more money there was in the sinking fund with
which to purchase the bonds of the State, the
higher would be their market value.
It seemed to him that the better coarse would
be to leave the matter to the legislature. He
was willing to apply the sinking fund to the pur-
chase of our bonds at something like par value,
as fast as the fund was competent to that pur-
pose. But he had no idea of anticipating the
payment of our debt, so as to run up its value to
fifteen or twenty per cent. above par. Legisla-
tion of this character was neither wise nor just.
He was in favor of leaving the Legislature un-
fettered—to reduce the taxes when, in their dis-
cretion, they should think that the reduction
could safely be made.
Mr. DONALDSON said;
The gentleman from Carroll, (Mr. Brown,)
had given us some fads, he, [Mr. D.,] would
give a few more facts, and he thought that all
taken together would wear an aspect different
from that given by the partial statement of that
gentleman. It was certainly true, that six per
cent. Maryland stocks were now purchased at
two and a half per cent. premium, for the in-
crease of the sinking fund. But the gentleman
must remember, that for a considerable portion
of our debt the State realized at the time of is-
suing the loans a large premium, ranging even
as high as twenty per cent; nor must he forget,
that for a long period, when our stocks were
very much depreciated in the market, we bought
for the sinking fund greatly below par. Thus
the sinking fund has so far gained largely in the
whole transaction, and has extinguished a con-
siderable part of the public debt on most advan-
tageous terms. It is not probable, that we shall
ever lose a greater amount by the payment of
premiums for our own stock, than we have gain-
ed by receiving premiums, and purchasing again
at a discount, for the sinking fund. We have no
right to complain of having to pay the premium
we now do.
The best investment, he said, was in our own
debt; and all surplusses ought to be applied, as
they now are by law, to the purchase and extin-
guishment of that debt. The apprehensions in-
dulged in, of an unlimited rise in our stocks, to
be produced by our purchasing for extinguish-
ment, were unreasonable. The Maryland stocks
were not, and would not be, the only public se-
curities in the market The stocks of the United
States, of New York, Massachusetts, Ohio and
some other States, would furnish as safe invest-
ments as our own, and would prevent our own
rom rising much, if any thing, above their real
value.
The gentleman from Carroll seemed to think,
that we should one day have to throw the whole
amount of stocks in the sinking fund at once into
he market, in order to pay off the public debt.
Mr. BROWN explained, that he only meant to
say, that an amount of money was to be invested
annually for that fund.
Mr. DONALDSON continued. He was glad that
he had misunderstood the gentleman. But the
sum annually invested would make but a small
impression on the stock market of the United

States. As for the re-issue of State bonds, after
their purchase for the State, that was forbidden
by law; all such bonds were registered, and then
cancelled.
In regard to relief from taxation by a gradual
reduction, which the gentleman from Frederick,
(Mr. Thomas,) advocated with such zeal in
preference to applying surplusses to the redemp-
tion of the principal of the debt, until the whole
was extinguished; Mr, D. declared himself ut-
terly opposed to such a course. He thought it
unwise and dangerous.
If one tax law was repealed, another might be.
Contests would arise between different interests,
and if the work were once commenced no one
could say where it would end. If one brick was
taken out another would follow, and then ano-
ther, until the whole structure would tumble
about our heads and perhaps overwhelm the
credit of the state in its ruins. Whatever are
the imperfections of the prevent system, the peo-
ple have become content under it, and it would
be hazardous to agitate the question of repealing
any part of it. The people now most cheerfully
pay the taxes, which provide the interest of the
debt, and large surplusses for the redemption of
the principal. They now pay them with ease.
In this State of things, we should relieve our-
selves of as much of the debt as possible; for we
cannot be certain that such great prosperity will
remain uninterrupted, and a time might possibly
occur when the payment would be found more
difficult. The plan of the gentleman from Fred-
erick, of constantly reducing taxation so as to
prevent surplusses, would, of course, have the
effect of indefinitely prolonging the existence of
our debt, and of taxes for the payment of its in-
terest. It seemed to him, (Mr. D„) that it was
of much greater advantage to the property hold-
ers themselves, to continue the taxes at their
present amount, so that they may be entirely re-
lieved of all taxation in the course of ten or a
dozen years, than to reduce the rate of taxation
by a few cents at a time, from year to year, and
so greatly prolong the date of final exemption.
He believed that the former policy, if consider-
ed as fixed, would add to the present value of all
the property in Maryland. The sooner the whole
of this debt is discharged, the better for us all.
When it. is discharged, a very great impulse will
be given to our prosperity, and men of capital
will not be deterred from coming amongst us,
or embarking their means in our enterprises.
Such a course, then, is demanded by our own in-
terests. In this connection, he said that the me-
thod of stating the amount of our public debt
ought to be changed, so as to exhibit to the peo-
ple, how much it had been reduced in every
year. At present, the same amount of debt was
stated every year, and although the amount of
the sinking fund is also stated, the result is not,
in general, correctly understood. Only the
amount of principal which has not been extin-
guished by the sinking fund should be stated as
the existing debt, and the sinking fund should be
classed as so much extinguished debt. It would
then be evident to all, how rapidly we are, from
year to year, pay ing off the principal of the debt,