Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-12-23
urArs rReAsuRER's REPORT m.
p,cATss SERIOUS STATE OF
PUBLIC FINANCES.
puaANp FOR ECONOMY
HAS Sor BEEN MET
este Treasurer Blames Legislature
Fer Failure to Provide Sufficient Tax
lsvy to Provide Working Balance
esmpelled to Pay Interest on War.
rants Stamped "unpaid."
,necial 70 Times Republican.

| SDeCIaI 10
Des Moines, Dec. 23.-The state o.
Iowa is facing another million dollar
shortase in the amount necessary 70
meet IFS expenses by the time July l
next rolls around, State Treasurer
Edwin II. Hoyt declared in his bienn Al
report submitted to Governor Harding.
Two years ago the state treasures
report submitted on the eve OF the
converting of the Legislature created
sensation which resulted in demand
from many quarters for economy.
Treasurer Hoyt's prediction is based
on a forecast of the bills the state Will
have to pay as compared to the sums
due to come in under the taxes levied
as authorized by the last general as
sembly. This bankruptcy occurs time
aud again. the state treasurer's re-
port shows. lie declares the trouble
lies in the Legislature not making pro-
visions for sufficient levy to produce
working balance. which is neces-
vary when business is conducted on
large scale, as is the case with the
state. He points out that the 'charg-
ing of" Of a large portion of the mill
ary organization fund. that available
Tor militia. providentiaI contingent
ind vicksburg celebration fund, will
relieve the situation somewhat.
Short Since 1912.
In reviewing the conditions in the
treasury department since 1917, whlch
have made II necessary for the state
TO borrow considerable sums of money
and pay out interest, State Treasurer
Hoyt says.
"The general revenue Of the state
has been running very low since 1917
the low period in each year since that
time showing a balance of less than
100000 Until 1916 my predecessors
were able to get along without stamp
ing warrants not paid for want OF
funds" The increased cost of all
commodities since the beginning III
the European war. especially the cost
OF food and material to insure the
comfort Of the inmates of our state IN
situations. has so increased the ex-
penditures of the state that in 1916 II
was found necessary to stamp war
rants mot paid for want Of funds" 10
the amount OF s344, 260.4S all of which
drew per cent interest until paid.
"Our own entrance into the war IN
April. 1917 and the legislative appro-
priations necesstateg thereby, made
the shortage in the general revenue ac-
count still more acute. so that in the
fall Of 1917 the state was paying in
terest on s1.06S. 637.77 on warrants out
standing presented and not paid for
want of funds
IN
terest on s1ll3.000 in warrants. In
the latter part of that month when the
taxes from the seven mill levy au-
thorized by the Thirty seventh general
assembly began to be paid We were
able to redeem all outstanding war
rants drawing interest and have a
balance in the general revenue fund.
1T is my judgment that the state
always should have reasonable
working balance and never should be
placed in the position of being obli-
gated to depend upon the generosity
of the banks in caring for such war
rants
Treasurer Hoyt estimates that the
disbursements from July !. 1918. to
June 80 1919, will be sl4S79.94O and
that the receipts will he 1888. 500,
thus forecasting a shortage of $l,042.-
270.
Before the last half Of the state tax
is received from the counties in
October, 1919. We will be meeting the
appropriations and general expenses
for the biennial period commencing
July /. 1919" explains Treasurer Hoyt
80 that any balance that may be
shown in the treasury at that time
must carry the state until the follow
ing October. As I have stated above
the levy provided by the Legislature
will not furnish funds for meeting its
appropriations until April, 1920
The report shows that the amount
collected from collateral inheritance
taxes for the biennial period ending
4 June 80, 1918. amounts to sS73.394
-.