If there be deducted from this amount, the par value of the
productive capital of the State, as set forth in Statement "I,"
and stocks of the Sinking Fund, with the balance to its cred-
it, without reference to the unproductive capital of the State,
which is of great value, or the balance in the Treasury pro-
per, there remains the sum of $2,392,821.12.

The Sterling Bonds of the "State, issued under chapter 416
of 1838, of which the amount of $802,000 are still outstand-
ing, were made by the provisions of the Act redeemable at
the pleasure of the State after the 1st of January, 1865.

These bonds, however, are payable in London, and at the
present rate of exchange, could not be redeemed without se-
rious loss to the Treasury,

The attention of your Honorable Body is called to the fact
that the coupons attached to these bonds are exhausted, and
that the collection of the interest is attended with consider-
able inconvenience to the holders. The most feasible remedy
would be to authorize the Treasurer, on the presentation and
cancellation of the old, to issue new bonds.
The following statement will show the character of the
State debt redeemed during the fiscal year ended September
30th, 1866, and the amount disbursed on that account:
Temporary Loan including interest.......... $895,033 64

Bonds of the Annapolis and Elk Ridge Rail

Road Company..................... 22,022 70

State 5 per cent, stocks.................... 11,229 17

$928,285 51

The receipts from sales of the Bank and Road Stock were
not sufficient for payment of this debt—the difference, amount-
ing to $87,589.60, was paid from the general Treasury.

AGRICULTURAL LAND SCRIP.

The Public Land donated by the Act of Congress approved
July: 2nd, 1862, and accepted by the State under the Act of
1864, chapter 90, amounts to two hundred and nine thousand
nine hundred and twenty acres. No part of the scrip issued