Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1902-01-10
OUR STATE FINANCES

The report Of the Comptroller OF the
Treasury Of Maryland, which has been sub
mLled To the Legislature, is most encour
aging to those persons who desire 10 sec the
State free from debt. The public debt is
now reduced 10 small compass. Ii con
ssts OF the 81 per cent. loans OF 1896 Tor the
penitentlary and insane asylum, aggregating
100000; the 3 per cent, consolidated loan
of 1898, $5,4Ol ,936. 10. and the per cent.
State building and improvement loan OF
1900, 100000. In addition To these loans
there is 81 400 Of the exchange loan of 1899
still outstanding, making the entire debt
Of the State $6,509, 396.13. or the State
building loan all except about $4,000 is
owned by the State and is in the sinking
fuad. OF the consolidated loan 1915 387 is
In the sinking fund Other securities and
cash in the sinking fund bring the amount
up To $l.709511 "a After deducting the
live assets OF the State from the debt the net
amount of Indebtedness is found to be -,
OOofDfH So DuA thO hNNhdl NalhN VI AhN No
sets, il is believed, would extinguish the
entire debt Among the assets Is the annu
ity Of $4,000 secured by a mortgage on the
Northern Central Railway, This is put
down at $l5OOOOO, although when Mr.
Shryock was Treasurer he found purchaser
for II. a. he announced at the time, for
$3O00,OO0 The proposed sale was pre-
vented by the railroad company, which
claimed the right 10 extnguish the annuity
upon payment of $l,5O0OOO The State
officials refused 10 receive that amount, and
the corporation took To the courts The Bal
timore court and the Court OF Appeals both
decided against the company, and II has
now gone to the Supreme Court Of the
United States. 10 the meantime the North
err Central Company has delaulted, accord
ing 10 the Comptroller's report, In the pay
ment of the annuity since April, 1900, the
amount in default up 10 the 9Th OF the
present month being $l57,5OO. The default
In this payment seems 10 bear no relation to
the suit instituted by the company to com
pei the State To accept $l500,00O TO extn
guish the annuity. AS far as appears nc
steps have been taken by the State " compe
payment of this just debt. The ordinary
method when corporation does not pay il,
debts is to ask for u receiver.
The Treasury officials appear to be main.
tanning the sinking funds most faithfully
These funds are invested, whenever II IL
practicable, 10 the States own securities
OF the consolidated loan of 1899 1915, SS7 /,
In the sinking fund, aud OF the building and
improvement loan OF 1900 the funds hold
SAL 300. The remainder Of the fund is CON
pcsed of Frederick county bonds, $4,000
Laurel bonds, s4l 900; Baltimore city stocks
$4,000, and cash 1891, 924 "a Nearly all
this cash has since b>en invested mainly in
Baltimore city stock. ~
Governor Smiths adminhtration found a
deficiency 10 the oyster fund, which had 70
be made good out OF the Treasury. Und.,
the operation Of the oyster law OF 1900 reye
nues have increased, the deficiency has beea
made good, and there is now surplus.
A gratifying feature Of the Complroller's
report lie that announcing an increase Of
$27, 092 .626 in the basis OF taxation. III,
basis is now S54S,S12.40 BY reason o.
this increase the revenue from direct taxa.
ton Is as great as 1t was the preceding year
although the tax rate was decreased three.
quarters Of a cent on the hundred doll RS
OF the direct tax oi II cents 1874 cents 20 TO
the public schools and the remainder To the
public debt, interest and sinking fund. The
Ordinary receipts of the State average about
t3OOO.OOoa year. OF this amount about
one third comes from the direct tax on
property and the remainder from licenses
taxation, etc. But for the schools
the state could In a year or two dispepse
with the direct tax on property altogether.
Of the school tax 2 cents Is for providing
ext-books Tor the public schools. Last year
he tax Tor free books produced &l3s, Ass Os.
while the disbursements on that account
we're sl53.532 "a The receipts have fallen
hort Of the disbursements since the passage
{ the Free Book bill 10 1896 by $l64,3l4.
n bis message the Governor recommended
hat the annual appropriation Tor free books
{ reduced to $4,000, which be believes.
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