Democratic Sentinel, Volume 16, Number 18, Rensselaer, Jasper County, 20 May 1892 — TIE STATE DEBT. [ARTICLE]

TIE STATE DEBT.

It Was Created and Fostered by the Republican Party. The School Fund Sequestered by the “War Governor.” Large Increase ol the State Debt Caused by the Erection of Public Buildings. The Refunding Act of a Democratic Legislature Reduces the Interest Over One Hundred Thousand Dollars. The Democratic party did not create the state debt. The official records in the state house will verify this statement. Take the three per cent, school fund refunding bonds for example. This debt, amounting to nearly $4,000,000, was created by Governor Morton. Without legislative authority the “war governor” laid his hand in the school fund to meet the obligations of a reckless Republican administration.

This school fund, amounting to $3,904,783.22, represented the proceeds of a certain percentage of the earnings of the old state bank, set apart for a permanent school fund. Morton having “borrowed” this fund, bonds were issued by subsequent legislatures bearing 6 per cent, interest payable semi-annu-ally. These bonds were held in trust by the state treasurer for the school fund. They were known as school fund bonds, and dated as follows: No. 1, Jan. 1, 1807 * 709,024 86 No. 2, Jan. 20, 1867 2,658,057 30 No. 3, May 1, 1868 181,234 00 No. 4, Jan. 20, 1871 174,770 00 No. 5, May 5, 1873 175,767 07 The interest amounted to $234,286.99 annually. The Democratic legislature of 1889 authorized the refunding of this debt at 8 per cent. In the debt statement of the auditor’s report for 1888, the bonded debt is placed under the head of “domestic debt,” and described as “school fund bonds No. 1, No. 2, etc.” With last auditor’s report (1891, p. 43,) it will be found under the title of “foreign debt,” and classed as three per cent, refunding school fund bonds dated June 18, 1889, and payable at the pleasure of the state June 8, 1889, due June 18, 1909.” The bonds sold at a premium, and with the proceeds the state redeemed five school bonds. The money was then distributed among the? counties and loaned out by the county auditors in sums of not exceeding $2,000 at 6 per cent, interest. This Democratic financiering saved the state $117,267.16 annually in interest, and at the same time placed in circulation within the state nearly $4,000,000. While the Democratic party is entitled to the credit of refunding this debt, the Republican party is responsible for its creation. The total amount of interest actually paid on this Republican debt by thp state since its creation until refunded was $4,685,740. Since it was refuwled the state has paid in interest $431,801.42, making a total of $5,117,-5-11.42 which the state paid in interest on the Morton .debt. In order to meet this interest often temporary loans had to be made. Had it not been for, this annual drain of $234,286.99 the state would have managed to pull through without resorting to loans. Adding the mopev actually paid out on account of this debt to the principal we have $9,022,324.64.

For this debt the Republicans can not point to a single public building. When Porter became governor the debt was $4,870,608.45. It was $4,850,850.37, with a deficit of $200,000, when Governor Baker turned over the executive office to Governor Hendricks. When Porter retired the debt was $6,008,500.34. In 1885 an additional burden was placed upon the state without providing means for the raising additional revenues. Three additional hospitals for tha insane were authorized to be erected. Six millions of dollars were appropriated.

Governor Porter appointed a commission, of which he was the head, to construct and equip the new buildings. All the work was planned and contracted under Governor Porter’s administration, but it was under Governor Gray’s administration that the money had to be paid. The cost of construction and equipment was $1,418,591.39. Since these institutions were opened up to Oct. 30, 1890, the cost of maintenance was $503,729.79, making a total of $1,955,883.18, and which the state had to borrow. Then the legislature of 1887, with a Democratic senate and Republican house, authorized the erection of the Soldiers’ monument and the Feeble Minded school at Fort Wayne. The monument has already cost $109,219, and an additional tax of one-half cent on

the SIOO valuation has been levied to raise enough money to complete it The Feeble Minded school has already cost the state over $400,000. Up to 1887 a slate house tax levy of two cents was levied each year. The failure to renew the tax made it necessary to borrow $700,000 to complete and equip the state house. State Debt. UNDER GOVERNOR BAKER. 1870 $4,087,507 94 1871 3,937,821 0* 1872. .’ 4,850,830 37 UNDER GOVERNOR HENDRICKS. 187 a $4,894,881-32 1874. U 5,077,538 84

1875 5,003,538 » MB’S- 5,003,538 34 UNDER GOVERNOR WILLIAMS. »77 *5,002,538 34 7878 4,996,178 34 *BTO 4,998,178 34 1860 4,998,178 34 UNDER GOVERNOR PORTER. 1881 *4,876,608 34 1882 4,876,608 34 1883 4,876,608 34 1884. 4,876,608 34 b " ir UNDER GOVERNOR GRAY. 1885... : *6,008,600 54 1886 6,006,608 34 1887 6,430,608 34 1888 6,770,608 22 UNDER GOVERNOR HOVEY. 1889 *8,540,615 12 I®o 8,540,615 12 1891 8,826,145 13