The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1915-01-14
Tax Rates and Bond Issues.


amounting to SSS4,OOO.26 there is still
a shortage of s1,154,751.71.
Tax Rates and Bond Issues.
Closely related to this matter of
economy in expenditures is the ques-
tion of proper limitation on tax-rates
and bond issues. Fortunately for the
people of Ohio the constitution of 1851
provided a limitation of $750,000 be-
yond which the bonded debt of the
state should not be increased except
for certain specific purposes. 1t was
further provided through the creation
of a sinking fund that an amount
should be accumulated by the state
sufficient to pay the accrued interest
and at least 100000 of the principal
annually. AS a result Of this far.
sighted, statesman-like provision the
state is free from debt save the So
called irreducible debt, which is such
only in name.
1t is to be regretted that the debt.
contracting powers of the minor politi-
cal subdivisions of the state have not !
lative and constitutional limitations. |
The experience of the state govern |
ment as distinguished from the expert |
ence of it's political subdivisions is an
unanswerable argument in favor of
such limitation. According to the
most recent report of the auditor of
state the total debt of cities, villages,
counties, townships and school dis
tricts in Ohio in 1880 amounted to SAL
$4,000; in ten years this had in
creased to $62 $4,000 and in 1900 it
had reached the startling sum of $685.
$4,000. 1t was hoped that the maxi
mum of Indebtedness had been reached
at that time, but to the CONSERVATION
of the friends of economy the debts
mounted up to $1S7,574000 in 1910;
and then as if to put on the cap-sheaf
of amazing extravaganza and profit
gate waste these debts were increased
in only four years from $187 ,574, 900
in 1910 to $293,099,019 in 1914.
While it is conceded that the greater
needs of an increasing population
furnish reasonable excuse for
portion of this vast debt, yet it is sub
mitted that if the burdens of debt are
to continue to pile up in the future as
they have in the immediate past GER
tain financial calamity awaits us. These
debts are not only problem, they are
an ever-increasing menace. A rigid
limitation should be fixed by law not
nf hnndG h
lie officials may issue for public pur-
poses but also upon the number Of
dollars they may collect by taxation.
New services and public improvements
calling for bond issues which compel
the assessment of more dollars in
taxes should be authorized only by
vote of proper portion of the people
in the political subdivision affected.
Unforeseen emergencies requiring i'm
mediate and unusual expenditures
should of course be provided for Aside
from such infrequent contingencies
there should be a positive limit to
bond issues and to the number of dol
lars that can be levied as taxes by
officials, which shall not be exceeded
except by vote of the people. This is
government by the people, not gov
ernment by officials. Such limit not
only as to tax rates but also as to
number of dollars assessed as taxes
and amount of bonds issued would
promote economy in public affairs and
thus protect the interests of the tax
payers by insuring decreasing tax
rates.
Specific Appropriations.
In the formulation of the appropria-
tion bills your attention is respectfully
. invited to Section % of Article of
the constitution, which is as follows
mo money shall be drawn from the
treasury except in pursuance of a
specific appropriation made by law; !;
and no appropriation shall be made
for a longer period than two years
: The purpose of this wise provision was
to keep the control of the public
moneys directly in the hands of the
representatives of the people by pre-
venting expenditures by executive Or
administrative officers in any manner
= except as definitely provided by law.
There is no surer way of encouraging
extravagant expenditures of the public
funds than to provide lump sum-
= appropriations from which heads of bu,
reaus and departments may make dis.
bursements without specific authority
of law. Under such unbusiness-like
methods there are rarely any unex.
pended balances, ways being found to
spend the money where there is nc
: legislative restriction to prevent
t Lump sum appropriations are inde
: fensible from every viewpoint; they
are unbusiness-like; they promote ex
5 travagance; they furnish convenient
7 means for autocratic Capitalization OF
power and political Notwithstanding
, at public expense; they are contrary
: to American precedent and tradition
t from the days of Thomas Jefferson
down to the present hour. and they are
5 in plain violation of the letter and
| spirit of the constitution.
. The practice of allowing salaries tc
5 be fixed by heads of departments oI
( by the governor, or by heads of de
9 partments with the approval of the
F governor" should be Immediately dis
9 continued. Salaries should be definite
8 ly fixed by law; no governor or hea(
g of department should have the danger
: Gus power of political coercion in
3 volved in the arbitrary authority 4
: fix salaries. Too many things are pro
n vided by the statute to be done "b!
+ the approval of the governor" or "upoI
the approval of the governor" II
q most cases the public service would
g not suffer by striking this monot
: onous and oft-repeated phrase from
|. the statute.