vi REPORT OF THE

The funded debts of the State amount to $11,257,560.69,
and her unproductive investments to more than double that
amount.

The interest paid on her funded debts during last
year, including a cost of $20,663.61 for exchange and com-
mission on her sterling debt, amounted to $643,340.27; of
which sum she paid to herself, as interest on her own bonds
which she had taken up in advance of their maturity, and
which constitute her "Sinking Funds," $11,230.85.

There is no past due debt outstanding; $24,000 of the 5
per cent, currency debt, which matured in 1880, were called
in and interest stopped thereon on the first of last April,
and were presented and paid in the latter part of the year.
The debt which falls due next is the "Defence Loan." The .
amount of it is $3,326,750.66, and it matures on the first
day oi January, 1884. The attention of the last General
Assembly was called to this loan; and authority was asked
to fund it into a new loan, at a lower rate of interest than 6
per cent, which it is bearing. That General Assembly ac-
cordingly passed the Act of 1880, chapter 232 ; the main
feature of which is the creation of a new loan, not to exceed
$3,000,000.00, bearing interest not to exceed 4 1/2 per cent.,
redeemable in fourteen years from the date of issue, the pro-
ceeds thereof to be applied to the redemption and payment
of the "Defence Loan." Authority is also given to exchange
the new for the old loan at par. No offer has yet been re-
ceived to exchange at par, and no issue has yet been made.of
the new bonds. It is submitted that the three millions of '
this debt thus provided for can be funded at such a reduced
rate of interest--4 per cent., or perhaps less--that in the
fourteen years the saving in interest alone, thus effected,
will be an amount greater than one-third of the whole debt.

In view of the fact that since the adjournment of the
Legislature of 1880, for the first time, the financial manage-
ment of the State's revenue from the year 1864 and continu-
ously up to the present, has been brought into question
before the people from and by whom the members of your
Honorable Body were so recently elected, I deem it my duty
to submit to the present General Assembly a brief review of
the legislation upon which that management has been based.