COMPTROLLER'S REPORT, 15

At the last session of the Legislature, my predecessor invited
its attention, to the embarrassment encountered at the Treasury
since the sale of the Sterling Bonds of the State, held by the
Baltimore and Ohio Railroad Company, and issued pursuant to
Chap, 386, of 1838, arising from the difficulty of estimating, in
view of Legislative appropriation, with any degree of certainty,
the quarterly interest accruing on the Currency debt of the State.

The difficulty then experienced still remains, and will continue
to exist with increasing force, in proportion as these bonds are
converted from Sterling to Currency. The suggestion offered by
the late Comptroller, that this embarrassment may be removed by
a law requiring the entire interest to be paid directly into the
Treasury, merits your careful consideration.

In connection with his subject, your attention is solicited
to a claim set forth by the Messrs. Barings, in a Commu-
nication to the Treasurer, under date of 9th August, 1853, by
which it appears they have advanced the sum of ,£743.08.3, on
account of interest on the Sterling Bonds of the State, payable
in London. To understand properly the cause of this deficiency,
it is necessary to remark, that provision for paying the semi-
annual interest on these bonds is made at the Treasury three
months in advance, in order to guard against any possible con-
tingency, that might occur to prevent its timely arrival. When
the Treasurer placed the sum necessary for this purpose to the
credit of the State's Agent, the hill reducing the Direct Tax had
not passed, and he very properly retained the existing rate. Prior,
however, to paying the interest in London, the Messrs. Barings
received notice from the President of the Baltimore and Ohio
Railroad Company that the tax had been reduced to 15 cents,
and instructing them to pay the coupons on the bonds issued in
favor of that company, on the reduced scale. Acting upon this
information, and upon the. supposition that the State's Agent, by
an oversight, had neglected to give them similar instructions in
reference to the bonds provided for directly by the State, they
paid the entire amount of interest, at the reduced rate of taxa-
tion, which has occasioned the deficiency. The payment of this
sum they now ask at your hands.

Statement 16 also shows the amount paid by the Susquehanna
and Tide Water Canal Companies, during the fiscal year, to be
$33,550. It is proper to state, as will be seen by reference to
the Supplement, that the further sum of $33,550 has been received
from these Companies, on account of interest accruing during that
year, which leaves a deficit on their part of only $387.50.

From the Baltimore and Susquehanna Railroad Company no
part of the interest due, has been received, except the sum of
$25,000. (See Statement 16.) This sum was paid shortly
after the close of the last fiscal year. It is noticed in the Report