On January 15, 1913, the day I assumed office, there was an overdraft of $450,555.24 in the general fund. On March 14th of the same year, the day following the adjournment of the Thirteenth Legislature, the overdraft had reached the sum of $719,837.51 and at the close of business on December 31st, 1913, it amounted to $726,647.43. At the close of business on December 31st, 1914, there was a balance of $100,016.37 in the general fund. These figures show that on January 1st, 1915, the fund was larger by $850,571.61 than on January 15th, 1913, the day I became Governor.

On January 1st of this year there was on hand and invested in securities the following amounts belonging to the permanent funds of the state; the statement also shows the amounts on hand December 31st, 1912, the amount of bonds purchased during the two years and the bonds redeemed during the same period.

In recent years there has been an alarming increase in the cost of government. The state, counties, municipalities and in fact almost every taxing district in the State, have each year increased the amount called for from the taxpayers until the time has now arrived when further increase cannot but result in placing upon them a burden far beyond their ability to pay.

To meet the demands, property valuations in many instances. have been fixed far above the revenue producing value of the property and taxing officers have been compelled to levy taxes to the fullest limit allowed by law. Even this has not resulted in producing sufficient revenue. The records show that bonds have been issued for county, municipal, school and other purposes amounting to over $100,000,000.00, the interest charge on which is not less than $5,000,000.00 per annum.

The time has arrived when more is required than the mere statement that expenditures will not be further increased. A plan of retrenchment must be decided upon; nor will the problem be solved by the issuance of further blocks of bonds so the taxes may be reduced and the burden placed upon those who may follow. Already we are paying annually in interest charges an amount so large that the likelihood of ability to pay off the bonds when they become due is indeed remote.

While much can be done by your honorable body by holding down state appropriations, yet the state expends but a small proportion of the total raised by taxation. Retrenchment must reach to every county, city and hamlet-to every taxing district in the State.

CONSTITUTIONAL CONVENTION.

It might, on first thought, appear that the Legislature by enacting into law certain measures, could bring about the reduction so greatly needed and desired by all. To some degree results could be obtained by such action upon your part. The tendency in recent years has been to steadily increase the number of offices. It would be a difficult task for a Legislative body to reduce the number to any great degree. It is equally true that we have certain elective offices that could well be abolished without in any way impairing the efficiency of the management of public affairs, regarding many of which, as a result of being provided for in the Constitution of the State, action on your

On January 15, 1913, the day I assumed office, there was an overdraft of $450,555.24 in the general fund. On March 14th of the same year, the day following the adjournment of the Thirteenth Legislature, the overdraft had reached the sum of $719,837.51 and at the close of business on December 31st, 1913, it amounted to $726,647.43. At the close of business on December 31st, 1914, there was a balance of $400,016.37 in the general fund. These figures show that on January 1st, 1915, the fund was larger by $850,571.61 than on January 15th, 1913, the day I became Governor.

On January 1st of this year there was on hand and invested in securities the following amounts belonging to the permanent funds of the state; the statement also shows the amounts on hand December 31st, 1912, the amount of bonds purchased during the two years and the bonds redeemed during the same period.

In recent years there has been an alarming increase in the cost of government. The state, counties, municipalities and in fact almost every taxing district in the State, have each year increased the amount called for from the taxpayers until the time has now arrived when further increase cannot but result in placing upon them a burden far beyond their ability to pay.

To meet the demands, property valuations in many instances have been fixed far above the revenue producing value of the property and taxing officers have been compelled to levy taxes to the fullest limit allowed by law. Even this has not resulted in producing sufficient revenue. The records show that bonds have been issued for county, municipal, school and other purposes amounting to over $100,000,000.00, the interest charge on which is not less than $5,000,000.00 per annum.

The time has arrived when more is required than the mere statement that expenditures will not be further increased. A plan of retrenchment must be decided upon; nor will the problem be solved by the issuance of further blocks of bonds so the taxes may be reduced and the burden placed upon those who may follow. Already we are paying annually in interest charges an amount so large that the likelihood of ability to pay off the bonds when they become due is indeed remote.

While much can be done by your honorable body by holding down state appropriations, yet the state expends but a small proportion of the total raised by taxation. Retrenchment must reach to every county, city and hamlet-to every taxing district in the State.

CONSTITUTIONAL CONVENTION.

It might, on first thought, appear that the Legislature by enacting into law certain measures, could bring about the reduction so greatly needed and desired by all. To some degree results could be obtained by such action upon your part. The tendency in recent years has been to steadily increase the number of offices. It would be a difficult task for a Legislative body to reduce the number to any great degree. It is equally true that we have certain elective offices that could well be abolished without in any way impairing the efficiency of the management of public affairs, regarding many of which, as a result of being provided for in the Constitution of the State, action on your

part would be impossible. While today the Supreme Court of the State is over-crowded with work and this is also true of some of the Superior Courts of the State, it is equally true that in many of the Superior Court districts there is not a sufficient amount of court work to occupy the time of the Judge or Judges in those districts. I believe a re-arrangement of the Superior Court districts of the state could be made and that the services of not less than ten Judges could be dispensed with and not in any way impair the efficiency of that Judicial department. The salary of a Superior Court Judge is $3,000.00 per year. It is fair to presume that the other expenses incident to the court, such as bailiffs' salaries, etc., amount to as much as the salary of the Judge. Figuring on this basis $60,000.00 per year could be saved in this one instance. I am sure that all agree that there is little probability of a Legislature passing a bill that would reduce the number of Superior Court Judges in the state to this extent. I also believe that many of the county offices could be abolished.

A great many people believe in the commission form of government for state and counties. Personally, I do not believe that a form of state government should be adopted that would place in the hands of the same officials legislative and administrative powers. I do believe, however, that better results would be obtained if we had one legislative body in the state consisting of say not to exceed twenty-five members, five elected from each congressional district which could be fixed as legislative districts and by fixing the time of each regular session of the Legislature at ninety instead of sixty days. I believe all will agree that a bill providing for this radical change, or for any reduction in the number of members in the Legislature, could not he passed at this or any other session of the Legislature. There is also great need for a constitutional amendment in relation to revenue and taxation, and without doubt, other con