IMPROVED FINANCIAL CONDITION OF MISSISSIPPI UNDER THE AMES
ADMINISTRATION
The administrations of Governor Alcorn and of Governor Ames, the two
Republican Governors, who were products of Reconstruction,--both having
been elected chiefly by the votes of colored men,--were among the best
with which that State was ever blessed, the generally accepted
impression to the contrary notwithstanding. In 1869 Alcorn was elected
to serve for a term of four years. Ames was elected to serve the
succeeding term. Alcorn was one of the old citizens of the State, and
was therefore thoroughly identified with its business, industrial, and
social interests. He had been one of the large and wealthy landowners
and slave-owners, and therefore belonged to that small but select and
influential class known as Southern aristocrats.
Alcorn had taken an active and prominent part in public matters since
his early manhood. Before the War of the Rebellion he had served several
terms as a member of the Legislature. He represented his county,
Coahoma, in the Secession Convention of 1861. He was bitterly opposed
to Secession and fought it bravely; but when he found himself in a
hopeless minority he gracefully acquiesced in the decision of the
majority and signed the ordinance of Secession. He also joined the
Confederate Army and took an active part in raising troops for the same.
He was made brigadier-general, and had command of the Confederate forces
in Mississippi for a good while. But, since the President of the
Confederacy did not seem to be particularly partial to him, he was not
allowed to see very much field service.
When the war was over he took an active part in the work of
rehabilitation and Reconstruction. He strongly supported the Andrew
Johnson plan of Reconstruction, and by the Legislature that was elected
under that plan he was chosen one of the United States Senators, but was
not admitted to the seat to which he had been elected. When the Johnson
plan of Reconstruction was repudiated and rejected by the voters of the
Northern States, and when what was known as the Congressional Plan of
Reconstruction was endorsed and approved, Alcorn decided that further
opposition to that plan was useless and unwise, and he publicly advised
acceptance of it. His advice having been rejected by the Democrats,
nothing remained for him to do but to join the Republican party, which
he did in the early part of 1869.
Since he was known to be a strong, able and influential man,--one who
possessed the respect and confidence of the white people of the State
regardless of party differences,--he was tendered the Republican
nomination for the Governorship at the election that was to be held the
latter part of that year. He accepted the nomination and was duly
elected. He discharged the duties of the office in an able, creditable
and satisfactory manner. The only point upon which the administration
was at all subject to unfavorable criticism was the high rate of
taxation to which the people were subjected for the support of the State
Government; but the reader will see that this could hardly have been
avoided at that particular time. In his message to the Legislature in
January, 1910, Governor E.F. Noel accurately stated the principle by
which an administration is necessarily governed in raising revenue to
carry on the government. This is the same principle that governed the
Alcorn administration when it took charge of the State Government in
1870. In that message Governor Noel said: "The amount of assessment
determines the tax burden of each individual, corporation, town, and
county. The Legislature or local authorities settle the amount necessary
to be provided for their respective treasuries. If all property be
assessed at the same rate,--whether for the full value or for ten per
cent, of the value of the property,--the payment of each owner would be
unaffected; for the higher the assessment, the lower the levy; the lower
the assessment, the higher the levy. Our State revenue is mainly derived
from a six mill ad valorem tax."
When the Alcorn administration took charge of the State Government the
War had just come to a close. Everything was in a prostrate condition.
There had been great depreciation in the value of real and personal
property. The credit of the State was not very good. The rate of
interest for borrowed money was high. To materially increase the bonded
debt of the State was not deemed wise, yet some had to be raised in that
way. To raise the balance a higher rate of taxation had to be imposed
since the assessed valuation of the taxable property was so low.
The figures showing the assessed valuation of taxable property in the
State and the receipts and disbursements prior to 1875 are not
available, but, taking the figures for that year, the reader can form a
pretty accurate idea of what the situation must have been prior to that
time. In 1875 the assessed valuation of real and personal property,
subject to taxation in the State, was $119,313,834. The receipts from
all sources that year amounted to $1,801,129.12. The disbursements for
the same year were, $1,430,192.83.
