The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1914-10-08
FOR Gov

shall be applied to the purpose fol
which they were obtained Or to repay
the debts so contracted, and to no 9th
er purpose whatever"
You Will note the terms moneys
arising from the loans" These fund
ing bonds were issued to holders OF
| valid state warrants in lieu of the same
and not for loan. Had the funding
bonds been termed certificates of q
deficiency indebtedness providing for
payment of principal and interest at
stated times, confusion resulting from
criticism made by some in good faith
and others for political advantage
would not have followed. This con-
Istruction Of similar constitutional pro-
visions is sustained by all the other
state courts as we'll as the Federal
courts The fact that we had a de-
ficiency that run over three years
largely on account of the act of con-
gress providing for taxing certain In
dian lands and the state statute pro-
viding for the gross proceeds tax and
that levied for the fiscal years of 1908
on the railroads. being declared void
by the federal courts was unfortunate,
but such deficiency remained debt
of the state.
Under the state statute xlislcti Era--
vided for the issuance of the funding
bonds in lieu of the deficiency state
warrants it was first essential for the
district court to find that the revenue
bad been provided for by proper levy
of taxes to meet such expenses before
the warrants were issued therefor, and
the district court found that all Of these
essentials had been compiled with be-
fore the warrants were issued. The
statute providing for funding such de-
ficiency indebtedness, insofar as state
Indebtedness is concerned. has now
been repealed. These deficiency war
rants covered salaries in the main fix
ed by the state constitution, and sup
plies for our asylums for the insane,
feeble minded, blind, deaf and dumb.
the penitentiaries, training schools for
boys, state university. ag-
ricultural and mechanical college, etc.
Even had the state officers desired to
repudiate this Indebtedness 1t was i'm
possible under our constitution and
statutes carrying the same into effect
The holders of these warrants could
have mandamused the state board of
to make the deficiency
levy to take up these warrants. The
funding bonds, or funding certificates
rs they might be more properly called.
ssued in lieu of these deficiency state
extend over a period OF ten
years. Already since their Issuance
thousands upon thousands Of acres of
and upon the east side of the state
nave become taxable, and are contrib
lting toward the payment of the in
crest and sinking fund upon this de- |
'iciency Indebtedness. And every year |
more land is being placed on the tax
list
I make these observations for your
in determining whether
,r not the state board Of equalization
lcted wisely and for the best interest
Il the taxpayers in the funding OF this
deficiency Indebtedness instead OF
ewing an additional tax for its i'm
Mediate payment.
had no part or responsibility IN the /
undinR of this indebtedness other than
hat the same was done by democratic
,fficials and that I am member OF
he democratic party. I am present.
ng this question TO you fairly as the
acts exist. II Is my judgment that
he board acted wisely In funding this
for had levy been made
n that time 10 take up these deficiency
warrants the additional tax then re-
Iuired would have worked a great hard
hin. it was unfortunate that this de-
icIencv arose but IL arose under dif-l
Iculties and under conditions that us
ally occur In a new state. What we
must do Is TO profit by the mistakes Of
he past, administer this state govern 4
1ent IN the future absolutely 80 there 4
All be no deficiencies and set in mo- !
lon machinery so that deficiencies in I
municipal and county governments viii &
ease.
he Honor and Credit Of the State
Must Be Maintained.
In passing, however. want TO say q
hat i regard the obligations of the I
ate. which are made in accordance c
-ith the law. as sacred as those OF an I
,dividual We should guard the
onor and integrity OF the state with Q
Ia same fidelity that we do our own. c
the same time taking care that the q
.ate's business Is administered with a
e same economy. thrift, care and fl U
Atty as our own business This viii .
, rood for our citizenship in every .
,spect and establish for US a good n
arne abroad which viii protect the .
,ncr and credit of our state and in do c
n that establish the credit OF the
ate and its citizenship abroad AS
,vernor OF the state that win be one II
the supreme efforts Of my adminis- G.
alton Il
As TO he state Indebtedness. give m
M the exact facts reported BY the d
ate examiner and inspector. a
Bonds and warrants outstanding q