The proceeds of that portion of’ the Stock held for the use
of the Sinking and School Funds could he invested in the
Defence Loan of the State. This would render the income of
the Schools not only perfectly secure, but stable; anti not
liable to fluctuation, as it is at present.

Should this plan meet your approval, it will afford ample
means, it is believed, not only for the prompt redemption of
the temporary loan of the Banks, and for the payment of
other heavy and pressing demands on the Treasury, but will
do away with the necessity for selling the State’s Bonds, and
adding to her debt probably one and a half millions of dol-
lars.

There was received during the fiscal year on account of the
Free Schools Fund, as per Statement "E," $87,132.83. anti
exceeds the amount received during the previous year by
$11,433.94 The balance at the close of the last year to the
credit of this fund was $27,417.47, which sum added to the re-
ceipts of the present year makes an aggregate of $114,550.30.

The disbursements on the same account were $70,776.96,
leaving to the cu-edit of the Fund $43,773.34.

It will also appear from Statement ‘‘B,’’ that the baiance
in the Treasury to the credit of t.he Sinking Fund is $177,-
178.72. The greater portion of the State Stock held for the
use of’ this Fund, has been cancelled by the Treasurer, as
directed by the Act of 1864, chapter 285. The amount and
character of the Stocks now held, is shown by Statement "F."
The revenue derived from Licenses, &c., received from the
Clerk of the Court of Common Pleas and Clerks of the Cir-
cuit Courts, as is exhibited by Table ‘‘No. 1,’’ of the Appen-
dix, amounted to $352,606. 26, exceeding the amount received
during the previous year by $29,006, and during the year
1863 by $59,074.87. The accession of capital and population
not only to the City of Baltimore, but to the Counties, war-
rants the conclusion that the revenue from this source will
steadily increase.

There has been received from Registers of Wills for tax on
commissions of executors and administrators and on collateral
inheritances, the sum of $61,468.29 being an increase of
$5,510.04 as compared with the revenue from the same source
last year.

It is worthy of remark that not one of the present incum-
bents of the office of Clerk or, Register is in default to the
State. The promptness, too, with which their returns havg
been forwarded, and payments made into the Treasury, is
very gratifying.
B