REPORT OF THE COMPTROLLER OF THE TREASURY vii

$27,448,880.55, and while the State issued during the year, new
loans, aggregating $2,000,000, nevertheless by reason of the re-
demption of certain loans the gross debt was only increased by
$1,163,000,

1916
Oct. 1, Gross Debt --------	$26,285,880.55
Issued during year :
Three Million Dollar Loan of
1916 balance --------	1,500,000.00
War Loan of 1917 -------	500,000.00	$28,285,880.55
Redeemed :
State Loan of 1902 -------	$ 600,000.00
Omnibus Loan, Series "A" - -	57,000.00
State Roads Loan of 1914, Ser-
ies "A" - -----------	180,000.00	837,000.00
. Gross debt Sept. 30, 1917 -		$27,448,880.55
Less Stock, Bonds and Cash to
credit of Sinking Funds - - - -	$7,292,897.67
Mortgage of Northern Central
Railway Company -------	1,500,000.00	8,792,897.67
Net debt ----------		$18,655,982.88

By reason of the investments in the Sinking Funds, this net
debt shows an increase for the year of only $886,368.92, notwith-
standing new loans were issued for a like period of $2,000,000 as
above shown.

To STANDARDIZE COST OF GOVERNMENT.

I have had in mind for a number of years that the cost of
government could be standardized, and it was my purpose, dur-
ing my term of office, to make an effort to carry this idea into
effect. The experience of the past two years has confirmed the
view which I have previously held, and I am convinced that the
cost of government can be almost accurately determined in the
various States of the Union.

Under the most favorable circumstances, there will be dif-
ferences in the cost of government just as there are differences
in the expenditures of individuals. Those States whose revenues
are large will perhaps be more liberal in their expenditures than
States whose incomes are limited, but the main point to have in