viii REPORT OF THE

tax after the payment of interest to be $1,613,316.70, or
$209,439.61 less than the $1,822,756.31 disbursed in excess
of receipts, on account of bounties and bounty or defence
loans, as early as the year 1867.

The Act of 1864, chap. 2S5, referred to above, completely
modified all previous laws and plans relating to the sinking-
fund, and to that mode of paying the debts of the State be-
fore maturity.

Gov. Lowe, in his message to the Legislature of 1852,.
pointedly describes the policy, thus modified and now sought
to be reinstated, in these words: "Will you send Maryland
'into the market, as a stock-jobber, to speculate in her own
securities ? She has agreed to pay one hundred cents in the
dollar when due. Shall she appear on 'change, loaded with
the gold of a tax-ridden people, to pay a premium on her own
paper? If, at the expiration ot fifteen years, the money is
to be in hand, will not her bonds appreciate to the highest
point? * * * Every dollar which she would pay
as a premium on her bonds, would be, in fact, a bonus for the
privilege of anticipating her obligations. What private capi-
talist would cancel his liabilities upon such a princely scale ?

The wisdom and economy of the enactment of 1864, chap,
285, by the Republican government of that year, subsequently
became practically so manifest, that the Democratic Legisla-
ture and Governor in 1872, by the Act, chap. 276, canceled
and annihilated the remnant of the sinking fund left un-
canceled by the previous Act, and the small increment
thereto since 1864.

Other loans have been created since the Defence Loan of
1868, and in every instance the Act creating the loan has
provided a tax dedicated to its payment; in each instance,
however, the annual tax imposed is not very much in excess
of the annual interest upon the loan. These loan or debt
taxes are now in all 8| cents on every $100, and, with the
tax of 10 cents for schools, constitute the annual direct tax
upon the assessable property in the State. No direct tax is
levied for the support of the government of the State. Her
other sources of revenue are chiefly licenses, collateral inheri-
tance taxes and tax on commissions, &c.