The Portland daily press., 1875-02-17
Financial Dcctors DiSagreeing.

To the Editor Of the Press:
| claim TO be as much interested and TO nave
as much at stake in the financial hohor anu
standing of the State of Maine. as does your
correspondent, &c. W. g.. AT the same time
[ entirely disagree with him as to the scope
and effect of the Governors recommendations
relative to the public debt, which, it seems
have been all but unanimously adopted by tue
very able Legislative Committee on flhanc'ai
affairs-which of itself is an evidence that your
correspondent deals, to say the least, IN a very
vivid and unsafe imagination when ne Styles
the Recommendation "heresy." Your cores
pondent &C. w, c. says that he appeared pe-
fore the committee and opposed it earnestly as
a citizen of Portland and the county OF Cum-
berland, paying, as they do, 13 and ~ per cent
respectively of the entire state tax. Mr.. God
dard may have appeared to express his own
views, but to my certain knowledge ne ulo NOV
appear to represent the views OF most Oh tne
abest, candid fipancers Of Portland. your
correspondent it seems, had the argument all
to himself before the committee-no one appear
ing to present the other side OF the questioh'
and vet the committee, after c. W. G's argu-
ment and bristling assumptions voted niue u
one against him. This shows that y. w. u. 5
opinions ON the question are not held OF qulte
so much account by others as by himself.
must confess that cannot see anything
heretica in the Governors views lie IN
formed the Legislature that about S'oo'Voo
(three mills on the dollar Of state vaiuatlon)
are being annually paid by taxation on account
of the public debt; that about two ana a haii
millions of the state debt come due on OF oe-
fore June 1st, 1889, and about as mucn more
comes due in October, 18S9-the latter not pe-
ing open to extension on account OF a cohstitu-
tional provision; that the payment OF the 1orh-
er loans made in 1868 and 1864, were in 1900,
more than a year after the bonds were disposed
of provided for by sinking fund which has
already in it nearly million of dollars OF state
bonds; that the keeping up OF that sinking
fund costs the state considerable sum, anu
worse than that compels the state to pay TWO
per cent. premium (Which will soon be IN
creased to per cent? for the redemption OF It's
own bonds.
Tn view of these facts the Governor recon-
mended that the debt maturing in 1851, 1855
and on or before June, 1889, be renewed and
extended so far as the present holders OF those
bonds desire to make the change, or so Tar as
the substitution can be equally made Dy SAFE
and purchase-the new bonds to be payable,
100000 each year, commencing Win lo9o. IL
this should be done, he recommended the dis-
continuance of the sinking fund OF 1865 ana
the cancellation of the state bonds therein con-
tanned.
see nothing Objectionable in this plan;
nothing calculated to disturb the state credit;
nothing calculated to disturb any one unless he
has state bonds which he desires to speculate
on, and run up to per cent. premium by tak-
ing advantage of the necessity that the state Is
under with the present laws, and purchase lts
own bonds at a premium. All owners of state
bonds who hold them as legitimate invest
ment will prefer to exchange the ola snort
bonds for the new long bonds. therefore tne
new plan will be an advantage to legitimate
holders of bonds as permanent investment
Those who are speculating in bonds will be the
only parties troubled.
1t is the height of nonsense for U. w. U. OF
ANYBODY else to assert that this plan is VIOLA
tion of faith on the part of the state. Inc
state, under the plan proposed, offers 10 eH-
change the old bonds for new long bonds where
the holders desire to do SO; where they do not
so DESIRE the state will be ready to redeem the
old bonds at par when they become due-ob-
tanning the means by the sale of new bonds. L
am at loss to appreciate the motives OF hon
est men Ike your correspondent, in so utterly
misrepresentng the plan recommended by the
Governor c. w. G. may, as he says, pot have
discovered any demand among the people for
reduction of taxation, but think / have. And
especially am of the opinion that the people
will have cause of complaint if c. W. G. sue
ceeds in maintaining policy which Will here
after compel the taxpayers to pay per cent.
premium in order to redeem its own bonds.
PORTLAND.
Portland, Feb. 16, 1875.