REPORT OF THE COMPTROLLER OF THE TREASURY. IX

the law as it existed prior to the Act of 1894. The salient
features of the latter Act were provisions for increased reve-
nues and decreased expenditures, and I feel assured that when
the law is in full operation that the expectations of its framers
and friends will be realized. I sincerely hope that it may
have a fair and full opportunity for trial. A failure means
the destruction of an industry that gives employment to forty
thousand men and affords a living to two hundred thousand
of our citizens.

PRODUCTIVE AND UNPRODUCTIVE ASSETS.

The productive Assets of the State as shown in Statement
"I," are $3,539,337.39, and the unproductive $8,097,126.99.
By reason of the default of the Susquehanna and Tidewater
Canal Companies to pay interest on the mortgage held by the
State against these company, since July 1st, 1893, I have been
compelled to transfer the amount of said mortgage, $1,000,000,
from the column of productive to the unproductive assets, but
as hereinbefore stated, legal proceedings have been instituted
by the Attorney General to recover from the Canal Companies
the amount of the State's holdings.

The Board of Public Works have not as yet deemed it
wise to dispose of any of the assets of the State, as authorized
by the Act of 1892, Chapter 300. Offers have been made by
the Board to banks and persons interested, to exchange bank
and other stocks for State Bonds at fair market values. For,
unless the proceeds could be readily invested in redeeming
our State debt, no possible advantage could accrue to the State
in the disposal of the valuable securities we now hold, and
investing the proceeds in similar securities of fluctuating

market value,

STATE DEBT.

. The total indebtedness of the state as show in detail in
Statement J. was, at the close of the fiscal year 1894, $8,684,-
986.24. The productive assets of the State and the invest-
ments to the credit of the Sinking Funds, aggregate the sum
of $5,303,233.11, when deducted from the gross debt will leave
a net debt of $3,381,753.13. This net debt is greater than
that shown in my last Report by reason of the default of the
Susquehanna and Tidewater Canal Companies in paying the