2 REPORT OF THE

OVERDUE STATE BONDS.

The Act of 1870, Chapter 275, authorised the Treasurer to "issue
new bonds or certificates of debt, countersigned by the Comptroller,
of like amount, and bearing the same rate of interest as the bonds
for which they may be respectively substituted, with coupons for
tire semi-annual interest thereon, and redeemable in not less than
ten nor more than fifteen years; which said new bonds shall be
numbered and lettered to correspond with the bonds for which they
are substituted," &c.

Tinder this provision overdue bonds and certificates, to the amount
of $476,000.00, falling due after 1870, have been, during the fiscal year,
exchanged for corresponding new bonds and certificates bearing in-
terest at six per cent, per annum, and payable after the year 1885.

The same Act authorised the Comptroller and Treasurer, with
the approbation of the Governor, to sell and dispose of the Balti-
more City Six Per Cent. Stock, amounting to $154,550.00, belonging
to the State, the State's stock in the Farmers' National Bank
of Annapolis, amounting to $40,470.00, and the State's common
stock in the main stem of the Baltimore and Ohio Rail Road Com-
pany, amounting to $500,000.00, or so much thereof as may be
necessary, for the purpose of paying and cancelling so many of the
said bonds of this State already due, and to become due in the year
eighteen hundred and seventy, as the holders thereof may require to
be paid, and who may refuse to accept new and substituted bonds
therefor, &c.

The stock held by the State in the city of Baltimore, being already

applied to the "Sinking Fund," and belonging to that fund, was of
course unavailable for the purpose indicated in the Act. The Comp-
troller and Treasurer advertised the stock of the State in the Farm-
ers National Bank of Annapolis for sale, but the bids not being high
enough to indicate an advantageous sale, none were accepted.
. A demand being made for the payment of a large amount of the
overdue bonds, a proposition was received to sell a portion of the
common stock of the Baltimore and Ohio Rail Road held by the
State, (the dividend being near maturity,) at $140.00 per share of
$100.00; which was accepted, and a sale of the balance of the stock
was subsequently effected at the same rate, deducting the dividend
which had been already paid, and the proceeds of said sales have
been applied to the payment of such of the bonds and. certificates of
indebtedness of the State as became due after the year 1870, and
payment of which was demanded, amounting to the sum of $616,-