On January 4, 1875, the taxpayers driven to desperation by this confiscation of their property met in convention and submitted to the Legislature a most respectful appeal for relief. The Legislature treated the petition with contempt, an action which resulted in the organization of taxpayers' leagues over the State and the speedy overthrow of carpet-bag government.
This struggle between taxpayers and tax-layers in Mississippi is but another illustration of the truth of Edmund Burke's saying that "from the earliest times the great battles for human freedom have been fought out on the question of taxation."
But the price of the victory was dear and the penalty paid for experience was great. In addition to a payable and interest-bearing debt of $984,200, the carpet-baggers left outstanding, unpaid on January 1, 1876, non-interest bearing Auditor's warrants amounting to $414,958.31. During the last six years of their regime, as is shown by the Auditor's and Treasurer's books for these years, they spent $8,501,337.86, strictly on account of the expenses of State government, an average of $1,484,699.55 per annum. They collected nearly a million dollars of what is known as the Common School fund, and spent it all in riotous governmental living, save the pittance of $57,000 in U. S. bonds left in the treasury to the credit of that fund.
This money was not spent on the common schools, the purpose for which it was collected, but was misappropriated and unaccounted for, and a debt against the State on account of that fund, was left January 1, 1876, amounting to $830,378.18. This, too, in spite of the fact that the average rates of State and county taxation during the six years in question were 8.87½ mills and 12.49-2/3. mills respectively, making a combined average of $21.37½ on the thousand.
Indebtedness was thus the legacy which the "Modern Period" [1876-1898] in Mississippi's fiscal history received from the period of "Reconstruction and Radicalism." Although burdened with this incubus and with increasing expenditures for educational and eleemosynary institutions, the "Modern Period" has been characterized by a decrease in both State and County tax rates and by a proportionate reduction in State indebtedness, both in amount and interest charge.
The first year of this period, i. e. 1876, gave earnest or fiscal reform. State taxes were reduced from 9½ mills on the dollar to 2½ mills. The taxing power of county boards of Supervisors was restricted, a law being passed which prohibited them from levying taxes for county purposes, which added to the State tax, would exceed 16½ mills on the dollar, except for indispensable purposes. Supernumerary officials were dismissed, the common school system improved, sinecures abolished and salaries reduced. The highest rate of compensation was no longer paid for the lowest standard of qualification. This policy of economy in State administration has yielded substantial results.
The average rate of State taxation for the past 22 years, inclusive of 1876, has been 4.66 mills, as opposed to an average of 8.87½ mills for the six years preceding 1876. The average rate of county taxation for the same period has been 11.1 mills, as opposed to 12.49½ for the six years preceding. Combining averages, we find a saving to the credit of home rule of 5.60½ mills on the dollar, or 5.60½ on the thousand.
Reduction in tax rates has meant a reversal of the policy of confiscation. Of the 6,400,000 acres of land forfeited for nonpayment during Reconstruction rule, all save 250,000 acres have been redeemed. Property valuation has largely increased, the value of real and personal property in the State today being estimated at $156,432,328.
Conservative capital is seeking investment in all branches of industrial enterprise and economic progress is following in the wake of fiscal reform.