I am also calling your attention to the bonds of the
State issued since the Session of 1918, viz:—

Road Loan of 1918, Chap. 295, of 1918.

Sold Aug. 15, 1918............................ $1,500,000.00

State Loan of 1918, Chap. 298, of 1918.

Sold Aug. 15, 1918............................. 1,000,000.00

Sold Loan of 1918, Chap. 295, of 1918.

Sold Feb. 15, 1919............................. 1,500,000.00

Total .................................. $4,000,000.00

The fiscal year 1919 is unique in the fiscal affairs of
this State, inasmuch as it marks the establishment of the
Budget System. Like all important changes and the in-
auguration of any new system, some difficulties were at
first encountered as to its adoption and proper interpre-
tation, but ij^has always been my endeavor to administer
its provisions with the utmost fairness to all concerned,
and it is a pleasure to record the assistance given me by
all State Departments. I am respectfully calling your
attention to the tables in this report, showing in detail its
operations.

I take this occasion to briefly call your attention to
what I believe is the most necessary thing in public life
v today, viz: Economy. The cost of government to the
citizens of the United States is so enormous that, from
my view point, the present high cost of living is, to a great
extent, caused by this condition.

It is estimated that more than five billions of dollars
will be needed for the Federal government in 1920. This
means fifty dollars per capita for. the people of the United
States. The cost of government in the State is approxi-
mately seven dollars per capita. The average cost of
government in the counties will approximate six dollars
and in the municipalities of Maryland, exclusive of Balti-
more City, the cost will reach, in the larger municipali-
ties, from five to twelve dollars per capita, so that the
'average cost of government to the people of Maryland is
.approximately seventy to seventy-two dollars per capita.