Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1915-01-28
ONLY STATES TAXATION POWER
SAVES IT FROM BANKRUPTCY.

Raleigh, Jan. 20.-The State Board
OF Internal improvements transmitted
to Governor Craig today and he to the
Legislature the report and recommen-
dations of the board which go into af-
fairs of the State Treasury and State
institutions in considerable detail and
With some sharp criticism. The re-
port closes with recommendations as
follows:
We are of opinion that it would be
advisable for the Legislature to au-
thorize the Governor to appoint a COM
mission of five of the States best bus
mess men, willing to make a personal
sacrifice for the good of the State, who
shall be given the power and charged
With the duty of a thorough re-organ-
iZation of the States business affairs.
A system of accounting should be set
up that will be uniform. They should
be given the authority to adopt the
budget system and do any and all
things to put the States matters in
proper shape. IL an individuals
private business were conducted as
he States business has been conduct
ed it would result in bankruptcy. The
State, however, cannot be bankrupt,
for the reason that it has the power to
levy additional taxes to meet un-busi-
:;ess-like methods.
For us to make a detailed report Of
al that matters that have come under
our observation would be burdensome
The audits show the conditions. We
have only referred in our report to
matters which in our opinion sufi-
GENTLY justify the appointment of a
commission of business men to read
Just the affairs OF the State.
Considerable Time.
"The members of the Board of In
ternal Improvements have given con-
sidearble time to the duties of the
The compensation for their
service has been nominal. They have
undertaken the work at a sacrifice for
the good of the State. To perform
tEeir duty has been embarrassing"
The report is signed by Alexander
Webb and George w. Montcastle. as
members of the board.
The report consists of rs pages and
II pages are devoted to the State
Treasury, concluding this phase Of
the report with recommendations that
the bond of the State Treasury be pro-
vided at the expense of the State and
not through personal bondsmen as at
present; that monies coming into the
State Treasury be consolidated into
Cne fund, so far as availability for
needs is concerned, and that it be de-
posted at least three per cen on daily
balances and which are either them
selves sufficiently strong to finance
The State in case of necessity or are
in position in such case to negotiate
leans for-the State at reasonable rates
Of interest,", that all State funds in
hanks he secured by depository bonds,
the State paving the premium on such
bonds; that the State Treasurer be re-
CURED to publish on. the fifteenth Of
each monthsa statement OF the condi-
lion of the State Treasury, which shall
show the banks in which the States
money is deposited and the amounts
in each and that the bond records
shall be made as nearly complete as
possible, showing in detail each out
standing bond and interest payments
made thereon.
Urges Budget System.
The recommendation is added that
Inc Legislature ADOPT the budget SyS-
tenn in the appropriation of funds to
the various departments had institu-
tons on the basis of a consolidated
sum representing the States availa-
HE income for such purposes. In this
way, it is claimed, the interest on
| daily balances recommended to be OBJ
tanned from banks would become an
appreciate item.
The report on the State Treasury
especially emphaizes figures as to
State monies in bank and money Dor
rowed, claiming that that during the
two years treated there was at all
times enough money on hand to pay
ali the States obligations without
borrowing any money had a budget
| system been practiced, while in fact
the State paid interest in 1912 Oh
$500 900 borrowed money and had
money on hand ranging from 1891 900
to $626,000 and during 1913 carried
s550,000 borrowed money and carried
monthly balances in banks ranging
from $537, 600 to $500, 900.