usually causes and extends industrial depressions;
namely, lack of public confidence. At last, it seemed, the
conditions for great agricultural prosperity had come to be
quite generally recognized. "The crude and erroneous idea
formerly prevailing as to the adaptability of our entire
state to profitable cultivation, has been exploded by actual
experiment. Our population has quite doubled itself within
two years past, numbering now, without doubt, at least three
hundred thousand souls." Thenceforth success would fatten
upon itself.
But the financial condition of the state
government was bad. Delinquent taxes amounted to
$599,460.47. "The disbursements designated for the past two
years were $600,000, while the revenues were but $400,000."
The trouble was ascribed largely to exemptions and evasions.
The total valuation for taxable purposes was eighty million
dollars, while there was "not less than three hundred
million dollars worth of property in the state which should
be made to yield revenue." But the principal cause of the
excessive taxation complained of was extravagant local
expenditure and indebtedness. The aggregate local
indebtedness, as shown by statements from the several
counties, was nearly $4,500,000. The governor urged that
"additional restraining provisions be thrown around the mode
and manner of voting aid to the various and numerous
enterprises so frequently presented to the people."
Exclusive of the two-mill tax for school purposes the state
tax levy was four and one-fourth mills, and "a judiciously
adjusted system of revenue could be made to reduce this
one-half to three-fourths at least."
But notwithstanding the inequitable and
generally defective system of taxation, state warrants were
at par, and those registered had all been paid. There was no
bonded indebtedness; but the permanent investment of the
common school fund, comprising general fund warrants,
$184,119.67, "and certificate of state indebtedness for a
former investment under authority of law, $158,837.67,
amounted to $342,957.34, drawing ten per cent annual
interest." The auditor's report, December 15, 1874, showed
that there were building fund warrants outstanding in the
amount of $43,812.19, which, with accrued interest,
$17,524.84, amounted to $61,337.03. The resources with which
to meet these warrants were 314 Lincoln lots and 8,000 acres
of saline lands. The governor stated that "these warrants
were originally issued without authority of law, for
expenditures in excess of appropriations for the erection of
the capitol, insane, and university buildings," and that
they were subsequently ratified by an act of the legislature
and ordered paid from the building fund. The only resources
of this fund remaining were Lincoln city lots, "their entire
value not being sufficient to meet the interest alone." A
bill (H. R. 206) providing for the payment of these
warrants, was introduced at this session, and a committee to
investigate the proposition reported that they were issued
in payment of expenditures on the construction of the State
University and that they were a valid claim against the
state. The committee recommended, "that said warrants be
paid out of the state general fund, and the state be
reimbursed from the proceeds of the university lands which
should be sold for that purpose." But the bill was defeated
after the third reading by a vote of 14 to 21.
The message showed that improved
industrial conditions were reflected in the growth of the
public schools. According to the report of the
superintendent of public instruction for 1873 and 1874 there
were 1,345 school houses in the state valued at $1,300,000,
while at the close of the fiscal year 1872 there were only
538 school houses valued at $700,000. The number of school
children at the close of 1872 was 51,123; at the close of
1874, 72,991. The apportionment of school money for 1871 and
1872 was about $370,000; that for 1873 and 1874 showed an
increase of nearly $100,000. The school lands were sold by
county authorities and though the notes given in
consideration were payable to the state, they were held by
the counties, which undertook the collection of the annual
interest. The evidences of indebtedness for the sale of
these lands amounted to $1,119,621.44, which, the message
complained, "should yield, if promptly collected and
accounted for, $111,962.14 annually; whereas it has
returned, under the
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