Port Tobacco times, and Charles County advertiser. (Port Tobacco, Md.) 1845-1898, 1854-04-13
REORGANIZATION OF THE ACCOUNT
BETWEEN THE UNITED STATES AND
MARYLAND

EXPERIMENTATION OF THE ACCOUNT
BETWEEN THE UNITED STATES AND
MARYLAND.
1t will be recollected that a memorial
was presented to The u. S. Senate BY Messrs
VIM. ID. Merrck and BENJAMIN g. Howard,
special agents of the State Of Maryland,
praying The payment 10 The Stale of an a.
noun! Of money due from the General
Government The memorial was referred
to the Senate Committee on Finance, of
which Hon. }. A. Pearce is chairman, and
he has reported from tina. Committee bill
to authorIse re-eXaminstion of the account
between MARYLAND and The United States, and
TO pay the Slate any amount that NAV be
found due. From the report made by Mr..
Pearce we find the history of he claim to be
as follows:
During the war of 1912, Maryland bor-
ro"ed large sums of money to be applied
TO the purchase Of arms and ammunition,
ana The equipment and pay of The militia
called into service for the defence Of The
State, Vi The sums thus borrowed S279,.
GIG o. were admitted by The government,
Of the Uni'ed States to have been expended
for the use and benefit Of the United S,aes,
and were subsequently, repaid to the Safe
of Mary land that the State paid interest
on these sums for a considerable time, and
then disc charged the debt by transfer Of u
States six per cent. stock, at that time held
By the State. But no payment was made
by the United States to The Slate of Mary
land, on account Of The interest on said adj.
vances, until Congress passed the act Of
May IL, 1926, which directed the account
ing officers of The Treasury to "liauda.e
and settle The claims of the State of Mary.
land for interest upon loans on money Dor
rowed and actually expended by her for the
use and benefit of the United States during
the late war 18th Grea, Britain" Under
the act, as construed by The accounting
officers, they allowed interest to the State
only where such interest had been directly
paid by the State, and refused j, where the
State had lost interest, as by discharging the
debt by the transfer of an interest bearing
fund
The injustice Of this refusal has since
been acknowledged b, Congress in the case
of the Stale of Alabama upon the advances
made by her to the United States in the sup
preston Of Creek Indian hoslii,ies, and
Congress has, by The act Of January 26, |
1919, provided for the payment of interest
TO The State where she had lost Interest,"
The Stale of Mary land lost interest by
transferring to her creditors, in liquidation
of the securities which they held, United |
States six per cent. stock, which the State
then held, and on which she was regularly
int h.
fore, think the claim OF Mary land so just
that they have not hesiiated to report bill |
directing the re-examinalion of the accoun,
between the United Sales and MARYLAND.
and The payment 10 the State of any money
that may be found due 10 her. According
to the provisions of The bill, the accounting
officers making the denomination are to
assume the sums expended by The State Of
Maryland, for the use and benefit of the u
nted States, and the sums refunded and re-
paid by the United States to The said State,
and The times of such payments as being
correctly stated in the account, as the same
has heretofore been passed at the Treasury
Department; but in the calculation of inter
est due under the act aforesaid, the follow
ing rules shall be observed, to wit: Interes.
calculated up TO the time Of any payment
made. To this interest the payment shall
be FIRST applied, and, fit exceed the interest
Que, the balance shall be applied to dimin-
ish the principal. 1.-THE payment fall short
of the interest, The balance of interest shall
no. be added TO the principal so as to pro-
duce interest. Second interest shall be al
lowed the Stale Of Maryland on such sums
only on which the said State either paid in
terest or lost interest by the transfer Of en-
interest bearing fund. The State will be
much indebted 10 Senator Pesrce for The al
!en.ion he has given to this claim, and the
successful manner in which he has brought,
ii before the Senate The bill having aIrea-
dy passed through its second reading
Baltimore .american
THE BRITtsH FrEET AND THE RarTrc