Democratic Sentinel, Volume 22, Number 38, Rensselaer, Jasper County, 1 October 1898 — STATE DEBT FINANCIERING [ARTICLE]

STATE DEBT FINANCIERING

Democracy Has Saved Hundreds of Thou«ands of J Dollars to the Taxpayers of Indiana.

Bankers, Corporations, Railroads, Eipn pelted to Bear Their Share of ‘ Democratic The financial condition of Indiana prior to 1891 was a source of alarm to its thoughtful citizens, a- condition resulting from the simple fact that the financial resources of th e state were not utilized. Taxation was not only unequal to expenses, but was grossly inequitable, not only because assessments were greatly below cash values, but in addition failed utterly to reach millions of property whioh contributed no revenue at all to the state. To remedy this evil and thereby secure ample revenue to pay the expenses of the state government, and reduce the foreign indebtedness of the state, was the prime object in view when the Democratic legislature passed the act concerning taxation, approved March 6, 1891. It is not required that the numerous provisions of the law should be either mentioned or discussed in this connection more than to say that the revenue power of the law provided for the finding and the assessment, of the property of the citizens of the state at its “true value”—and the provision of the law to enable the assessor to ascertain the clos- i est approximation of “true values” and the act went into effect “from and after ! its passage.” To show the immediate | benefits accruing to the state by the enactment of the law by a Democratic \ legislature, the following official figures j are submitted, giving taxables in 1890 I and in 1891, and showing that under the ! operation of the Democratic revenue j legislation taxables increase < 1,960,- 1 850 as follows: Increase from It ;0 to ! 1891, $897,531,851; from 1891 to 1892, i $12,182,027; from 1892 to If Ho 872,- j ”185, and from 1895 to 1890 ,-■ • >0,706; a total of $451,220,509. For the years 1804 and 1395 the taxables on the duplicate decreased $16,250,719, leaving a net increase over 1890 of taxes amounting to $434,936,850. The abstract of taxables for 1897 and 1898 has not been published, hence any gain or loss that may have accrued is not included. In 1890 the rates of taxation upon the three principal items of revenue were as follows: General fund, 12 cents on the ! $100; state school, 16; benevolent insti- I tutions, 6; total, 34.. These were the 1 rates for 1891 and 1892. In 1893 a reduction of rate was made, as follows; General fund, 10; state school, lS benevolent institutions, 5; total, 28; total reduction, st£ cenffi on the SIOO. These rates prevailed for the years 1893 and 1894. In 1895 the rates of taxation were further reduced, as follows: General fund, 0 cents on the $100; state school, 11; benevolent institutions, 5; total, 25. -And these rates have prevailed for the years 1895, 1896, 1897 and 1898. The taxables for the year 1890 amounted to $837,674,887. from which the revenue on the three items named amounted to $2,848,092. In 1891 the taxables amounted to sl,255,256,088. the rate of taxation being the same as in 1890, but the revenue derived amounted to $4,267,870, a gain over 1890 of $1,419,778. Jn 1892 the taxables amounted to sl,-' 267,438,005, the rates being the same as in 1890 and 1891. The amount of revenue derived amounted to $4,309,289, a gain over 1890 of $1,461,197. In 1898 the taxables amounted to sl,802,810,250. In this year the rates of taxation had been reduced on the three items named to 28 % cents oa the SIOO, a reduction of cents on the SIOO. The revenue derived amounted to $3,711,584, an excess over 1890 of $803,492, notwithstanding the reduction of the rates. In 1894 the taxables amounted to sl,205,106,416, the rate being the same as in 1808, aud the revenue amounted to $3 ,591,053, exceeding the revenue of ! 1890 $742,461. Iu 1895 the rate of taxation was still further reduced on the three items upon which calculations are based to 25 cents cm the SIOO, a total reduotion since 1890 of 9 cents on the SIOO. The total taxables of 1895 amounted' to $1,286,050,581, and the revenue derived amounted to $8,216,126, an excess over 1890 of $367,014. The taxables of 1890 amounted to sl,202,041,237, rates of taxation being the same as in 1895. The revenue amounted to $8,281,608, an increase over 1890 of $878,511. As has been stated, there are no official duplioates for 1897 and 1898, but It is assumed that the amount of taxables for these years is u i so 1898, hence the revenue derive*! by the state In 1897 would show an exce : :>vor 1898 of $378,611, and for 1898, $378,511. The figures thus show that the new revenue law passed by the Democratic party has added to the revenue of the state as follows: 1801 ". *1,419,778 180 a 1,401,197 1893...'... 803,493 1894 1 743,401 1895 397,014 1800 378,511 1897 378,311 1898 878,511 Total addition to revenue. . 85,989,473 The sinking fund law passed by a

