viii REPORT OF THE

up to these special funds, there is added the necessity of
providing a new loan, whenever a former loan becomes due,
and of a tax to meet it, notwithstanding the Constitutional
requirement that no debt shall be contracted by the Gene-
ral Assembly unless such debt shall be authorized by a Loan
providing a tax for its payment, which is not to be applied to
any other object until such debt and the interest thereon
shall be fully discharged.

By reference to "Statement J," in this connection, it will
bo seen that the "Maryland Defence Loan" authorized by
Act of 1868, Oh. 235, the principal whereof amounts to the
large sum of $3,326,750.66 falls due in the year 1883. By
further reference to the Act of 1868, Ch. 235, it will be seen
that what is known and felt as the "Bounty Tax" of 5 1/2

cents is pledged by law to the payment of the principal and
interest of this loan; and by reference to "Statement M,"
it will be further seen, that this tax and the proceeds of
the loan have already been applied in the way and for the

purposes therein set forth, with the exception of $83,757.74,
which, as I have already shown, has been borrowed by the

General Treasury.

The error of such a system of legislation is thus practi-
cally shown. Were these special funds pledged by law to
particular objects and forbidden by law to be used except
as pledged, set apart and not applied to other objects, the
Government would in tho best of times come to a dead halt
for the want of available funds, with a plethora of the
people's money lying idle.

The Treasury officers, out of a proper regard for economy
and the necessities of the Treasury, have hitherto utilized
these funds in the way indicated, and relied upon a just and

discriminating public sentiment for their justification.

Notwithstanding these uses, the logs to the Treasury on
account of the failure of accustomed receipts and the large

and increasing amount of its unproductive assets, many

of which as set forth in "Statement I," are utterly
worthless, required that a new Loan should be author-
ized by the Legislature for the relief of the pressing