x REPORT OF THE COMPTROLLER OF THE TREASURY.

Funds. It has been my constant care to see that every
dollar, notwithstanding the large demands upon the Treas-
ury necessarily incidental to a legislative year, should be
carried to these funds, in order that their sanctity should
be preserved inviolate. In this I have been more than suc-
cessful, as the above record clearly demonstrates.

The above large uninvested balance of $497,298.64 may
at first blush occasion some surprise, but the wisdom of
the Treasury officials in thus carrying this large balance
is very apparent upon a closer examination of the situa-
tion. This balance could not be used to liquidate so much
of the Defence Redemption Loan maturing January 1,
1899, inasmuch as the holders of said loan had the option,
under Chapters 219 of the Acts of 1898, to exchange such
holdings for the new issue of the ''Consolidated Loan of
1899," issued under said Act—a privilege accepted by
$1,104,187.00 out of $1,151,787.00 .outstanding—leaving only
$47,600.00 of said loan to be retired at maturity.

Had the Treasury officials gone into the market to pur-
chase safe and reliable securities to this extent, a very
heavy premium, likewise a commission, would necessarily
have been paid, but inasmuch as the State "on the first,
of January, 1899, only a few days distant, will issue a new
loan, as authorized by the Act above referred to, to be
known as the " Consolidated Loan of 1899," not only to
refund the outstanding debt of the State, but to issue for
new improvements to the extent of $900,000.00, viz. :

Maryland Penitentiary, completion of ...........$300,000 00

Armory Fifth Regiment, Infantry .....'............ 300,000 00

Second Hospital for Insane, additional buildings.. 220,000 00
House of Correction, new buildings,............... 80,000 00

it was deemed the part of wisdom to retain this, balance
and invest every dollar that may be to the credit of its
Sinking Funds on that date in this new loan, virtually re-
tiring the State debt to that extent.

SINKING FUNDS—STOCK ACCOUNT.

In Statement " F" is shown the stock account of the
six Sinking Funds and the cash .to the credit of those
Funds, together with the stocks held for the benefit of the
Common Free School Fund and for schools in sundry
counties, aggregating $5,080,205 25.

Several changes have occurred in this statement du-
ring the fiscal year. As before mentioned in these remarks,
all of the Baltimore City Stock held in these funds,
amounting to $501,20.0.00, was sold, and with a part of the
proceeds of such sale there was purchased for the Defence
Redemption Loan Sinking Fund $439,952.00 of its own
stock. By treating the cash to the credit of these funds