26

$54,772.39, is the amount of the premiums paid for
the securities.

While the sinking funds have been maintained dur-
ing the period named, there has been also, as a natural
sequence, a satisfactory

REDUCTION IN THE NET DEBT

Of the State as will appear, by the following state-
ment :

The net debt of State 30th September, 1883.........$7,285,891 57

1887.......... 5,661,238 96

Total reduction in 4 years................$1,624,657 81

The debt of the State has been reduced over one and
one-half millions of dollars since I entered office. The
entire bonds of three separate loans, representing a tax
of one and one-half cents in the tax rate, are in the
sinking funds and practically redeemed.

And should you transfer the Baltimore & Ohio Rail-
road's bonds, to the credit of the sinking fund for the
redemption of the Treasury Relief Loan, in the man-
ner I have indicated, there will be an available sink-
ing fund for this debt, of $697,317.45. This is $256,-
317.45, more than is necessary for the redemption of
the balance of the Treasury Relief Loan now outstand-
ing. It must therefore be evident to every reflecting
mind, that the time for tax reduction is now at hand.

But I will say 110 more. I have called your atten-
tion to the leading features contained in the appendix
to this report, and made such comment thereon as to
me it seemed expedient and proper, and I have en-
deavored to demonstrate to you the feasibility of
reducing the debt taxes, at least one and one-half
cents, in the tax rate.

You have full knowledge, however, of the condi-
tions under which the people of our State to-day labor,
and appreciate as fully as I do the importance of redu-
cing taxation in the State, as well as in the nation, in
order to give the relief which is needed.