Evening star., 1933-11-23
MARYLAND LIQUOR
EXCISE is URGED TO
MAKE UP TAX LOSS
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revenue essential for the State to meet
It's obllgatlons, in spite of the drastic
cuts in its budget
Enumerating the decrease in State
revenue, Gov. Ritchie explained that
the States assessable basis had dropped
from s2,Soo,00o, 900 in 1881 to S2.500.-
! 10000. causing the yield from the %
cent State tax to fall 100000 year.
General Revenues Drop.
General revenues from other sources
have also declined materially, he said,
reporting that since 1882 gross receipts
have decreased s225 900, estate taxes,
$3.50 900; insurance revenues. sl0O 900;
excess fees of clerks of courts, sI0O. 900.
and bank interest, which is no longer
paid on demand deposits, $50 900.
These sums aggregate 81 545 900
year, but because of the increase above
normal in uncollectable taxes, the Gov
ernor estimated that the total decrease
in State revenues will amount to 81 ,8Oo,-
oO0 year at the very least"
Reviewing the budget cuts made by
the last Legislature, which reduced the
appropriations for the normal functions
OF government in Maryland S7OO5 600
Gov. Ritchie said they were "unequaled
IN any State as far as I know"
Nevertheless, the State government
cannot stand decrease in its revenues
of at least s1.S0O. 900 year. because the
savings from the budget cuts do not re-
vert to the State treasury. but 90 for
Unemployment and tax relief in Balti-
more City and the counties, Gov.
Ritchie explained.
The decreased revenues must be made
up not only to assure the absolute in
tegrity of the States bonds and the
continuance Of the States unexcelled
credit-which, the Governor said. is
now on a 800 to a 3.45 per cent basis
but also to maintain the school, health
welfare, institutional and other es-
sential functions of the Government
and to assure strong cash position
IN these uncertain and unstable times,
the legislators were told.
To this end the Governor recon-
mended that the decrease be made up
from the proceeds of the excise tax.
Whether the tax will yield the re-
qulred sum Is uncertain, the Governor
noted. expressing the personal belief
that 1t will not be quite enough. A
years experience will enable the 1885
Legislature to adjust the tax, "in any
way that may be proper" he said.
Tax Transfer Urged.
The Governor specifically recon-
mended, however. that about $3.50 900
Of the proceeds from the excise tax be
pledged to debt service. and as a means
Of doing this. proposed that the 34
cents of the present 22-cent State tax
which now goes to general Government
expenses be transferred to debt serv-
ice, making the entire proceeds from
the State tax dedicated to payment of
interest and principal on the State debt.
Terming the recent lynching on the
Eastern Shore "deplorable," the execu-
tive asked the legislators to pass bills to
provide for civil action on the sheriff's
bond in the case Of lynching, give the
Governor authority to remove sheriffs
derelict in their duties regarding the
custody OF prisoners, and otherwise
strengthen the Maryland law which
makes lynching crime. Several tech
nical recommendations designed to
speed criminal procedure In the States
courts were also contained in the Gov
ernor's' message.
The Governors final recommends
tions called for passage of bills giving
localities power to raise and appropri-
ate funds for unemployment relief, and
legislation necessary to enable State
banks and trust companies to qualify
under the deposit guarantee provisions
Of the Glass-Steagal BILL