He also made substantial contributions to the state's financial situation. The state had been in debt since the start of the internal improvements in the early 1830s and had twice verged on total bankruptcy, in 1847 and 1863, and once entered a partial bankruptcy in 1841. Although the state was not in immediate financial risk, it was still heavily burdened by debt. Ralston was insistent on paying off the state's debt and creating a rainy day fund, and advocated amending the constitution to prevent the state from borrowing funds in the future. Through a combination of spending cuts and increased taxation and with the support of the General Assembly, the government was able to pay off the entire state debt and create a $3.76 million surplus fund by the time he left office.