The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-01-08
GOVERNORS ADDRESS.


neceSSarleS and comforts Oh lie, Ih0 SoII
health, the uninterrupted peace and good ordeI,
and the intellectual and moral Influences WIN
which we, as people, have been favored uur.
ing the past year, there is occasion Ior ue'ou'
gratitude and thankfulness
In laying before you the lniorna.lon -
quired by the Constitution, it affords me era.i-
ication to be able to present so favoraDIe re 10
port of the financial, educational ana otneI .n ,,
portant interests of the state. SO Tar as an,
aware every department has been conducte9i
with fidelity, integrity and pruuehTe, ,Ll %Iu
with the single purpose of promoting tne pun.
lie welfare. 1 need not remind you, upon
whom devolves the responsibility, Oh au'uo that
izing and directing public expenditures, enaS
IN the present depression OF business, 'neio -
special and urgent necessity that every appiU-
pration should receive the most rigiu scruI,nJf
So far as my limited authority may leao1; L..
shall most earnestly endeavOr to Apply eue
same economy fidelity and scrutiny 10 pupao
expenditures that prudent business man
would apply to his own affairs.
THE STATE FINANCES.
Considering the gigantic burdens l@poseu ps'.
upon the people of Maine, as well as Oh eveiy
ton of national existence, the financial con
diton of this state is more favorable tnan
could have been reasonably expected. IL ap
pears by the report of the state treasurer tnac
the aggregate receipts OF the treasury durlns
the past year, including cash on hand az the
beginning of the year, were $1,8539O4'oo, anu
the disbursements during the same period
81. .537, ,718 "a, leaving balance of $322, loo.of
In the treasury Jan. 1st, 1875.
OF the receipts, 81, 1,169, ,o62 was from ~ Ine one
state tax of five mills on the dollar, So',9So
from public lands, $142.25S from the tax on
savings banks, (about $72,0 600 OF this tax pc
ing still unpaid) $13,828 from the tax on raii-
roads, So, S89 from interest on deposits, S2,Zio
from duties on commissions, Sl,'49 lroih IL
censes to peddlers and 81, ,422 from insurance
department.
Of the disbursements. So, JIG were on account
of rents of shore belonging TO the Penooscot
Indians and $8,065 on account OF taxes assessed
on wild lands for the benefit OF countles-sums
which simply passed through the treasury
leaving the actual disbursements Sl,524, 49I:
OF this amount, $81 900 were paid on account
of special and exceptional appropriations Tor re-
building the carriage shop in the state prison,
re-arranging and repairing the reform schooi
building, finishing the chapel building con
neeted with the insane hospital, ventilating the
state house, building roads and bridges manly
in Aroostook county, and in aid OF the Coi'ege
of Agriculture and Mechanic Arts, maine
General Hospital and of Industrial School for
Girls.
Thus. after deducting these special appropri-
ations. tie expenditures of the past year ap-
near to have been 81, ,442, ,597. Of this amount,
S714426 was on account OF war debt, pensions
to soldiers and aid to soldiers orphans, ana
$407, AT on account OF puohc ana Iree hlsn
still due on account of educational purposes
The ordinary expenditures, therefore, during
the past year, have been S32O,694, or a lIttle
less than one and half mills on the dollar OF
the state valuation While this statement ln-
dicates that the expenditures of the state are
controlled by considerations of economy TO an
extent rarely observed in public affairs, yet IN
nv Judgment there are some directons III
which the expenditures authorized by law may
be some what reduced without injury to the pup
~, t1,, 20 sh
cate 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 $5,50l,
ora reduction of 1921 ,575 during the past
wear. The nominal public debt, however, as
represented by uncancelled state bonds, was
81. .OSS, ,4O0-a reduction of $5O,OOO during the
same period, By the payment and canceilation
of the loan to this amount which matured
March 1st, 1874. The balance OF the amount
| set apart for the reduction of the public dept
| (S271 ,575) has been paid to the sinking-funds'
| which now amount to s., ,527 ,324. The aggre-
| rate payments from the treasury, on account
| Of the state debt, during the past year, were
$500, 0,55S, of which 1852 ,959 was for interest,
| S32' .575 for maturing debt and sinking -fnnds,
and S5,O24 for premium on bonds purchased .
| and expenses; although under the sinking 1uId q
system a larger proportion than this is assigned
| to the interest account. As existing laws re-
| ouire similar payment every year, on account
| Of the public debt, an annual assessment OF
| three mills on every dollar of the state vaiu-
| alton is rendered necessary for TINS purpose.
