Stale oi niinois 

 WHERE THE 1938 STATE DOLLAR 



CAME FROM 



(Fiscal Year Ending June 30. 1938) 



This Chart Represents a Dollar oi Current 



Bevenue. Trust Funds ore Not Included. 



the various units of government insofar 

 as the added employees are not perform- 

 ing needed services of comparable value 

 to the citizens generally. 



Sales Tax Revenue 



The accompanying charts issued by 

 the State Director of Finance show the 

 source of state revenues and how they 

 are spent. By far the biggest source of 

 income is the retailers' occupation tax, 

 commonly known as the 3c sales tax. It 

 brought in more than $81,000,000 to the 

 state treasury last year, one-third of 

 which was specifically for relief. The 

 public utility tax alsp for emergency 

 relief netted another $9,000,000, or 

 more than $90,000,000 from these two 

 new sources alone. 



The other big sources of revenue were 

 the motor fuel tax ($41,000,000) and 

 the motor license tax ($23,493,000). 

 Liquor license, inheritance, insurance, 

 corporation and similar taxes and fees 

 totaled up nearly $32,000,000. Approxi- 

 mately $23,000,000 came from the fed- 

 eral government to be matched by state 

 funds for highways, old age assistance 

 «nd a small item of $163,317 for exten- 

 sion work. 



Solving Unemployment 

 Therefore any discussion of tax re- 

 duction should begin with solving the 

 unemployment problem. For many years 

 industrial production and employment 

 have been far below normal — largely 

 because the public could not pay the 

 prices and wages demanded for goods 

 and labor. Farmers have attempted to 

 meet the situation by controling their 

 surpluses and thereby restore farm prices 

 to parity. With farm purchasing power 

 restored trade would be resumed and 

 unemployment reduced to a minimum. 

 The solution of the farm problem un- 

 questionably holds the key to the reduc- 

 tion of unemployment, relief, and the 



exhorbitant expenditures for this pur- 

 pose. 



1 am confident that had the federal 

 government centered its efforts on pol- 

 icies to restore and maintain a fair rela- 

 tionship or exchange value between the 

 products of the farm and industrial 

 prices and wage scales that the depression 

 could largely have been avoided and we 

 would not now be facing a tremendous 

 burden of debt and the evils of unem- 

 ployment that have been with us for 

 nearly ten years. 1 am equally confident 

 that these serious problems will not be 

 solved until farm prices and farm in- 

 come are restored permanently to a prop- 

 er balance with price levels of industrial 

 goods and the services of workers. 



Political Apf>ointees 

 Adherence to the civil service code, 

 elimination of purely political appointees 

 who perform no useful service, and 

 making it a criminal offense to high 

 pressure government employees into pay- 

 ing over part of their income for political 

 campaign expenses would go far toward 

 cutting down expenditures without elim- 

 inating needed services. 



The local taxing system in Illinois 

 continues to rest almost wholly on prop- 

 State of Illinois 

 WHERE THE 1938 STATE DOLLAR WENT 



(Fiscal Year Ending June 30, 1938) 

 This Chart Represents a Dollar oi Actual 

 Expense. Trust Funds and Transiers are 

 Eliminated. 



'£MtR6£NCVREUEF 

 I7V4C 



010 AOE ASSISTANCE 



I (Includes Both State and 

 Ftdtral Share) 

 I2%c 



IWTOdWILTM/ 

 MSTHMTION/ 

 rOCOUWTIES/ 

 t CITIES 



STATE HKNWAYS 

 I8/4C 



'^ — \ih/ \.is. tOUCATION 



jj'-i.''- ^ mimi'i tgv. «i oth«r school ' 



/Kllllutairiljbr., 

 /CMMrM«lM«WHMf 



9V. 





erty. More than half the population of 

 the State and three-fourths of the net 

 income is exempted from any direct con- 

 tribution to the cost of local government. 

 This condition does not make for good 

 government. Further revision of our 

 taxing system to one based more nearly 

 on ability to pay with every citizen mak- 

 ing some direct contribution to the cost 

 of government, in my judgment, is nec- 

 essary to create a greater tax conscious- 

 ness among all the people, elect honest 

 and capable public officials and thus 

 secure more efficiency and economy in 

 tax expenditures. 



Excessive war time use of gasoline 

 in England and France has created a 

 heavy demand for American horses and 

 mules. Heavy experts from this coun- 

 try are expected to begin soon. 



Three hundred WPA workers are 



preparing ground for flooding 6900 

 acres in the Crab Orchard Creek proj- 

 ect in Williamson county. Approxi- 

 mately 1,500,000 board feet of lumber 

 have been removed from the basin. 

 Saw mills have been busy converting 

 the logs into boards for bridges, cul- 

 verts and other structures in that area. 



For the 11 months ended October 31, 



1939, memberships paid to the Amer- 

 ican Farm Bureau Federation totaled 

 396,799. From the mid-west came 

 205,436, from Illinois, 58,650. Second 

 high was New York with 41,477, Iowa, 

 third with 33,137. 1 



Reinspection of farm stored wheat 

 in some areas reveals the presence of 

 considerable weevily, heating or musty 

 wheat, according to Claude Wickard 

 of the AAA. 



"ROUT the WEEDS! WHY, 



WHEN AND HOW and "DISEASES 

 OF SMALL GRAIN CROPS IN IL- 

 LINOIS" are subjects of interesting 

 booklets recently published by the Illi- 

 nois Natural History Survey, Urbana, 

 III. Copies are free. Ask for cir- 

 culars 34 and 35. 



Free limestone and rock phosphate 

 will be available to AAA cooperators 

 in 1940 when approved by local com- 

 mittees in 15 southern Illinois counties 

 as follows: Jasper, Marion, Clay, 

 Richland, Jefferson, Wayne, Edwards, 

 Randolph, Perry, White, Union, Alex- 

 ander-Pulaski, Massac, Pope-Hardin. 



A com loan of 57c per bu. for the 



1939 crop and a cotton loan of 8.3c 

 per pound on % inch middling cotton 

 were recently announced by Commod- 

 ity Credit Corporation. The full loan 

 rate is available only to cotton coopera- 

 tors who kept within their '39 allot- 

 ments. Non-coopcrators are eligible 

 for a loan at 60 per cent of the above 

 rate on cotton. 



W. Ralph Taylor, assistant farm Ar>- 

 VISER with the Henry County Farm Bureau 

 since 1936, succeeded Ray Benbow as District 

 4-H Club Leader with the state university 

 Dec. I. Ray became farm adviser in Mc- 

 Donough county recently. ,. . 



L A. A. RECORD 



