The sun., 1916-11-04
GOVERNOR WHITMAN AND THE Fl.
NANCES OF THE STATE.


" VeCtiuSt VI uuu app ihNsollN Ur
lack Of appropriations chargeablc to
the preceding Administration and u
mandatory increases in the provision
for the sinking funds.
The Legislature of 1915 was re.
quired to provide funds to discharge
the obligations 1t had incurred. The
appropriations amounted II $780,
27I.s6. The revenuc for The fiscal
year 1915-l6 were estimated at siA-
900. 700. 1t was therefore necessary
to raise an amount to cover the differ.
ence. In making this estimate (which
had To he determined in the month ~
April, 1870 no allowance was made
for any surplus Il mean real surplus,
in the Treasury at the beginning VI
the fiscal year 1915-16. At that
time tApril, 1870 IT appeared there
might he an actual deficit. as the
monthly receipts Of the current iisral
year were very disappointing. bcing
$4,000. 900 below estimates. II Mas this
dearth Of receipts that made necessary
the temporary loan OF 5000, 900 to
which | have already referred. To-.
ward the latter part Of the fiscal year
l914-15 the receipts constantly i'm
proved and the final outcome If the
years operations, according to my
" calculations. was a surplus over
all commitments on the first of pc.
tober. 1915, Of s3.2S2.115.1a, which In.
Guides a transfer from trust funds.
almost entirely old canal accounts. OF
$I.73j.s2l.7S.
IL must be borne in mind that this
was all the absolutely free and unen-
numbered cash surplus available To-
the Government Of the great state NJ
New York. However. as | have OK
planned before. there was no possible
way of knowing hat there would be
any surplus. as all the indications
pointed to "a deficit. The Legislature.
therefore. decided to raise a round
| amount of sl9.5 SOC. 900. so that all the
obligations for which 1t had contracted
would be taken care Of. and Governor
Whitman wisely approved this course.
This is the story of the direct State
tax To have levied a less amount
would certainly have saved Governor
whitman from much criticism from
partisan sources, hut it would not have
met the trying situation which was
presented to him and his party in tina
, Legislature.
The grossly untrue statements 70
the effect that the purpose Of the di-
rect tax vas to build up a large sur.
plus 10 carry the operations Of the
subsequent year are disprovcd 10y the
simple exhibit of the reil. facts Of the
case, which we're:
/. No surplus apparent a. the begin.
ming Of the fiscal year lsli.ls.
:. AppropfIati ions uf so5..s7.45i.S6 to b.
cared for. the excess Of appropriations
over the preceding year being fully e..
planned and Justified
.. Probable rec. pit OF $4,000. oou from
indirect taxation during tn" fiscal yea.
ain renee Of sIs.931.GI So he.
tween appropriations ana prohllr 20.
oeip;s.
Who. unless so!nc one blinded lv
partisan venom OF entirely ignorant ~
the facts, viii maintain hat any other
cours" than II direct tax was possible
or juStiiiihl."
All state Administrations have hal
I" cope with the difficulty of preparing
budgets long in advance Of tn. period
! 'hen the collections of evcnuc To de
fray those budgets commence. Fur
Their, a number IT important sources
I state revenues are of an unUcrtnlr
nature, notably the inheritance tlN,s
1t must be said IN justice to Guvernuy
G,Nnn and the LEGISLATURE uf lGii
'Ilt II could no. snow in tnt mont
If May that a war in Europe va
going I" take pace, bringing a.uIt
The closing Of the New York stock IN
hange and cutting off one Of ID.
sources Of state revenue. nancy. TO
stock transfer taxes In tn. same
sense II must he sid in justice 10
Governor Whitman and the Leg .~,a-
turc Of 1913 that they could not know
In IN" ronth of May. 1915. that There
was t. hc a great boom in tho jUe
reopcncd stock market. which wuu.,
make NJ for all the ,ioticicurics ia
revenue during the carry part uf the
fiscal Year l9ll-li.
IA" tNo great questions a. I~sue
nave seemed To- ne To- l,:
Were tho increased appropriations NJ
i%''"'n"" Nh.'mau', ur-l vopr Iu,,iicdr
Was tho dir',t 'ts 4 Il ,,--uN"
submit al III" facts and iieurcs
ni th"sr different papers a.. the con.
crete proof thai they We're.
WILLIAM \. l~IENpERIAsT.