The Governor's 1895 Warning: Washington Is Spending Itself Into Debt

TENDENCY TOWARD EXCESSIVE APPROPRIATIONS.

It is not within the range of human foresight to estimate accurately the revenues and disbursements for the fiscal term succeeding legislative action, because of the variance between the restraining ideas of auditing officers, who are naturally on the side of economy, and the lavish impulses of the legislature, which is influenced by the importunities of local interests and inclines to an excess of confidence in the public resources. Another potent factor in rendering estimates nugatory is the changeableness of values and the uncertainties of tax collections under altering commercial and industrial conditions.

When the third Washington legislature convened, confidence in the capacity of the state to redeem its warrant debt speedily was unquestioned. It was estimated that at the beginning of the fiscal term of the present year the treasury would contain a cash balance of $227,556.55. On the contrary, when March 31 comes around, the shortage, exclusive of bond and interest debt, will run over three-quarters of a million.

The receipts at the opening of the fiscal term beginning March 31, 1893, estimated at $555,500, were in reality $567,502.45, a discrepancy of $28,237.54. In the face of estimated necessary expenditures amounting to $1,440,444.45, the legislature appropriated, in addition to $305,140.07 deficiency appropriations, the sum of $2,134,722.51 for the fiscal term now drawing to a close. Of this amount items aggregating $17,940 were vetoed. It will be seen that the appropriations, less the vetoed sums, in this instance exceeded the estimated needs more than half a million dollars.

The present legislature should closely scrutinize all appropriation acts and defend the taxpayers from a repetition of such folly. It should be borne in mind, in providing for the forthcoming fiscal term, that only one-fourth of the state tax for 1893 had found its way to the treasury March 31, although the estimated collection was 75 per cent. In view of all the discounts, it is extremely doubtful whether the estimated collections of delinquent tax and of the levy for 1894, applicable to the fiscal term beginning next March, will fructify.

The outstanding indebtedness and prospective receipts should suggest the limitations within which appropriations are to be made for the fiscal term of 1896-7. With present valuations prevailing, the state tax levy increased one-half mill and the ratio of collection remaining unchanged, the receipts for the period designated should be $1,500,000.

Interest charges are a cumulative burden not sufficiently considered. Since statehood the people have, on account of the state alone, redeemed $230,591.52 interest indebtedness, of which $122,016.72 has been a tax against the revenue taken in between October 31, 1892, and October 31, 1894. On the latter date the estimated outstanding interest debt was $60,832.04.

It is recommended that a law be passed providing for the issuance of twenty-year 4 per cent capitol building bonds, payment of interest installments and final redemption to depend on the proceeds of the progressive sale of granted lands.

HARBOR AREAS READY FOR LEASE.

The work of establishing the harbor lines of our cities having been finished, it is time to provide for the leasing of harbor areas. The policy should be to so shape legislation in the premises that the lowest possible wharfage charges will result. High rates of lease for the purposes of public revenue mean high rates of wharfage, to the detriment of commerce. Cheap wharfage will attract in increasing volume to our shores the trans-Pacific trade certain of diversion through the channel offering the least resistance, while it assures domestic consumers immunity from the burden of tax imposed in heavy wharfage, which is in the last analysis added to the costs of transportation.

MANAGEMENT OF STATE LANDS.

The policy of concentrating the management of the state lands in a single commission, instituted by the legislation of 1893, has proved a departure in the line of the best possible achievements. The present law, still defective in this respect, and demanding repair in other particulars, should be amended and amplified so as to confer every authority requisite to absolute supervision, complete protection and profitable disposal of the public domain.