COMPTROLLER OF THE TREASURY. vii
FREE SCHOOL! AND SINKING FUNDS.

Statement " E," exhibits the condition of the Free School
Fund and the Sinking Fund at the close of the fiscal year ended
30th September, 1874. The receipts on account of the Free
School Fund during the fiscal year, have been $71,883.07, which
added to the balance standing to the credit of said fund as of
30th September, 1873, viz: $14,220.08, make an aggregate of
$86,103.15.

The disbursements on the same account, were $74,342.60,
leaving a balance standing to the credit of the Free School
Fund as of 30th September, 1874, amounting to the sum of
$11,760.55.

There stood to the credit of the Sinking Fund, at the end of
the fiscal year 1873, the sum of $66,579.28, and the interest re-
ceived on investments during the fiscal year, amounted to
$709.80, making in all the sum of $67,289.08.

Investments have been made during the fiscal year, in stock
of the State, to the amount of $11,830.00, leaving the balance
in cash on 30th September, 1874, of $55,459.08.

Since the close of the fiscal year the sum of $44,54:0.92 has
been transferred from the Treasury to the Sinking Fund, mak-
ing a total of $100,000.00, and the whole has been invested in
a certificate of Stock of the " State Normal School Loan,"
thereby absorbing the whole of the said loan, and placing it to
the credit of the Sinking Fund. It is expected, that the Trea-
sury will be able during the current year to pass to the credit
of the Sinking Fund, an amount equal to the entire proceeds of
the sale of the " House of Correction State Loan," so as to place
the whole of that loan also to the credit of the Sinking Fund.
It has been my constant endeavor to limit as much as possible,
the number of loans, and by that means to simplify the debt
statement of the State. I have very little question that the
whole House of Correction State Loan will be taken by the
Sinking Fund during the current year, and it is not conten-
plated to let any of the bonds go beyond the control of the
officers of the Treasury. The difficulty of obtaining any por-
tion of the currency six per cent, debt at par, makes this cau-