viii REPORT OF THE COMPTROLLER OF THE TREASURY.

to maintain their inviolability, but to largely increase them. There
were purchased during the year the following bonds:

$174,667.72 Consolidated Loan of 1899 costing- ...............$107,790.44

141,000.00 Public Buildings Loan costing ................... 141,000.00

135.000.00 Cash balance carried down ...................... 135,0000.0

$450,607.72 Total ................................... $448,790.44

The above item of $141,000 Public Buildings Loan represents the
proceeds of sale of that loan, as follows: $66,000 balance due Mary-
land Institute and $75,000 due Maryland Penitentiary, being so
much on account of the appropriation of $134,000 for the construc-
tion and equipment of a suitable annex to said Penitentiary for the
use of female convicts, as provided in Chapter 411 of the Acts of
1906.

The cash balance carried down of $135,000 is to largely take up the
remainder of the Penitentiary Loan of $248,000 on January 1, 1907,
at which date the State has the option to call in for redemption said
Loan, and inasmuch as these bonds bear interest at 3 1/2 per cent, it
was deemed advisable to issue such call, which has been accordingly
done.

You will observe in Statement "E" that the cash to- the credit of
the Insane Asylum Loan Sinking Fund, amounting to $1,190, has
been transferred to other sinking funds therein mentioned. This sum
represents the increment accruing to said fund on January 1, 1906,
but inasmuch as this entire loan of $100,000 was exchanged in April
last by the Maryland Trust Company as a part payment for the State's
holdings in 5,500 shares of the stock of the Washington Branch of
the Baltimore and Ohio Railroad Company, it became necessary to
transfer this cash and the investments to the credit of such fund to
other sinking funds, as the entire loan was thus extinguished.

OYSTER FUND.

In Statement "H" is exhibited the condition of the Oyster Fund,
showing receipts of $43,105.90 and disbursements Of $47.062.21. The
revenue derived from this fund is not sufficient for its maintenance,
and the Legislature of 1906, realizing this condition appropriated the
sum of $15,000 to supplement its revenue. In my judgment, this will
not be sufficient for its future needs, and the maintenance of the
State Fishery Force is a proper subject for intelligent action by the
next General Assembly.