COMPTROLLER OF THE TREASURY. XI

By calling these bonds in instead of going into the
market to buy State securities there has been saved to
the Treasury at least $50,000.00 in premiums.

So, that although no Sinking .Fund existed for the
redemption of these bonds when I entered office, the
Treasury officers, without selling the high interest-bear-
ing securities which had been placed to the credit of
the Fund as a pledge (as they were called by a distin-
guished member of the Senate when discussing this
measure), have provided for the whole of these debts
except the $100,000.00. This was recommended to be
funded at a lower rate of interest, with the other matur-
ing indebtedness, in order to save to the State its proffit-
able assets.

In this view the Legislature concurred,. The law to
refund was passed. The State now pays 3 per ceat. on
its $100,000.00 Deaf and Dumb Loan where before it
paid 6 per cent, interest, and the State still holds the
securities, upon which it annually receives 6 per cent,
interest.

The same power that pledged the- B. & O. Bonds to
the payment of the debt at maturity deemed it proper
not to sell the bon ds and pay it, but to retain the bonds
and renew the loan by exchange.

The bondholders did not object to this, but were/on
the contrary, glad to get the new bonds bearing interest
at just one-half the rate of the old bonds. The trans-
action was advantageous to the credit of the State and
has aided in placing Maryland State securities among
those which are most sought for.

WHAT PROGRESS IS BEING MADE.

In order that you may see at a glance what progress
this Department has made in the reduction of the debt of
the State in the past three years, let us look at the Comp-
troller's Report for the fiscal year 1883, where the aggre-
gate amount of debt is put down at $11,269,822.89, but
in this amount there is an error, which was subse-
quently found, and the debt at that time ascertained to