The Hardin tribune-herald. [volume] (Hardin, Mont.) 1925-1973, 1937-04-30
STATE SECURITIES
in SHARP DEMAND.
STATE OFFICIALS ENDEAvORING
TO RETAIN MONTANA'S HIGH
CREDIT RATING
No Money Available for Unnecessary
Expenditures; Plenty for Social Sc
curity, Schools and Other Desirable
Projects. Montanans Enjoying Better
Incomes.
Especial Correspondence

Especial Correspondence
HELENA-With Montana's drys
viewing with alarm, and the states
vets secure behind the law, both
professional and amateur budget
balancers seem ready to admit the
Treasure state has passed the buck
to liquor and beer to keep the
state treasury out of the red.
At an informal conference be-
tween heads of state departments
charged with collecting various
forms of revenue, there was gen.
eral agreement that beer and LIQUOR
profits and license fees will save
the average taxpayer many dollars
in the next two years provided
the present setup remains un-
changed.
The credit of the state of Montana
is as good as any state in the Union
n is better than most states. There
IS all amending demand for Montana
bonds. The state general fund over
draft is at the lowest point in years.
The states Indebtedness is being stead
lily reduced. The state does not have
any money to spend for unnecessary
things: There is no Don for unwar-
ranted expenditures. Department heads
must hold expenses to the lowest pos
d. sible point if the state is to reduce its
debts and retain its high credit rating.
Those were the points agreed upon
as the department heads made their
informal inventory of state assets and
liabilities. On March l, 1887, the grand
total of state indebtedness was about
sl1,370:GOO. That includes highway and
educational bonds and the funded war
rant Indebtedness, authorized by the
legislature in 1888. In that year the
general fund o%verdraft climbed to about
S4,237,OOO. Bonds were issued and every
year since S350,OOO has been set aside
as an interest and sinking fund to
apply on those bonds. The unpaid Dor
ton of that funded general fund debt
IS included n the grand total of Sill
$4,000. That is about So, 400 900 less
than the total debt at the end of
March, 1885. State investments total
approximately $17,317, 900.
A large part of the state investments
are IN permanent funds, invested in
county and municipal bonds, In other
words. Montana is handling a large
portion Of its own securities. The state
does not have to depend to too great
an extent on outside financing from
certain classes of securities. That lends
to a healthy condition and Montana
To-Day finds its sound securities in
sharp demand in the money centers
With the general financial picture
thus briefly presented, the budget bal
ancers turn to income and expense for
tne next W years. Social security ar
rived on the scene. There was an ulti-
matum Tor Montana to do something
do much about Montana's problems
The legislature responded with a law
ESTIMATED to require So, 001 900 for the
fiscal year starting July l. and about
S!,oo1,ooO 1or the fiscal year starting
July l, 1888. Some state institutions
neeoed more money. In fact. there was
no end to the demands for more state
money money for a multitude of purposes.
large, so are the beer and LIQUOR profits
m license fees. Estimated Income
from beer for each of the next two
fiscal years is $550,000 annually. Liollor
profits are expected to total 81, 500 900
a year. With the liquor excise tax ap-
Plled under the terms of HB 1876, the
n liquor profits will climb perhaps $780,
IVY 10 p ,ooo;oOo The state already has
SOLO more than 100000 worth OF re-
tail liquor licenses under lib 1856. Thus.
liquor alone enters the $4,000 900 a
year class. Add the beer and the fip1,re
goes above So, 50O 900.
That is why the state department
heads IN their informal conference felt
the buck had been passed to beer and
liquor to furnish the money for social
security n some other needed ex-
penditures. That is also the reason
many Montanans hesitate to sign pc
titions to refer HB 1876 to a vote two
years hence. For the same reason many
Montanans hesitate to sign petitions to
refer SB II, consolidating the beer and
liquor administrations. The merger of
n beer and liquor bureaus already has
resulted in a substantial saving by re-
ducing overhead costs. ANY cut In over
head goes directly into the state gen
eral, school n reclamation funds.
Additional revenue will be derived
from an increase on l percent in the
corporation license tax. Better times
for MontananS are reflected in the cur
rent state income taxes which for the
1888 have passed the s40O, 900 mark.
That is a definite indication Mon
tanans are enjoying better incomes.
When Incomes increase, state
climb along with county and municipal
income.
In view of the manne in which the
new revenue laws Of Montana are
working out, the states financial struc-
ture may well be left alone until an
other legislature convenes. If Mon
tanans choose to allow the present fl
nancial structure to develop into a we'll
organized machine. there IS every pros
pect the states debts will be materially
reduced in the next two years. While
the state will have nc money to burn,
there will be funds for social security,
schools, reclamation and other desir-
able projects-if the desire to NEEDLE
with fiscal affairs is restrained by those
whose ideas were rejected by the last
legislature.
That, in effect, is the opinion most
often expressed by those charged with
the administration Of state funds.
No in a responsible place in the
state government would deny the peo-
pie an opportunity to decide on policies
to be followed. But state government
financial setups cannot be continually
changed overnight. The power of the
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