Now let us see what the situation was after the Ames administration had
been in power about two years,--or half of the term for which it had
been elected. According to a very carefully prepared statement that was
made and published by an expert accountant in the State Treasurer's
office in the latter part of 1875 the ad valorem rate of taxes for
general purposes had been reduced from seven to four mills, and yet the
amount paid into the Treasury was not only enough to meet all demands
upon the State, but to make a material reduction in the bonded debt. The
following is taken from that statement:
"An examination of the report of the State Treasurer, of the first of
January, 1874, at which time the administration of Governor Ames
commenced, exhibits the fact that the indebtedness of the State at that
date, exclusive of the amounts to the credit of the Chickasaw and common
school funds, balance of current funds on hand, and warrants in the
Treasury belonging to the State, was $1,765,554.33 The amount of the tax
of the previous year remaining uncollected on January first, 1874, and
afterward collected, $944,261.51, should be deducted from the above
amount, which will show the actual indebtedness of the State at that
date to be $821,292.82. A further examination of the report of the same
officer, for January first, 1875, shows the indebtedness, after
deducting amounts to the credit of the Chickasaw and common school
funds, balance of current funds on hand and warrants in the Treasury
belonging to the State, to be, $1,707,056.24. Then by deducting the
amount of the tax of the previous year remaining uncollected January
first, 1875, and afterwards collected, $998,628.11, the result shows the
actual indebtedness on January first, 1875, to be $708,428.13. The
forthcoming annual report of the State Treasurer, for January first,
1876, will show the indebtedness of the State, exclusive of the amounts
to the credit of the Chickasaw and common school funds, the balance of
current funds on hand, and warrants in the Treasury belonging to the
State, to be $980,138.33. Then, by proceeding again as above, and
deducting the amount of the tax of the previous year, uncollected on
January first, 1876, and now being rapidly paid into the Treasury, at a
low estimate, $460,000.00, we have as an actual indebtedness of the
State on January first, 1876, $520,138.33. Thus it will be seen that the
actual indebtedness of the State is but little over a half million
dollars, and that during the two years of Governor Ames' administration
the State debt has been reduced from $821,292.82, on January first,
1874, to $520,138.33, on January first, 1876, or a reduction of more
than three hundred thousand dollars in two years--upwards of one third
of the State debt wiped out in that time. Not only has the debt been
reduced as above, but the rate of taxation for general purposes has
been reduced from seven mills in 1873 to four mills in 1875."
Notwithstanding the fact that the rate of taxation under the
administration of Governor Ames had been reduced as shown above from
seven mills in 1873 to four mills in 1875 the amount paid into the State
Treasury was substantially the same as that paid in prior years. This
was due to the great appreciation in the value of taxable property. Then
again, a material reduction in the rate of taxation was made possible
because the public institutions had all been rebuilt and repaired and a
sufficient number of school buildings had been erected, thus doing away
with the necessity for a special levy for such purposes. From this
showing it would seem as if it were reasonable to assume that if such an
administration as the one then in power could have been retained a few
years longer there would not only have been a still further reduction in
the rate of taxation, but the payable debt of the State would have been
entirely wiped out. Instead of this we find the conditions to be about
as follows:
First. Shortly after the first reform State Treasurer had been in charge
of that office it was developed that he was a defaulter to the amount of
$315,612.19.
Second. Notwithstanding the immense increase in the value of taxable
property from year to year, it appears from the official records that
the rate of ad valorem tax for general purposes has been increased from
four to six mills.
Third. There has been a very heavy increase in what is known as the
specific or privilege taxes,--that is, a specific sum that business and
professional persons must pay for the privilege of doing business or of
practicing their professions in the State.
Fourth. The amounts now collected and paid out for the support of the
State Government are more than double what they were a few years ago,
thus showing extravagance, if not recklessness, in the administration of
the affairs of the State,--the natural result of a condition by which
the existence of but one political party is tolerated.
Fifth. Notwithstanding the immense increase in the value of taxable
property, and in spite of the enormous sums paid into the State Treasury
each year, there has been a material increase in the bonded debt of the
State. In fact it has been necessary at different times to borrow money
with which to pay the current expenses of the State Government.
The following statistics for three years, 1907, 1908 and 1909, would
seem to substantiate the above statement:
The value of the taxable property of the State in 1907 was $373,584.960.
Receipts from all sources that year were $3,391,127.15. Disbursements
for the same period were $3,730,343.29. Excess of disbursements over
receipts, $339,216.14.
In 1908 the value of taxable property was $383,823,739. Receipts from
all sources that year were $3,338,398.98. Disbursements, same period,
$3,351,119.46. Excess of disbursements over receipts, $12,720.48.
In 1909 the value of taxable property was $393,297,173. Receipts from
all sources were $3,303,963.65. Disbursements, same period,
$3,315,201.48. Excess of disbursements over receipts, $11,237.83.
On the first day of January, 1907, what is called the payable debt of
the State was reported to be $1,253,029.07. On the first day of January,
1876, it was $520,138.33. Increase, $732,890.74.