Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-01-04
THE ADDRESS
Of Governor CIeaves Before the
Maine Legislature.
Shows State to be Prosperous--Fi-
nances Sound and Prospects Bright.
An Able Document Worthy Of the Chief Execu
live Of Our State.

Following is the full text of the able
inaugural address of Governor Cleaves de-
livercd before the Maine Legislature,
Thursday, Jan. 3
Gentlemen of the Senate and House Of R<pro-
sentatives:
By the suffrages Of the people, the legislative
authority OF the state has been committed to
your care. That the power will be wisely
exercised, in the interest Of good and progress
sive government, is the confident expectation
OF those who have conferred on you these i'm
portant responsibilities.
State Finances
The financial condition of the State, as shown
ty the excellent report of the State Treasurer is
most gratifying. The receipts from all sources
for the year ending December 81, 1893, including
the balance in the treasury January /. 1898,
were 81 l69 ,59s3) T, The disbursements during
that time were s., 1888, SSH. The receipts for
the year ending December 81, 1894, including
the balance in the treasury January l, 1894
were 81 1855 ,6S90l. The disbursements during
the year We're 81 ,52S, 1913 IS. There was bal
ance III the treasury on the first day of
January 1895, of s458 1855.
Without special reference at this time to our
financial history and the valor and patriotism
ton OF the Union and the years that closely
followed, it VIII be observed that the net
indebtedness on the thirty first day of
December, 1874, after .deducting the amount
in the sinking fund, was s5,57OS16, nearly
all Of which was incurred for war pur-
poses, and on which amount the an
nual interest charge was 1894 ,2252. During the
following twenty years there was paid on this
debt 80, l67 ,S76, reducing the bonded indebted
ness of the state, on the thirty first day of De
cember 1894 to s., 4O3 900, and reducing the
nual interest charge from 1884 ,252 in 1874, to
less than $4,000 at the present time. This eX-
cellent financial history marks the Intelligence
and wisdom OF our people and their repre-
sentatives.
The outstanding bonds of the State bearing
interest at per centum, command premium.
Our cities and towns, in making their TEN.
porary and permanent loans, negotiating
their securities on a 4 per centum basis, and in
many instances for less. The bonds of the State
and of her municipalities are among the
choicest Investments, and are in quick de-
mand, not only by our own people, but
throughout the financial centers of New Eng
land and the middle states. The high financial
credit of State and of her various munich
pallties rests upon a permanent basis, apd will
be secure in the future under the operation of
existing constitutional provisions, limiting the
obligations to be incurred by the State and
mum cipalities to create an Indebtedness be.
yond the limit expressed in the constitution.
1t is undisputed that these judicious constitu-
tional safeguards are the underlying forces
that give us our great financial strength and
stability, and permanency in the high values
that attach to our securities.
Temporary Loan.
There was outstanding against the State on
the first day of January. 1893. a temporary loan
of 900 that had existed for several years.
This loan had reached the constitutional limit
of the power of the legislature to Great indebt'
edness, except for suppressing insurrection
repeling invasion or for purposes of war. Not
only our financial credit, but safe and con.
sentative monetary policy for the future, re-
qured that this loan should be paid, and paid
from our receipts without increasing State
taxation. This imperative necessity was upon
us, ard some deserving measures. requiring
appropriations of money at the last session oil
the Legislature Were compelled to yield to this
demand.
am pleased to state to you and the people,
that during the past two years the entire
temporary loan OF 100000 has been paid from
the receipts of the treasury. In addition to
this, SOB 800 has been paid from the treasury
during the time on our bonded Indebtedness,
thus reducing the state debt during the year:
1858 and 1891 Sfl3 300, and our interest charge.
not less than 900 On the first day of Jan.
uary, 1895, as before stated, the unexpended
balance in the treasury was $45S 1885; more
than sufficient to meet all our outstanding cur
rent liabilities
State Tax.
The State tax for the year 1893 was two and
three-fourths mills on y dollar. The levy for
1894 was on basis of two and one-half mills,
making a reduction in the State tax for the
past year, of 81 ,63i. From a careful eXamina-
ton am satisfied there will be some reduction
in our receipts the present year, from the vari-
Gus sources of revenue outside OF the direct
tax levy and you may find, as the session pro
crosses, that the necessary expenditures OF
the State government will require a levy for
1885, nearly equal to the reduced assess
ment of last year. l can, however, safely
recommend that for the year 1896 the state tax
be reduced by you to two mills on dollar
On the revised valuation this rate W )uld re-
ducc the tax to be levied for State purposes, on
the cities and towns for 1896 Sl62,23.l6; and
with other receipts would still yield sufficient
revenue to meet all necessary requirements.
Upon this basis there will be Il tax of only
twenty cents on every one hundred dollars OF
the assessed valuation of the property of the
State, and one half of this under satute that
has existed for more than twenty years. will
he devoted solely to school purposes. Deduct
ing this school tax, which is distributed to aid
in maintaining our schools, the rate of taxa
tion for the support of the State government
will be only ten cents on one hundred dollars;
the lowest rate of taxation for that purpose
that has existed since Maine was admitted INTO
the American Union as an independent state.
This can easily be accomplished and every
need of the State properly provided for. If
rradnal reduction of the State tax is continued
by iudicious legislation, it will in the future
he a comparatively light charge upon the peo-
pie .@e&
Municipal Taxation.
The Legislature has imposed upon cities and
towns the necessity of utilizing certain public
duties, and has conferred upon them the au
thority to raise and appropriate money there
Tor. Under our system of government they
must construct and maintain roads for the
convenience OF public travel, they must pro
vide for those who fall into distress, and relieve
them from want and suffering, they must aid
in establishing and maintaining public schools,
and are charged with many other important
nublic trusts The welfare OF society depends
upon a proper execution of the duties I'M
posed. The performance of these Obligations
requires taxation, and the principal portion of
all taxes levied upon the inhabitants OF the
yar;ou; cities and towns in the State, is for the
nurnose of maintaining their city and town
governments, and of fulfilling the duties they
owe to the public The assessment of taxes TO
raise money to be expended for these nece>-
sary purposes will continue In some form' an