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the state, in the time and labor that would necessarily be consumed in the office of the Auditor General, without some further provision of law, than now exists, to regulate and facilitate the payment.Without further legislation, the amount of interest due would have to be cast and payment of the same endorsed on each warrant, and a receipt for the interest on each warrant or parcels of warrants made out and signed by the holder, to be filed in the Auditor's office as a voucher for each warrant drawn for interest. The number of these payments in each year would be so great, that the time occupied in preparing the vouchers and making out the warrants, would probably be equal to that of one clerk, for several months. To say nothing of the almost total impracticability of making the proper endorsements on many of the warrants, which have become so mutilated and defaced as to be altogether unfit for any fair or legible writing, or of the insecurity of relying upon such endorsements for the amount of interest due, without searching in each case through a large and continually increasing file of vouchers, it is respectfully submitted that if interest is to be paid annually upon those warrants, as guaranteed in the above mentioned act of 1843, the only safe and regular mode of accomplishing it, would be by funding them as a state stock, in bonds of one thousand dollars each, as far as practicable, with an issue of some smaller bonds of one or more hundred dollars, for fractions or small amounts; to all of which bonds would be attached of course coupons for each year's interest, as it would fall due, until the principal was made payable. This, it is believed, would be satisfactory to a large majority, and most probably so to all the holders of those warrants, as well as be a matter of economy, and safety on the part of the State.

In any law passed, provided for funding the warrants specified in the aforesaid act of Feb. 21, 1843, there should be some discretion left with the officers authorized to issue the bonds, to include more or less of the back interest as principal in the bonds, both with a view of avoiding the necessity of issuing any bonds for fractional dollars and cents, and also, if acceptable to the holders, to avoid throwing the burden of from two to four years back interest upon the income or proceeds of the public works for the ensuing year, when they will in all likelihood be least able to bear it. It is perhaps hardly necessary to

add, that the bonds and coupons, so far as the latter shall be due or past due, should be made receivable for public lands of the state, and in payment of such debts, as the warrants themselves are now receivable for.

The amount of warrants on the internal improvement fund drawn prior to February 21, 1843, has been ascertained by an examination for that purpose, to be about $239,000; and the interest due on them by next September or October, would probably average about three years, which, on the amount now outstanding would be equal to about fifty thousand dollars. If it can be safely estimated that the nett proceeds of the Central and Southern Railroads, for the ensuing year, will be sufficient after paying off their indebtedness for iron and other materials, to meet that amount of interest on those warrants, and also the interest that will fall due on our internal improvement stock in January, 1846, then it would seem to be advisable to pay up as much as possible of the back interest on warrants at that time; but if there should be any deficiency apprehended, there is no doubt that a large majority of the holders of those warrants would be perfectly willing to have the greatest portion of the back interest funded together with the principal. The first of September or October is suggested as the most appropiate time to make the annual interest on those warrants or bonds payable, as that would be an intermediate time between the periods, when the interest on the five million loan bonds would be payable, and would make the interest on the warrants fall also upon that half of the year, when the proceeds of our public works will always be much the largest.

All of which is respectfully submitted.

JOHN J. ADAM,

State Treasurer:

(A.)

Abstract of Receipts and Expenditures for the fiscal year, Dec. 1st, 1843, to Nov. 30th, 1844, inclusive.

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To balance, Nov. 30th, 1843,

"receipts during fiscal year ending Nov. 30, 1844,

DR.

$85,789 55

405,824 66

$491,614 21

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By warrants paid, treasury notes cancelled, &c., Dec.

1st, 1843, to Nov. 30th, 1844,

"balance on hand,

(B.)

CR.

$455,189 24

36,424 97

$491,614 21

Ledger balances on State Treasurer's books, November 30th, 1844.

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[D.]

Comparison of Ledger Belances on Auditor General's and State

Treasurer's Books.

The balance charged on Auditor's books on the 30th ult., as being in

hands of Treasurer, was

Add for outstanding warrants, other than on the in

ternal improvement fund,

Shows balance in hands of Treasur to be

Which balance consists of Treasury

notes hypothecated,

$27,699 78

8,726 19

$36,424 97

$16,000 00

Treasury notes & coupons, &c. on hand, 12,057 00

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Contingent fund, credit balance on Auditor's books,
Add outstanding warrants on this fund,

Makes credit balance on Treasurer's books,

Redemption account, credit balance on Auditor's

books,

Add for outstanding warrant,

Makes balance on Treasurer's books,

$442 91

250 00

$692 91

$2,557 49

14 51

$2,572 00

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