Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-01-08
Governors Address.

| us. For the abundance of the necessares and
comforts Of life, the general health, the unnter.
rupted peace and good order, and the intellectual
| and moral influences with which We, as people,
have been favored during the past year, there is
occasion for devout gratitude and thankfalness.
| In laying before you the information required
by the Constitution, it affords me qualification to
| be able to present so favorable q report of the
financial, educational and other mportantinteres
of the State. So far as l am aware every depart
| ment has been conducted with fidelity, integrity
and prudence, and with the single purpose Of pro-
| noting the public welfare. l need not remind
you, upon whom devoyes the responsibility OF au-
thorizng and directing public expenditures, that,
| in the present depression of business, there Is
special and urgent necessity that every appropria-
| tion should receive the most rigid scrutiny. So
most earnestly endeavor to apply the same econo
| my, fidelity and scrutiny to public expenditures
| that prudent business man would apply to his
| own affairs
The STATE FINANCES.
| Considering the gigantic burdens imposed upon
| the people of Maine as well of every other
! loyal State, by the war for the preservation of
national existence, the financial condition OF this
| State is more favorable than could have been
reasonably expected. 1t appears by the report of
| the State Treasurer that the aggregate receipts
Of the treasury during the past year, including
ST ,853 04.38, and the disbursements during the
| same period 81 537 1854, leaving a balance OF
1922 1854 in the treasury Jan. LIST, 1875.
| Of the receipts, 81 ,l69. .S62 was from the State
tax of five mills the dollar, $751; 1896 from pub
| lie lands, Sl42, ,25S from the tax savings banks
about S72, 900 of this being still unpaid, Sl3,-
S2S from the tax railroads, So $50 from interest
on deposits, 81 ,240 from duties on commissions,
Sl749 from licenses TO peddlers, and > ,422 from
| insurance department.
/ Of the disbursements So &c were on account OF
rents of shores belonging to the Penobscot In
dians and SS O65 on account of taxes assessed on
wild lands for the beLeft of counties, sums which
simply passed through the treasury-leaving the
actual disbursements 81 ,524 ,497 OF this amount,
SSl 900 were paid Oh account of special and eX-
ceptional appropriations for rebuilding the car
riage shop IN the state prison, re-arranging and
| repairing the reform school building, finishing
| the chapel building connected with the insane
hospital ventilsting the state house, building
roads and bridges mainly in Aroostook county,
and IN aid Of the College of Agriculture and Me-
chanic Arts, Maine General Hospital and Indus
| trial School for Girls.
| Thus, after deducting these special appropria-
tions, the expenditures Of the past year appear TO
have been 81, 1859. OF this amount, STA ,i26
was on account Of war debt, pensions to soldiers
and aid to soldiers orphans, and S40l HI on ac-
} count of public and free high and normal schools,
| with considerable sum still due on account of
| educational purposes. The ordinary expenditures,
| therefore, during the past year, have been S32o,
| 69i, or little less than one and half mills on
the dollar of the State valuation. While this
/
State arc controlled by considerations of economy
to an extent rarely observed in public affairs, vet
| in my Judgment there are some directions IN
| which the expenditures Authorized by law may
| be somewhat reduced without injury to the public
| interests. On this subject l shall communicate
| with the legislature at an early day.
The STATE DEBT.
On the first of January, 1875, the State debt,
after deducting the sinking funds, was So,5ol ,oi6
a reduction of 1921 5.5 during the past year:
| The nominal public debt, however, as represented
by uncanceled State bonds, 81 ,0SS, 4OO-a re-
duction of $4,000 during the same period, by the
payment and cancellation Of the loan to this
| amount which matured March lst, 1874. The
| balance Of the amount set apart for the reduction
of the public debt S27l ,575l has been paid TO the
sinking funds, which now amount to Sl,oZi ,3Z4
The aggregate payments from the treasury, on
| account of the State debt, during the past year
were S619, ,55S, of which S3529 959 was for inter
est $32l ,575 for maturing debt and funds
and S5,O24 for premium on bonds purchased and
expenses; although under the sinking-fiind sys
TEN larger proportion than this is assigned to the
interest account. As existing laws require SIM
liar payment every year, on account OF the public
debt, annual assessment Of three mills on every
dollar OF the State valuation is rendered nccesssr!
for this purpose At the close of the present year
| when the tax assessed for 1874 shall have been
applied to the objects for which it was contempat'
ed the State debt will be reduced TO about 81 22O,
600.
lars have been paid by the people Of Maine on ac-
count of the State debt-nearly three millions
being for reduction of principal and four millions
| on account of interest. Should the present rate
| of taxation be continued, the balance OF this i'm
mense war debt would be cxtinguishcdn in fourteen
years from this date. Thus the same generation
that met the personal responsibilities OF the terri
hle contest TO preserve the national existence
would also be called upon to bear all the financial
burdens which it imposed upon the State, amount
ing in the aggregate to more than twenty millions
of dollars, exclusive of burdens borne in contri
buttons to the national treasury. Surely others
who are to share the fruits of II struggle which
has scarcely a parallel in history, though they
cannot participate in the terrible sacrifice Of blood
will esteem it privilege, we'll as duty, to aid
in dischargng the pecuniary liabilities which il
entailcd on the country.
So long as business was conducted on the spec.
ulaiive basis which it assumed during and imniedi
ately after the war, and profits were supposed to
be unusually large, it was wise to take advantage
of the opportunity to rapidly reduce the Pubht
debt. But in the present rancial condition OF
the country, and indeed IN the near future when
business shall have resumed its normal state, SC
large an annual assessment as is required by exist
ing laws, can but be severely felt. Should the
Legislature consider it advisable TO reduce the AS
sessment on account Of the public debt to two
mills, the proceeds would meet the interest on tho
outstanding debt and extinguish the municipal
war loan Of 1865, which natures Oct l, 1889, ano
which cannot be renewed without an amendment
of the constitutional provision by which Ii was
authorized
The remainder of the outstanding loans
constituting about one-half Of the public
debt, mature mainly in $780, 1888, and June, 1889
and as II ey are subject to constitutional limits
as to time of payment they may be renewed by
the Legislature Should it be deemed expedien
TO authorize such renewal, l suggest that the
new bonds be made payable in sums Of $500, COX
annually, commencing with 1890, in order tina
the necessity of sinking fund may be avoided
and that they be issued only as, by exchange OF
sale and purchase. they can be substituted fol
bonds of at least an equal amount of the loan
which they renew. AS along bond is a more de
sirable investment than one maturing earlier, thu
treasurer would undoubtedly have no difficulty il
substituting the new for the old loans, long before
the latter should mature.
The SINKING FUNDS.
Toprovide for the payment Of the war loans 0
nearly four millions, negotiated in 1868 and 1864
At their maturity in 1880, 1883 and June, 1889, thu
legislature 10 1865 directed an annual assessmen
of threeto Of mill on every dollar OF Stat
valuation, and set apart the sum so paid ant
the income thereof, as a sinking fund, to be in
vested in bonds of this State of the Unile'
States. This is known as the sinking fund o
1865, which now, including premium on U. ;
bonds and cash, amounts to 81 l,0f,0S7. Again
to provide for the payment Of the municipal wa
3eht of 90 0S3 600 nepOtiate0 in 1865, at II