xii

increase rather than diminish with time, and hold the
Stocks at such high prices as to cause them to be purchased
at extravagant rates.

The present large volume of this fund, if continued, would
so increase as to require the purchase of the whole public
debt, long before it matures.

Although about eight hundred thousand dollars of this
debt may be redeemed after January 1, 1865, and other
portions of the debt may be redeemed after 1870, a large
part of the debt does not mature until 1890. And none of
it need be redeemed, at maturity, unless it be the pleasure
of the State to do so. But the debt that might be redeemed
in 1865, is payable in London, and at the present and pro-
spective high rate of Exchange, it would probably, within
any short period of time, be redeemed at a ruinous rate to
the State, and such as is not likely to be incurred, when the
State is not engaged in its faith to make the sacrifice.

From these considerations, it would be advisable for the
interest of the State, and the further security of the Trea-
sury, in the event of a repeal of the taxes named, that four
millions of the Fund be cancelled, which would relieve the
Treasury of the necessity of longer providing about two
hundred thousand dollars for the payment of the interest
annually on the part so cancelled, and make the demands
upon the Treasury so much the less ; whilst the remainder
of the Fund amounting to about two millions, would be
ample, from the increased facilities for the investments of its
decreased increments, and the probability of being able to
employ them at rates more beneficial to the Treasury, to
provide for the extinguishment of the whole debt, as soon as
the debt becomes due, or, as soon at least, as the interest of
the State is likely to make such extinguishment desirable.

It may be suggested here, that if this Fund be not
decreased, the Legislature should authorize investments to
be made for its benefit, in some other safe securities, in the
discretion of the proper officers, instead of confining the
Treasury to the Public Debt, as is now the case, for the in_
vestment of the accumulations ; and this would also be
wisely done, as to the surplusses in the Treasury proper,
where they are not needed to meet the demands.