vii

surplus moneys which may at any time be in the Treasury,
not required in the judgment of the Comptroller and
Treasurer to pay the ordinary expenses, and the current
interest upon the funded debts of the State, to the purchase
of the funded debts of this State or of part or parts thereof,
or to the redemption of such part or parts of the said
funded debts as may be due or become due."

It will therefore be perceived, that with reference to the
increments of the Sinking Fund, the authority and duty of
making investments reside exclusively in the Treasurer; and
that with reference to the surpluses of General Revenue,
the duty of the Comptroller is limited to the expression of
his opinion of the eligibility of making investments thereof
when such opinion is required by the Treasurer, as provided
in the Article and Section of the Code referred to.

STATEMENT E, shows the sum invested for the Sinking Fund
during the last Fiscal year to be $168,872.17; and State-
ment F, shows that this sum so invested, purchased Stocks
of the State, amounting to $204,841.48, and that the
balance of Cash remaining at the credit of that Fund,
amounted as of September 30th 1862, to $132,399.38;
whilst the whole amount of the Fund in Stocks and Cash,
as of same date, amounted to $5,391,659.23.

A serious difficulty now presents itself in making invest-
ments for this Fund, owing to the very high rate of Exchange
on London required to be paid for the Sterling Debt, and
the high price and almost impossibility of making purchases
of the Currency Debt, (to which alone the Treasurer is re-
stricted by law in making investments for the benefit of this
Fund.)

STATEMENT E, shows the condition of the Free School
Fund.

A considerable part of this Fund is derived from Divi-
dends on Stocks of sundry Banks of the State, held for
certain Counties.

The Dividends of some of these Banks having been less
during the past Fiscal year than usual, the sums distributed
to certain Counties have in consequence been smaller than
in some former years.