Rensselaer Journal, Volume 11, Number 45, Rensselaer, Jasper County, 17 April 1902 — INDIANA’S FINANCES [ARTICLE]

INDIANA’S FINANCES

Significant Showing of the Manner In Which the People's Interests are Safeguarded. M)W THE MONEY IS HANDLED The Thoughtful Reader Cannot Fail to Be Interested in Some Figures and Statistics Presented in These Columns. Political parties are more and more, as the years come and go, held to a strict accountability for the financial operations connected with government. The state government is nothing more or less than a great business Institution considered from the fiscal standpoint of managing the public affairs of this substantial commonwealth. The receipt and disbursement of $5,500,000 annually renders the administration of Indiana’s financial affairs one that demands careful, economical and methodical account-

ings rathar than the haphazard of inefficiency, indifference and waste. One fact should never be lost sight of: The humblest tax-payer is a stockholdeer in the financial features of the state’s business. He has a perfect right at any time to call for and inspect, if he chooses, any voucher or warrant connected with the state’s affairs, just as he would have the privilege if interested in a bank, to walk behind the counter and witness personally how his investment was being handled. The trend of public determination is toward the highest standard of business excellence for the transaction of governmental interests. There never was any sane reason why the dollar of state or county disbursement should not have one hundred cents’ of itemizerl accountings. The system of bookkeeping in a state Institution that does not provide a method of identification for its disbursements as positive as the checks and balances of a clearing-house, is faulty and wasteful. The employe of the state or county that objects to filing receipts with vouchers for expenses or purchases, should be given his ticket of leave. Fiscal year appropriations should mean the annual income and to exceed or juggle them is malfeasance. Indiana Is fortunate in having a consolidated system of government, one singularly free from the superfluous boards and bureaus that other states have through the influence of selfish politics created for no other purpose than extending the salary list. The duties of the secretary of state and auditor of state in Indiana, in some other states, in addition to those offices, have as many as five additional bureaus, each with its complement vs employes, and all absolutely superfluous. The cost of government in Indiana is less than any other state I know of. There are fewer supernumeraries, sinecures and figureheads. The Republican party came practically into power in Indiana, so far as business responsibility is concerned, in 1895. Governor Matthews was not

Buperceded until 1897, but the legisla- | ture and the fiscal management of the ' state were Republican. The tax levy I inherited from the Democrats was ?2 cents on the SIOO. The Republican legislature of 1895 reduced the general fund levy one cent, the state school 2% cents, making the levy 28% cents. The Republican legislature of 1897 provided for an educational institutional tax of 1 2-3 cents on the SIOO for the three state colleges, Instead of making annual appropriations, so that indirectly we are paying a school tax of 12 2-3 cents. The general expenses of the state are largely paid from the Btate and benevolent institution levies of 14 cents on the SIOO. The average tax for all purposes in Indiana is $1.46 on the SIOJD. The rate in Cook county, Illinois, is $6.52, and but few counties in that state are less than $4 on the SIOO. The state tax levy for general fund when the Democrats came into power in 1891 was 12 cents on the SIOO, which their legislature promptly increased to 18 cents on the SIOO. The Republican > legislature in 1895 as promptly reduced it to 9 cents, which with the benevolent institution fund lax of 5 cents, increases it to 14 cents. The state debt in 1891, when the ■Democrats took charge, was $8,830,■€15.12; in 1895, when the Republicans came into power, it was $7^520,615.12, a reduction of $1,310,000 or $327,500 per year, and of this amount $723,000 was received from the government in payment of the direct war tax. The state debt on Oct 31, 1901, after seven years of Republican administration, was $4,204,615.12, or a reduction of $3,326,900, or an average of $475,144 per year. This amount was further reduced Jan. 2, 1902, $317,000, making the debt at present $3,887,615.12. The annual interest has been reduced from $243,725 to $131,565. One million eighty-five thousand dollars of 3% per cent bonds cannot be paid until 1915, not having any option feature. The bonds owing Purdue and Indiana uni. verslties amounting to $484,000, at 5 per cent, are perpetual. The balance of the debt, $2,313,000, is at the option of the state, and Governor Durbin will have the honor of paying every dollar »f this during his administration. In addition to this splendid debt-paying record, there has been paid for new buildings and repairs to meet the rapidly growing demands of the penal, benevolent and reformatory Institutions, $1,892,000, besides $125,000 to establish the state soldiers’ home, and «ver SIOO,OOO to complete the soldiers*

