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land Hospital and Deaf and Dumb Loans, the greater
part of which, as I have shown, are already redeemed,
and the balance refunded) to the credit of the sinking
fund for the redemption of the Treasury Relief Loan
would make a sinking fund of $691,000.00.

The Treasury Relief Loan becomes redeemable on
the first day of July, 1888. The Baltimore & Ohio
Bonds also fall due on that day.

It has been the intention of the treasury officers to
take the proceeds of the Baltimore & Ohio Bonds, and
apply them to the payment of the Treasury Relief
Loan. There are already $59,000.00 of the bonds of
this loan in the sinking funds.

It would only require $75,000.00, in addition to the
Baltimore & Ohio Bonds, without touching the State
bonds in the sinking fund to the credit of this loan to
enable the treasury officers any time after the first day
of July, 1888, when the proceeds of the Baltimore &
Ohio bonds should be in hand, to pay off the balance
of the Treasury Relief Loan now outstanding, amount-
ing to the sum of $441,000.00. When this shall be done
there can be a reduction of one and one-half cents
more in the tax rate.

Should you determine to cancel the Maryland
Hospital and Deaf and Dumb Bonds now in the sinking
funds, and transfer the Baltimore & Ohio Bonds to the
credit of the sinking funds, for the Treasury Relief
Loan, you will be enabled, to make a total reduction of
three cents in the rate of State taxes for the year 1888,
leaving the tax of one-quarter of one cent, for the
Exchange Loan of 1886, the tax of five and one-half
cents for the Defence Redemption Loan and the tax
of ten cents for schools, and making a total tax of
fifteen and three-quarters of a cent on the one hundred
dollars, the lowest rate of taxation for Maryland in a
period of twenty-five years.

In my report to the Executive a year ago, upon the
fiscal affairs of our State, in presenting the question
of reduction of State taxes, I stated my views, which