COMPTROLLER OF THE TREASURY. ix

The State debt created previous to the year 1868, now out-
standing, and for which no tax provision is made, is $5,684,-
505.93--the State debt issued since, and including the year
1868, now outstanding, for which debt-taxes are provided, is
$5,573,054.76. The constitutional guarantee for the pay-
ment of this debt of $11,257,560.69 is, that the State's in-
vestments in Internal Improvement Companies, and the State
tax levied to pay off the public debt shall not be used or ap-
propriated until the interest and debt are fully paid, or the
sinking fund shall be equal to the amount of the outstanding
debt. (See sec. 34, Art 3 ) This constitutional guarantee is
equally complied with, if the guarantee given, when used, is
applied to the payment of the interest and principal of the
debt, or to either, whether the debt paid is canceled and de-
stroyed, or put and kept into the "Sinking Fund." At least
such was the view taken by the Governor and the Legisla-
ture in 1864 and 1872, and acquiesced in, with perfect
unanimity, until now fault is found with the obliteration of
the sinking fund, and the inquiry is gravely--no, not gravely,
but loosely made--what has become ot the loan-taxes ?

The answer is, or rather the answers are to be found in the
following statement, which I have carefully compiled from
the Comptroller's books:

Amt. of State debt, Sept. 30th, 1868........ $11,712,190 45

Amt. of State Loans, issued since Sept. 30th,

1868............................................... 3 572,532 00

Amt. of interest paid on the public debt

sinceSept. 30th, 1868........................ 9,027,635 24

$24,312,357 69
Amt, of State debt Sept, 30th, 1881......... $11,257,560 69

Amt. paid on account of public debt since

Sept. 30th, 1868............................... $13,054,797 00

Amt. of State securities used and applied

to the payment of the public debt since

Sept. 30th, 1868......... ..................... 1,579,935 30

$11,474,861 79