V

be encouraging, when considered in connection with its
condition so late as January last. On the 8th day of that
month, when I commenced the discharge of the duties of
Comptroller, considering the sums then due from the Gen-
eral Treasury to the Sinking Fund, the Schools' Fund, and
sums due for appropriations made prior to January, 1862,
and on other accounts and then remaining unpaid, there
was an actual deficit in the Treasury.

By the Act of 1862, Chapter 143, the Legislature author-
ized a loan to relieve the then wants of the Treasury, and
as a measure of safety, in view of the disturbed condition
of the country, of $2,500,000. Of the loan thus authorized,
stock was issued amounting to $170,000, the sales of which
commanded a premium of $3,587.75. This stock was
made redeemable at the pleasure of the State, and there
being no necessity for the continuance of the loan and the
payment of the interest thereon, it has, since the close of
the fiscal year, been reclaimed, by the payment of the prin-
cipal sum paid for it, and the interest accrued, and is now
Held by the Treasurer, subject to the future orders of the
Legislature.

The increments of the Sinking Fund by the terms of the
Act authorizing the "Maryland Defence Loan," were
directed to be invested to the extent of one million and a
quarter of dollars in said Loan, "unless before said full
amount is so absorbed, it shall become unnecessary to pro-
vide by Loan any part of the means required to pay the
said United States' direct tax." No necessity having ex-
isted for the investment of any part of the increments' of
the Sinking Fund in the said "Maryland Defence Loan,"
none of them have been so employed, but have been at the
disposal of the Treasurer since July 1st, 1862, for invest-
ment, as formerly, in the Public Debt created by former
Acts.

At this time there remains comparatively little for which
the Treasury is liable; the arrearages of appropriations
made prior to January 1, 1862, except those in behalf of
the Eastern Shore Rail Roads, are paid; the appropriations
for the year 1862 are also paid; the current demands, for