diately passed, requiring these loans to be renewed by these banks, in accordance with their charters, and it should be made to apply to similar cases as they may occur. I called the attention of the last Legislature to this subject, but it was unacted upon. These and other loans due, have been treated as if reimbursable hereafter, and the interest paid thereon. Provision ought also to be made for the renewal of the other loans. The loans of the Commonwealth, and the transfer of stock, constitute the most important part of the financial operations of the government. It is well worthy of inquiry, whether, as suggested in my former report, these should not be placed under the exclusive control of the officers of government at Harrisburg. There are thirty-seven separate loans which compose the State debt. Books and accounts are required to be kept for each loan; this occasions great labor, and renders the transactions cumbrous and perplexing. It has been suggested that this inconvenience could be remedied by consolidating the loans into a less number; this is certainly proper, if it can be so arranged as to do no injury to the Commonwealth or individuals as to the time of their reimbursement. I again recommend that coupons should be attached to the consolidated or new stocks, should such be issued, and to the new transfers of the old stock. These coupons ought to be made receivable for all dues to the Commonwealth; being thus in all cases and at all times of par value to the tax payer, it would lead to a larger concentration of these stocks at home, and the interest being payable to our citizens, would be less burdensome. This provision would also place our public securities on a firmer basis, and would therefore be advantageous to the holders of our debt both at home and abroad. It would also lighten the burden which now presses upon the Treasury on the 1st of February and 1st of August in each year, because a portion of the interest being paid in for taxes, its payment would be spread over all the months of the year. Connected with this arrangement, the county treasurers ought to be authorized to receive them without the intervention of collectors, and thus five per cent, would be saved to the Commonwealth. It will be seen by the statement annexed, which exhibits the revenue and expenditures for the last two years, that the sum of one hundred and sixty-five thousand eight hundred and seventy-two dollars and forty cents, is received for the tax on loans. This amount would have been lost to the Commonwealth, if the interest had not been paid, as the State Treasurer was only authorized to deduct it from such payment. This tax by many is considered of doubtful propriety, because it reduces the rate of interest which the State covenanted to pay. It is not, however, an arbitrary reduction or irrespective of similar taxation on other productive property or income. It is in fact a less tax than is imposed on any other species of property or income in the Commonwealth. Nevertheless, in view of its doubtful justice and the elevated position acquired by our Commonwealth at home and abroad, this tax should be repealed whenever the revenues of the Commonwealth will justify it. In the meantime, if my estimate should be realized, the amount of this tax for this year, (one hundred and fifteen thousand dollars,) might be set apart at the end of the year as a sinking fund. sinking fund. This disposition of it would increase the value of the public stock, and thus compensate the holders to an amount equal if not greater than the tax retained. It would beside form the nu cleus around which we may gather a larger and more effective sinking fund, which together with the gradual extinguishment of the loan of the 4th of May, by the cancellation of the relief notes, will place the Commonwealth, at no distant period, in a position to diminish the public debt rapidly, and thus relieve our citizens from a portion of their present burdens. GENERAL REMARKS. The laws relating to the collection of moneys due the Commonwealth, have been carefully enforced by the Auditor General and myself, and a large amount collected therefrom; the remaining cases are in the hands of competent counsel who are pressing their collection. The suits which the State Treasurer was required to bring against the commissioners appointed under the act relating to an asylum for the insane poor, have been tried in the county of Dauphin. The trials resulted in verdicts for the defendants. I am informed by the counsel who represented the Commonwealth, (Messrs. M'Cormick and Lesley,) that no legal questions arose which required a revision, and that they are satisfied with the verdicts from the facts as presented in the causes. The claims assigned to the Commonwealth by virtue of the act of the 24th of January, 1845, were placed in the hands of counsel, pursuant to the act; I am informed that defence has been made in all the cases, and that but one of them has been tried; that case resulted in favor of the Commonwealth, and the amount was collected and paid into the Treasury. The estimates for the present year have been prepared with great care. As expressed in my former report of the estimates then made, I entertain the opinion, "that whilst the receipts may exceed the amount stated, the expenditures will not be beyond the estimated amount.' In view of existing laws and the new assessments made, the tax on real and personal property for 1847, may be stated at $1,550,000 Deduct for collections and exonerations, &c., say Net amount, To which add net amount outstanding Dec. 1, 1846, Aggregate, Estimated amount to be received during present fiscal year, Balance outstanding Dec. 1, 1847, 150,000 1,400,000 542,000 1,942,000 1,400,000 $542,000 These estimates therefore exhibit the following general conclusions, that at the close of the present fiscal year, viz: November 30, 1847, the outstanding taxes will be five hundred and forty-two thousand dollars; that the public debt will be diminished by the amount of relief notes cancelled, and that the balance in the Treasury will be five hundred and seventy-nine thousand one hundred and nineteen dollars and eighty one cents. These results will follow the prompt and faithful enforcement of existing laws, if all unnecessary appropriations are avoided, and no extraordinary event occurs to reduce the revenues, or increase the expenditures. Whether the Treasury will be in a condition fully to meet the interest due in February next, will depend upon the amount of receipts for this month (January.) If a deficit should occur, the interest can be paid as on former occasions, inasmuch as a considerable portion is not immediately demanded, and by proper measures some of the accruing revenues may be anticipated. A deficiency, at a particular period, cannot interfere with the general result as stated, which embraces the entire year, as to which I have presented the result; that the revenues, if faithfully and vigorously collected, will not only be commensurate with the expenditures, but reduce the existing debt, and leave a balance in the Treasury at the close of the present fiscal year, of five hundred and seventy-nine thousand one hundred and nineteen dollars and eighty-one cents. TREASURY OFFICE OF PENNA., } 1847. JAMES ROSS SNOWDEN, |