Comp»u;-iw and the Wealthy fir.; j he State’s Burdens Under the Tax Law. uj | Democratic legislature levied a tax of 3 cents on the SIOO and went into operation in 1893. Assuming that the tax duplicate for 189? and 1898 will be in amount- -equal to the duplicate of 1896, the revenue derived from the sinking fund tax will be as follows: 1893. #1,805,310,850. (8330,093 1894 1,395,106,415. 388,531 1895. 1,386,050,331. 385,815 1890 1,393,041,337. 4 387,793 Assum’d 1897 1,393,041,337. 387,793 Assum'd 1898. 1,393,641,387 887,793 Total from Sinking Fond . 53,338,415 Total increase of Revenue . . 5,989,475 Grand total (88,317,890 lii tiffs is seen an increase of revenue almost equal to the-foreign debt of the state in 1890. . 1890 t-lie f'.A imcl .bt of the state amounted to 7 754 ;/; 15.12. It now amounts to $8 ) 21.'\0i5. v 12, showing a rede; iron of $3,3;U, ;V'o, every dollar of th i • duction -rin : irrefutable evidence- i d the wisdom of Democratic financial legislation. Hon. J. O. Henderson, auditor of sta te, in his report of 1892, takes occasion, in giving the figures showing the immense benefits accruing to the state as a result- of Democratic financial legislation, to say: • “The first year’s operation of the new revenue law has vindicated the wisdom of its passage a thousand fold, and the wholesome results attained proclaims it at once the most equitable and the soundest tax measure Indiana has ever known. For the first time in the history of the state the burthen of taxation is fairly and equitably borue. For the first time in our history tax dodging is uc .by disrep- :. Me, hut a losing busint. ; Indeed, i • e -ible business'if the taxing auth. ri: •..< assess the ability, co- , p: nui - v to do their wh j duty. uder the powerful set roh light of new law, property sequesteratiou is b-d-h a dangerous and a difficult thing. “Never before in the annals of the state has corporate wealth been compelled to bear its just share of the public burden. “Today the dollar of the rich man, of the bank, of aggregated capital, is compelled to contribute to the public treasury equally with the dollar of the humble citizen. “The new tax law is founded on the sound doctrine of honest, full value appraisement-. One dollar is taxed at 100 cents, whether it be invested in lands, products, bank capital, factories or luxuries. “Under the benign ministration of this measure millions upon millions of property heretofore sequestered has been placed on the tax duplicate.” Aud this additional property, as the tax duplicates show, aggregates $484,966,850, and thus the revenue derived from it amounts to $5,989,475. . It was this measure that at once solved the finao. -i tl problems which confronted the stare. ■ It emancipated the state from its financial trouble and •anxiety and substituted confidence for doubts. It was as Mr. Fairbanks said at Fort Wayne, a “Democratic measure” evincing that the Democratic party had clear conceptions of the supreme needs of the state aud the ability to afford the relief required. This eminently wise and judicious revenue law which Auditor Henderson said in bis report had “vindicated the wisdom of its passage a thousand fold” was vindictively opposed, from its incipiency, by the Republican party and this opposition has been maintained at every step since 1891 to the present time with the partisan zeal blind as bigotry and as relentless afe corporation greed. As an evidence of the implacable hostility to just and equitable assessments and taxation, it is only required to produce the declaration of O. W. Fairbanks.' On June 28, 1882, me year subsequent to the ’ hue when the new Democratic revenue law.went into oporation, the Republican party L. ; state convention . Fort Wayne, and the Hon. O, W. Fair hanks, nov United States sentor, presided over its deliberations, and upon accepting the honor of the position conferred upon him, made a speech in which he referred to the new revenue law passed by a Democratic legislature. The present, in the light of all the facts; makes the reproduction of the remarks of Mr. Fairbanks strikingly opportune, because they bring into the boldest possible prominence the well founded belief that his railroad investments and his large fees as a railroad attorney prompted his hostility to one of 'the wisest laws that ever found a place upon the statute books of the state. In the course of his remarks, Mr. Fairb tiks said: “The people of ind; na expect us to relieve them from the cruel and unjust burden imposed . pop. them by ' the Democratic tax law. “They well understand that whenever Democracy has neon invested with power in the state, the debt has been increased until the burden has become unbearable. “They have no confidence in Democratic financiering, and well founded is their distrust. “The creating of a debt in this rich and splendid state of upward of $9,000,000 is a flagrant abuse of power. “The people will always loyally support the state and pay the . taxes necessary to defray the expenses of the government honestly and economically incurred, and any party that recklessly increases obligation, should be repudiated at the polls. “The present odious tax law is a

