Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-11
FINANCES OF
STATE PLAIN TO Mr.. CITIZEN

show the costs Of doing business Of
and Consultations tor retail mercb
ants. printers. farmers, families' ana
very many others. ~'A
The Federal government has fol-
lowed the same procedure, There
are now In use standard classifca
tons for all the kinds of pnhlic
utilities. These were promulgated hv
the Interstate Commerce Commits.
sion. There is q standard balance
sheet approved by the Federal Re-
serve Board, and there are 4 number
OF other classifications approved bv
the Federal Trade Commission ana
by the Department Of Commerce.
Since about 1909 the Congress has
required the Bureau Of the Census to
make periodical examinations and
reports Of the financial and other
statistics OF municipalities. About
h1915 the Bureau was ordered to
furnish like information for the
states. Since these dates the Bureau
of the Census has published this in :
formation. To carry out the direc-
tions of the Congress the Bureau Of
the Census set up a tentative stand
ard classification Of accounts for
states. and another for cities. Ever
since then the Bureau has urged
that something of the kind be adopt
ed. It has pointed out the differences
of method, and urged that standard
ization be brought about.
For many years there has been an
association Of municipal accounting
officers. with the result that up
wards Of two-thirds of the munich
palities in the United States having q
population of 10000 and over. have
adopted what amounts to practically
a standard classification. In 1894
another association composed Of the
| financial officers of states was form
toward standard classification is
not yet clear.
Census examinations:
The Census Bureau has annually
sent examiners into each state to
reclassify the states accounts as
near as may be, according to the
standard classification set up by the
Bureau of the Census. This has been
done for Maine. and for all the states
since 1915. except 1929. 1921 and 1892
which were not completed for any
state. The work is done hurriedly
/ by the Bureau because of its desire
| to keep the expense down. For that
| reason, as well as for the fact that
| the accounts are reclassified by the
Bureau after they are cold, the re-
| suit is not technically as accurate as
| Ii would be II the states followed q
standard classification and distribut-
| ed it's accounts when warm. With
this explanation it would seem that
! the reports published by the Bureau
of the Census, SO far as they relate to
| the State of Maine. furnish a use
! full understanding of the financial
experience and condition of the State
even though technically the showing
might be somewhat different il the
Census set-up had been followed in
the first instance. The possible
mis-classifications by the Bureau are
not intentional, and as the work done
by the examiners is carefully edited
by the Bureau, the results obtained
are functional and coherent; and
more understandable than the way
the state itself sets up its figures.
Reports by the Bureau of the Census:
Attached hereto are a number OF
pages giving financial informa ton
about Maine for the years 1928 and
1924. These have been prepared in
comparative form SO that the extent
of the increase or decrease may be
! easily computed. In the long run
and speaking generally. the amount
of increase or decrease between
years or longer periods Constitutes
useful index Of changed conditions
or changed methods. The Census
figures are understood to be, from
year to- year, put together by a
similar formula, and thus it may be
taken that, subject to mis- classified
ton. which apparently cannot be
serious, the increase and decrease
as time passes are the result of
changes in method or policy OF
standard by the State.
There are also included state
ment showing the income and the
cost of government per capita for the
| same years, and another showing the
per cent. of the total cost that each
class of expense has been.
The Census publishes no informa-
tion about the inventories owned by
quantity or value.
The statement Of assets and the
statement of public debt for these
years constitute an incomplete
balance sheet Of the State. Tendency
of the changes shown by these state
ments win be found 10 be as inter-
esting as anything the Bureau of
the Census has prepared on this
subject. Naturally the times has not
permitted any inquiry into the
causes of the increases and decreases
in 1924 compared with 1923. This
useful and profitable. work can be
easily done by any one having the
time and the access to the accounts
of the State.
Comparison with Other States
These statements are submitted
with the belief that they are useful
not only for comparison within the
State of Maine, but to disclose how
successful in financial government
the State of Maine Is when COM
pared with other states. This IL one
of the very desirable advantages OF
a standard classification, that COM
parsons may be made with other
states. To illustrate this, the state
ment below compares Maine with
the New England States on q per
capita basis for 1928. The items Sc
lected are some of the important
items of debt, taxation and expense.
The comparison can be carried into
great detail Of income and expense
II desired.
SOME 1928 PER CAPITA.
US. N. e.
Gross debt ......... $12.s5 $ss.s77