Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1868-03-20
Assumption.


ton of municipal war debts Limited
assumption and reimbursement thereof by
the State,"- passed by the Legislature thi.
winter. The purposes of the debt 20 be
contracted. the additional taxation it will
bring upon the people, and the means by
which the debt is to be met. are to many
three inexplicable problems. Some OF
those who voted for it were virtually L.
norant of the measure they were support
ing. On the day OF its passage you might
have seen the figures of half Il dozen men.
each purporting to give the.relative advan-
tage or disadvantage of the operation of
the bill upon some particular town. and
each showing a different result. Some,
wi hout attempting to fally understand
these questions. endorsed the measure.
trusting in the late rity and Judgment of
those who advocated it. The magnitude
OF the numbers (truly startling to cnntem.
plate). deferred many from attempting to
master the principles involved.
IT is true that absrusc questions may be
Indirectly connected with the suhject which
may require the skill Of Richards, OF the
logic of John Stewart to look into AMI
unravel. How much the credit of the
State may be effected by the issue of three
and one half millions OF DO IDS proposed,
and what its influence upon the prosperity
ut large, are questions for economists, fl
Dancicrs and bankers. with long AMI ex-
teHsive practical experience to answer
Tie mathematical problem. however.is no
less simple when the amount is reckoncd
by millions of dollars than when confined
to few cents, and can be understood by
any one able TO compute interest on any
sum for number of years. The technical
terms, used Ey brokers. of which the ma
jority Of .le people are not conversant,
need not be used in explanation bat would
contribute TO coneiSeness if understood.
The bill provides for the issue on the
part Of the State, of six per cent. coupon
bonds. payable in twsnty years. sufficient
in amount to reimburse each city. town.
and plantation one hundred dollars for ev
cry man furnished the United States mill
tary service, for Il term OF three years. and
in the same proportion for Il shorter peri |
bonds except enough to pay the fractional
parts of one hundred dollars. unless GER
tain towns refuse to take the bonds, when |
the State Treasurer will sell them and pay
the towns tie proceeds, more or less.
In the event that the proposed amend |
ment to the Constitution is adopted next
September, so as to PIT this measure into
operati III the State tax must be increased |
for two purposes. First, to pay the inter-
est on these bonds. which will amount to
very nearly two hundred thousand dollars.
Second, 20 creI;e u sinking tunl which
constantly fund Il with lis accruing inter
est shall pay these bonds at the time OF
maturity tn cuty years hence. The amt
which viii be repaired 10 pay the interest
IN the two hui-ltel ta,usaA d)Ilars-
will be one mill ana two tcil,hs on the
State valuation of 1860. Each town thea
will receive oac hundred dollars for each
three Yeas soldier ii f;itai>hcd aal be able
to discharge is municipal war debt Of SO
much. and pay al increased tax OF one
and TWO .tehihs mills on its valuation of
1850.
The anoaat req9rel for a sia,,ilg find
cannot be exlc!ly conpHcd unless we
know eXlctly t!leruc Of interest at watch
i, VIII bU fladed and the raPi,iiiy With
Whir.l t.!r Interest VII b. co rpouIIei-
his NH -d.pead somewhat upon tHe IL
nanril ability Of the STATE agent. but
mos.ly upon The prosperity OF the Country.
Should We Tx 4 probable limit, W. can ex-
actly compute tle required fund an.l ihe
per cent it will Id to the State tax. Rec
Oh il at six per cent. with interest com
pounded annually, AMI We may be assured
that the Incidental ex?en ses will be cover.
ell. In other words the State Treasurer
can do enough better to pay all expenses
III funding. At this rate Il school boy can
compute the required sinking fund An
annuity OF one dollarat six pes cent com
pound Interest in twenty years will amount
t. thirIy-siX dollars and seycHtv-ci ,..!t cts.
aAd five mills. (Scc GtecHleat : National
Arithmetic, 1861, Page 45G.) One hundred
thousand dollars then, funded at this rate
Of per cent. until the bonds became duc,
would amount to three millions six hunl-
red and seventy i,lt thousand five hund-
red aad tity-;iae dollars. a sun by five
hundred thousand exceeding the required
amount.
To raise this sum would increase the
per cent, or in addition to the SUN reauir-
ed for interest but one mill and eight
tenths per cent. The increase Of taxation,
then, from the adoption of this bill as
law. need not eqceed two mills on dollar
and after few years will not exceed one
and half mills on dollar, this constant
ly decreasing as the prosperity of the state
Increases.
SO we see that the sever ! towns will re-
ccive the bonds, which they can transfer
TO their creditors. The increase of the
State tax need not be more than two mills
Atthe end OF twenty years there will be
sufficient money in the State Treasury to
meet the bonds.
Suppose your towI, has credit of siXtv-
one mcn which were furnis he'd the Gov
eminent for three years. Suppose further
that its valuation is $4,000. Its State tax
will then be raised about $40, whileit will
receive S6.lO0 in bonds OF the State, pay