Arizona republican., 1922-02-16


tons
With over a million dollars elm
mated from direct taxation through
the economies noted. the amount to
be raised by that method for the next
fiscal year will be $S.529.S05. Based
upon a. probable assessed valuation
of 1915, 600. 600 the tax. rate for 1922 %
will be .4554 a rate in. my opinion
consonant with changed conditions.
AS l have intimated this is no time
for gloomy forebodings. nor do cir
cumstances and conditions warrant
such a view. While. government and
individual are forced to temporarily
adjust their affairs, the outlook for
the return Of normal times and pros
perity grows brighter each day. If
we deal with the situation in a sane,
and not hysterlcal manner. the con-
fidence reposed in us will have been
Justified and we will have done much
to restore the morale OF the people
and stabilize economic conditions,
New Financial Code Vital
II is not necessary to delve into
history beyond the period OF state
hood. Every year since then State
warrants have been registered and
interest paid on them. Contempo-
raneous with the registering Of the
"the State was broke" and that cry
has been repeated with recurrence
of the same situation To the con-
trary, the State was not broke"
never has been, and ! hope and be-
.lieve never will be. II simply was
out OF cash funds pending the receipts
Of money due ii, that is, taxes. Under
our present fiscal system. which is
antiquated and fails to subserve the
purposes for which it was adopted.
the same condition will annually arise
in the future. During 1921 this con-
dition which has always existed. be-
came more accentuated and out
standing in the public mind by virtue
of the fact that the banks of the
State which had always heretofore
cashed registered warrants at face
value, refused to accept them at the
statutory interest rate of five per
cent In order that our creditors
should not suffer in their dealings
with US, the tax anticipatory bond
measures was enacted by you, pro-
viding a. temporary means of relief.
This authority. limited as to time.
has expired. and the registering of
warrants has again been resumed
and will be continued until the re-
ceipt of the second installment OF
taxes next June. unless tbere is re-
medal legislation passed. Prevailing
interest rates are higher than the
State offers, which means that our
warrants will be cashable only on
discount basis, thus uniustly penal
izing the holders of them.
There are other aspects to the
problem, which should be given care
full and conscientious consideration
when this important and vital subject
is weighed by you. One is the utili-
zation of inactive funds. under proper
legal safeguards. Government is an
agency dependent upon the collection
of taxes for its existence. The funda-
mental error in our state govern
ment's fiscal affairs is that we must
spend those taxes before they are
collected. We assume the attributes
of a capitalist without having the
capital. We must continue func-
tioning, and In order to do so. en-
acted laws permitting us 10 anticipate
the collection of taxes and contract
expenditures before we came into
actual possession of the tax moneys.
We could of course, place ourselves
upon a cash basis by levying impost
taxes but existing economic condi
tions and the burden on the tax
payer caused by these conditions.
which are world wide, precludes our