REPORT OF THE COMPTROLLER OF THE TREASURY. XI

fund with which the new loans could be finally re-
deemed. And again because nearly the whole aggregate
of the securities held by the sinking funds, as shown by
Statement F, consists of the cancelled securities of the
State, cancelled under the provisions of the Code and the
Act of 1890 amendatory thereof. It is therefore absolutely
clear, that these securities thus cancelled and made unmar-
ketable, cannot be converted into money, or availed of to
pay off the obligations due by the State to its creditors,
either now or hereafter.

It consequently follows that the rates now levied under
existing laws cannot safely be reduced, though some modi-
fication of those laws may be wisely made so as to transfer
some of the taxes from one to another sinking fund as
hereinbefore suggested.

In retiring from the office of Comptroller, which I have
held for the past four years, I wish to express my thorough
appreciation of the assistance received from Mr. Benjamin
N. Wright, the chief clerk of the office. I also take pleasure
in returning my thanks to all the clerks of this department
for their attention and fidelity to the duties of their re-
spective positions.

L. VICTOR BAUGHMAN,

Comptroller.