At the close of the present year when tne TAX
assessed for 1874 shall have been applied to the
| objects for which it was contemplated, the
state debt will be reduced to about $5,22O,Oo0.
Tins in ten wears nearly seven million dol
| lars have been paid by the people OF Name on
| account of the state debt-neary three millions
| being for reduction of principal and four mill
| ions ON account of interest. Should the pres
ent rate of taxation be continued, the balance
| of this immense war debt would be extin-
| guished in fourteen years from thls oate inus
| the same generation that met the personal re-
sp0nsibiities of the terrible contest to preserve
| the national existence, would also be calico up.
on to bear all the financial burdens which II
| imposed upon the state, amounting IN tne az
| greeate to more than twenty miliiohs OF uof
| lars exclusive of burdens borne in contribu
| tions to the national treasury. Surely others
| who are to share the fruits of a struggle which
has scarcely parallel in history, though they
| cannot participate in the terrible sacrlhce oi
blood, will esteem it privilege, as well as :
| DUTY to aid in discharging the pecunlary liaDii
| ties which it entailed on the country. =,
| So long as business was conducted on the
| sneculative basis which it assumed during and
| Immediately after the war, and prohts wert
supposed to be unusually large, it was wise y, t(
| take advantage of the opportunity to raPdly
| reduce the public debt But i'll the present
| nancial condition of the country, and indeed IL
| the near future when business shall have re
| sumed its normal state, SO large an annual as
sessm Mt as is required by existing laws, car
| but he severely felt. Should the Legislature
| consider it advisable to reduce the assessment
on account of the public debt to two mills, the
| proceeds would meet the interest ION the out
standing debt and extingnish the munlclpa
war loan of 1868, which natures Oct. l, 1859
| and which cannot be renewed without al
| amendment of the constitutional provision by
| which il was authorized.
| The remainder of the outstanding loans, con
stituting about one-half of the public debt ma
ture mainly in 1880, 1883, and June 1889, ant
| as they are subject to no constitutional limits
as to time of payment, they may be renewed
| by the legislature. Should it be deemed expe
| dent to authorize such renewal, sugges
that the new bonds be made payable in snm
| of 100000 annually, commencing with 1890
| in order that the necessity of sinking funt
NAV be avoided; and that they be issued onl!
| as by exchange or sale and purchase, they cal
| he substituted for bonds of at least an equa
amount Of the loans which they renew. AS {
long bond is a more desirable investment thar
| one maturing earlier, the treasurer would un
donbtedly have no difficulty in substituting tn
new for the old loans, long before the latte
should mature.
THE SINKING FUNDS.
To provide for the payment of the war loan
| of nearly four millions, negotiated in 1868 aD(
and 1864, at their maturity in 1880, 1883 ant
| June 1889, the legislature IN 1860 directed al
| annual assessment of three-four of a mill OF
every dollar of state valuation, an set apar
the sum so paid and the income thereof, as
sinking fund. to be invested in bonds of this
state or the United States. This is known a
the sinking fund of 1865, which now, includ
ing premium on U. S. bonds and cash, amOunt
to 81, ,O47 ,OS7. Again, to provide for the pay
ment of the municipal war debt loan OF SS,
OS3, 900, negotiated in 1861 at its maturity, Oct
/. 1889, the Legislature in 1868 directed aDothe
annual assessment to be made sufficient fo
that purpose, and set apart the sum so raiset
in similar manner. This is known as tn
sinking fund of 1868, which now amounts t.
$3.50. 237. Both funds aggregate 81 ,527 1924, o
which 81, ,443, 300 is invested in state bonds, an'
1888, 800, including premium, in bonds of tn
United States.
Obviously nothing is gained by sinkin!
fund, except so far as it may be rendered neces
sary where public debt has been contracted
so as to mature in larger sums than can be pro
vided for by taxation in any one year. Their
is nothing in the machinery of sinking funt
which can add single dollar to the amour
paid by the people through taxation, on &C
count of the public debt. On the contrary it i
a complicated and by no means economical fl
nancial device. having in it the elements of in
security; and should be avoided wheneve
feasible By authority of an act of the las
legislature, this insecurity has been guarde'
against in the case of the sinking funds of thi
state, so far as possible; but experience show
that SO long as such funds exist there is som