The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-06-27
STATE is One
OF few FREE
FROM DEBTS
Cities, Counties Continue
Large Issues of
Bonds.

Indiana holds the unique position
of being one of the few States to be
completely free from debt, accord
ing to j. j. Brown, State tax board
chairman.
Commenting upon statement OF
George Lord, chairman OF the
Michigan tax commission, that gov
eminent expenditures in that State,
both State and municipal, are tend
ing to increase faster than increase
in wealth justif1es, Brown admitted
that the general trend all over the
United States is in that direction.
"Even in Indiana, all subdivisions
of government, including cities,
counties and towns, are pili1Ig up
bond issues at a rate which is
appalling" the chairman pointed
out. "At the present time, the in
Adebtedness of such subdivisions IN
indiana stands at $182,000,0OO and
mounting rapidly
Gwen in Indiana, all subdivisions
government, including cities,
unties and towns, are piling up
Snd issues at rate which is
e )palling," the chairman pointed
t. cat the present time, the in
btedness of such subdivisions in
diana stands at $162,0O0,OOO and IS
bunting rapidly"
These figures have no connection
It'll Federal expenditures, Brown
splained, being merely amounts
local government are spending, out
Side of the billions of United States
Ydebts.
Make Comparisons
Citing figures to prove his con-
tentions. the chairman made the
following comparisons: In 1908 cur
rent requirements for all state and
local governments of the United
States were 100000, 900; in 1913 this
had mounted to 81, 500, 100000, and in
1925, the last year for which COM
plete figures are available, the total
was $5,1OO,000,000 he said.
AS a further evidence of the In
clination of people generally to
spend faster than they earn, Brown
produced statistics to show that in
August 1919, total Indebtedness OF
all state and local governments were
$6,7OO, 100000, while latest figures
complied on November 1926, show a
$4,000, 100000 total.
Cities Spend Too Fast
The Indiana chairman heartily
indorsed several of the theories OF
Lord.
81 agree with the Michigan COM
mission" he said, chat instead OF
making arbitrary guesses, local and
State governments should employ
men, charged with the sole duty OF
looking after their budgets and OF
keeping them within the ability of
their respective communities to pay
the bills
s'The whole trouble" Brown adj
mitted, "is that local governments,
Just like private citizens, are spend
ing faster than their wealth is in
creasing. If any private corpora
ton followed that plan for long it
would inevitably reach bankruptcy
The citizenry is demanding greater
civic improvements than they really
can afford to finance.
"It is true" he pointed out, that
as long as the present wave of pros
perity continues, the, increased bur-
den of debts will not be greatly
noticed. It will work out like the
.ten-pay' plan which is being ad-
vocated by merchants, and will be
offset in large measure by increased
turnover of money-but if a strin-
gent monetary condition should de-
velop from any cause, the results
are liable to be very serious, to the
people unless something is done
soon to stop this piling up of in
fIebtedneSS"