Port Tobacco times, and Charles County advertiser. (Port Tobacco, Md.) 1845-1898, 1882-04-07
Actual Levy. Necessary Levy


SSl...............".lS3 % S-l32
The committee then go on to review
the history of the repeal of the loan taxes
by the Legislature. They say:
"The committee of ways and means, un-
der resolutions adopted by this House. on
Jan. 20, 1882, has carefully and thoroughly
investigated the differences regarding the
financial management OF the State which
exist between his excellency the Governor
and the honorable the State comptroller.
The committee disclaims any feeling what
ever as regards either party, and desires
only to put the State financial department
fairly upon its own merits.
It must be born in mind that when the
Democratic party returned to power they
found treasury depleted and the sinking
fund absolutely destroyed; they had then
to set about to rebuild a financial system
which, if not annihilated, was at any rate
so injured that its life and vigor were gone
The people most interested in the subject
of taxation seemed satisfied so long as the
tax rate was kept down, whilst their Lee
gislatures, regardless of the future, acced-
ed to all demands upon the State'ssre-
sources, and permitted all sorts of expen-
ditures to be ordered without one thought
as to how said expenditures were to be
met or provided for. Charitable and 9TH
er elemosynary institutions became, thro'
their friends in the various Legis atures,
applicants for public money to assist them
in their various undertakings, and institu-
lions of private instruction throughout
the State soon followed their example,
In 1872 lActs of 1872, chapter 276) the
accumulated sinking fund was again des-
troyed. In 1878, when the present comp
,roller was elected, the tax rate was III
per 500, and the treasury had been emp
tied there was no money On hand or due
within a reasonable period to pay the cur
rent expenses of the State the expendi
lures ordered by previous legislation and
to be paid for out of depleted treasure
chest were far in excess ofwhat the States
resources could meet, and it clearly neces-
sary that the State should borrow or close
up. The contracting of a treasury relief
loan of five hundred thousand dollars was
then ordered and the tax made to pay in
terest, &C., upon said loan increased by II
cents per 800, thus making the levy 1Sa
cents, as it now stands. Large sums of
money continued to be appropriated for
various purposes, though the source of
supply under the then existing tax rate
was by no means boundless. The tax lev
led to provide for the interest npon and
sinking fund for the defense loan, which
had been 10 cents on the 500 in 1864 was
reduced in 1868 to 81 cents, and the Lee
gislature failed, for very obvious reasons,
10 increase taxes in other proportions to
hr
ditures. The position forced upon the
officials was that they should obey the in
structions as regarded the sinking fund,
already reduced one-half, or the special
orders of the representatives ofthe people,
who presumably knew what they were do
ing when they voted especial appropria-
tions. When our Legislatures voted their
peoples money they should have had the
courage to face that most obnoxious of all
thiHgs-an increase of the levy.
The committee, after further extensive
comment upon the action of the Legisla-
ture with regard to the loan taxes, con-
cludes it report as follows:
The constitution requiring that loan
laws shall provide tax sufficient to meet
the principle in fifteen years, the next
point is, how is this to be done2 Only
three ways present themselves:
First.-The annual tax provided for by
the loan laws must produce every year,
over and above the amount required to
meet the yearly interest, surplus sufficient
to amount in fifteen years to the principal
eff the loan.
Second.-The annual tax must produce
such surplus after payment of interest
that, by its application to the purchase
and cancellation of the loan, the whole
will be so purchased and cancelled at the
end of fifteen years.
Third.-The annual surplus of the tax
must be such as to produce sinking fund
which at the end of fifteen years will be
sufficient to meet the principal
Under the constitution the taxes levied
by the ''loan laws" must be applied to the
interest and provide for the redemption
OF the principal of the several debts as
'reated and until paid, or the sinking fund
EQUALS the amount of outstanding debt.
The Legislature should be allowed no
discretion to use these moneys for any
other purpose whatever. Should they he
diverted, any holder of State debt could
interfere by mandamus and prevent such
Misrepresentation, and oblige the treasury
officials to follow the peremptory direction
of the constitution.
In conclusion, your committee finds, as
q matter of fact, that the sinking. fund as
provided for by the constitution has not
been kept up, and there seems grave ques-
tions as to whether or not the sinking fund
provisions have not became null and void.
That such is the case is in no way the fault
of the treasury officials. This failure has
been in no way detrimental to the credit
of the State, and the causes of snch failure
seem to date back as far as 1868. The
failure of revenues, the omission to raise
the levy and excessive legislative appro-
priations have heretofore and always will
render it absolutely impossible to carry
out the constitutional provisions for a
sinking fund.
j. 5. Cuttings, chairman. Levin h.
Morris, A. II. Greenfield, E. E. Jack
son, Duncan Veazey, E. N. Kirkland.