The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-08-28
STATE NEEDS
MILLION DOLLARS

as long as it needs carrying and
never feel lit, were 'called" today by
State Auditor Kositzky, who referred
abe Ieaguers to Section 1872 Of the con-
stitution; in which the forefathers Of
North Dakota decreed that their state
shall not borrow money unless such
debt shall be authorized by law for
certain purposes to be definitely men
toned herein.
Mr.. Kositzky contends that, while
the state owns the Bank of an North
Dakota, the funds Of that bank are
h not public moneys which can be
transferred, at will to the state treas
ury for the defraying Of government
3sal expenses. He insists that Il the
state b0rrows penny from the Bank
s5of North Dakota, the loan must be.
I negotiated in the same manner as
though the Bank Of North Dakota
], were a private institution, and the
4 loan must be secured by abond is
:sue authorized BY tbl Legislative as
sembly This mean SIS Mr.: Kos
itzky, that q special has be-
come imperative. e q.
The state now has $37s 81, ,-ome
cents in its general fund. VIZ 'csI 20
days we will have a monthly pas 8,
of $62, 900 to meet, this including g
voucher for $3,333.33 which has just
sbeensput in for the salary Of Director
General Cathro 81 the Bank Of North
. Dakota dating back to April. During
the next six months, OF up to the
time when new general taxes will
begin coming in, we will need 81 ,50O,-
900. Miscel ellaneous collections dur
ing that period, based on last years
experience, will be $500, 600. That
will leave a deficit Of 81 ,0O0, 600 to be-
made up in some way.
asSec 1872 in Article IL Of the con-
sstitution as amended by the league
last fall provides that No future in
sdebtedness shall be incurred by the
state unless evidenced by bond is
sue, which shall be- authorized by
law for certain purposes, to be clearly
4 defined. Every law authorizing q
bond issue shall provide for leVying
an annual tax, or to make other pro-
visions, sufficient to pay the interest
semi-annnally, and the principal
within thirty years. and SO forth.
Constitutionally, North Dakota
cannot borrow a single penny from
the Bank Of North Dakota or any
other source unless evidenced BY
bond issue authorized by law for
certain purposes sto be clearly de-
fined. That means that before we
can borrow from the Bank Of North
4 Dakota the million dollars which we
must have to carry us over the next
:six months, special session Of the |
;slerisla q 4 must lile held ~ and laws
AuthOrizinE u bond issue 40r this
specific purpose must ibe passed.
1.-THE instit dtion funds have been
saved to them by action on my part
which has been severely criticised by |
Mr.. Townley's press. Il ! had net
set aside these funds, as required BY
law, these institutions soon would
he in the same boat that we find
ourselves in, and their pay-rolls are
many times as large as the one we |
now have at the capitol which is big |
enough in itself.
"I am not responsible for the
present state Of affairs. ] warned the
Legislature last winter that it was ap-l
propriating funds in excess Of our
available income. have from time
to time called the public's attention.
to the situation, and III have been
criticised for it. But I believe the
public has right to know, for the
money which has been spent SO liber-
ally comes from the public's pocket,
and from the same source must come
thes huge sum which now is required
to make up the deficit.
IN some way, in the public mind,
L have been connected by the Town
ley press with the failure Eof our newl
LEI kn.,::z, 4, s,,ofa.n Tha$ fhie act would u
be attacked in the federal court was
Inevitable. was present at meet
ing of the joint tax committee whent
Representative j. + 4. 20 Connor
cited the federal constitution on the
point sand predicted such an outcome,
He was overruled by William SLemke,
and 81 the assembly passed an act
which Mr.. OsConnor and other law
yer. !. members insisted would not
stand up. AS q result We are today
$40, 900 a month under the collections I
which the assembly estimated we
would have, and this shortage; to-
:gether with the free handed emer-I
gency appropriation of special funds
for 4 dozen or more neN commissions
has placed North Dakota in its present
unfavorable position.
! 'WHEAT / CROP
nor I'll KOTAf
The estimate Of DR.. T. !, n: Trow- +
bridge Of the North Dakota expert
ment station, that the states wheat