The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-01-28
The Management OF our Maine FL
nances.

To the Editor Of the Press:
Whilea watchfuleye is kept upon congress
ional management of the main question
which now interests the nation, the reduc-
tion of the surplus revenue of the general
government, it may be prudent not to be-
come wholly Indifferent to the drift of our
own State finances, where deficit is soon
liable to give us food for reflection. A brief
review of the past twenty years may not be
Improbable.
In 1869, the $780, 900 twenty-one years
loan was issued, in accordance with the pop
ular VOTE which assumed the amount of the
war debts of our cities and towns. The re-
lief was wise and timely, although gross
blunder was committed in falling to give the
State the option of calling in its six per cent
bonds, before the expiration of the twenty
one years. By this unfortunate oversight,
the State has been mulcted from to per
cent annually, for many years, an annual
loss of from S75,e0o to S125, 600
However, careful provision was made for
an adequate sinking fund, and If that wise
legislature had not been meddled with, the
entire Indebtedness Of the State would have
been extinguished in $780, only two years
hence, and Maine would have stood today as
favorably as New York or any other State.
But we were not content to leave well
enough alone, and in an evil hour the legis-
lature of 1875 struck fatal blow at the sys-
TEN of 1869, by postponing the redemption
of the State debt This was the second
great financial mistake.
The scheme was opposed by Judge Webb,
by the writer and others, but it was carried
through under the specious plea of reduced
taxation. Nevertheless, even under the
emasculated legislation of 1875 slow re-
duction of the public debt still went on,
which, had it not again encountered inter-
ference, would have wiped 1t out about the
year 1905.
But. most unfortunately, as the writer be-
lieves, the late Governor, in his inaugural
address, was pleased, three years and half
before the maturing Of the State tonds re-
ferred to, to recommend the issue Of nearly
three millions Of new bonds, and at the same
time to reduce the State tax one mill ON the
dollar. The legislature not only adopted the
recommendation, but extended our State in
debtedness beyond the lifetime of the present
generation, and far into the twentieth CEN
fury, by the issue of bonds reaching forty
years into futurity, and repeating the first
mistake of 1889, by denying the State the op-
tion OF calling them in and paying or renew
ing them at a reduced rate OF interest. This
scheme was pressed not only by the Govern
or, but by the Treasurer, and the Committee
on Finance, but did not pass without protest.
And now the first annual report of the
Treasurer reveals the practical operation OF
the third great mistake, as is believed, In the
management of our State finances.
The report admits that although May "a,
the Treasurer advertised to exchange $780,
600 of the new 3 per cent. bonds for bonds
maturing in 1889, no proposals have been re-
ceved."
This admission justifes the prediction ven
tured in opposition to the scheme at the time
that II was broached one year ago, and pre-
pared for another admission which is its log
ical sequence.
For the report further confesses that, un-
der the last tinkering of our State finances,
there has been during the year 1887 a net re-
duction of the State debt of only S37.970.07.
''Irhis amount" the report proceeds to say,
"may seem small when compared with the
reduction on 1856, which was $209. .l12.16," a
sum nearly six times as great.
The treasurer states the total bonded debt
Of Maine rs about four million dollars 49,
95S.000) and if the mutilated sinking fund
of S949, 9,660.64 is subtracted, the net bonded
Indebtedness of the State Is little over
three million dollars (S3,009, ,339.36.) At last
years rate of deb ~syment, forty years will