of Governor Herbert R. O'Conor 61

and Agencies, and to make specific recommendations to the Governor—looking
towards the elimination of waste, extravagance and inefficiency in administra-
tion; and granting to the Governor the power to prevent needless or extrava-
gant expenditures.

7—To bring about a substantial reduction during the next two years in the
bonded indebtedness of the State, to restrict the creation of new debt to
capital needs.

Each of these seven undertakings is an integral part of the comprehensive
program devised to establish the finances of the State on a solid, lasting basis.
And I am highly gratified that, as a result of the cooperation between the
Legislature and Executive branches of your State Government, the program
in its entirety has been adopted. As a result the credit and financial stability
of Maryland has thus been definitely re-established. To summarize briefly—

1—Maryland will have a balanced budget during the ensuing biennium for
the first time in many years.

2—More than $750, 000. 00 a year of unnecessary expenditures have been
eliminated.

3—Approximately $3, 800, 000. 00 a year of gasoline tax funds have been
restored to use on the State highways.

4—Maryland has forsaken the slothful habit of borrowing to meet current
charges and is now on a pay-as-you-go basis.

5—Maryland now has a modern and effective system of Budgetary control.

6—By September 30, 1941, the total Bonded Indebtedness of the State will
reflect a net reduction of approximately $9, 000, 000. 00.

7—There will be no increase in the State Tax Rate.

All of this has been accomplished while, at the same time, we have pro-
vided $5, 000, 000. 00 for relief, which amount has been declared to be adequate
by relief authorities. Furthermore, at the same time, we have provided large
amounts needed for agricultural pursuits in order to assist the farmers,
planters, growers and poultrymen of our State. These latter projects were
urgently requested by the Farm Bureau and by the Grange and I am happy to
report that, under this administration, more assistance will be given to these
deserving purposes than ever before in the history of Maryland. In addition,
there will now be available for road construction and maintenance all of the
money which has been saved for this purpose by stopping the practice of
gasoline tax diversion. As a result of this stoppage, the State from now on
will have more money to spend on its roads than ever before in its history.
Maryland's highways henceforth will be classed among the best in the country.

Judicial System

For many months prior to my inauguration I had declared that the people
of Maryland deserve to have improvement in the Judicial machinery, particu-
larly in the Magistrates' system, and that, if well-considered changes were
made, our State would receive lasting benefits. For generations the evils of
the fee system, in vogue in this State, have shocked our people; and in recent
years there have been many serious abuses on the part of justices throughout
the State that brought discredit upon the Judicial "system. We have seen the