By the Act of 1862, chap. 143, the State was authorized to

borrow $2,500,000, upon the issue of her credit, to meet the
extraordinary demands growing out of the impending war.
In 1864, a similar Act was passed, chapter 15, authorizing
an additional loan of $4,000,000, and in'1865, chapter 33, a
still farther loan of $4,000,000, making a total for which the
State had pledged her credit, of $11,500,000. These Acts are
still in part unrepealed.

Of this large amount only $500,000 have been negotiated,
increasing our permanent indebtedness apparently to that ex-
tent, and showing the condition of the bonded debt, to be in
fact, without material variation up to this date, notwithstand-
ing the heavy amounts which have been disbursed, and which
have been furnished from accruing revenue and other avail-
able resources, authorized by law to be made applicable to
that object. But the fact must not be lost sight of, that by
the authority given to the Treasurer by the Act of 1864, ch.
285, to cancel and destroy all bonds except $1,000,000 of the
five per cent, stock represented by the sinking fund and its
increments, an actual reduction of the funded debt was effect-
ed, to an extent of $4,509,074.51.

The disbursements of the State of Maryland for the support
of the war, furnished from revenue and other sources, have
amounted in the aggregate, to $4,212,470.02, that is to say,
for her quota of the direct tax levied by the Act of Congress
of 1861, $371,299.83. Amount paid on account of volunteers
from March 1864 to 30th September 1866, $3,788,932.64;
from 30th September 1866, to 24th November 1866, $52,-
637.50. Total $4,212,470.02.

At the extra session of the General Assembly in January
last, an Act was passed, authorizing the Governor, Comp-
troller and Treasurer to sell certain stocks held by the State
in various Banking Institutions and Rail Roads, and to
appropriate the proceeds of the same in payment of bounties
and other floating obligations which had accumulated in con-
sequence of the non-user of the defence or war loan, authorized
to be issued by the General Assembly at various times. This
sale was effected at an opportune moment, under circumstan-
ces highly advantageous to the State, leaving outstanding
and still to be disposed of, the State's interest in the Farmers
Bank of Maryland, amounting to $55,500.00 of the stock of
that Bank, together with $34,850.00 Central National Bank
of Frederick, and some other and less available items not
necessary to be enumerated here. The receipts from this
source amounted to $840,695.91—the par value of the stock
sold being $773,374.66, the premium realized upon these sales
amounted to $67,321.25. By this arrangement the Treasurer
was enabled to provide for every dollar of floating debt then
pressing upon him without a resort to the war loan above re-