American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1915-01-07

If that is what the people of Idaho want, Governor
Alexander's plan should be adopted, but when they con-
slider the small amount in reduction of taxes per capita
that would be effected by even his maximum of proposed
economy, and when they place that circumstance against
the possibilities of inferior and dilatory service and weak
ened public institutions, they strike a balance that may
not be regarded as being harmonious with the ambitions
and necessities of their state.
AS Mr.. Alexander becomes more acquainted with the
practical side of administration he may be forced to con-
.clude that a wise business policy will not permit of whole
sale slashing to the detriment of the public's business and
when the saving in any event would be so small no taxpay-
er would feel any material benefit.
1t is possible to curtail, and it should be done, but
sweeping additions for the purpose of making a book
showing for political effect will only result in increased
expenses later on to build up and nourish that which has
been unnecessarily destroyed or impoverished.
A wise suggestion made by Governor Alexander af-
fecting taxation is for the classification of counties and
for a limitation on their power to levy taxes. This is a
matter that has been discussed for some time and was
brought to public attention by the report of the state tax
commission which resulted directly in a general lowering
of taxes.
incidentally, the Governor proposes to abolish this
commission, which is about the best investment Idaho e-
er had, providing the legislature shall give it adequate
power.
The report of the commission showed conclusivelv
that the great waste was in local government. 1t disclos-
ed innumerable leaks, producing a sum total that denoted
considerable extravaganza.
There are few states in the union that have not con-
cluded that the only way to effectively reduce taxation is
through CHo exercise OF q nlgnor, even though arbitrary.
power over local tax raising authorities and all others.
The suggestion of Governor Alexander that the de-
.%partmental appropriations be so itemized that the small
est expenditure be arranged in advance, even to postage
stamps and pencils, is a penny-Wise and pound foolish pro-
posal. Moreover it bears on its face the PRESUMPTION of
dishonesty, on the part of all officials, in itself a breeder
of dishonesty.
If we should remove confidence and the measure of
trust that IS always imposed from our business life. our
commercial and industrial affairs would not only be rem
dered demoralizingly complex, but there would he a mark
ed weakening OF the corner stone of our business strength
honor. Without that no substantial supeIstructure can
De reared. we do not believe the people of Idaho want to
ADOPT Such a peurlle, complicated, fruitles5 and small
minded plan asthat suggested by Governor Alexander. It
would make Idaho the laughing stock of the nation.
Inc proposal to reduce the salary of Governor from
H9'Ooo TO $3'6OO a year ought to be rejected or the place
MADE honorary without any salary. A low salary simnIv
means that only a wealthy man can occupy the nIace or
one OF moderate means who lives in or around Boise
rich Governor would probably pay the $4,000 year to some
one VINO was ostensibly his private secretary, but who. in
realty, was MS political manager or editorial adjunct.
The suggestion that state banks be compelled to ioin
me federal reserve system is a poor one. In the first place
this system is in the experimental stage. Our state hanks
should be left state banks at least until the reserve system
efficacy has been more clearly demonstrated. Another
reason is that the fewer Idaho banks there are in the fed
eral reserve the more money there will be left At home for
investment. While the reserve schem provides a means
for meeting emergencies, it also draws heavily mon tbo
local money supply during times when no emergency ex-
lists, which is most of the time. This money is, of course
taken away from local circulation.
Some of the Governors observations as TO land loans
are sound and If adopted should result in a wider distri.
button of money available for that purpose. in additional
protection to the loans and in increased development be-
cause OF the better terms he proposes for those who hor-
row money from the state. A longer period for making
payments and a lower rate of interest for those who are
really c%ultivating land are most desirable.
We also think it would be a good thing to maLo .
searching inquiry into the probable effect of invest;n@ ia q
6 per cent state warrants the call money that is now n1sced
in banks at 81 per cent interest. That is one of the Sun
made by the Governor and it appears to have
merit. II some such plan is not adopted, there should he
more rigid rules laid down for the loaning of money -