X EEPORT OF THE

Amt. of loan-taxes collected from the time
the loans, on account of which these taxes
are imposed, were created to Sept. 30th,
1831............................................... $5,582,367 43

Amt. of the public debt paid out of the
general resources of the Treasury, since
Sept. 30th, 1868 .............................. $5,892,494 27

From this statement, and the foregoing review, it will be
seen that since 1864-'68, the constitutional guarantee for
the payment of the public debt has been strictly observed

--that the credit of the State has been sacredly maintained--

-that a large payment has been made upon the debt ot the
State in excess of taxes levied and assets dedicated to that
purpose--that wise and practical legislation, and economical,
efficient and faithful management have prevailed--and that
much has been done to lessen the debt of the State, and
lighten the burden of taxation ; yea, more, I venture to say,
than has been accomplished in any like period ot her previous
history. The gradual rather than the rapid extinction of
her public debt is her true policy--indeed, if her loans were
issued, redeemable at her pleasure after or within a fixed
period, and not called in too rapidly, she could take advantage
of such opportunities as the present to fund her indebtedness
at a lower rate of interest, and whenever her surplus funds
would justify, she could liquidate her indebtedness at par.

The redemption of a debt before maturity, and often at
a high premium--this is the meaning of "Sinking Fund"--
is the payment of more than you have contracted for, and the
maintenance of an exorbitant rate of taxation to enjoy the
privilege. It is not only impracticable, but utterly impossi-
ble to practice the "Sinking Fund" theory recently advanced
at the present rate of State taxation--in order to do so, the
rate must be increased at least one hundred per cent, above
the present 8 3/4 tax for debt-purposee. Even if such a system
were necessary to compel economy in Legislative expendi-
tures, the latter is the least expensive luxury.

The State is not, and cannot be in any trouble over her in-
debtedness. She has a real, not a sinking fund ; a substantial