Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1889-02-19

Who desired. vas gwen Al Opportunity % b
present, and antil they had received The eng
gestions OF various gentlemen. Nov do
not claim fhas their action vas infalliDle, but,
Mr.. Speaker. they did give to that measure
the best consideration which they could
bring 70 il and they perfected the bill which
was reported AMI which vas unanimously
passed By both branches of the Legislature.
II has been said that the bill vas put through
under suspension of the rules, without be-
ing printed. and that none voted inteligently
or knev but little about il. think sir. this
criticism 10 incorrect do not believe that
the Legislature Of 1887 passed this measure,
with all the discussion there vas CONCERNING
il in the public prints. without knosi ing what
the measure vas. When the bill vent 10 the
Senate il vas laid upon the liable aed printed
a. Senate document No. so. / assume,
rather, Mr.. Speaker. that when a measure
comes before this House and il is passed
sitbout discu sion or opposition, that the fair
deduction to make 10 thar the bill 80 COM
mends itself t. the gentlemen of the Hou,e
that it does not need dpcasson. Nos TIE
act Of two years ago contained in IL provi
sion Authorizing the Treasurer Of state
and directing him to cancel all OF ihs
State Of Maine bonds then in the sink
ing fund and such ~ might thereafter
be purchased for the State. it aisD sutnar-
lied the Treasurer to renew the debt by re-
ceiving proposals from the holders Of State
bonds maturing June LIST, 1883, and Octbbef
LIST, 1883. for an exchange of the same, for
Al equal amount on the new issue Of bouds
To be delivered at the time OF the sxehAf g
but to bear interest from October LIST, 1889.
And il authorized the Treasurer - make .
temporary loan for that portion of the debt
which became due June LIST, 1883, 90 tina, If
the act went into ops ration our entire indebt
. iness would be Of one date This act Of
1887 did one great thing, viz. it suspended
the operations Of the sinking fund. which
netted to the Sta e 4 reduction of one mill on
the dollar 10 the rate Of taxation over the
rae of 1886, making . net saving of $3.50
902 OF In the amount Of the State tsx. Sure
ly that cannot be called failure.
When the act vas passed the money mar
ist was extremely favorable, and it was
tho ght by many that the holiers of the ont
standing bonds of the State might be wiling
70 exchange them for the new bonds, making
sure VI 4 long investment. Soon after the
act wa passed and the Legislature adjourned.
on the z4,h of May. 1887, the then Treasurer
of State, issued an advertise ment in the lead
ing daily papers Of New York, Boston and
this State, IN which he advertised to receive
proposals at Augusta from The holders Of
State bonds maturing Jane lst and October
1T, 1859, tor an exchange Of the same for
an equal amount of the nes issue of bonds
authorized by the act, to be delivered at the
time OF the exchange, bur 70 bear interest
from October LIST, les9, amounting in the ag-
gregaie to 81 500, 900. STIMULATING 10 the al
vertlsement that the Treasurer reserves the
right to reject any or all proposals, and as
serting that those not accepted would not be
made public, but would be returned, if de-
sired. u the parties making them. When
the first day of July came the money
market had entirely changed, and no bids
were received uader the proposal. But. Mr..
Speaker, that was due To no fault OF the la~,
but To the condition of the money market,
over which we could have no control Nov
We are confronted with our State debt. Ii
becomes due on the first day of June next
and the first day Of o ,tober next. Ii is the
imperative duty of this Legislature to pro-
vice come way for meeting this debt, and
early in the session | introduced an act " hich
WAS precisely like the act of 1887, with the
exception that it struck out those provisions
relating to the sinking fund, the law having
b. en- fully complied with in that respect, and
changing the date of the bond from October
leaving the bonds TO bear interest from June
LIST. The Committee two years ago and the
Committee this year carefully considered the
various plans upon which the debt should be
refunded. They decided in the first place
against a sinking fund, from which the bonds
should be ultimately paid, aud all agreed
that sliding scale of meeting 4 portion of
the debt each year was the wisest plan and
the plan which the people desired. OF
course it was q matter about which gentle
men differed, whether this debt should be
made To cover period of 10, 20, 30, 40 or
30 years. or longer time. All agreed that
the debt should not be paid Immediately but
should extend over a series of years, believ-
ing that posterity, receiving some of the bene.
fits for which this debt was contracted. should
bear some of the burdens The Committee
two years ago reviewed all these plans, and
finally decided on the 40 year plan, which
was accepted and approved by the Com
mI,tee of this Legislature. and that plan 10
Incorporated in this bill. The committee
were aware that if we adopted BOY ear plan,
a large amount of interest would be saved
over the 40-year plan. but that it would make
the payments upon the principal heavier
each year. They also considered 2O-y ear
plan, on table starting with 800 900. As
follows:
A table on 4 twenty year plan and starting
with 100000, payable yearly tor the irsi
ten years and 6lS0, 900 yearly for the next
ten years woull divide the burden a. failous