Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1897-01-15
The Comptroller's Report.

The report of the Comptroller ofthe trea \.
ury of Maryland gives satisfactory show
ing of the financial condition of the State
The Legislature at the session of 1896 created
two new loans, one Of 100000 to build n
new insane asylum and another OF 100000
to complete the penitentiary. The rate OF
interest to be paid on these loans was left by
the Legislature TO the Governor, Comp.
troller and Treasurer, not to exceed 1865.
per cent. The rate was fixed by these off,
Gals at 81 per cent because of stringent
money market, higher rate than the State
has paid since the 1865 loan of 1882, the de-
tense loan. All the loans subsequnt to that
date have been placed at per cent. until
this one. The entire loans were sold last
summer for $612,7S4. Deducting this money
accruing from the sale OF bonds from the
balance in the treasury, that balance was
about half million dollars on September
&c. 1896, the close of the fiscal year. This
is about the usual balance, and it is more
apparent than real, for the heavy payments
early in January usually wipe it out, or
nearly do so.
The State debt is now made up of six
loans as follows:
The 365 per cent. defense redemption
loan of 1892, due in 1899, $3,000,000. To
the credit of this loan there is the sinking
fund;$3, 204 ,770.05. Two thirds of this sum is,
however, invested in the other loans of the
State, and not available to extinguish the
defense loan without some financiering.
The per cent exchange loan of 1886.
$1,S9S, 829. OF this, 1928 $50 is due in 1900
and 81, 270, Ala in 1901 There is no sinking
fund to the credit of this loan except
$25, 900. About 81 ,106 900 of this loan is in
the sinking fund to the credit of other loans.
The 3 per cent. exchange loan Of 1889 for
$3,O79 400, due in 1903 To the credit of
this loan there is only $l60,4035O in the
sinking fund
The three per cent. exchange loan of 1891.
$706, 1857 IA $558, 900 of this loan is in the
sinking fund, but only $4,000 to its own
credit.
The 81 per cent. penitentiary loan, $500
600, due in 1911 and payable after July /,
1906
100000, due 1911 and payable after July / .
1905.
The total debt at the close of the fiscal
year amounted to $9,284, 9S6.24, against
which must be Offset the sinking fund secu-
rites, amounting TO $3, $40 .963 II, and pro-
ductive assets, amounting To $3 sos $40 80
at their par value. Inclu led in these assets
is $3.50, 900 of the stock OF the Washington
Branch Railroad Company, worth far more
than its par value. The annuity of $4,000,
secured by a mortgage on the Northern Cen
trail Road, is capitalized at $l500OOO six
per cent. The Comptroller says: Should
il be found advisable to dispose Of this in
vestment, IL could be done at u much higher
figure" Chapter $50 of the acts ol 1854
provides that the annuity "shall be subject
to be extinguished at any time within ten
years hereafter upon the full payment Of
one million five hundred thousand dollars"
In case of default in the payment of quar-
terly installment OF annuity, the State, under
the terms Of the mortgage, can sell the prop
erty aud collect the $1,500,000. Whether
such a security is worth more than the
amount which can be enforced is question.
The Comptroller caered to the sinking
funds the sun of $685., 524, $S7 1850 less than
the previous year. All this was invested in
defense loan bonds Frederick city bonds
to the amount OF $4,000 belonging to the
sinking fund were exchanged for defense
bonds. 1t is the desire OF the Comptroller
TO get possession of as many of these bouds
as possible, so as to be prepared TO meet the
loan when it falls due in 1899. OF the amount
carried To the sinking fund about 100000
comes IRON interest on sinking fund invest
ments and the remainder from State taxes.
The taxation for this purpose was decreased
by the last Legislature. The tax for the
existing public debt was reduced from II
cents ON 800 TO Al cents, two cents being
applied to the purchase Of school books,
| 1916 of a cent to the new penitentiary loan
and 3-16 OF cent to the insane asylum loan.
The Comptroller promises to rigdly main
tain the sinking funds according to law. II
| he does this he will soon free the State from
debt and place her in financial position
far superior ID that OF any other. The State
tax and debt OF Maryland have long been
among the lowest 1t should be the aspira-
ton OF all the treasury officials to speed the
day when all State taxation can be abOl.
Ished
The worst showing 10 the report is that
OF the oyster fund The receipts from
licenses were far too small to pay Tor main
tanning the oyster navy and under an act OF
the last Legislature $4,000 was take from
the treasury proper and spent Tor this pur-
pose Instead OF the State receiving mag
nifcent revenue from its great submarine
wealth it is actually charge on the treasury
and property-owners all over the State are
taxed 10 support the police and to protect
the oyster beds. IL is true the $4,000 Is
spoken of as a loan, but II will likely be
permanent one.
The character of the sinking fund invest
ments could not be better. With the ex-
ception of $4,000 In a per cent. Frederick
City bonds, the entire sinking fund Is in
securities OF the State and Baltimore city.
AS long as the State pays only 3 per cent.
interest its securities can always be pur
chased for the sinking fund at or near par,
and this is great advantage. The securi-
ties held for the use Of the school fund in
clude considerable amount OF excellent
bank stock and also $1l8, 100 of the first pre-
ferred stock of the Baltimore and Ohio Rail
road Company, which belongs to the Agri-
cultural College fund, and which now pays
no interest.-Edlt0 Sum-