(New) For Tick Eradication, expended in four

years

(New) Hog Serum, expended in four years.

Total amount paid to certain institutions in excess of that paid during the previous four years.....

76,664.60 31,200.00

..$ 1,892,043.78

Notwithstanding this growth in the expense of the State for certain institutions, during the past four years, equal to an average of $473,010.95 per annum, the total expenditures of the State for the year 1918 were $17,360.48 less than they were for the year ending September 30, 1914, while the revenues were $967,640.80 greater.

The Confederate soldier has never received the full pension for the last quarter of the pension year. It appears, however, that the crest of the amount that will be required on the given rate, was attained in 1917. The succeeding year shows a marked decline, as does also, the payment for the first two quarters of the current year, compared with the corresponding quarters of the previous year. It appears now, that if the full payment for the last quarter of this year should be made, that the total amount for this cause for 1919, will not exceed the amount paid in 1917, and the State treasury is in much better condition. There has been paid for pensions during the past four years $3,987,964.00, which was $195,430.45 greater than was paid the previous four years, and $620,510.55 more than for the years 1907, 1908, 1909 and 1910. Since the high tide of the demands to meet this obligation has passed, you can take this into consideration in forecasting results for the next four years.

The institutions mentioned that are on a per capita basis, received increased appropriations by reason of the growth in the number of those who have been assigned to their charge. The demands for the current year will not likely show the usual annual increase. The tendency is in the opposite direction, as shown by detail reports, this being a result of prevailing conditions.

There is ordinarily a tendency to hunt for new sources of taxation from which additional revenue can be derived. It does not appear that this is an opportune time to increase burdens. When we consider the extent to which the people have been called upon during the current calendar year, it looks as if the State should

be content with its present schedule. It may be, however, that some will clamor for more revenue, who judging others by themselves, fail to realize that which may be treated lightly by them, will prove to be the last straw for others. If industry does not receive a fair return, the State will fail in its higher aspiration.

For your information as to what the people of your State have been doing in the way of responding to the calls of the National Government in the payment of income taxes and the different activities pertaining to the war, there is given herewith the amounts that have been paid during 1918 for each particular account. The amounts that they will be called upon to pay in taxes in 1919 will be more than double of that paid in 1918 on account of the increased rate. Less will be required of them, however, to meet the demands for bonds and other war work funds.

Income and war taxes (paid by 18,400 individuals and
corporations)

Red Cross (subscribed by 383,779 people).
United War Work Campaign..

Library Fund

Knights of Columbus.

Liberty Loan Bonds:

April 6th to March (third)

September 28th to Oct. 19th (fourth).

War Savings Stamps (to November 1st)

$12,000,000

1,401,009

1,297,380

12,260

45,360

21,428,950

36,145,850

9,100,000

$81,430,809

Besides the above there were other large sums raised on behalf of the Y. M. C. A. and the Y. W. C. A., of which no information is at hand.

Much of the above was by voluntary contribution, but this fact should not be taken advantage of by those in authority and advanced as a reason why a heavier tribute may be exacted. We should not hunt for new tax contrivances, as the annual receipts will be sufficient to meet all judicious requirements.

The tendency of man is for power, and for still more power. There is no greater force than that entailed by the laws to exact tribute in the shape of taxes. Dynasties and governments have been overthrown as a protest of their people against oppression caused by the cupidity and profligacy of rulers. The exaction of taxes beyond the just needs of government, honestly and economically administered, is nothing less than tyranny.

The above sums were paid as a contribution to the war necessities of our government, and you should lend consideration to the fact, that a good percentage of our population will be required for many years to come, to pay Federal income and war taxes, and that those who will not be required to pay them doubtless will

have all the burdens they can well bear, in the form of State taxes together with the high cost of living.

From a careful study of the statement below, showing the expenses and revenues of 1918 and the estimated expenses and revenues for 1919, you should be convinced that with judicious conservatism practiced for a short while longer, all will be well. The end is in sight and that which has heretofore been such a vexed problem, has now reached a satisfactory solution and that after a few months it will exist only in our memories.

CONDENSED STATEMENT OF THE STATE'S REVENUE AND EXPENSES FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1918, AND ESTIMATES FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1919