IV REPORT OF THE

in the General Sinking Fund, and $162,399.18 in the
Treasury Relief Sinking Fund. These investments cost-
the State, in cash, $208,114.40, and the premiums paid to
the holders of these bonds, for the privilege of redeem-
ing them before maturity, amount to $19.825.22.

The State debt, for which interest has to be provided,
is $11,269,031.78, of which $401,529.18 have been, in fact,
paid in advance and deposited in the Sinking Funds,
leaving the outstanding debt $10,867,502.60. The State's
interest in valuable works of internal improvement are
held for, and when sold, applied to, the payment of
this debt. They have been, and are, at any time, ade-
quate for this purpose. The debt holders are satisfied
with this security, because it is substantial, real and
not imaginary. To hold this security, an at the same
time to buy up her debt in advance, at a heavy
premium, have never been made to any extent prac-
ticable or possible by her Legislature. To do so, would
require the imposition of such a heavy tax upon her peo-
ple, as would wake them up to the folly and extravagance
of such a system, and cause them to mark with their speedy
condemnation the perpetrators of it. Whenever, there-
fore, the Legislature, which is the immediate, frequent
and often repeated representative of the people, shall, in
its wisdom and in obedience to their will, direct the pay-
ment and extinguishment of the existing State Debt,
ample means are provided and ready at hand for that pur-
pose. The latest expression of public sentiment in this
regard, was to let well done alone, and to cease bicker-
ings and contentions upon the subject. The Legislatures
of 1880 and 1882, both plainly declared the present policy
of the State to be, to reserve her securities, and to fund
her debt, as it shall become due, at a lower rate of in-
terest. Under the "Defence Redemption Loan," Act of
1882, ch. 289, the "Defence Loan" of 1868, which
amounts, in round number, to three millions of dollars,
bearing 6 per cent, interest, which falls due in January,