and distractions encount-
cred, the building has been substanti-
ally completed, and the most crafty
ing part of the whole story is, the
structure is paid for. With the eX-
ception of a few small accounts for
material and labor furnished in the
last few months, not yet paid, the state
does not owe one dollar on it's capitol.
And furthermore. there is approx
mately $4,000 in the state treasury
to the credit of the state capitol fund,
and special assessments already made
which will, on July /, put more than
$4,000 more to its credit
This tax should now be stopped.
"All other improvements over the
cost of the amount now available
which you may wish to make, should
be provided for by tax not to exceed
one-fourth the present tax"