774 State Papers and Addresses

Office of Defense Transportation on Wednesday night, when he asserted that no
State in the Union has cooperated more closely than had Maryland. It certain-
ly seems like common sense to continue an Administration that is familiar with
the various phases of the war effort, rather than to place these grave responsi-
bilities in the hands of inexperienced and untried persons, who would be required
to spend months in bringing themselves up to date and who then would be out
of sympathy with the National Administration.

Fortunately, Maryland is in a strong financial position to meet any contin-
gency which may arise. Our financial house is in order. Contrast the present
situation today with that which existed four years ago under Republican rule.
I said "Republican rule". Rather I should have said "misrule. "

For, during those four Republican years the State had NO LEADERSHIP
in their party; NO POLICY in its financing; its credit had been lowered ap-
preciably because of the failure to conduct a business-like administration. Dur-
ing that period, the State had lived largely on borrowed monies, and on millions
of gasoline tax monies, dedicated by law to the construction and maintenance
of roads, but diverted by them for current expenses.

This unbusinesslike and disgraceful situation had developed in the State's
affairs because the Republican Party, the same Party that now is attempting
to get back into the saddle, either HAD NOT the CAPACITY to determine what
the State must do to better its financial condition, or they had not the courage
to assist upon a system of taxation that would have enabled the State to pay
its bills, and to stop mortaging the future of our citizens.

If you will recall, during the campaign of four years ago, I continuingly
stressed these failings, and warned that the State must do an about-face if she
were to be able to hold up her head among the other states of the Country. I
told the voters at that time that the only way this could be accomplishment was
by raising sufficient tax revenues to pay the State's bills1, and I pledged myself,
if elected, to propose such taxes as would be needed to put the State on an even
keel.

No one can deny that these corrective promises were fulfilled, to the extent
that Maryland's credit now has been restored and recently our bonds sold at a
record-breaking price. Not only have we insisted during this Administration
that income be provided before expenditures are permitted, but we have exer-
cised close supervision of expenditures, and economy, with the result that more
than $2, 500, 000 have been reverted to the Treasury from unspent appropriat-
ions. As of September 30th, the State had an unencumbered cash surplus of
approximately $9, 000, 000. During these four years the bonded debt has been re-
duced $12, 000, 000, or 25% of the total.

The excellent condition of our finances made it possible for us to reduce
the State tax rate to the lowest point since the Civil War. Furthermore, the
excellent condition of the State's finances will make it possible to reduce sub-
stantially the income taxes at this Legislature. I announced several months
ago that a 20 or 25% reduction would be justified. Since that time developments
in the State's affairs have borne out my predictions and, in fact, it appears now
that we will be able to make even a bigger reduction.