The Republican., 1938-07-07

sold above par. This had the effect of
reducing the interest cost from one
and three-quarters per cent to one
and slx-tenths per cent. This, mark
you, is the lowest coupon rate and
interest cost at which the state of
Maryland has ever been able to bor-
row. Bankers are not sentimentalists.
Their judgment on the soundness of
our state credit can be taken as elo-
quent proof of the facts A threatened
deficit in the treasury of the state
when | took office has been turned into
a treasury surplus, and from authorl-
tative estimates of the state comp
troller's office we learn that there
will be, at the end Of the year, COM
Portable treasury credit balance.
Forced To Borrow
We had to meet our predecessors S
deficits with borrowed money. Con-
corning the advisability of the state
ever being again unanswered into
such a position, l have already given
public expression. 1t must be obvious
to all that the present enviable posi-
tion of the states finances must be
maintained in order to serve the peo-
pie effectively.
l have constantly reiterated my op-
position to the diverting of highway,
gasoline and automobile tax funds to
! general treasury uses. This custom,
| sad inheritance from the past, had to
be continued because of the refusal Of
a politically hostile legislature to heed
my earnest plea and make adequate
provisions to meet the general treas
ury needs. This policy of fund diver
sion should not be continued. | have
been forced to do it in an emergency
to rehabilitate our state solvency and
credit. Yet, in carrying on this GUS
tom of former administration, | have
administered it so that we have, to-
day, at least a balanced budget in
stead of the deficit with which our
predecessors left US, despite their use
Of gasoline and automobile tax mon
eys for general treasury purposes.
Fortunately, the people of Maryland
today have quite different and more
hopeful picture to contemplate.
Model For Other States
In social welfare, our administra-
ton has been model for other states.
The unemployment insurance compen-
sation program that | advocated has
been established. l have consistently
advocated unemployment relief, ard
this has been realized during my ad-
ministration, although not to the de-
gree of adequacy desire. Still, in the
main, few have suffered.
1t is unthinkable that national pro-
gram of public spending should be nee
cssary year after year, covering
period of more than five years, in or
der to keep the wheels of economic
progress revolving, continuation CT
which must inevitably spell national
bankruptcy and the ultimate destruc-
ton of the forces of our nations
progress. 1t is, nevertheless, a salts
faction that, by alertness, the present
state administration has been able to
obtain for the people of our state a
share of the national appropriations
somewhat commensurate with the
burden of our citizens national contri-
button.
Roads in Bad Shape
About twenty years ago, Maryland
had the best roads in America. At the
close of the last administration, Mary
land roads were among the worst IN
America, even though S250,0O0,0OO OF
the taxpayers money had been spent
on them. In March, 1885, received
from Mr.. Abel Wolman, of the State
Planning Commission, a report to the
effect that our roads system was then
Inadequate; that there was need for
long term plan of orderly construc-
ton of highways to provide an ade-
ouate, safe and efficient system OF ar
terial roads; that there was abundant
evidence of wastefulness in former
construction and building, with no
sane system Of planning; that there
was an earnest and paramount need
for the reconstruction and moderni-
cation of at least nine hundred miles
of the state system.
No fair-minded man or woman can
or does expect me, in the short period
of three and a half years, completely
TO undo the evil and correct the deplor~
able condition of the roads system due
to inefficiency, neglect and eXtraVa-
CANT wastefulness of the previous
years.
Turning Point Marked
l think that the motoring public Will
admit, however, that much improve
ment has occurred during the past
three years. No one believes, nor do l
state, that anything like adequate cor