FOREST TAXATION IN THE UNITED STATES 631 
guards provided in regard to its repayment. In about half of the 
States there are consitutional provisions limiting the amount of bonded 
debt which a local unit may incur, but to be effective the limitation 
should cover also nonbonded debt and should apply to the aggregate 
indebtedness of all overlapping districts. A limitation applying to 
a single juridsiction has often been completely circumvented by the 
aia of a special district. In lieu of, or perhaps in addition to, 
a constitutional limit, there is much to be said for a disinterested 
reviewing agency to pass on each proposed note or bond issue. 
Several States have such agencies and have found them an effective 
deterrent to the creation of hasty and ill-advised indebtedness. 
Statutory restrictions are also needed covering the terms of the debt 
contract. Sinking funds are so precarious that some States have 
forbidden the issuance of any other than serial bonds, a safeguard that 
should be universally adopted. There should also be definite limi- 
tations in respect to maturity, the life of the bond depending on the 
character of the improvement to which the proceeds are applied. 
Funding bonds should have a very restricted maturity. 
There are many other aspects of governmental finance which are 
frequently characterized by laxity and a consequent waste of the 
taxpayers’ money. Public funds on deposit in banks should be more 
amply protected. Officials handling public funds should be required 
to furnish bonds ample in amount and taken with strong surety 
companies; personal bonds should never be accepted. There is a 
need in most local governments for better accounting and more 
regular and systematic auditing. Savings could often be effected 
through centralized purchasing. 
IMPROVED TAX-COLLECTION PROCEDURE 
One of the fields in which there is the most room for saving in local 
government administration is the collection of taxes. This is a diffi- 
cult and very complicated problem, and such suggestions as may now 
be offered looking toward its solution have already been presented in 
discussing means of improving the operation of the property tax. 
STATE SUPERVISION AND GUIDANCE 
Local units of government have always been subject to a certain 
amount of State regulation. Formerly this regulation was attempted 
through legal prescriptions or restrictions interpreted and enforced 
by the courts. However, as the functions of local government have 
expanded and become more complex, there has arisen a need for expert 
supervision and guidance. The local governments often lack the 
experience and facilities to meet the technical problems which arise. 
State agencies have therefore been set up to assist and cooperate 
with the local agencies. While generally the local governments have 
been left with a large measure of autonomy, the nature of the service 
has sometimes compelled the attainment of a minimum standard of 
performance. In these fields, the State has often attained its objec- 
tive, without appearing to dominate, through the use of a grant-in-aid 
conditioned on the attainment of the required standard. In other 
fields, the State has exercised no compulsion but has offered only 
counsel and guidance. 