Democratto measure passed to rescue the financial credit of the state. “The state was running in debt at she rate of nearly $500,000 par annum. “The eastern holders of the bonds demanded their interest when it was dne. “Current expenses had to be met, nod the Democratic legislature passed the present tax law as the best expression of its financial wisdom. “I misinterpret the signs of the times if the people do not repudiate the law aud the Democratic party at about one ahd the same time in November next. “No law ever rested more unequally upon those who should bear the burden, than does this. ‘ ‘The people already heavy laden with unjust taxes are bompelled to submit to additional exactions.* “Farmers have been compelled to pay on their farms and improvements, and householders on their lots and houses beyond all reason and right, all of whioh you should remember is the enforced tribute of the Democratic party. “How long will the patient people endure these things? “How long will they elect Democratic members of the legislature who do not possess the discriminating ability to place the financial affairs of the state on a broad and conservative basis and who will not more carefully legislate in the interest of the people ? Too much money is wasted in profligate and expensive administration of this state. ‘ ‘The people are paying too dearly for the privileges they enjoy, but so long as the Democratic legislature is in authority they are powerless to escape. “There is one way to cure the tax law, and that is to radically revise it. “The inequalities can be effectually removed in that way. “And it should he so revised that it will effectually relieve the farmers and householders from the present, grievous burdens so unjustly i-.-.i-i Mr. Fairbanks mn -stly drew his inspiration nation association an; ender them service by Uuugiug taxation. Nor was the convention, over which he presided, more fortunate in its declaration. It sought to secure the friendship of those who for years had sequestered the taxables, and deolared: “We arraign the Democratic party of Indiana for enacting an unequal and unjust tax law.” The declaration of the Fort Wayne convention and the speech of Mr. Fairbanks constitute a remarkable blending of stupidity and cupidity, for which Republican platforms and Republican speakers have won a wide recognition. Nor is the impudence of the party less pronounced, for now they are claiming to have reduced the debt of the state, but in so far as it has been reduced, Democratic legislation has supplied the means by which the reduction has been accomplished. This fact is elearly shown in the official figures already produced, but in view of some of the declarations of Mr. Fairbanks, it seems expedient to add a few more official figures to still further demonstrate the wisdom of the “Democratic tax law.” This Democratic tax law, whioh Mr. Fairbanks denounced in his Fort Wayne speech, and which he declared had imposed “unjust burdens” upon the people, sought first, to find “the true cash value of property,” and second, to find millions of property in the hands of corporations, which paid no tax at all, and place it upon the tax duplicate. Those laudable purposes were attained and no injustice was done any citizen of the state. Mr. Fairbanks declared that the people of Indiana “have no confidence in Democratic financiering” and this, he said, at a time when “Democratic financiering ” had added to the tax duplicate, taxables amounting to $397,581,551. His partisanism so distorted his vision and perverted his judgment, so incapacitated him for stating facts regarding a measure relating to the welfarS of the state, that to gratify his implacable hostility to the Democratic party, he became one of the most blatant enemies of Indiana, and this, too, not because the tax law worked any injustice to any citizen of Indiana, but because the Democratic tax la w, by inaugurating righteous proceedings, unearthed millions of property, the owners of whioh were sequestering. This tax appears from the record. The tax law placed upon the duplicate at once railroad property of the state, amounting to $94,882,874, which previously had escaped taxation, and it is well understood that this act of justice to the people was the oause of Mr. Fairbanks’ hostility to the “Democratic tax law.” Since 1890 the “Democratic tax law” has disoovered and put upon the duplicate, bank property to the amount of $1,263,631. It has discovered corporation property amounting to $023,800 antelephone, telegraph and express property amounting to $5,242,092, a total of $7,029,543, and if to this sum is added the railroad property that had escaped taxation, $94,882,874, a sum total of $101,802,417 is placed to the credit of the state and to the wisdom of the Demi ora tic party in shaping financial legislation. But now, when Mr. Fairbanks and the Republican party dare not mention the “iJemooratec tax law” to oatoh the votes of farmers or practice duplicity upon the rank and file of the people, when under the operation of the “Democratic tax law” and the sinking fund law, the debt of the state is, disappearing, Fairbanks and the Republican party, with impudenoe as thick as the armorplate of a battleship, are olaiming that the Republican party is reduciug the debt of the state, when if Fairbanks and the Republican party oould have had their way, the financial affairs of the state would be in a more deplorable condition than in 1890. , Republicans joyously refer to William Jennings Bryan as a “dead politician,” but they will find him, A. D. 1900, the livest corpse they ever saw. Mark Hanna, the boss corruptionist, still maintains his position of bosom friend and boon companion of Major McKinley.