The daily banner. (Cambridge, Md.) 1897-2008, 1916-10-10
THE FACTS CAUSING The
NECESSITY OF A BUDGET
A Statement of The Tremendous In
crease in The States Income And
Disbursements in Ten Years, And
What it Means.

What it Means.
The sixth of the articles from
members of the Economy and Effici-
ency Commission on the Budget
amendment is given below. Those
who read it carefully will gain an
idea of the extent to which the State
has increased the burdens upon the
taxpayers, direct and indirect, and to
which it has increased its eXpendi-
lures. And they will understand
anew the crying need for scientific
system of handling the public finan-
ces.-By B. Howell Griswold, Jr.:
Let us glance at the States recent
financial history.
Gross debt.-The gross bonded
debt of the State is reported as fol
lows:
1906 the State owed. 6,167,926.
1916 the State owed. 20, ,2S5,SS0.55
Increase in 10 yrs. $40 Q,117,9 AZ
Net Debt.-The States net debt is
reported as follows:
ISUo 9o5S, S,lUl.41
1916 1853, ,6l5.9b
Increase in 10 years $17,031, Alp. 55
Note that within the brief period
of 10 years the State has passed
from position practically free from
debt to the position of debtor ow-
ing nearly Is millions of dollars.
Yearly receipts and expenditures
(not including bond proceeds:
Receipts - 1895, S2,544, ,091.84.
1906, $4,388,46O.07. 1915, $7,476,-
1895.
Disbursements : 1896, s2,744,
036.27. 1906, $4,036, ,0OO.78. 1915,
S7,267,719.S3.
Note that the State now receives
and eXpends nearly five millions of
dollars more in a year than it did 20
years ago and about three millions
more year than it did 10 years ago
that is to say, our ''Hving expen-
ses" have increased nearly 200 per
cent. in 20 years and about 80 per
cent. in 10 years.
Tax Rate:
In 1906 " cents
In 1916 321a cents
Note that while our assessable ba-
sis in 10 years has increased so per
cent, our tax rate at the same time
has increased about 40 per cent.
The purpose of this comparison is
not to indicate that the States money
has been wasted-that is a different
problem. For example, a very sub
stantial portion of the proceeds Of
our loans has gone Into State roads.
The purpose is to show how rapid
has been the growth of the States
receipts and expenditures and to en-
phasize how vital it is to the taxpay-
ers of the State that proper system
be introduced at once which will tend
to check all waste.
A man running a small business
may struggle along, running into
debt before knowing what his income
lis going to be, but the man who tries
this on a If1iiiion-dolIar scale rs neauz>
ed for bankruptcy.
The State of Maryland has been
appropriating money in years past
millions of dollars-without an accu-
rate statement at hand as to where
the money was to come from.
The inevitable result was that the
State began to live beyond its in
come some years ago, attempted to
recuperate by increasing the tax rate
and finally "blew up in 1914 with
big deficit
The people of the State were
aroused. Both parties found it ex-
pedient to give to the voters a sol
emn pledge that a budget system
would be enacted into law which
would prevent a recurrence of such
condition of affairs.
The State has now paid off its
creditors and many people feel COM
Portable again. But it's like the man
who gave a new promissory note to
take up an old one and said, Thank
Heaven, that debts paid
For the State paid off its creditors
by selling $2,0O0,O00 OF bonds, which
must in turn be paid by taxing the
people of the State for the next Is
years.
Are we going to let this happ
again?
The Democratic party has fulfill
it's pledge so far practically to t
letter. A Democratic Legislatu
voted in favor of and a Democra
Governor signed a bill submitting
the people this fall a constitution
amendment which will prevent Il
recurrence of a deficit and do mo
than any other single act to redu
the useless expenditure of State m
ney. This law also received t
support of Republicans in fulfllme
of their party pledge.
1t is now up to the voters of t
State. Will they allow their oI
lethargy or neglect to defeat th
best interest? If so, they will 2
heavily for it in cold cash in
years to come.
Do not let anyone fool you on t
and discuss theories with you. 2
simple fact is that if the bud
amendment is not passed this fall
taxpayers of the State will pay hea
ly for it.
| The amendment has been so fJ
and ably explained by my associa
on the Goodnow Commission that
is a waste of space to repeat this
PLANTATION in different terms.
The framing of the amendment re-
quired several months of hard work
by members of the commission. The
proposed system is founded on ele-
mentary requirements of exact bust
ness adjusted to governmental needs
and sound principles of government.
1t represents the compost judgment