Evening Republican, Volume 17, Number 253, Rensselaer, Jasper County, 23 October 1913 — INDIANA RUNNING ON BORROWED MONEY [ARTICLE]

INDIANA RUNNING ON BORROWED MONEY

Five Indianapolis Banks Make Loan of $460,000 to Pay Expenses \ of State. With a higher tax levy for purposes than Indiana ever had and with the state-broke and having to borrow money to pay the officers and other running expenses Indiana democrats are certainly disapproving their “economy” argument that was so profusely used when they were seeking office. Today’s Indianapolis Star -contains the following article: “With the state treasury practically empty, the state board of finance, composed of Governor Ralston, Auditor of State O’Brien and Treasurer of State Vollmer, has borrowed $460,000 from Indianapolis banks to meet the expenses of the state, including the salaries of state officers and the cost of operating state institutions, until the state’s financial embarassment is temporarily relieved in December when the counties wßPmaafee- their—semi-an-nual settlements. “The loan was obtained more than five weeks ago, but the facts did not become public until eysterday. “It is stated that $400,000 of the amount was borrowed Sept 15, and that the additional $60,000 was advanced to the state about ten days later. “The money borrowed is to be paid Dec. 31, from the taxes to be received from the 92 counties of the state. The state is to pay 5% per cent interest, which will amount to about $6,400. The interest to be paid is higher than is usually demanded and the state agreed to pay it to the local banks only after a New York banking institution declined to consider lending the state money at any rate of interest. “The money was received from five Indianapolis banks, being divided among them as follows: Indiana National, $100,000; Fletcher -American, $100,000; Merchants National, $100,000; Indiana Trust Company, $100,000; Fletcher Savings and Trust Company, $60,000. “It was the practice under the Marshall administration to make frequent calls on county treasurers for advance payments of taxes, but this could not be resorted to this time becfffise the amount that could be realized from advance payments would not be sufficient to meet the state’s obligations due with the close of the fiscal yean on Sept. 30, last. With only about $40,000 left in the general fund to pay salaries of state officials, largely increased by the last general assembly, and the enormous running expenses of educational and benevolent institutions, the state finance committee was left no alternative but to appeal to Indianapolis banks for loans to keep the state machinery going until the state treasury is reimbursed by funds received from the counties.”