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210 HISTORY OF MARYLAND.
feel most anxious that the present Legislature should adopt such measures as will permanently provide for the payment of the interest on her debt. Be assured that there is
no person in Europe so frequently referred to on the subject of her credit as myself, and
no one who can form a more correct opinion of the feelings of capitalists and holders of
her bonds; I therefore beg of you, as a dear lover of Old Maryland, to promptly communicate to some of your influential friends in the Legislature, the purport of what I have
written, and to assure them if they wish to sustain the credit of the State in Europe,
there is no other mode to adopt but immediate Taxation. . . . If you see Mr. McLean,
please give my respects, and say he must urge the immediate passage of a tax bill on his
friends in the Legislature, with all his eloquence and influence, or the credit of Maryland
will still continue to decline in Europe.
" With great regard, believe me, truly yours,
" GEORGE PEABODY."
Thus it was that George Peabody stood forth as the champion of the good
faith and integrity of the State. His word was relied upon, and soon after
verified by Maryland resuming the payment of the interest on her loans.
The revenue of the State would meet only its current expenditure, and it
became necessary to raise the whole interest of over $600,000 per annum by
taxation. Although it had thus become evident, at the close of 1840, that
taxes were inevitable, at the session of 1841, the Legislature was disposed to
dodge the question by means of false estimates and chimerical paper speculations, but were finally compelled to begin an efficient movement by passing a
law, March 23d, 1841, which, with its supplement, enacted in the December
following, imposed a tax for the first year of twenty cents, and for the next
three years of twenty-five cents on the $100 of assessed value of real and
personal property. These were estimated to yield $456,000 per annum, and
together with other laws, passed, it was expected to realize $200,000 more.
All these estimates proved fallacious, mostly from causes incident upon the
commencement of a system of taxation. It was contested by the ship owners,
banks, and others who required time. When it is recollected that before the
Act of March, 1841, the largest amount of direct taxation ever levied upon
the people of Maryland in any one year was $60,818, and that even that
imposition was continued but for a few years,' surely it can be no matter of
surprise, that grave doubts of the ability of the State to raise, in this way,
upwards of $600,000, were entertained; and this apprehension operated very
injuriously by leading people to resist what they supposed would ultimately
not be enforced. It was also the case, that, under the impression that no
serious attempt to pay the State interest would be made, the several companies
that had received aid from the State, held back in their payments, showing
an evident disposition to cast off the obligation to the State creditors, by
throwing the odium of repudiation upon the State at large. When the direct
tax was levied, the property of the State was estimated at $300,000,000. If this
estimate had been correct, the rate of tax then imposed Would have been
sufficient. Wnen, however, the actual value of the property was ascertained
to be $190,723,788, subsequently reduced to $177,139,645, by the action of the
| Title | History of Maryland - 3 |
| Creator | Scharf, J. Thomas (John Thomas) |
| Publisher | J. B. Piet |
| Place of Publication | Baltimore |
| Date | 1879 |
| Language | eng |
| Type | Books/Pamphlets |
| Title | 00000241 |
| Type | Books/Pamphlets |
| Transcript | 210 HISTORY OF MARYLAND. feel most anxious that the present Legislature should adopt such measures as will permanently provide for the payment of the interest on her debt. Be assured that there is no person in Europe so frequently referred to on the subject of her credit as myself, and no one who can form a more correct opinion of the feelings of capitalists and holders of her bonds; I therefore beg of you, as a dear lover of Old Maryland, to promptly communicate to some of your influential friends in the Legislature, the purport of what I have written, and to assure them if they wish to sustain the credit of the State in Europe, there is no other mode to adopt but immediate Taxation. . . . If you see Mr. McLean, please give my respects, and say he must urge the immediate passage of a tax bill on his friends in the Legislature, with all his eloquence and influence, or the credit of Maryland will still continue to decline in Europe. " With great regard, believe me, truly yours, " GEORGE PEABODY." Thus it was that George Peabody stood forth as the champion of the good faith and integrity of the State. His word was relied upon, and soon after verified by Maryland resuming the payment of the interest on her loans. The revenue of the State would meet only its current expenditure, and it became necessary to raise the whole interest of over $600,000 per annum by taxation. Although it had thus become evident, at the close of 1840, that taxes were inevitable, at the session of 1841, the Legislature was disposed to dodge the question by means of false estimates and chimerical paper speculations, but were finally compelled to begin an efficient movement by passing a law, March 23d, 1841, which, with its supplement, enacted in the December following, imposed a tax for the first year of twenty cents, and for the next three years of twenty-five cents on the $100 of assessed value of real and personal property. These were estimated to yield $456,000 per annum, and together with other laws, passed, it was expected to realize $200,000 more. All these estimates proved fallacious, mostly from causes incident upon the commencement of a system of taxation. It was contested by the ship owners, banks, and others who required time. When it is recollected that before the Act of March, 1841, the largest amount of direct taxation ever levied upon the people of Maryland in any one year was $60,818, and that even that imposition was continued but for a few years,' surely it can be no matter of surprise, that grave doubts of the ability of the State to raise, in this way, upwards of $600,000, were entertained; and this apprehension operated very injuriously by leading people to resist what they supposed would ultimately not be enforced. It was also the case, that, under the impression that no serious attempt to pay the State interest would be made, the several companies that had received aid from the State, held back in their payments, showing an evident disposition to cast off the obligation to the State creditors, by throwing the odium of repudiation upon the State at large. When the direct tax was levied, the property of the State was estimated at $300,000,000. If this estimate had been correct, the rate of tax then imposed Would have been sufficient. Wnen, however, the actual value of the property was ascertained to be $190,723,788, subsequently reduced to $177,139,645, by the action of the |
