The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-08-21

Inc SLaLo now HAS 90l anu SOWo
cents in its general fund. Within ten
days we will have a monthly payroll
of $4,000 to meet this including a
voucher for $3,333.33 which has just
been put in for the salary of Director
General Cathro of the Bank of North
Dakota dating back to April. Dur
ing the next six months, or up to the
time when new general taxes will
begin coming in, we will need 81 $780,
900. Miscellaneous collections during
that period, based on last years ex-
perience, will be $50O,0oO. That will
leave a deficit of $1,000,000 to be
made up in some way.
Section 1872 in Article IL of the
constitution as amended by the league
last fall provides that No future in.
debtedness shall be incurred by the
state unless evidenced by bond is
sues, which shall be authorized by
law for certain purposes, to be clear
ly defined. Every law authorizing a
bond issue shall provide for levying
an annual tax, or make other provi-
sions, sufficient to pay the interest
semi-annually, and the principal with
in thirty years., and so forth.
Legislature Must Act
"Constitutionally, North Dakota
cannot borrow Z single penny from
the Bank of North Dakota or any
other source unless evidenced by
bond issue authorized by law for Ger.
tain purposes to be clearly defined.
That means that before we can bor-
row from the Bank of North Dakota
the million dollars which We. must
have to carry us over the next six
months, special session of the leg
islature must be held, and laws au-
thorizing a bond issue for this spe-
cific purpose must be passed.
Institutions Cared For
"The institution funds have been
saved to them By action on my part
which has been severely criticised by
Mr. Townley's press. II l had not Sc.
aside these funds, as required by law,
these institutions soon would be in
the same boat that we find ourselves
in, and their pay-rolls are many times
as large as tIe one we now have at
the capitol, which is big enough in
itself.
81 am not responsible for the pres
net state of affairs. l warned the leg
islature last winter that it was appro-
priating funds in excess of our avail
able income. have from time to
time called the public's attention to
the situation, and have been criti-
cised for it. But believe the public
has a right to know, for the money
which has been spent so literally
comes from the public's pocket, and
from the same source must come the
huge sum which now is required to
make up the deficit.
The Oil Tax
"1n some way, in the public mind
I have been connected by the Town
ley press with the failure of our new
oil taxing system. That this act
would be attacked in the federal
courts was inevitable. / was present
at meeting of the joint tax commit
tees when Rep. j. F. T. O'Connor
cited the federal constitution on this
point and predicted such an outcome.
He was overruled by William Lemke,
and the assembly passed an act which
O'Connor and other lawyer members
insisted would not stand up. As a
result we are today $4,000 per month
under the collections which the as
sembly estimated we would have, and
this shortage, together with the free
handed emergency appropriation of
special funds for a dozen new COM
missions has placed North Dakota in
its present unfavorable position