Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1875-01-12

resumed its normal state. so large an
annual assessment as is required by
existing laws. can but be severely felt
/ Should tbs legislature consider II advisa
BILE 10 reduce the assessment on account
ot the public debt 10 two mills, the pro
ceeds would meet the interest on the
outstanding debt and extingush the
municipal war loan OF 1865. which ma
lures Oct. |, 1889. and which cannot be
renewed without an amendment OF The
constitutional provision by which It was
authorized.
The remainder OF the outstanding
loans. constituting about one.half oi the
pIblic debt, mature mainly in 1850, 1888.
and June, 1889, and as they are subject
to no constitutional limits as to time oi
payment. they may be renewed by the
legislature. Should it be deemed expe
dent 10 authorize such renewal. | sug
geSt that the new bonds be made payable
in sums OF $500, 900 annually. commenc.
ing with 1890, in order that the necessity
OF sinking fund may be avoided; and
that they be issued only "a, by exchange
or sale aud purchase, they can be substi
tuted for bonds OF at least an equal
amount ot the leans which they renew.
As n long bond Is a more desirable in-
veStment than one maturing earlier, the
treasurer would undoubtedly have no
difficulty in substituting the new tor the
old loans, long before the latter should
mature,
THE SINKING FUND.
To provide for the payment oil the war
loans OF nearly four million, negotiated
in 1868 and 1861. at their maturity in 1880
1882 and Jnne. 1889, the Legislature in
1865 directed an annual assessment sl
three. fourlhs OF mill on every dollar OF
State valuation, aud set apart the sum so
paid and the income thereof, rs sinking
fund, 10 be invested in bonds OF this State
or OF The United States. This is known
as the sinking fund OF 1865. which now.
including premium on L. 5. bonds and
cash, amounts to = ,04T ,0S1. Again. 10
provide for the payment ot the municipal
war debt loan OF SO .0SS. 900. negotiated in
1868. at It's maturity. Oct. ]. 1899. the
legislature in 1868 directed another
annual assessment to DO made sufficient
for that purpose. and set apart the SUN SO
raised in similar manner. This is
known as the sinking fund Of 1867 which
now amounts to $50. 231. Both funds
aggregate 81. 527 324, oi which 81 AS.
800 is invested in Stale bonds. aud SS3.-
800, including premium, in bonds Of the
United States.
Obviously nothing ia gained by = sink.
fund. except SO far as IL may be rendered
necessary where public debt has been
contracted so as 10 mature IN larger sums
than can be provided for by taxation IN
any one year. There il nothing in the
machinery OF sinking fund which can
add single dollar 20 the amount paddy
The people through taxation. on account
of the public debt. On the contary il is
a complicated and by no means economi.
cal financial device. having in it the ele
ments Of insecurity; and should be
avoided whenever feasible. By authority
ol au act OF the last legislature. this in
security has been guarded against in the
case OF the sinking funds OF this State, So
far a. possible but experience shows
that So long as such funds exist there is
ssme danger 0i their misrepresentation
Gader The acts creating The sinking
lunds oil !Lis State. Oy which Investments
can DC made only 10 bonds OF Maine and
OF the lniIed States. another difficulty
has manifested Itself during lhe past
year, and is likely to increase from year
10 year. Under the influence oil frequent
purchase Of bonds oi this State for the
sinking funds, their market price has al.
vauced 50 that il is now impossible 10 ob
tain our securities without paying from
may be good thing for the holders vi
Maine bonds. but hardly just to the tax
payers who faithfully discharge every
obligation when they provide means tor
payment OF State bonds al their par val
ue. II either or both OF the sinking
funds are 10 be conlinued-snd the sink.
ing fund OF 1868 canno. be entirely dis
pensed with without an amendment oil
the constitution that will allow OF arenew.
al OF the municipal war debt loan which
II was created 10 meet,-l recommend
that the last difficulty 10 which have re-
ierred be ebviated. so FAR as possible by
authorizing the Treasurer 10 make invest
ments also in the securities of other New
England States.
Should the legislature concur with me
in the advisability of renewing that part
of the debt maturing on or before June,
1883. the sinking fund of 1865 may be
abolished. the State bonds in the same
cancelled, and the small amount OF u. 5.
bonds in the fund transferred TO the sink.
ing fund OF 1868. All the State bonds in
The latter sinking fund may also be can.
celled, together with all the bonds of this
State maturing in Oct. 1899, which may
hereafter be purchased Thus there will
remais in the sinking fund OF 1868 only
SS3. 800 in United States securities, TO lie
increased hereafter by such purchases of
similar securities or of bonds OF other
New England States as may be rendered
necessary by The inability to obtain bonds
OF this State at par. The probability in
deed is that by such an arrangement not
only the sinking fund Of 1865 can be abol.
ished, but also. by an exchange of secur.
tiles which would be feasible when bonds
of our State are no higher than of the
other New England States, the mainte
nance OF the sinking fund OF 1868 in even
a modified form be rendered unnecessary.
IAE RAILROAD TAX.
By requirement OF an act OF the last
assessed tax on the franchise OF the iol
legislature, the governor and council have
lowing railroad corporations. incorpor
ated under The laws OF this State or doing
business th5rein:
Atlantic 4 ~. Lawrence sJV 90 81
Boston Maine, 26,42 y
Maine Central. sS,4l6 g.
Portland SacO X Portsmouth, =, ,l2s %
Dexter 4 Newport, l,lS 20
Portsmouth Great Z alls X Conway, $40 90
II CroiN \ PenObscOt, 2N %
Portland Horse Railroad CO., s9i 20
This tax aggregates sl05,O69.33, and
according TO the terms eli The act, has
been assessed on railroads whose stock
has a market value. That portion of the
Ln. ,rhinh nnnrasnnis sinnt held in lhis