Rensselaer Semi-Weekly Republican, Volume 34, Number 60, Rensselaer, Jasper County, 28 March 1902 — INDIANA’S FINANCES [ARTICLE]

INDIANA’S FINANCES

Significant Showing of the Manner la Which the People’s Interests are Safeguarded. HOW THE MONEY IS HANDLED v The Thoughtful Reader Cannot Fail to Be Interested in Some Figures and Statistics Presented in These Collimns. 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 15,500,000 annually renders the administration of Indiana’s financial affairs one that demands careful, economical and methodical accountings rather 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 tims 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 hcrw his investment was being handled. The trend of publicHetermination 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 Itemized 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 us 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 superceded until 1897, but the legislature and the fiscal management of the state were Republican. The tax levy inherited from the Democrats was 22 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 w« are paying a school tax of 12 2-3 cents. The general expenses of the state are largely paid from the state and benevolent institution levies of 14 cents on the SIOO. The average tax for all purposes In Indiana is $1.46 on the SIOO. 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 tax of 5 cents, increases It to 14 cents. The state debt in 1891, when the Democrats took charge, was $8,830,615.12; Jn 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 waß 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 redaction of $3,326,000, or an average of $475,144 per year. This amount was further reduced Jan. 2, J 902, $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 owln Purdue and Indiana uni

▼emltlea amounting to $484,000, at 5 per cent, are perpetual. Jhe balance of the debt, $2,313,000, ie at the option of the etate, and Governor Durbin will have tbs honor of paying every dollar, of 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, $1,392,000, besides $125,000 to establish the state soldiers’ home, and over SIOO,OOO to complete the soldiers’

monnnMtkt. 1b 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 is 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 enfqfced. Competitive bids control all .purchases; merit and competency determine tenure of em-

ployes,-andstrict .fidelity -to account ings 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 staite’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 com-

mission 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 hundred? 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 higher 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 of many thousands of dollars to the state and counties. One very practical example can be found in the insurance departmeht. 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 surplus 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 havo so far disclosed a loss of oyer 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 claim? 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. Tbe.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 affair? is one of careful, conservative busfness methods, and that loyalty to rffl, cial duty which will enforce tj>e 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 doss not unrelentingly protect the peopl« by the enforcement of the statutes. The people look to Republican administration for protection, for prosperity, for results. The Republican party sis one of tamest, sincere conviction to doty and principle. [We are Indebted to Auditor of State W. H. Hart fop the above artl- «!«•]