Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1881-04-23
Maryland State Finances.
TUE linking FUNI IT. CAUSES AND rHE
HISToRY--p Ley OF TIE sE,YB
TREASURY AND ~ M ~


finances, i copi. d tr"tu TIA, no. .o--
Quoted journal. the Baltimore Sun:
" The Hagerstown Mail having pub
lished some statements 10 regard to the
management of the States 6uances, aud
particularly in regard to the sinking
fund. g'thoTough examination into abe
matter has been made. the treasurer,
Mr.. Barnes Compton, and the cOmptrol-
Ter, Mr.. Thos. j. Heating. affording
every faUilily desired OF their Offices and
books for the purpose. II was alleged
by the Mail that the sinking fund is
wreck. The treasury officers show that
there has been no sinking fluid worth
calling a fund since 1864. when the ne
cessiiies of the State to pre- vide taxes
for interest ON the defense loan (boua-
ty for volunteers) forced the managers
of it's finances to raid the sinking fund.
"On the 7th of March. 1864. the
Legislature passed an act for the reduc-
tion of the amount of stocks of the State
then held to the credit of the sinking
fund. On the 30th of September, 1868.
the whole OF this fund amounted to So
665. 1853, in 6, 6, 5H aud 3 per cent.
stocks. Uader the act of 1864, chap
ter 2S5, 81, 500, 074 of tie sinking fund
stocks were Cancelled, leaving a balaL ce
of 81 .155, 094 uDcancelei as subsist-
ing debts'Of this balance. 1000 544
were S per cent. State stocks, and Ssh
$50 Baltimore City 6 per cent. bonds
''Mr, H. Il. Goldsborough. the then
comptroller, in his report Tor 1864. says
the stock Cancelled was that which be-
came due at the shoi test dates and that
which was overdue. Some sterling
bonds, converted at 81 81 into currency
stock, added ST.. 600, and the total to
the credit Of the sinking fund on the
30th OF September, 1864 including cash
was 81 343,73l To this amount the
treasury officers subsequently added
$3.50 1855 but it never recovered its
tor@er magnitude.
"Tbe Legislature. By act of 1872
chapter 276. ordered the treasurer. then
Mr.. Compton, to cancel aud destroy ST..
704,lS7 State stock. all that remained
of the sinking fluid. At the.saue time,
by act OF 1872. chapter 3S3, the trea-
sury officers were ordered to sell the
Sl54 $50 OF Baltimore city per cent
sock in the siuking fund Tb,s, direc-
tons we're duly carried out by the ex
ecutive officers OF the treasury and the
acts ordering the iual extinction of the
fund, declared that it IVES the interest
ofthe State topaz of the balance OF its
sterling debt, STA 900, consisting OF
bonds Issued for the benefit of the Lhes-
apeake aud Ohio Canal Company. and
then past due since 1870. These debts
we're IN turn taken up aud destroyed
between 1872 aud 1878.
But while directing the cancellation
of the State stock held in the sinking
fund 10 1872 the Legislature at the
same time directed the comptroller
every year TO set apart TO the credit Of
that iuud Sl00,00 of any surplus that
may be III the treasury over the expen-
ses OF the government, which. in addi-
ton to all sums otherwise accruing to tue
augmentation of the sinking fund, was
appropriated to take up the existing
debt of the S ate. TIE comptroller was
also directed TO iuves, 10 stocks or bonds
Of she State as par or less for
the sinking 'tuDd, and 10 all cases to
give preference to the overdue debt oil
the State, Under Discretionary power
vested in them ths treasury officers from
time TO time carried TO the sinking fund
such amounts as could be spared llou
the general funds of the treasury, aud
: also bought such stocks. as they. could
In 1873 Sl52 Ill State stocks invested
iu the sinking fund we're Cancelled and
destroyed. In1S7G the House of Cor
reeliou loan, S55O,000, aud the Normal
School loan, 500, 900. which had been
purchased aud held By the sinking fluid
were cancelled aud destroyed. To the
close of the last fiscal year there ha,
been added to the sinking fund, since
its destruction in 1872, the sum o.
Sl95 800 10 State stocks. This amount
Is all that stood to the credit Of the fund
at the close of the last G.cal year.
The tax imposed to meet the interest
and, to provide Tor the ultimate redemp
ton OF the House of Correction aud
Normal Scboo! loans, as required by the
constitution, was levied only for the gears
1874 and 1875. The State taxes fol-
these two years wasi20 SIG cents or
each $l00 of the asse:sabIe basis. II
: 1876 ,-wten the tax on these two loan,
was dropped, the rate fell to III cents
aud was not increased until the creation
of the treasury relief loan. $500 900,
10 1878, when it vas advanced ! cents
making the rate 1Sa cents, as at present
AS a set.off to this treasury relief loaf
it will be remembered the State has &C
quired in the settlement with the Balti
more aud Ohio Railroad Company
1896, 900 bonds Of that company pay.
ing 6 per cent. interest.
"The defense loan, the necessity
for which in 1864 inspired the L,gisla
ture to economize taxation by exiting
uishing so large part of the sinking
fund STATE stocks, bears 6. per cent 10.
terest and natures 10 1888 Its total
is So, 1926, 7S0; aud the Legislature OIL
1880 has. authorized three millions of il
10 be refunded at rate of interest moi