Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1881-04-23
sG6UUU
Ql'V, vOV ~~.4uS"~"G"
aud Tides water sterling bonds.

$40 vUU @-.qu.44.u-
aud liGeHater sterling bonds.
In his very Grst report. 1878,
Comptroller Heating uses Ibis language
The system of 6uaDcial Legislation iD
the.SIate OF Maryland has tor years em-
bodied III our organic law aud. our ,legis-
lative enactments the idea that especial
funds must be raised fer aud de Dictated to
special purposes. and that the general
treasury must take care of itself. 1t has
been and always will be utterly impossi-
bic to iDsintalu and support any govern
meat legally and at the, same time Geo.
nomically upon such system aud
where it is imposed by law, either, or
gsniC or statute, upon the financial s0d
executive officers of the government,
they must either disregard the credit OF
the State for the system. or disregard
the system by" continually borrowin g
from one or the other of those special
funds to keep up the credit Of the Stale.
Such an alternative may be and IS keen
ly fel. by those who have TO face it as
embarrassing in the extreme, aud yet
there has hardly been day for many
years that the credit. faith aud financial
integrity Of the State of Maryland has
not been maintained By her financial
aud executive officers under just such
embarrassment. Were the special funds
pledged by law to particular objects, and
forbidden by law to be used except
as pledged. set apart and not applied TO
other objects. the government would in
the best Of times come to a dead halt for
want of available fuUds, with plethora
Of the peoples mOoey lying idle. The
treasury officers, out OF proper regard
for economy aud the necessities of the
treasury, have hitherto utilized these
funds 10 The way indi ;ated, aud relied
upon just and discriminating public
sentiment for their Justification.
In his last report. ia referring to
the fact that the State has not bad tor
years any special sinking fund, and that
under the act OF 1862, chapter 276, all
the State stocks 10 the general sinking
fund we're destroyed. be says: Since
then neither expedieucy nor economy
has prcmpted-iudeed the needs of the
treasury aud the Law of necessity have
torbid-,he application of the loan taxes
to the purchase of securities, at heavy
premiums, to be set apast for the re-
demption Of the loans when due, and
these taxes have been absolutely requir-
ed and used 10 meet the current apI ro-
priations aud demands for the support ui
the State government aud the mainten-
snce of the State credit. IL 1880 how.
ever, the treasury officers determined
that, as the treasury relief loan and the
tax Of one and one-half cents imposed
for its redemption were 'uf recent crea,
ton, tLey would. to the extent of their
ability, 10 obedience to section 81
article ), of the constitution, create q
special sinking fund with the receipts
from this tax. and dedicate it. as far al
it would go, to the purpose for which
it wss imposed
"The comptroller mentions variou
small!sums which have been transferred
lately TO the general sinking fund, AUD
says: The most OF these Investments
aud all that could be-were made in tht
purchase Of the per cent. sterling
bonds due in 1889, which, were con vert
ed Into S;ate-loan bonds under act o
1872, chapter 366. These sterling
bonds when. due and the Interest there
on are payable in gold in London, ant
are held By foreign capitalists. The &C
OF 1872, chapter 366, under which thi
conversion was made. announ les in it
preamble that 'the true interest Of tn
Safe mani'estIy requires the taking u
Of this sterling debt and since then al
the past-due sterling bonds have bee
paid and caOceled. The diff ;ulty en-
couutered now in carrying optlth maui
testify desirable object aud purpose O
this act is that the outstanding tond
are net due. and The holders of then
will not part with them. The Messrs
Barring Brothers, of London, have ad
vertised for them and advise the State
agrLt. MI. Sloan, that none are offer
I Il