4

It will be observed, by reference to this Statement, that there was in the
Treasury to the credit of the "Free Schools Fund," on the 30th September
1853, the sum of $30,802,66, and that the receipts, on this account, for the
fiscal year, were $75,235.18, and the expenditures for the same period
amounted to $64,610.08, leaving a balance to the credit of that fund, as of
30th September 1854, of $41,427,76.

Among the items of receipts on account of this fund, in the Statement
aforesaid, will be seen the sum of $9,300, received from the Farmers
Bank of Maryland, from the reduction of two-fifths on so much of the
stock of said Bank standing to the credit of the Treasurer of the Western
Shore, for the use of Free Schools. This reduction was made, by virtue
and in pursuance of authority derived from the Legislature, by chapter 78
of the Acts of 1854. The Legislature, at that session, having made no
provision for the investment of the proceeds thereof, the Treasurer, with a
laudable desire to keep active this sum, for the purposes for which it was
originally designed, has, with the approbation and concurrence of the
Comptroller, since the close of the fiscal year, invested this amount in
State of Maryland 6 per cent. Stock.

Some provision should be made by the Legislature, -It its next session,
ratifying this disposition of the said sum.

That portion of the School Fund which consists of Bank Stock and
cash belonging to the Counties, is set forth in, Statement A,

V
Statement No. 5, also gives the amounts received into and disbursed

from the Treasury, on account of the Sinking Fund, during the past fiscal
year. From this Statement it will be seen that there was in the Treasury
to the credit of the Sinking Fund, on the 30th September 1853, the sum
of $1,117.77; and there was received from the sources thereon specified,
during the fiscal year, the sum of $284,473.58, making aggregate of
$285,591.35, every dollar of which was disbursed during fiscal year in
investments, for the use of the Fund; so that at the close of that period
there was no balance whatever in the Treasury, standing to the credit of
that Fund.

For the character of the Stocks purchased for the use of the Sinking Fund
since 30th September 1853, reference should be made to Statement B.