COMPTROLLER OF THE TREASURY. XV

Is to lessen the tax just so soon as it can be done with-
out embarrassment to the Treasury.

Holding these views I shall recommend to the next
Legislature a reduction in the present tax rate, such re-
duction to he based upon the amount of taxes applicable
to any loan that is then due, the entire bonds of which,
or their equivalent, shall by that time be in the Sink-
ing Funds.

By the last call the Treasury Officers have secured the
entire Maryland Hospital Bonds,amounting to $465,000.00

and they are now in the Sinking Funds; a cancellation
of these bonds would take off one cent that goes to
make the 8 3/4 cents of State Tax.

We shall call in as soon as the condition of the Treas-
ury will permit the Deaf and Dumb Loan authorized by
the Act of 1874, Chap. 42, amounting to the sum of
$125,000.00, and this will enable us to take off in like
manner one-half of one cent more.

1 think then we can confidently rely upon the next Leg-
islature making a reduction of one and one-half cents in
the State taxes.

If this reduction is made as it should, and I believe
will be, it will necessarily lessen the revenues arising
from Loan taxes, and the increment from investments
where those investments consist of the cancelled bonds,
the annual increase of the Sinking Funds will be cor-
respondingly reduced, and will therefore defer the time
when the whole debt tax can be abolished, yet I think
it is the course which justice to the taxpayers and the
law creating the loans authorize and confirm.

But in this changed condition of things there is no

cause for discouragement, for if the present policy is
maintained there will be sufficient money, or its equiva-
lent, in the Treasury, to pay the debt for which these
Loan taxes are applicable, if not long before its ma-
turity, certainly so soon as it shall become due and
payable.

PRODUCTIVE ASSETS AND IN VESTMENTS.

Statement I gives the State's productive capital and
credits as of Sept. 30, 1886, to be $5.302,285.70.