FINANCE. The first Legislature of the State authorized in 1S37 a loan of $5,000.000, to be de voted to public improvements. Only a small part of the bonds were sold direct and paid in full. About two-thirds of them were deposited with the 'United States Bank of Pennsylvania, which failed in 1841 after selling some of the bonds. The State became liable for interests on these bonds, for which it never received any payment. It could not meet the interest payment in 1842. An adjustment was soon reached, which amounted to a partial repudiation of the State debt. The State debt amounted in 1861 to $2, 316,328. increased during the war to $3,880,399. but fell to $904.000 in 1880. and was almost alto gether extinguished in 1890. The present Con stitution contains very strict provisions against formation of a State debt. any debts over $50,000 being absolutely prohibited except in case of war or insurrection. The indebtedness dates from the
Civil War. and amounted in 1902 only to $416,300. The State must not subscribe to the stock of any company. shall not lend its credit to any one, and must not undertake any internal im provement unless it possesses a specific grant of land or other property for that purpose. The income of the State grows steadily, and was $1.510,000 in 1S70. $2,007,000 in ISSO, and $3, 181,000 in 1890. In 1902 the total receipts were $7.079.429, and expenditures $6,253.14], leaving a surplus of $826.288, and a. total balance in June. 1902. of $3,453,811. The revenue of the State is derived partly from direct taxation (about 65 per cent.), and partly from specific taxes on railroads (about 23 per cent.), and on milling companies. banks, insurance and express companies. Altogether, about one-third of the income comes from these specific taxes.