FIRST BIENNIAL MESSAGE

JANUARY 8, 1900

From Pamphlet Edition of Message-in the Library of the State Historical Society of Iowa, Iowa City

To the Senate and House of Representatives of Iowa:

In obedience to constitutional requirements, I have the pleasure of submitting to your honorable body the following statements concerning the condition of the state, together with some recommendations for legislative consideration.

Never in our history has labor found more ready employment or more liberal remuneration; never has agriculture generally been more prosperous or yielded better returns; never has business been more universally active or reasonable profits for invested capital more secure; and never were the finances of the state in a more satisfactory condition than at the present hour.

At the beginning of the last fiscal term, there were unpaid warrants outstanding to the amount of $447,500.73. At the same time there was cash in the treasury $36, 672.96, leaving the net indebtedness of the state $410,827.77. Of the outstanding warrants, the sum of $363,834.84 was drawing interest, the accrued amount of which at that time increased this indebtedness by an unascertained sum. Moreover, there remained of special appropriations made by the Twenty-sixth and former General Assemblies the following amount, against which warrants had not yet been drawn: $308,437.61. There was, therefore, to be paid out of the

revenues of the then succeeding term $719,265.38, besides the interest on the outstanding warrants, in addition to the ordinary expenses of the biennial period and the extraordi nary expenditures that the Twenty-seventh General Assembly might authorize.

It is gratifying to know that the judicious provisions made by the Twenty-sixth and Twenty-seventh General Assemblies, for the increase of public revenues on the one hand, and the reduction of expenditures on the other, enabled the state to meet all its obligations, past and current, and to accumulate in the treasury, at the end of the fiscal term under review, a surplus of $414, 294.02 over and above all outstanding warrants, subject, however, to the yet unexpended appropriations of the Twenty-seventh and earlier General Assemblies. Of these, less than $200,000 remained undrawn at the end of the fiscal term. With these amounts all expended, there will remain fully $220,000 to meet the expenditures of the current term.

The receipts of general revenues during the fiscal term from July 1, 1897, to July 1,

1899, aggregated..

The treasury balance July 1, 1897, was.....

Total revenues for the term....

Against this sum warrants were

drawn during the term.... $4,196,494.93

Deduct all outstanding warrants

. $5,079,403.29

36,672.96 .$5,116,076.25

30,708.35

$4,165,786.58

At the close of business on December 30, 1899, the treas

Leaving a net indebtedness of.... $ 471,320.53

The treasury is thus in better condition than it was two years ago by $1,008,580.50.

The surplus of $537,259.97, shown above, is subject to reduction by the special appropriations of past general. assemblies, yet undrawn amounting to less than $100,000.

The auditor of state estimates the receipts for the current term at $4,564,200; and the expenditures, without any special appropriations made by the Twenty-eighth General Assembly, at $3,577,423; giving a surplus of receipts for the current term of $986, 777. Adding to this sum the balance of $220,000 cash in the treasury at the end of the fiscal term in excess of outstanding demands and undrawn appro-priations, gives fully $1,200,000, which this general assembly can safely appropriate for special purposes. The above

estimate assumes that the annual levy will be continued at the present rate. I believe, however, this can be reduced to at most two and one-half mills for general revenue, and three-tenths of a mill special levy for purposes of higher education, making an aggregate of two and eight-tenths mills as against an even three mills at present. In view of the constantly increasing expenses of the state, incident to a rapidly growing population, and ever-multiplying number of wards of the state, coupled with a noticeable reduction in the aggregate assessments, the rate suggested is quite lowvery considerably lower than in most states of the Union.

Iowa is exceedingly fortunate in her banking interests. She has more banks than any other state in the Union, and the condition of these institutions is very encouraging. At the date of the reports of incorporated banks nearest the first of October, 1897, the bank deposits of Iowa were as follows:

At the date of their last reports, the deposits were as

An increase of over 55 per cent in two years.

Of the more than $110,000,000 held by national, state,

and private banks, investigation convinced me that certainly over one-half is owned by farmers; and the $51,000,000 on deposit in savings banks is held almost exclusively by wageearners and people of limited income. Unquestionably the proportion of unincumbered farms in the state exceeds that of any other period. In addition, the value of all agricultural lands and of farm animals has very materially appreci ated within the last few years.

Under these favorable conditions, I think the Twentyeighth General Assembly will be justified in making somewhat more liberal appropriations than in former years. Great care, however, should be exercised, for it must be borne in mind that it is easier for a state, as well as for an individual, to incur a liability than to discharge one.

The ever-present temptation to plan only for to-day, and to build temporary sheds where permanent structures are needed, should so far as possible be repressed. Iowa will appear on the map of the world forever, and her population will multiply with the years. Wise planning for the future distinguishes the statesman from the mere politician. I think, therefore, in expending the somewhat more than a million dollars now or soon to be available, at least a portion should be so placed as to furnish enduring evidences of your wisdom.

BOARD OF CONTROL

The Twenty-seventh General Assembly made provision for a board of control, which, for nearly two years, has had the management of all our state institutions, excepting those purely educational. The policy thus inaugurated has resulted in a very considerable saving to the state, and in