The Republican. [volume] (Oakland, Md.) 1877-current, 1938-02-24

years, or a total of 81 100000.
Second, the legislature of 1885
made reservations to the state budget
from the emergency bond issue of that
session to compensate for my drastic
budget cuts and to make reservations
to the state road system for necessary
transfers of highway funds. This
amounted to $3,5OO,OO0 plus the prem
ium obtained from the sale of the is
sue. This was against my stated pol
icy xxx.
"In the face of my accommodation
for small bond issue and the raising
OF additional revenues to provide for
a reserve fund, the General Assembly
OF 1885, in addition to making the ap-
preparation necessary to restore the
solvency Of the General Assembly at
the end of the previous administration.
appropriated funds for the operating
expenses of the government in the
form of RESERVATIONS for the fiscal
years 1886 and 1887 from the emer-
gency bond issue of 1885 xxx.
Thirdly, the legislature of 1887
made restoration for highway pur-
poses from borrowed money instead of
from indirect taxes as recommended
by me. They appropriated $3,3O0,O00
for this purpose from bond issue of
/ 1927 v " Tho loo,;cIo+,,,.o
creased my bond issue bill from S5,-
$4,000 to total issue of $9052, 900
of which increase $3,39O,OOO was for
reservations to tn estate roads funds
which specifically stated should come
/ from new indirect taxes and $5O0,O0O
of which was their own addition to the
recommended allotment to the teach
ers' retirement system reserve.
"The General Assembly of 1885 and
1887 has authorized the use of So, 70O,-
600 of borrowed money for operating
expenses of the state for the four fis-
cal years of my present administra-
ton, only $1,4OO,OOO of which l spon-
sored teachers retirement system
bonds), and l specifically counseled
against the remainder. ! signed these
bond issue bills realizing the unsound-
ness of this method of financing but
also knowing that a veto would mean
in each case a special session of the
legislature with littie Change III the
net result, but at great added cost.
was unwilling to involve the state in
such a useless expenditure.
"To recapitulate the entire picture
of the last five years, of the total of
S25, 100000 of borrowed money used
for other purposes than investment,
capital improvement or requirements,
SIT, 100000 is a responsibility of the
administration Immediately preceding
the present one, and of the remainder
| have strongly recommended against
all but the debatable item of 81 100000
of teachers retirement annuity re-
serve bonds.
"The bonded Indebtedness of the
state of Maryland is at tn epresent
writing SAT, 491 900 and at the end of
my present term in January, 1889,
provided bonds are sold that are au-
thorized and redemptions made that
are scheduled, the bonded debt Of the
state of Maryland will be S48,247,000.
Furthermore, at the end Of the present
fiscal biennium September 30, 1888,
unless the next Maryland General AS
sembly changes these figures, the
state debt will have been reduced to
$685., 900 more than the states ondebt-
| $685., 900 NOR ethan the states indebt-
edness was at the time of my inau-
guration.
"Of this state debt it may be well to
remember that $8,500,000 was issued
in 1885 in such a manner that it has
not been and probably never will be a
| burden on the property taxpayer. 1t is
supported and in all likelihood will be
liquidated by an allotment from the
collateral inheritance tax of the state
of Maryland, so that deducting this is
sue from the state debt at present
there is the sum of S38,991,000 of
state debt supported by property taxes
and this is $4,646,0OO less than the
state debt supported by property
taxes when / came into office.
"The taxable basis of Maryland
stood October 1st, 1887, $2,737,753,-
8O995 and is on the increase. This is
ratio of about Ia per cent and is
about 4 Of what it might be without
serious concern for the states cred
! it xxx.
"The state is to be congratulated on
the excellent condition Of its-fnances
and this enviable position should be
maintained .undisturbed by any at
tempt to borrow for expenses. There
has been for several years, however,
long range trend toward an increase
in the state bonded debt which is dan