monument, tn addition to large incidental specific appropriations by each legislature. The average yearly cost of maintenance of the state institutions has been $1,060,000, and although the population of these institutions has increased (in the case of the insane, 20 per cent), the average expense has been lessened. The 1899 report of the board of state charities says: "If the per capita cost of maintaining the state institutions in 1899 had been what it was in 1891, it would have cost the state $340,539.76 more.” It is a cause of sincere congratulation that Indiana has led the advance in the forward movement toward placing state institutions on a business, humanitarian and non-partisan plane. The soldier’s orphan ia being educated and cared for; the needy veterans and their wives have a comfortable home in their declining years; the very best reformatory in the United States has been established and every opportunity given those in the penal institutions for education and reform, based on their individual effort and records. The best care and the best food is provided; economy without parsimony or neglect practiced; discipline and industry enforced. Competitive bids control all purchases; merit and competency determine tenure of employes, and strict fidelity to accountings required, not only in the inspection of supplies, but in the daily outgo for consumption. Two bureaus have been added under the Republican administration — that of factory inspector, and the labor commission. The former was extended by the legislature of 1901 so that now the laboring public are enjoying the state’s care in the sanitary conditions, and the other safeguards in factories, workshops and mines. Under the provisions of the child-labor statute, children have been practically eliminated from factories, and under the compulsory education act, are in school. The work of the labor commission has been of incalculable financial benefit to the state, besides bringing blessings to those who toil. Arbitration and the effective counsel of the state’s representatives have easily taken the place of strikes, saving wages in enforced idleness and strengthening the mutual relations of labor and capital. The increased expense involved in extending the work of the board of state charities has saved the state hundreds of thousands of dollars, besides in its humanitarian aspect, accomplishing results not measurable In a financial way. The dependent children and orphans’ homes are cared for by state agents, and private homes secured for those left for public care and support. This financial saving to the counties is a large item, but not comparable to the highei- interests and destinies involved. The work in outdoor poor relief has resulted in a reduction from $630,000 in 1895 to $210,000 in 1900, with no Increase in want or suffering. Having lowered the tax levy, the Republican legislature of 1895 promptly passed the fee and salary act, which has resulted in an annual saving :>f many thousands of dollars to the state and counties. One very practical example can be found in the insurance department. The collections last year were $277,000, which under the old law would have paid the auditor $27,700, or practically the entire four years’ salary under the present law. There has been collected in the insurance department since 1895, sl,336,822.80, which the present Republican law has saved to the state in, auditor’s fees $133,682. The receipts of this department pay the expenses of the department, and from the sur-

plus every salary and expense account in the statehouse, including the judiciary. The saving to the people by’ the heroic enforcement of the law against “wild cat” insurance, debenture and bond investment companies, has been of incalculable value. The brood of debenture companies that two years ago were kept out of Indiana with but little law and a “stuffed club” have proven thieving schemes in smooth disguise, and in a neighboring state the receiverships have so far disclosed a loss of over one and a quarter millions In the so-called investments made. The county and township reform laws will forever inure to the wisdom of Republican legislation. They will more than vindicate the claims for economy and a better system of local government. The action of congress in approving the measures introduced by Senator Fairbanks and Congressman Hemenway, will permit the government during the present year to approve of the state’s claim of $713,000 growing out of the civil war in financial advances to be paid, thus paying off just that much additional of our state debt. The property of the state much more than exceeds our debt, so that practically our assets now exceed our liabilities. Indiana is as surely Republican as lowa, if the administration of affairs is one of careful, conservative business methods, and that loyalty to ''facial duty which will enforce the laws with the vigor of determination. The day of "smooth citizenship” has passed in the administration of public affairs. The tentative policy has been superceded by the positive. No party can succeed in Indiana, or ought to succeed, that lowers the standard of business administration, non-partisan-ship in institutional management, and ■does not unrelentingly protect the people by the enforcement of the statutes. The people look to Republican administration for protection, for prosperity, for results. The Republican party Is one of earnest, sincere conviction to. duty and principle. [We are Indebted to Auditor of State W. H. Hart for the above article.]