The Semi-weekly leader., 1922-04-12

which the state will receive during
the early months of 1924 and upon
which the state must calculate dur
ing that year. This is true because
of the fact that the state each year
lives for the most part on revenues
raised under assessments and levies
imposed during the previous year.
When the next Legislature assem-
bles, in January, 1924, it will be
powerless to relieve the deficit in the
revenues for that year, should one
develop, by any means other than a
loan or bond issue. The situation
then found to exist will depend upon
conditions which the present bien-
nial period passes on to its success
sor.
"It is our position that under
these circumstances, it was unsafe to
fix an eight-mill tax levy at the pres
ent time. During the special session
of 1917, ventured the written pre-
diction that if the tax levy were then
reduced the state would be compelled
to issue not less than three million
dollars of accumulated deficit bonds.
The tax levy was reduced, and in
January, 1918, an issue of three mil
lion dollars of deficit bonds was au-
thorized. While I am making no pre-
diction as to the outcome of the pres
ent situation, 1 do confess to feeling
of apprehension over it. If the next
Legislature escapes the necessity Of
issuing deficit bonds, it will be be-
cause of an increase in departmental
revenues such as we have no legiti-
mate right to anticipate at the pres
ent time.
SAVING BENEFIT SMALL.
"There is another aspect of this
matter. The amoAnt of taxes saved
to the individual taxpayer by one
mill reduction is utterly insignif1-
cant, as compared with the import
ance Of the aggregate results of such
reduction to the state as whole.
One mill on an assessment of $100
means only ten cents. On $500 1t
means soc. On an assessment OF ST.
600. it would save only 81. 1t would
make a difference of anly SIS on an
assessment of $4,000. On the other
hand, to the state at large, called
upon to care for the needs of all its
people, this one-mill reduction means
curtailment of 100000 per an
mum, on the basis of the present as
cessment.
"This means depriving the treas
Try of $1,400,000 of much needed
revenues during the current biennial
period, while affording an unappTe-
ciable relief to any individual. The
state will be fortunate if it does not
have to issue deficit bonds, in sub
5tantially the amount of the last
named figure, before the end of
1924.
Something should be said as to
the county levy of eight mills. Those
who look for any considerable relief
from tax burdens from this source
are cherishing a vain hope. The
county levy fixed by the Legislature
has not for a number of years affect
ed and will not affect, the items
which impose the heaviest local bur-
dens. No limitation whatever is pla-
ced upon county and district road
taxes, common school, and agricultu-
raj school, and other district school
taxes.
After numerous efforts to impose
restrictions on these items, which
would not impair existing obligations
for these purposes. the attempt was
abandoned as impossible of accom-
plishment by general law, because
of the utter lack of uniformity Of To-
cal conditions, Virtually every 1coun-
ty in the state would require a sep
arate statute. The control of this
situation rests with the people of the
Individual counties who vote the
bonds for what they want, and who
in the end must pay the price. 1t is
essentially in the last analysis pro-
bIem of local selfgovernment.
LIVING OUT OF SURPLUS.
Gust concluding reference to the
matter of a treasury surplus. The
proposition is, after all, essentially
simple and easily illustrated. If g
farmer realizes enough from the
sale of his 1921 crops to meet his
auwaw.