XVi REPORT OF THE COMPTROLLER. OF THE TREASURY

the same, will not consider the repudiation thereof, but will seek
in good morals to relieve the same.

The raising of this amount of money immediately by direct or
indirect taxes does not appear to me either wise or 'practicable.
Surely to do so by direct taxation would incur an unnecessarily
unfair and heavy tax rate for 1916, nor do I believe it possible to
find in the time required some source of indirect revenues suf-
ficient to care for the same.

Therefore, in my judgment, this deficit should be taken care of
by a bond issue upon the serial annuity plan, so much of the debt
being retired each year, thereby doing away with the intricate
and unsatisfactory provisions of a sinking fund, no matter how
perfect theoretically, nevertheless practical experience has al-
ways demonstrated them to be either over or underfed.

CONCLUSION.

Most important and intricate problems will come before you
for your consideration. The prosperity of this state will depend
in a large measure upon the correct solution of the same. To this
end I am earnestly asking your hearty co-operation, which I am
sure will be given in full measure. The State's expenses must be
kept within its revenues.

I beg to acknowledge with pleasure the great assistance of the
Governor, State Treasurer and Attorney General, in all matters
relating to this Department. 1 have found their advice and
counsel invaluable. It is a matter of congratulation, that the
State is to have the valuable services of so trained a man as my
successor. Hon. Hugh A. McMullen, who I am sure will bring to
the discharge of his official duties that same fidelity that has al-
ways characteri/ed his private affairs.

I likewise desire to acknowledge the fidelity of all of the
clerks and employees of my department, and especially of the
valuable service of my Chief Clerk. Harry J. Hopkins.

Respectfully submitted,

EMERSON C. HARRINGTON.

Comptroller of the Treasury.