48 THE FISCAL PROBLEM IN MISSOURI 
fully guarded and that indebtedness should be incurred only 
under certain narrowly prescribed circumstances. 
Section 44, Article IV, of the Constitution, in its original 
form,! provided that the General Assembly shall have no 
power to authorize the contracting of state indebtedness, 
except in the following cases: First, indebtedness may be 
incurred in renewal of existing bonds, that is, for refunding 
purposes, when resources in the sinking fund or otherwise 
available do not permit their retirement at maturity. This 
provision by itself cannot result in the incurring of any addi- 
tional indebtedness. Second, indebtedness not to exceed 
$250,000 for any one year may be incurred in the event of 
an unforeseen emergency or casual deficiency of the revenue. 
Such temporary liability can be created only on recommenda- 
tion of the Governor and must be paid in not more than two 
years. Third, the General Assembly is given constitutional 
authority to submit an act to the electorate providing for 
the incurring of indebtedness not to exceed $250,000 for any 
one year. The Act must provide for a tax sufficient to meet 
interest and principal payments, the latter to extend over a 
period of not more than thirteen years. A two thirds ma- 
jority vote is required for ratification. 
These constitutional restrictions are among the most 
severe found in state constitutions in the United States. 
It is obvious that the current practice of financing state 
developments through borrowing could be introduced only 
after Section 44 of the constitution had been duly amended. 
Before considering the amendments of 1920 and later years, 
other limitations that have been a part of the fundamental 
law since 1875 should be mentioned. 
Section 45? of the constitution provides: “The General 
Assembly shall have no power to give or to lend, or to 
authorize the giving or lending of the credit of the State in 
aid of or to any person, association or corporation whether 
municipal or other, or to pledge the credit of the State in any 
manner whatsoever, for the payment of liabilities, present 
or prospective, of any individual, association of individuals, 
municipal or other corporation whatsoever.” The origin of 
this section is closely linked with the period in Missouri’s 
1 As approved October 30, 1875. 2 Article IV,