Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-11-28
STATE MUST ADD
TO ITS TAXABLES.
Available Funds for Urgent ano
Growing Demands Get Lower
and Lower Each Year
LIKE LIVING BEYOND INCOME
by GEORGE NOX Mccain

The available funds Of the state have
been getting lower and lower for the
last year. That is. the money in the
general fund.-
1t is out of this that all general ap
pronriations are paid.
For lack of money in it, bills. have
accumulated and remained unpaid.
Its balances. covering q period Of
months, are a barometer of the Condi-
ton of the Stase's finances.
As was pointed out in my article
of Saturday it should be understood that
the general expenditures, of the State
are limited to the cash in this depart
mcnt Of the Treasury.
One week the Treasury may receive
5000. 900. Within five days all of this
may be disbursed. leaving the Treasury
practically empty, or with only a few
thousands of dollars
The condition Of the State Treasury
cannot therefore be judged by the
amount of cash on hand at any par
ticular time. The States money in the
general fund is "iud." II is constantly
coming in and going out.
When, however, the balance of ash
is always low as it has been for months.
is paid out as fast as ii is received and
then there il not enough to go around, il
is an indication that the State Treas,
urer is hustling TO pay the Common =
wealth's bills.
Like Man Who Lives Up TO Income
It is like a man who lives UP to his
income. Who spends as fast as he earns
and has no money to put in bank
Whose nose is constantly to the grind
, stone.
That's the condition the State
finances have been in for year now
But with this difference: the State ha,
been contracting bills on the basis tha
its fiuctuating income will utimatel,
be adequate to settle all obligations.
Times have been hard. business ha
been bad. and it is apparent. unleS
there is great change, that there vii
not be enough money by millions t,
settle all indebtedness.
+ In other words, there will be som
big deficiency bills TO meet when th
next Legislature meets.
Now as to these Deficiencies?
Public schools. charities and penal in
stitutions. insane asylums and the ward
= of the State generally must be pro
{ vided for. even if the Legislature doc
p not appropriate enough money for tn
, purpose. Or, worse still. If there ism
p enough money coming into the treasur
to meet the appropriations.
p Public schools cannot close thei
doors; the insane and criminal canno
! be turned out into the world and th
State government cannot cease to func
, ton. SO when there isn't money onoug
IN the treasury to pay the bills the in
stitutons. through their trustees or tn
Boards of EducatiOn. nave TO bDrroN
= money from the baukS at good rates o
interest to keep things moving till th
State does supply the money.
That is where the deficiency bill evi
comes in. That is why the Legislator
e is called upon to make up large SUN
Il every session ior the deficiencies of tn
= prov ious two years, or one year, as tn
L case may be.
E Lewis Started New System
Whcp the present Auditor Genera
y S. 5. Lewis. took Office in May las
n he inauguratrd new system, He en-
. gagged firm of certified public account
i ants to examine into the affairs an
n condition Of the Office.
n The Auditor General. like the Stat
n Treasurer. is elected by the people
= They are n part Of the Administrative
= only so far as their political affilia
~ tiOns go. :
{ The duties of the Auditor General al
I "gcncrally to examine and settle all aC
counts between the Commonwealth an
any person, officer. department, aSSO
= citation or corporation. Also. h" tx
l. amincs the condition Of the State Treas
ury annually.
This auditing concern was engage
, for months III the work. Within tn
last five weeks it made its report.
is from this report. and the figures con
n tanned therein, that the accompanyin
facts are taken.
I have said that the States cash hG
= been running low for the last year q
f so. One of the best indications of thi'
+ apart from all else, Is that the ami &n
e Of interest paid on state money by Il
various banks wherein it is dPpOsitC
# has fallen away to almost nothing.
n If there. were plenty of money, MS
Y the past, the interest account wou
y be n large item on the income side.
v shows that the State is short of CasI
,s It's paying it oat hand over fist so in
: that it hasn't any to deposit in bar
n and draw big interest.
IF This refers to the general fund. Il
IS big checking account. The "earmarked
= funds. set aside for special purposes
the Legislature. are another thing.
During the fiscal year from DeCcmb
4 1916, TO November 80, 1917. &
State Treasurer collected SID 500;
from banks for interest on general ful
re deposits. q,
In the ensuing year Of 10l1-1S {
State Treasurer gathered in Sl2l 400.
= in interest
s. The following year from December
of 1918, to November 80, 1919, was t
&c banner bearer for interest. 1t amount
te to S157 .34S.70.
I'd The next year. from December
ID 1919. to November 80, 1920, only sos
I'd 0G4 .GS was garnered from the State
ed bankers.
tn From December I 1920, to May 3
1921, the first half of the present fisC
~ year, only SO ,024.53 was collected.
n. This means, II the same ratio for {
n year is maintained, that the State h
+, been unable TO keep anything like I
money in bank it did in past years