Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1863-03-05

I - WV UNIV pSi''h VIII w IOtho az tite
Statement Of Estimates, marked d, to be
/ 81 ,433 900, which, as will lie seen by the
table contains a large estimate for foreign
exchange. thus showing probable surplu.
| of receipts over and above disbursement
for the FISCAL year ending September Both
1868, OF 1865 900, which added to the bal
ance in the Trarsury proper, as of Septen-
Der 30th. 1852, will make the probable sur
I plus in the Treasury at the end of the'cur-
rent fiscal year amount to Sl,111,749,l 10,
unless in the meanwhile invested.
Section 8 of article IS of the Code OF
Puolic General Laws devolves upon the
/ Treasurer the duty of making investments
Tor the benefit of the Sinking Fund from the
| incremerts arising therefrum, and section 9
of the same article gives a discretion to the
Treasurer to employ all surplus moneys
which may tany time be in the Treasury,
, not required in the judgement of the Comp
stroller and Treasurer to pay the ordinary ex-
| rcnses, and the current interest upon the
| funded debts Of the State to the purchase
of the funded debts of this State or of rart
or parts thereof, or the redemption Of such
| part or parts Of the saio funded debts as NAV
be due or become due.
| 1t will therefore be perceived, that with
! Fund, the authority and duty of making in
! vestments reside exclusively in the 1rcasn-
rer; and that with reference to the SUI pluses
OF general revenue, tie duty of the Comp
tru!ler is limited t" the expression of lis
o, irii"n of the eligibility Of making Invest
ments thereof when such opinion is required
by the Treasurer, no provided in the article
and section Of the code r, icrred to.
I, Al.
the Sinking fund during the last fiscal wear
to he &l6s, 872,l7; and Statement T shows
that This sum so invested purchased stocks
! OF the State amounting to S294,S4l, 49, and
that the balance of cash remaining at the
credit of that fund amounted, as Of Septem-
her 30th 1868, to 49,, 3992s; Whilst the
whole amount of the fund III stocks and cash
lis Of same date amounted - 5,391 659, %.
| a serious difficulty now presents itself in
making investments for this fluid owing to
the very high rate of exchange on London
required to be paid for the sterling debt, and
the high price aud almost impossibiity of
making purchases Of the currency debt, Ito
which alone the Treasurer is restricted by
law in making Investments for the benefit
of this furd)
Statement L shows the condition Of the
rec School Fnnd,
a Considerable portion Of this fund is de-
rived from dividends on stocks of Snnlry
! faL as Of the State, held far certain counties
| The dividends Of some Of these banks
| having been less durjnc the past fsca! ear
, i an usual the sums dist ribut"d to certain
! counties have in consequence been smaller
than IN some f2rmer year.
The apparent or nominal debt of the
State, as will he ; en- bv Statement j. is
| STA, 500 050,G3; but of this whilst the State
! STANDS tuuud Tor th' ultimate payment
! should The Baltimore and Ohio Railroad Com
| pany prove unable to make it; s242l, l1l.1l
| has the interest regularly provided for, aud
| paid III London lay the said Company, with
ont any agency on tile part Of tho State in
tie said payment; and the said Company
regularly reiinbulscs the State for tho inte
rest paid on the further sum of $S4s,2l0 90
which Was originally Il part Of the sant
loan, but converted into the currency by au-
thority Of chapter 4 ! Of lS47; these sums
| the Interest OF which is thus paid by the
& mpany, if deducted from the apparent
debt, leaves as the remaining debt 1929
729, 50, from which, ii the amount OF stocks
and cash standing to the credit Of the Sink
ing Fund as Of September 3Oth 1862, be de-
duccd, say S., 39l $50 2S, would leave as
| the actual debt Of the State npon which tn
pmy interest AT the last mentioned date So
28s 900 20: which is further diminished by
Investments. for the SIN ing Find, and re-
denptuns made since the close of the fiscal
year; SO that the actual debt for which the
payment is yet TO be provi led will no, much
exceed $4,000 900.
Whilst part of the outstanding public
debt is payable at the pleasure Of the State
after the years 1865 and 1870, much the
larger portion thereof is not payable until
after 1885 and 1890, and then only at the
pleasure of the State.
Under the circumstances, the sinking fund
is providing the means for the extingulsh-
ment OF the debt m oh faster than tie debt
natures; and until TIE debt natures, the
Treasurer is Obliged to 60 into the market
and make purchases If stocks at their mar
ket value, " hi,h is 50 | igh now ~ TO cause
such investments oi the increlnents as they
accrue 10 he made at prices disadvantageous
to tie State, aud in fact II is difficult, AS ]
have before stated, 30 make such Investments
at ALL
it would seem wise, therefore, that much
the larger portion OF the stocks held for the
sinking fund At present should lie cancelled,
so as to reduce its uuwieldy bulk and pre-
vent the accumulation of that fund more
rapidly than would he required Tor tie GER
tain cxtinguishment of the principal Of the
debt us it natures This would reduce the
competition for thu stocks of the State, and
allow such portion as might be necessary
Tor the investment OF the reduced increments
Of the Sinking Fund to be made upon terms
much mere advantageous to the State, and
far more promptly, than at present, is pos
shle 1t can readily be seen that another
great advantage would accrue to the people
10y the propriety and entire pmcticability of
reducing the State tax, or rendering the pay
ment Of any direct tax altogether unncces-
| sary. -sl. Jft1 t H ~ ~ -D+
Should there he 10 session of the Legis-
lature before the constitutional period ar
rives for Its meeting, the surplus then re-
naming in the Treasury or invested, as the
case may be, will probably show such a re-
| suit as to warrant, at that time the entire
repeal of all laws imposing direct taxes
The revenues to be derived under a fair dis
charge of the duties of the ComptrolIership,
| from indirect taxes and other sources, will
in my judgement he ample to meet the inte-
rest Of the thus reduced debt, and delray
| the annual EXPENSES Of the State Govern