Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1907-10-04
WHO PUT MARYLAND FINANCES
ON A BUSLNESSLLKE BASISf

In his speech accepting the nomination
for Governor Of Maryland BY the Republic
can party, Mr.. George r. Gather said.
IT was due to the efficient administration of
the States finances by Republican Treasurer
and our Republican Comp trollers that the
finances OF our State were placed upon ou-
sinesslike basis and the policy inaugurated,
and sanctioned by the Legislative cot OF 1895,
OF dispoBing OF the assets OF the state wnicn
were held in It's Treasury and thereby reducing
its public debt and decreasing the burdens OF
the people.
In view Of Mr.. Gathers failure to cite
any specific facts to sustain these claims, a
brief review Of the recent financial history
Of the State may not be untimely, and from
that review our readers win be able to judge
how far the statement and claim of the Re-
publican candidate for Governor are sus-
tanned by the evidence or facts. AS Judge
Crothers declared In his Lyric speech, the
strongest argument that can be presented to
intelligent people is the statement OF a fact.
Mr.. Gather makes two assertions-drst,
that sit was due to the efficient administra-
ton Of the States finances by Republican
Treasurer and our Republican Comptrollers
that the finances OF the State were placed
upon q businesslike basis" second, that the
policy of disposing of the assets of the
State for reducing the public debt and de-
creasing the burdens Of the people was in
augurated and sanctioned by the Act of
1896.
According to the report of the Republic
can Comptroller, Robert j. Jump, when
the Democrats acceded TO power in 1867
they found that the funded debt of the State
was $18,549,796.5S. The sinking funds had
been wrecked and amounted to only 81 AGO..
SS4.O1, and the revenues were insufficient
for the current needs Of the State. A tenn
porary loan of $S95.033.64 had been Gre
ated for current expenses, and this loan has
been paid by sale of securities held by the
State. For many years the ordinary reye-
nues were not sufficient 10 meet the expen-
dItures OF the Government and the sinking
funds and the appropriations by the Legis.
lature. BY 1878 the deficit had increased 10
such proportions that the Treasury relief
loan for half million dollars had to be
created. In all these years there was con-
tention over the sinking funds. The late
Governor Hamilton commended that the tax
which was levied to provide sinking funds
for the several loans was dedicated by the
Constitution, and the Legislature had NO
right to appropriate 1t for other purposes,
and that the Treasurer should refuse to pay
appropriations If there was no money in the
Treasury over and above the amount re-
ouired for the sinking funds The Treasury
officials commended that 1t was better to leave
the debt to be renewed when due rather
than refuse payment Of sum appropriated
by the General Assembly. Mr.. Hamilton
became Governor in 1880 and succeeded 10
fixing the debt.pAying policy and the main.
tenance Of the sinking funds in their integ-
rity as the settled policy of the State. II
was, in fact, he who first placed the finances
of the State upon businesslike basis. In
1874 q tax was levied upon the stock Of cor.
porations which was to be paid by the
officers Of the company regardless of the
earnings Of the company or Of the location
OF the stockholders, and in 1884 tax o.
one-Aalf Of one per cent was put upon ths
gross receipts of railroads, and shortly mon
ey enough was received to take care Of the
sinking funds and pay every appropriation
made by the Legislature.
The only interruption to the proper bust
ness management Of the finances was thu
default Of the Treasurer in 1890. Governor
jackson removed him and appointed the
late Edwin Brown, who speedily restored
wholesome business conditions.
The practical results Of the administra,
ton by the two parties are shown In the
following figures: saHserz1rtfs5 I
Taking the four Democratic years pre-.
ceafng the Republican administration, when
Marion Smith was Comptroller and Spencer
Jones Treasurer, we find that on September
80, 1891, the State debt, after deducting the