You will note in the above statement that notwithstanding the extraordinary expense incident to a legislative session, that the net receipts of the State for 1919 will be $753,841.95, which is greater by $100,000 than they were in 1918. The amount of outstanding warrants on September 30, 1918, was $1,589,136.89 with a cash balance in the treasury on that day of $56,321.75, which would leave a real indebtedness not constitutionally provided for of $1,532,815.14. If from this should be deducted the surplus. from 1919 as shown in the above estimate, the balance of outstanding warrants would be $778,973.19 on September 30, 1919. The assessments during 1919 on which collections will be made for the year 1919-20 will be materially greater and will bring increased revenues. The expenses of a legislative year will not have to be provided for in 1920, in consequence of which, the net revenues should be much larger in 1920 than in 1919. Experience has shown, as has been heretofore presented, that the increase in values can be relied upon. But if there should be no growth in values, the net revenues in consideration of no legislative expense to be paid, would be around one million dollars.

From the above, the conclusion must be reached, that the revenues of 1920, with the present revenue laws and with the present scale of expenses, will liquidate the State's floating indebtedness. The assertion has been heretofore made, that the State's floating debt can be paid by February 20, 1920. Let it be clearly understood, that what is meant by that declaration is, that when the last of the warrants are paid on February 20, 1920, that it will not be necessary to make provision to care for further issues of them, as thereafter the revenues will take care of the running expenses of the State. The outstanding warrants can all be paid by February 20 of the present year, but it will become necessary afterwards to make provision for about $800,000 during the balance of the year. This will be the first year, however, during the past four, at least, in which the treasury has been able to pay all warrants that had been issued. During the fiscal year of 19151916 the state of the treasury was not in a condition at any time to reduce the indebtedness below $1,700,000. The people were not in condition to settle their taxes promptly. Instead of the taxes being paid in November, December and January, the payments were spread over nine months of the year. Sales of property in that year on account of the defaults in the payments of taxes, were the greatest in the history of the State. During 1916 arrangements were made with financial institutions to carry more than two and one-quarter millions of the State warrants.

Since the beginning of the present fiscal year, the floating indebtedness of the State has been materially decreased. The revenues collected in October and November were not only sufficient to meet the large current expenses of these two months, but permitted also, the payment of warrants which had been issued