The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-06-20
RETRENCHMENT IS
NECESSARY, CLAIM
Tonopah Times, Commenting or
This States High indebtedness
Says Bond Issues, Taxes
Must Be Curtailed


1t will surprise most people to
know that the per capita debt of
Nevada is the greatest of any state
in the union with, possibly, the ex-
ception of New York. Yet there is
little to show for it and nobody ap-
pears concerned over the fact that
the state is rapidly drifting into in
solvency. This is a political year,
candidates are cropping up on all
strides. Every man and woman has
a reason for advancing their own
interests but it is strange that no
one considers that most important
element in the prosperity of the
state-retrenchment Plans for i'm
provements, fresh taxes for road
building, establishment of the state
capital, construction of new court
houses and county buildings are
freely discussed without a voice
being heard in protest. The cleo
tors are told of the personal qualifi-
cations Of candidates, how they have
succeeded in business, how they
applied undoubted talents to the
construction of fortunes but, up to
date, not one of these men has come
out for broad widespread policy
Of retrenchment and cheapening of
costs in maintaining the most ex-
penseive government on the Ameri-
can continent. Expenses of govern
ment are ahead of receipts which
tell plainly that the people Of Ne
vada through their elective officers
are spending more than what is de-
rived from taxes that have reached
an appalling attitude. In 1920 the
expense for state government was
$4.54 per capita and the receipts
were 1928. Nevada's debit the
end Of that year was 1882, 900 or
$17.86 per capita. These figures
are net, the showing of gross debt
being $2,365,0O or $30.55 per
capita. Correspondence from WASH
ington sets forth that Nevada's
debt has accumulated with a speed
out Of proportions to that Of
other states. In 1914 the net debt
was 1851 per capita and in 1917
it was 1885. Debt has increased
over 100 per cent since the war
year, whereas in most other states it
has decreased. In comparison the
department of commerce mentions
that Nebraska reports no debt,
either funded or floating while the
per capita debt Of IL other states
is mentioned in cents only.
One Of the easiest ways Of get
ting rid of a disagreeable obligation
is to liquidate it by issuing bonds
which furnish funds for temporary
use and blind the taxpayer to the
fact that the obligation must be
lifted eventually. The modern sys-
tenn Of business efficiency is to
avoid bond issues as q menace to
the prosperity Of community.
Financiers take the stand that
where ordinary indebtedness cannot
be met from direct taxation it is
wise to forego the proposed i'm
provement until such time as the
assessed valuation will furnish the
money. The disposition Of the pres
ent day is to close the eyes to the
consequences of mourning debts by
going ahead with improvements on
the theroy that the next generation
should share the costs without sad
ding the taxpayers Of today. Such
optimism is not tolerated in well adj
vised financial circles where the
assumption Of bonds is deprecated
by all except those who share in
the profit of the flotation. Bond
brokers and investment bankers are
always ready to absorb new issues
from any well established COM
munity for they know that there
cannot be any evasion Of the obi
cation and the interest payments
must be met before ordinary opera
ting expenses.
BRIEF MENTION