COMPTROLLER OF THE TREASURY. vii

The "Sinking Funds" hold $411,209.18 of State securi-
ties practically redeemed. The remainder of, the State
debts, $7,531,863.05, will mature during the next decade.
No provision, either in law or in fact, has been made for
the payment o± $6,753,072.23 of these debts, other than
the dedication by the Constitution of the State's interests
in works of internal improvement to that purpose. This
provision is ample, if availed of, but the present policy of
the State, which has just been so successfully carried out
with reference to the "Defense Loan," is to reserve these
securities and to refund these debts as they become due,
at a lower rate of interest. Should the prevailing low
rate of interest continue, it will be wise to adhere to this
policy, and to that end, I respectfully recommend the
passage of a general law authorizing and empowering the
Governor, Comptroller and Treasurer, to issue new loans-
from time to time, at a lower rate of interest, for the re-
demption of the old debts as they mature. It is believed,
that the successful continuance of this policy, in connec-
tion with the reduetion of each debt as it becomes due, to
the extent to which the surplus revenue can be made
available, will, ultimately, and perhaps, at no far distant
day, relieve the people of any necessity for direct taxa-
tion for State purposes.

The disbursements during last year were $1,753,699,99.
The disbursements in the year 1879, the first off-year of my
tenure, after the session of the Legislature of 1878, were
$1,774,283.26. In the off-year, 1881, they were $1,757,-
469.15. This comparison shows no very great decrease in
the ordinary expenditures of the off-years. The disburse-
ments in the year 1882 were $2,038,173.13, of this amount
there was expended and invested in "Sinking Funds"the
sum of $208,114.40. The disbursements in the year 1880,
were $2,050,869.40, of which $59,633.06 were invested
in the "Sinking Funds." The disbursements in the
year 1878 were $2,489,079.14, of which $193,646.46
were expended in the redemption of State stock, and
$125,000.00 in taking up a temporary loan. The expenses
of the riots amounting to $90,440.00, were paid in that
year. This comparison of the legislative years, shows a