Rensselaer Republican, Volume 22, Number 49, Rensselaer, Jasper County, 7 August 1890 — THE STATE’S FINANCES. [ARTICLE]

THE STATE’S FINANCES.

Indianapolis Journal, The exhibit of State finances made in this issue of the Journal should arrest the attention of every citizen of Indiana. The figures presented are correct as far as they go, but they do not reveal the full extent of the recklessness extravagance, incompetence and mismanagement that have characterized the State finances during the last few years. Fuller details will show a worse condition. The situation discloses a degree of recklessness boraering on criminality, and so far as the credit and honor of the State are concerned they would not have suffered more by a series of defalcations than they do by this record of gross mismanagement,, No people can stand such financiering, and no State should submit to it. It admits of no justification or excuse, and no motive can be assigned for it that does not add to the disgrace. Official records show that the State debt increased from $4,998,173.84 in 1880 to $8,540,615.12 in 1889. All of this increase has occurred under Democratic administrations and is due to Democratic Legislatures. Most of it has accrued since 1884, the increase during the last five years having been $3,664,006.78. The State’s interest account has reached the startling aggregate of $273,825 per annum. This intggest is paid on money borrowed year after year to meet current expenses, and sometimes even to pay interest. Principal and interest having piled up together. During all these years of Democratic control the tax levy has been kept at 12 cents on each one hundred dollars of valuation. This rate was fixed in 1877, and long since ceased to Turn ish an adequate revenue. Year after year the expenses have increased. and appropriations have been made largely in excess of the revenue, which could only be met by borrowing money. During all these years one Democratic Legislature after another has refused to increase the tax levy or to make any provision for paying the principal or interest of the debt. Each year has shown an increasing excess of expenditures over revenue until 1889, when the excess reached the enormous figures of $882,962.98. To meet this excess of outlay over income there was no recourse but borrowing money at interest, and this policy is still pursued. The State has been running on borrowed money for ten years, while five successive Democratic legislatures have stood between the people and the payment of their honest debts. Under this suicidal policy all sort 9 of embarrassments have arisen, and the credit of the State has been strained to a dangerous degree. During the present year there will be a deficit of $450,000, with $278,825 of interest to pay. This condition will continue until there is a radical change in the financial policy oi the State. The Hale amendment to the McKinley bill embodies the Blaine proposie tion, and if the bill in its present shape be passed, and it probably will, w will have both revision and reoiproc ity. *