X REPORT OF THE

During the present fiscal year bonds of the State-
to the amount of over $1,200,000.00 will fall due, bear-
ing interest at the rate of 6 per centum per annum,
which we hope and have reason to believe will be read-
ily exchanged under the Act of Assembly above referred
to, at a rate of interest not exceeding 3 per centum per
annum.

When this shall have been accomplished there will
be an annual saving to the Treasury in interest of over
fifty-four Thousand dollars.

THE DEAF AND DUMB LOAN.

The refunding of $100,000 of the Deaf and Dumb Loan
which forms a part of the $628,000.00 above referred to,
has been objected to by some, because the tax for its
payment had been collected and the money, or its
equivalent, should be in the Sinking Funds for its re-
demption.

To form a correct view of the matter, we must take
into consideration the condition of the Sinking Funds
when I entered office.

In January, 1884, when I became Comptroller, I found
that no investments had been made on account of the
Deaf and Dumb and Maryland Hospital Loans.

The Legislature had otherwise appropriated funds
applicable to that purpose.

These debts amounted in the aggregate to the sum of
$690,000.00 and a portion was nearly due.

It was felt by the Treasury officers that steps should
be taken to maintain the Sinking Fund for these loans,
and to provide a fund with which they could be paid
if need be at maturity. This was done by taking from
the investments of the State by authority of the Gen-
eral Assembly, bonds to the amount of $366,000.00 and
carrying them to the credit of the fund for the redemp-
tion of these debts.

The Treasury officers during my administration have
secured $465,000.00 of the bonds of these loans with
cash taken from the Treasury, and we expect soon to-
secure $125,000.00 more, making in all $590,000.60.