REPORT OF THE AUDITOR OF PUBLIC ACCOUNTS. AUDITOR'S OFFICE, ILLINOIS, Springfield, December 12, 1870. JOHN M. PALMER, Governor of Illinois: SIR:-I have the honor to submit the following report, for the fiscal year commencing December 1, 1869, and ending November 30, 1870. You will find the following items embraced in the report, viz: 1. Statement of Receipts and Disbursements of General Revenue Fund. 2. Statement of Receipts and Disbursements of Special State Funds. 3. Statement of Receipts and Disbursements of Local Funds for payment of principal and interest on Bonded Indebtedness of Counties, Townships, Cities and Towns. 4. General Statement of Warrants drawn on the Treasury for all purposes. 5. Detailed Statement of Warrants drawn on the Treasury for all purposes, and to what account and appropriation charged. 6. Statement of the amount of Auditor's Warrants outstanding unpaid, December 1, 1870. 7. Statement of the School, College and Seminary Funds. 8. Statement of State Indebtedness redeemed with Illinois Central Railroad Funds. 9. Statement of State Indebtedness redeemed and purchased with State Debt Fund. 10. Statement of the Accounts of the State Treasurer with the several State Funds, and the County, Township, City and Town Interest (bond) Funds. 11. Statement of State Taxes charged in the several Counties, amounts collected, etc., for the year 1869. 12. Statement of the State School Tax Fund, for the year 1869. 13. Statement of the Dividends of School Tax and Interest Funds to the several Counties, for the year 1869. 14. Statement of the condition of State Banks. 15. Statement of County, Township, City and Town Bonds, registered in the Auditor's Office. 16. Statement of the aggregate assessment of property in the State, for the year 1870. 17. Statement, showing the rate per cent. of addition and deduction determined by the State Board of Equalization, on the assessment of the several Counties, for the year 1870. 18. Statement, showing the assessed and equalized valuations of the several classes of property for State taxation, for the year 1870. TAXES LEVIED. The appropriations made by the 26th General Assembly, as set forth in my last Annual Report, made it necessary to levy for the purpose of meeting the ordinary expenses of the State Government for 1870, and to provide for the payment of the very large deficiency caused by the appropriations aforesaid, a tax of eight mills for revenue purposes, and one mill for interest on the State debt-which, added to the two mills for payment of principal of the State debt, and the two mills for support of public schools, made a levy for State tax of thirteen mills, on the assessment of 1869. I am glad to be able to say that the estimates made at that time are proved to have been correct, and that the treasury of the State has been for some time in a condition to pay all warrants when presented. With a few exceptions, the county collectors have been more prompt than they were last year, in paying over the tax when collected. But some little legislation will be required-and will be proposed-to enable the Auditor to enforce, when necessary, a faithful compliance, on the part of county officers, with the revenue law. On the basis of the equalized valuation of property for the year 1870, I have levied a tax for State purposes, as follows: Two and one-half mills for revenue, which, in connection with the two mills for payment of State debt, and two mills for the support of public schools, makes the total levy for State tax on the assessment of 1870, amount to six and one-half mills; being just one-half of the levy of last year. It is proper to state, that but for the extraordinary expense occasioned by the session of the recent Constitutional Convention to frame the present Constitution, and the increased expense of the judiciary and other departments of State government, in consequence of the adoption of the new constitution, the levy might have been made still smaller. When it is remembered that the assessment of property in this State does not, in my opinion, exceed one-quarter of its actual value, it will be conceded that the tax for State purposes is not burdensome, as compared with the taxes of other States. In making the levy aforesaid, I have only endeavored to provide a sum sufficient "to meet the current expenses for the coming year, and all known demands upon the treasury payable from revenue funds." In making this levy, I have estimated the expenses from June 1, 1871, to June 1, 1872, when the tax on the assessment of 1871 becomes due to the State Treasury. Section 18 of Article III of the Constitution, requires that the "General Assembly shall provide for all the appropria tions necessary for the ordinary and contingent expenses of the Government, until the expiration of the first fiscal quarter after the adjourn ment of the next regular session, the aggregate amount of which shall not be increased without a vote of two-thirds of the members elected to each house, nor exceed the amount of revenue authorized by law to be raised in such time; and all appropriations, general or special, requiring money to be paid out of the State treasury, from the funds belonging to the State, shall end with such fiscal quarter." It is believed that the Revenue Fund now in the State treasury will just about suffice to meet the expenses of the government, until the tax of the next year, on assessment of 1870, becomes due and begins to be received; and by adopting the practice of estimating the annual expenses from June 1st to June 1st, instead of, as heretofore, from December to December, it is hoped that the treasury may always be in a condition to pay the ordinary and authorized expenses of the government, instead of having a time of about three months in every two years when warrants, drawn in pursuance of law, can be found floating in the market with more or less depreciation of value. BALANCE DUE ON APPROPRIATIONS AND EXPENSES OF GOVERNMENT TO MAY 31, 1871. There was due on the first of this month, to the appropriation of 1869, for building the New State House, the sum of $306,935 57, and to the appropriation of 1869, for Canal and River Improvement, the sum of $227,696 42. The pay of members and officers, and expenses, of the 27th General Assembly, will not be less than $350,000. The expenses of all the State Institutions, from the 1st of December