The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-03-13

| the present year. Is there any need OF
that saving? Let us examine the State
| finances and see where we stand. think
| you will come TO the conclusion that If half
| million dollars is to be expended 1t had
best be applied to the outstanding obligations
Of the State. A refunding scheme has been
| reported by the finance committee anu passed
by the legislature l have assumed that the
scheme was well considered and proper but
/ the further / have examined this matter
/ within the past few days the more aston
| ished have been at the situation l have
found.
The State treasurer reports the funded
| debt of the State as follows;
Bonds due June ]; 1889. war loan. 81 ,f4s, ,0c0
| Bonds due October l, 1889, loan for
assumption of municipal war debit. 2,lS7,400
The sinking fund available for the pay
| ment of this debt amounts to 1866, 1868. 1t
| is proposed to refund the balance by bonds
| distributed over 40 years at a lower rate OF
| interest. 1t may be well to examine the
| source of this Indebtedness and see under
what authority and limitations 1t was con-
| tracted, for it presents some troublesome
| questions, The war debt propet; amounting
| to 81, ,74S,000, need not detain us; as that Is
not the source of the difficulty, but attention
Is directed to what Is called the
municipal war debt amounting to S2.lS7,
10000 An examination of the con-
sttution will show that special amendment
| to that instrument was required to authorize
the creation of that debt, which the court
i
out such amendment. The amendment now
stands as section IS Of article 9 of the cOnsti-
| tuition as printed with the Revised Statutes.
1t is plainly drawn and is the only authority
| for the issue Of these bonds. 1t prescrbes
the payment OF the same within 2l years from
their ISSUE Its language is unequivocal 1t
| says:
"The State is authorized to issue bonds
| payable within 2l years, at rate OF interest
not exceeding 8 per cent year, payable semi
/ annually, which bonds or their proceeds
shall be devoted solely towards. the reim-
| bursement of the expenditures incurred by
/ the cities, towns and plantations OF the State
for war purposes. during the rebellion,
l.: This amendment shall not
be construed to permit the credit OF the State
| to be directly or indirectly loaned in any
other case or for any other purpose"
Will any lawyer on this floor contend that
| the words payable within 81 years" mean
| may be renewed at the end of 81 years?"
Gould language be more explicit as to limita-
| tion on the time of payment? Under this
amendment could bonds have been legally is
| sued payable in 60 years?
Let ut see how the legislature understood
| it when the bonds were issued.
In 1868 the legislature passed an
ed by chapter 40 of 1868. to
authorize the issue of these bonds
in accordance with this amendment, and in
that act provided for sinking fund to be
raised by taxation at each session of the leg
year will meet, at maturity, the payment of
| the bonds" and further provided that the
"sum so raised is pledged and shall be held
as sinking fund to be invested" as therein
provided. Under this act the bonds were
issued and the sinking fund regularly raised
by taxation until the year 1887, when the
present chief executive, then State treasurer
in his annual report, advised the legis lature
fund although it was well known that
the sinking fund would not be
sufficient to meet the debt at
its maturity. In view of the fact
that the faith of the State was pledged in
The act of 1868 to provide by taxation sink
ing fund sufficient to meet the payment of
the debt, and that such payment is required
by the constitutional amendment, it is diff
cult to understand the propriety of such sug-
gestlon. 1t may be well to quote his precise
languagei
'In my judgment the sinking fund has
been carried as far as the obligation of the
act OF 1868, under which it was established,
requires. If the legsla-
the amount of the debt which will remain In
1889. which will be less than three millions
in all, 1t might be wise to omit further taxa
tion in any form on account of the debt"
Acting upon that advice the legislature of
1887 repeated the provisions as to the sink
ing fund and made an abortiVe attempt to
renew the debt and we are now face to face
with the problem, of what to do with debt
winch all tn6 PROVISIONS Oh law required
should be paid at its maturity, and which
those responsible for the finances Of the
State should have seen was met by sinking
fund sufficient for that purpose. That sink
ing fund now amounts to S965; 1868 Its
market value is about 100000. The amount
of bonds outstanding is $751; 400. leaving
$9S7, 10000 still to be provided for.
1t is now proposed to renew the debt
Where is the authority for such renewal? is
it found in the constitutional amendment?
If so, should be glad to see it, If not. it
will be difficult to find it elsewhere. Can
new bends be substituted for the old ones
and not be tainted with illegality? These
are serious questions and may well cause
prudent men to hesitate. If the State has
half million dollars to spend above the
necessary charges of government. 1t may be
wise to consider whether we are not bound
to use it to pay the debts of the State which |
by the constitution are payable within 2l
years from October l. 1869, rather than to
absorb it by appropriations rushed through
in the closing days of the session.
1t has even been suggested that the premi-
ums received on the sale of bonds issued to
renew the debt of the State might be used to
pay for the enlargement of this building as
contemplated. This is in keeping with other
arguments used in favor of this resolve, but
1t would be a bold and reckless spirit that
would ac. on such advice and be responsible
for the diversion of any of the proceeds Of
those bonds from the only purpose for which
in any event, they can be used, the renewal
thorized to be issued; whether sold above
par, fact which will show tina. the rate of
interest is unnecessarily high, or at lower
rate, only so many bonds can be issued as
will raise the funds necessary to renew the
debt.
do not care to pursue this matter further.
Enough has been said to show the serious
objections that exist to the passage of this
resolve from the financial point of view
alone. Other objections exist of a weighty
| character, but | do not propose to enter into
| their discussion.
They are present to our minds, If not stated.
| We all know the history of this matter, the
arguments that were used to prevent any
action favorable to change of location of
the State House, the change of front that has
| followed, the late day at which this resolve
was introduced and the urgency which has
accompanied its passage 1t would be use
| less to discuss why members have changed
| their minds or what influences have minist
| tered to that result. Already too much hea-
ana feeling have been developed in the dis
| cusslon. and in our cooler moments we may
| find that there are many aspects of the affair
| in which we shall take no special pride.
No Senator upon this floor can read but
| with feelings of humiliation the cf arge that
! has been publicly made in one of the journ-
ais of the State that the Chief Executive has
| so far forgotten the dignity of his position
and the duty of his Office as to actively lobby
| In behalf If the passage of this resolve. 1t
| Is in keeping with the unwise and indiscreet
| uIteranceS OF the organ oil the aumlnlStra-
tion in its treatment of the whole matter.
A large section of the State has been long
and earnestly interested in this question of
| the removal of the Capital and the erection
| OF new State House, Whether this sum
mary disposal of it will have tendency to
promote union Of interests and senti-
ment is a matter for the majority of
| this body to consider. Communities
| are sensitive as well as individuals.
| and the great counties of Cumberland and
| York are not unimportant factors in the
| State. They are entitled to considerate and
| respectful treatment
so far as the city of Portland is concerned,
| have just pride in her reputation for en-
terprlse, llberallty and public spirit: it was
voiced in the action of her citizens who made
the tender OF subscriptions TO the State and
| its memory will survive whatever action may
| be recorded on the rolls OF this body, Her
| gracious and generous offer was prompted
| by motives which are superior to the assaults
| of low wit or malice, and her good name
needs no defence or apology from me.
If the sentiments of the citizens of Port.
land and the wishes of the western counties
| of the State are to be ignored and treated as
| of no account, so let it be. They will adjust
themselves to the situation. They are NOT
| dependent for their existence or property up-
| on the fovor of the dominant faction in the
politics of the State.
1t is well to remember that the power of
| majorities Is not permanent, and that hasty
action often entails consequences that end In
disaster. l have performed my duty in en-