13

A bond of the State bearing interest at the rate of
three and a quarter per cent, per annum, free from
taxes, would to-day bring a premium, so that we need
not hesitate, to provide for the exchange of this debt
in the manner I have indicated, and thus secure a
saving to the treasury in interest, of some seventy-five
or one hundred thousand dollars annually.

REDUCTION OF STATE TAXES.

In my first annual report of the fiscal affairs of the
State, sent to the Governor on the 5th day of January,
1885, I not only promised a reduction of the State debt
but also a reduction in State taxes.

Although three years only have passed since then,
I am now prepared to make such an exhibit, of the
condition of the treasury, as will allow a reduction in
the tax rate.

THE EXHIBIT.

During the past three years, the treasury officers
have called in and paid all the Maryland Hospital and
Deaf and Dumb Bonds, authorized by the Acts of
Assembly of 1872, Chap. 236, 1874, Chap, 42, and 1876,
Chap. 263, amounting to the sum of $590,000.00,

These bonds although in the sinking funds,.are now'
practically redeemed and it only requires Legislative,
direction, to cancel them, and thereby take off the tax
of one and one-half cents in the one hundred dollars,
imposed by the laws creating these several loans.

The remaining Deaf and Dumb Loan authorized by
the Act of 1870, Chap. 422, of $100,000.00 has been,
refunded.

After the cancellation of the Maryland Hospital and
Deaf and Dumb Bonds now in the sinking fund, there
will remain available bonds of the State in the sinking
fund, for the redemption of the Treasury Relief Loan,
to the amount of $331,317.45. A transfer of the Balti-
more & Ohio Bonds amounting to $366,000.00 (that are.
in the sinking funds for the redemption of .the Mary-