X REPORT OF THE

funds necessary to meet the demands of the County Commissioners of
St. Mary's county, for one-half of the State's subscription to the stock
of the Southern Maryland Railroad Company, made in pursuance of
their recommendation, as provided by the Act of Assembly of 1868,
Chapter 454.

The gross reduction of the Public Debt during the fiscal year, by re-
demption and exchange, was, $012,351 76, and the increase $65,000,
leaving the net reduction during the year. $170,463 15, the balance be-
ing exchanged under the Act of 1872, Chapter 366. A nominal loss has
accrued to the Treasury of $31,417, in the amount of Sterling Bonds
redeemed, said sterling debt being rated, in the calculation of the
Public Debt, at $4.44 4/9 per £ sterling; whereas, under the Code and
the Act of 1872, Chapter 366, it is to be redeemed or exchanged at die-
rate of $4.84 per £ sterling. The sterling debt bas been reduced
during the fiscal year $352,999.99, leaving the amount still outstand-
ing, and for which interest has to be provided in London, $5,522,555.55.

A similar loss accrues to the State semi-annually, in the remittance
of gold, to pay the interest on the sterling debt, in London. This
item of loss and embarrassment to the Treasury, will continue so long
as the currency of our own country is at a discount, as compared with
that of other nations of the world.

STATE LEVY.

Statement "K" shows the State Levy for all purposes, for the year
1873, to be $721,994.17, which is a small advance on the amount of
levy for the preceding year

PUBLIC SCHOOL TAX.

Statement "L" shows the levy, receipts and disbursements on account
of the Public School Tax, authorized by the Acts of 1865, Chap. 160,
1868, Chap. 407, 1870, Cbap. 311, and 1872, Chap. 377. The re-
ceipts for the year ending 30th September 1873, on this account, were
$454,130, being less than those of the fiscal year 1872, by the sum
of $5,515.04, and greater than those of 1871, by the sum of $44,-
064.36. The sum of $52.000 is also expended under the laws of
1872,for the Colored Schools and Colored Normal School, to meet which,
there is no special tax provided, and which sums are therefore a drain to
that extent, on the ordinary resources of the Treasury. The schools
throughout the State appear to be in a prosperous condition, and if we
can continue to manage them as heretofore, without interference, will
no doubt attain to greater usefulness, and grow into general favor.

BOUNTIES.

Statement "M" exhibits the amounts paid for Sta.te Bounties, from
1864 to the end of the fiscal year 1873, and the sources from which