Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-08
Editorial Comment.
Names Financial Independence.
Boston Herald)

tBoSton Herdldt
The particularly sound condition of
Maine state finances are emphasized
by a bulletin recently issued by the
United States census bureau. This
bulletin is devoted to the subject of
state debts and makes it plain that
few, if any, states are better off than
Maine. 1t is not simply that 1t is
practically free from bonded debt at
this time, but that it has paid off
large debt rapidly and easily, with
out denying itself the expenditures
that a progressive state owes its peo-
pie and institutions. In 1880 the total
debt of Maine was $6,61S,00O in 1880
il was $3,642, 600 and in 1912 it was ST.
255,0o0. In 1886 the per capita debt
was $s49, in 1890 1t was s5.51 and in
1919 it was sl.G7. For the 4S states as
a whole the per capita state debt is
1852. or $1.S5 more than in Maine, For
the forty-eight states as whole the
state debts have declined S6 per cent.
since 1880, while in Maine the decrease
has been 10 per cent.
Favorable as is the showing Of these
figures for Maine, they do not tell the
whole story. Technically and as a
matter of book keeping In the office of
the state treasurer. the state debt of
Maine is, or was in 1912. $1.25o,0oO,
equal to s1.67 per capita as the gov
eminent bulletin puts it. But. as
matter of fact, no less than sl,254,Ooo
of this sum is made up OF public trust
funds. 1t is money that the state
holds in trusI for special purposes ana
so is an obligation, but 1t is not a
debt as the term is commonly UNDER
stood. The outstanding bonded in
debtedness of Maine at the present
time is less than $1,000. That is, it is
one of the states that Is practically
free of debt.
Moreover, every one of the sixteen
counties is frea from debt and nearly
all Of the so towns. In the matter OF
state finances, Maine has a system
that is working out in gratifying lash
ion. 1t has an income of about so,3co,-
900 this year for st9te purposes, yet
only about half this sum comes from
the modest tax of four and half mills
that is assessed on the property OF
the state. The rest comes from the
indirect taxes on corr nations. By
system of equalization the state pays
back to more than 400 o. its 500 towns
more than thoy pay into the treasury
in state taxes, and the remaining
hundred towns get nearly as much as
they pay IN. The state tax is praeti-
cally abolished for the average person
n the state, and that on the small
basis of four and half mills. Out
of it's annual income of $5,eoo.000 the
state uses less than 10 per cent. for
purposes of government. 1t pays $4,-
SOC, 600 back to the towns for local uses
and to the various charitable institu-
tions of the state.
There is a provision Of law that al
lows the state government to obtain
100000 as a temporary loan any year
when it is needed. and generally IN
the past it has been necessary to OBJ
tain at least part Of this sum. On so
businesslike a basis, however, have
things been under the administration
of Gov. Haines that not cent was
borrowed as temporary loan in 1913,
nor will there be occasion to borrow
cent this year On the contrary there
has been constantly on hand for
months past 100000 in cash in the
treasury to meet the bills as they
came in. For the first time the state
has established the custom OF dis
counting every bill, as a, business man
OF good resources would do. This
means a large saving in all the state
departments and at all the state in