Rensselaer Republican, Volume 22, Number 49, Rensselaer, Jasper County, 7 August 1890 — STATE MONEY BAGS. [ARTICLE]

STATE MONEY BAGS.

EXHAUSTED KYERY YEAR OH AO COO NT OF EXTRAVAGANCE OF THE LEGISLATURE, j Democrats Responsible for Alarming Deficits and Increase In the State Debt—The Warning Figures Sent Out to toe People. Indianapoli* Journal. July 80. Through a continuance of a Democratic majority id the Legislature, the finances of the State have been brought to a condition to excjite alarm. “At the rate we are going.” said a State officer, yesterday, “bankruptcy can not be far off. The revenues are being exceeded annually by expenditures that are frightful. Indiana is a rich - State, but not rich enough to stand the strain of having nearly half a million dollars of deficit every year. There must be something done within the first weeks of the next General Assembly or debt will be piled upon debt Until there will be no recourse left but to throw down.our hands and beg the mercy of creditors,”. ~ The question of financial reform can not help but be brought to the front in the coming campaign, is.the opinion of those who know anything about the State debt. Never before was the recklessness of Democratic Legislatures more clearly recognized than now, They have had opportunity after opportunity to do away with the evils of extravagance, but they have given no heed to warnings, no attention to advice and no care for the future. * ‘The simple arithmetical problem,” said one thoroughly conversant with, the rule 3 of large financial operations, “of the State having so many things to do, with a fixed amount of money annually to do them with, has every two years been presented to Democratic majorities in the General Assembly. But what good has it done? They have been as the man who with SIOO a month lives at the rate of S2OO. There is for him a deficit each month. So with the State, there is a deficit each year of an alarming amount. With Democrats extravagance has been the rule and economy an idea. Years ago the first deficiency should have been a warning and called a halt at the outset. But Legislature after Legislature, knowing full well the situation, the disaster that lay ahead, has gone on increasing the debt. Republicans have proposed remedies, but the Democrats, with the force of majority, have always said that they should not be applied. Reforms have been blocked by the same means, and Democratic extravagance continued until bankruptcy is a probability. That is the situation, and the sooner the people of Indiana know it the better.” The party responsible for this shocking condition of finances can not pleed ignorance. Its attention has been directed to ruinous expenditures beyond income by Governors Porter, Gray and Hovey. It was to the General Assembly of 1887 that Governor Gray detailed at length in his message the condition of the State’s finances. In the course of his recommendations he said: It is evident the revenues are barely sufficient to meet the current expenses of the State government, and with a decreased appraisement of nearly $54,000,000 of the property in the State subject to taxation shows conclusively that the money necessary to complete and equip the new public buildings must be raised either by increesed taxation or the negotiation of a temporary loan.In order to provide for the wants of the State and the completion and equipment of the public buildings now —in process of construction a sufficient loan should be authorized, running twenty years, redeemable at the pleasure of the State after fifteen years at a rate of interest not exceeding 8J per cent, per annum. — W r ith the signs of increased prosperity, I trust that we may reasonably anticipate some increase in the value of the personal property of the State, and that the current receipts will be ample to discharge all current expenses, after providing for the present contingencies. But I assure you this cannot be done without your assistance in zealously protecting the treasury from doubtful claims and extravagant appropriations. Economy to a Democratic Legislature of 1889 was preached by the same Democratic Governor, but that -party then, as two years before, refused to adopt measures whereby danger of financial ruip could be averted. In 1887 the Republicans had a majority In the House that was ready and anxious to fulfill pledges of relief and economy to the people, but the Democratic majority in the Senate stood in the way. It was too busy guarding the sto on seat of the presidency of the Senate and keeping the rightfullyelected Lieutenant-governor out of it. No measures of financial reform proposed by the Republicans were recognized by G-oen Smith and his political hoodlums, and thus for two years the State went Without appropriations. Those of extravagant figures made by the preceding Democratic Legislature were continued. ••*••*- When G&vernor Hovey succeeded Gray, in 1889, he, too, sent warning to the Legislature, in which he said: The total revenue for the fiscal year ending Oct. 31, 1888, wae $1,357,6 0. Theie was spent for the benevolent and reformatory institutions about $870,000,000. leaving for the expenditure of the State government less than $600,000. I respectfully request' that a joint rv solrtion 1 5 passed authorizing «he Governor to appoint three or five non-partisan experts, the appointment to be confirm el by the Senate, whose duty it shall bo to make a full end thorough examination of the condition,management, account* and expenditure* of an our benevolent aadj

reformatory institutions, and make their reports at such times as the Genoral Assembly may direct. This, too, was unheeded, and. the Legislature, before it closed had appropriated for specific purposes, in addition to the regular appropriations, $1,239,916,97. With that burden the State has been going on until its financial situation has reached the following alarming exhibit as to increase of indebtedness, including foreign and domestic: tbab. debt. tear. debt. 1880 .$4,998,178.84 1885 $6,008,608.34 1881 1882 4,876,608.34 1887 6,430,608.34 1883 4,876,608.34 1888 6,770,608,34 1884 4,876,608.34|i889 .8,540,615.12 •Reducedsl2i,s7o during Republican administration 1881 and 1882. The annual interest now necessary is $273,825 and the valuation of taxable property in the State has varied from $728,944,231 to $821,512,§85. The rate of taxation for general purposes has 13 cents on each SIOO valuation since 1877, making Hie total incoffle from alf sources about $1 , 400,000 per annum. In 1885 the net receipts to the general fund (loans not included) were 41,443,368,03; expenditures, $2,083,085.61; excess of expenditures over receipts in 1885, $639, 617.68-. In 1886 the net receipts to the general fund were $1,421,350.84; expenditures $1,549,850.47; excess over receipts, $28,599.63. In 1887 the net receipts to the general fnnd (loans not included) were $1,485,778.82; expenditures, $1,877,538.93; excess over receipts $264,940.39. In 1889 the net receipts to the general fund (not including loans) were $1,497,706.24; expenditures, $2,380,569.22; excess over receipts, $882,962.98, and at the end of this fiscal year there remained unpaid a balance of the special appropriations made by the Legislature of 1889 (1,231,916.97) the sum of $583,654.15. Increase of State debt since 1884, $8,664,006.78. The actual net income of the State from all sources is about $1,400,000, and the present actual expenses are $1 ,825,000, consisting as follows: Executive and administrative, $75,000; judiciary, $200,000; educational, $75,000; benevolent institutions, $800,000; penal and reformatory, $100,000; penal, $185,000; public printing and advertising, $80,000; State-House, janitors, fuel, etc., $35,000; miscellaneous, $6,000. Actual annual expense of State Government, $1,825,000; additional in legislative year, $125,000; total, sl,950,000. Income of State. $1,400,000; amount of deficit, $450,000. All specific appropriations now and hereafter should be added to the deficit.