The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1891-12-26
State Finances.
From The Baltimore sun.


Treating for the purpose of this article the
refunding of old loans by the act of 1890,
chapter 305, as complete, which it is practi
cally, and will be finally in few months, the
funded debt of the State of Maryland is re-
duced to and concentrated into four loans.
These are as follows:
The defense redemption loan, created or
rather renewed by chapter 2S9 of the acts of
1882, bearing 1866 per cent. interest and re-
deemable in 1899 The amount of this loan
is 100000.
The exchange loan of 1886 created by
chapter 449 of the acts of 1886, bearing per
cent. interest, S62S,355 due in 1900 and the
remainder due in 1901, but 'redeemahle at
the pleasure of the State, in whole or in
part at any time after the first day of July,
1896. The amount of this loan, authorized
by the act of Assembly, is 1896, 409.l0, but
according to the report of the comptroller of
the treasury the amount issued appears to be
81, S9S, 1923. 10.
The exchange loan of 1889, created by
chapter Dol of the acts of 1888, bearing per
cent. interest, due in 1908. The amount of
this loan is 81 ,32l ZOO.
The exchange loan of 1891, created by
chapter 305 of the acts of 1890, bearing per
cent. interest and redeemable after July l,
1905. The amount of this loan, authorized
by the act, is $3.50, $685., but, as has already
been shown, the amount to be issued is $780,
$685.. As has been shown, all of this loan,
with the exception Of S54, 58S. 43, viii go at
once into the sinking fund.
The aggregate amount Of all these loans Is
$40, 19l, l24.45. The comptroller of. sets
this amount of Indebtedness by productive
assets belonging to the state to the amount of
So, 126, 40, besides cash and sinking fund in
vestments, which reduce the net debt to some
So, 800, 900. But included in this list of in.
yestments is $3.50, 900 of stock in the Wash
ington Branch Of the Baltimore and Ohio
Railroad, which is rated at par, and which is
probably worth over million of dollars.
The o per cent. mortgage of the Nothern
Central Railroad FOR 81 800, COO is also rated
at par, but the annual interest RECEIVED upon
it by the state pays the interest on three mil
lion Of the states per cent. bonds.
The state will also shortly receive from the
general government the sum of 1911 ,299.S SO
under the direct tax refunding act of the
Fifty first Congress. The treasury officials,
who are influenced by commendable desire
to have the state debt paid, will earnestly
recommend to the General Assembly that
this amount be applied to the sinking fund of
the defense loan.
The message of Governor Jackson to the
General Assembly, which he is now prepar-
ing, will probably deal with the financial
matters Of the state at considerably length.
Among other things he will show that the re
funding operations of the treasury in recent
years have reduced the annual interest charge
to the state by between 5000, COO and $780,
600. 1t will show that the tobacco ware
houses, which have heretofore been charge
upon the taxpayers of the state have this
year paid into the treasury some $4,000
over and above expenses. The tax Of one
eighth of one per cent. levied upon the CAPT
tai stock of corporations by Senator Poe's
bill in the last Legislature has paid into the
treasury so far about $4,000. The Governor
will also show that the amount of taxes re-
ceived by the state from railroads e $4,000
in excess of the receipts last year, and the
receipts from the insurance companies $40,
600 in excess of last year.
The fact that the state debt is funded at the
low rate of and 3.65 per cent interest
places the bonds within reach of sinking
fund investment at about par. 1t will no
longer be necessary to invest the increment
Of the sinking fund in any questionable secu-
rites. In 1896 the exchange loan of 1886
will be subject to call, and in the meantime
the 8 per cent. bonds of the state can always
be bought at or near par.