REPORT OF THE COMPTROLLER OF THE TREASURY. ix
STATE DEBT.

The funded debt of the State will be found in Statement "J,"
aggregating $6,718,926.13, or in excess of that of the year
previous by $640,000. This increase is represented by the
amount of bonds sold during the year on account of the new
State Roads Loan, Chapter 141 of the Acts of 1908. By the
provisions of said Act the Board of Public Works were
authorized to offer for sale said bonds, viz: On August 1,
1908, $500,000, and on February 1, 1909, $1,000,000, and in
pursuance of said authority did offer for sale Series "A" and
"B" of said bonds, but by virtue of the discretion therein con-
ferred the purposes of said Act not demanding an immediate
sale of the entire Series "A" and "B," the Board of Public
Works have only issued $740,000 of said Loan, $760,000 yet
remaining in the Treasury. On February 1, 1910, Series "C,"
$1,000,000 are to be offered for sale, and inasmuch as the work
of the State Roads Commission has been thoroughly and effi-
ciently inaugurated throughout the 'entire State, the demands
upon this fund may require the sale of the balance of Series
"A" and "B" and the entire issue of Series "C." If this
expectation should be realized it will necessarily increase the
gross debt of the State during the fiscal year by $1,760,000.

The net debt of the State at the close of the fiscal year, Sep-
tember 30, 1909, is shown to be $679,976.41, or an increase of
$313,332.50, so that while the gross debt was increased during
the year by $640,000, yet by reason of the investments for the
Sinking Funds in the State's own securities, the increase in
the net debt of the State was only $813,332.50.

PUBLIC SCHOOLS.

Statement "L" shows the receipts and disbursements on ac-
count of the Public School Tax and Free Books, the total
amount disbursed for these two funds being $1,371,333.26.
Under the head of '"'Receipts" you will observe an item of
$75,000, being receipts from the Treasury proper by an appro-
priation direct under Chapter 253 of the Acts of 1908, sub-
title "Schools"