REPORT OF THIS COMPTROLLER OF THE TREASURY. VI

It is very gratifying to state that every dollar intended by
law for investment was so used, and about eighty per cent,
was invested in our State stocks and bonds. Heretofore great
difficulty has been experienced in securing our own stocks and
bonds without paying a very large bonus; the recent scarcity
of currency forced some of our stocks and bonds on the market
and the Treasury officials were alert to find them and fortu-
nate in securing so considerable an amount.

The Act of the General Assembly of 1888, Chapter 533,
levying a tax of one and one-half cents on each one hundred
dollars to meet the interest and create a Sinking Fund for the
redemption of the Treasury Relief Loan, is still in force,
although that Loan has been redeemed. The amounts accruing
from this tax have been and will be invested in the several
Sinking Funds until otherwise directed.

I respectfully recommend that this Act of 1888 be so
amended as to repeal the provision in regard to the Treasury
Relief Loan, and to increase the levy for the Exchange Loan
of 1886 to one and three-fourth cents on each one hundred
dollars, to enable the Treasury Officers to create a Sinking
Fund for this Loan, since the provision heretofore made for
this purpose is totally inadequate to meet even the interest on
this Loan. I will therefore prepare a bill embracing these
amendments, which I trust will meet with favorable con-
sideration.

In addition to this recommendation, I beg leave to call
your attention to the fact that at the time of the creation of
the Loan of 1889 (Chapter 201 of 1888) and the Loan of
1891 (Chapter 305 of 1890) no provision was made for
Sinking Funds for the payment of these debts at maturity.
The former matures in 1903 and the latter in 1905. To pro-
vide a Sinking Fund for the payment of these debts at the
present time, would necessitate an increase in the State tax
rate. This increase I am not prepared to recommend owing
to the present depressed condition of financial and commercial
matters, but I do respectfully suggest that they should stand
as a barrier against any legislation creating any other or fur-
ther bonded debt, without providing a Sinking Fund as required
by the constitution. These two debts aggregate nearly one-
half of the present State debt, and when you consider that
they are unprovided for, as regards Sinking Funds for the
payment of the same, I cannot, in view of these facts, com-