COMPTROLLER OF THE TREASURY. Xi

It was also increased by the issue of the remainder of
the Defence Redemption Loan to amount of $7,550.00,
making a total increase during the year of $9,429.89.

But this small increase is more than compensated by
the large reduction which we have been able to make
by augmenting the Sinking Funds to the amount of
$525,947.81, arid by the redemption of the Maryland De-
fence Loan, amounting to the sum of $5,000.00, and mak-
ing a total reduction during the fiscal year of $530,-
947.81, and after deducting the increase there remains a
net reduction in the debt of the State during the year just
closed of $521,518.92. Since the close of the fiscal year,
we have further reduced the debt by the increase of the
Sinking Fund before referred to by the sum of $97,030.00,
and making a total reduction in the debt of the State
since the 30th day of September, 1884, of the sum of
$618,548.92.

A portion of the State's debt is due and will have to
be provided for. The bonds authorized by the Act of
1870., Chap. 275, on account of the Chesapeake & Ohio
Canal, amounting to the sum of $528,355.00 bearing inter-
est at the rate of C per cent, per annum, are now due.
Also, the loan authorized by the Act of 1870, Chap. 422, on
account of the Deaf and Dumb Asylum, amounting to
the sum of $100,000.00, bearing interest at the rate of 6
per cent, per annum, is also due.

while we have bonds of the Baltimore and Ohio Rail-
road in the Sinking Funds applicable to the last named
loan, sufficient to pay the same, yet we think, as the
State annually receives interest at the rate of six per
cent, on these securities, it would be better for the State
to hold them, and refund at a lower rate of interest.

These loans can now be readily renewed by a loan
bearing not more than 3 1/2 per cent., and thus a consider-
able sum of money, can be annually saved to the Treasury __
To WHOM CREDIT is DUE.

It gives me pleasure to state that to the valuable serv-
ices of the late Treasurer, Hon. Barnes Compton, and to