to the end of the first fiscal quarter, after the adjournment of the General Assembly, (say May 31, 1871,) will not be less than $300,000. The salaries of Judges and Attorneys, and other expenses of the Judicial Department of the State government, will probably, for the time last named, exceed $110,000. For the same time, the salaries and expenses of the Executive Department, Printing, Binding and incidental expenses of the State government, both ordinary and extraordinary, under appropriations now in force, including warrants outstanding December 1, 1870, will not be less than $160,000. The foregoing amounts make, in the aggregate, the sum of $1,454,631 99, being almost the amount of the Revenue Fund in the treasury on the 1st December, 1870. Thus it will be seen that the amount of revenue now in the treasury ought not to be considered by the General Assembly, in making appropriations for the future, as its exhaustion is already provided for by the last General Assembly; and to base any further appropriation upon it, would simply create a deficit, to be hereafter provided for by an increase of tax. REVENUE LAW. It has long been felt by every intelligent revenue officer, State or county, that something should be done with reference to the revenue law. The State Board of Equalization, at its session in 1869, passed a resolution to the effect that the revenue laws ought to be codified and amended in some particulars, and appointing the Chairman and Secretary of that Board, a committee "to perform this labor, and to report the result to the next meeting of the Board." Mr. Stadden and myself undertook this labor, all the more willingly, because we were ourselves convinced that the interests of the people and the government of the State demanded it. In order to ascertain the opinions of those who might be considered "experts" on this subject, we printed the earliest result of our labor in the form of a bill for a revenue law, and sent copies all over the State to such capable persons as we knew to be interested in the subject, and worthy of consultation. Of course many were omitted, whose advice we should have been glad to have, but from those to whom the first draft of the proposed law was sent, we received many valuable criticisms and suggestions. When the Board of Equalization met on the fourth of October last, the report, with all the hints, criticisms and suggestions which had been received, was submitted to the Board, and a committee composed of gentlemen from every section of the State, was appointed to consider the report. The result is a draft of a proposed "Act for the assessment of prop. erty, and for the levy and collection of taxes," which will be laid before the General Assembly at its approaching session. On some small details of that proposed revenue law, there may be differences of opinion, but I feel free to say that should the General Assembly make it the law of the State, without material alteration, it would be a very great improvement upon the present law, and an incalculable gain to the people of the State. I desire here to acknowledge most heartily my obligations to Mr. William Stadden, for the able and careful assistance which he has given to the preparation of this proposed law, which I have no doubt is far better than it would have been but for his long and intimate acquaintance with the revenue system of the State. APPROPRIATIONS FOR THE ERECTION OF STATE BUILDINGS. I would respectfully suggest to you the importance of having some check upon the expenditure of appropriations for the erection of buildings for State purposes, and for similar objects. I feel assured that the Governor, Secretary of State, Auditor and Treasurer, elected as they are to responsible and honorable positions by the people of the whole State, are not likely to agree upon any expenditure of money which is not fully warranted by law; and I would submit that it is scarcely prudent or proper to invest any but the constitutional officers of the State, with the power of ordering the drawing of warrants and payment of the same, without the approbation or concurrence of those intrusted by the people, with such responsibility. While it is no doubt often desirable, and even necessary, upon grounds of economy, to intrust considerable sums of money to the officers of established State institutions, which require large expenditures, there is as little doubt that there should be some check upon the enthusiasm and zeal of those who may be selected to establish new Institutions. STATE BONDED DEBT. The State has paid, on account of the principal of the bonded debt, during the fiscal year, ending November 30, 1870, as follows: With State Debt Fund.... With Illinois Central Railroad Fund..... $75,925 00 1,000 00 The Trustees of the Illinois and Michigan Canal paid an installment on the principal of the registered Canal bonds, in Dec. 1869, amounting to.... .... $76,925 00 .157,133 34 $234,058 34 Making total amount paid on principal of State Bonds, during the fiscal year.. The following is an accurate statement of the bonded debt of the State, as it existed at the close of the fiscal year, ending Nov. 30, 1870: New Internal Improvement Stock payable after 1870..$1,606,015 60 New Internal Improvement Interest bonds, payable after 1877..... 2 Internal Improvement Coupon bonds, payable after 1870.. 279 Bonds, Refunded Stock, payable after 1870... 980,696 83 2,000 00 279,000 00 288,000 00 45 Normal University bonds 1876.. 60,000 00 102 Thornton Loan bonds 222 $1000 War bonds 255 $500 War bonds. 673 $100 War bonds in 1870, bal.... 19 $1000 Canal bonds, payable in New York in 1870.. 24 $1000 Canal bonds, payable in New York, registered, 25 £225 Canal bonds, payable in New York, in 1870... 20 £225 Canal bonds, payable in New York, registered, in 1870, bal.. 697 £225 Canal bonds, payable in London, in 1870.... 518 £225 Canal bonds, payable in London, registered, 19,000 00 4,800 00 25,000 00 4,000 00 697,000 00 in 1870, bal........... 103,600 00 43 £300 Canal bonds, payable in London, in 1870.. 57,333 33 146,400 00 29 £100 Canal bonds, payable in London, in 1870. 12,888 88 in 1870, bal... 26,266 66 State bonds called in by Governor's proclamation, not yet surrendered.. 15,136 00 Total State Debt, outstanding Nov. 30, 1870.....$4,890,937 30 To condense the foregoing figures, it shows that the bonded debt falls due as follows: |