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THE SINKING FUND
STATE OF INDIANA.
TO THE GOVERNOR.
Part 2.-D. J.-1.
Oprtce OF THE COMMIS , }
Indianapolis, Jan. 2d, 1865.
0. P. MORTON, GOVERNOR :
SIR;—We have the honor to submit our Annual Report as Commissioners of the Sinking Fund.
The last Annual Report made to your Excellency, showed that there was of outstanding Bank Bonds, and for the redemption of which this fund is pledged, four hundred and eighty-nine thousand dollars ($489,000).
Since the date of that report we have redeemed at par four hundred and seventy-nine thousand dollars ($479,000), leaving still outstanding ten thousand dollars ($10,000).
Although we stopped payment of interest on and after the 1st of December, 1863, we are of the opinion that some time will elapse before the remainder of the Bonds will be presented for redemption.
As the safest and best investment of the Fund to secure the cherished purpose of a Common School education to the children of the State, we recommend the investment of the Funds, as fast as practicable, in Indiana State Stocks. And with a view of carrying into effect this purpose, we earnestly recommend the repeal of the law providing for the distribution of the Fund amongst the several counties of the State. We also recommend the passage of a law authorizing this Board, in their discretion, to invest in Indiana State Stocks, or loan to individuals, upon the terms heretofore provided by law. A law absolutely requiring the investment of the Fund in Indiana State Stocks would, we fear, tend to defeat such investment, by raising the market price of such Stocks.
The Fund now holds of Indiana five per cent. Stocks, four hundred and forty-six thousand six hundred and seventy-two dollars and sixtyseven cents ($446,672 67); of Indiana two and a half per cent Stocks, fifty-one thousand two hundred and seventy-two dollars and fifty cents ($51,272 50); of Indiana Internal Improvement Bonds, from Wabash College, ten thousand four hundred dollars ($10,400); of Indiana six per cent. Stocks, issued to Board of Trustees of Vin cennes University, three thousand dollars ($3,000); of Indiana State Bonds for loan from the Fund to pay interest on State debt of July 1st, 1858, one hundred and sixty-five thousand dollars ($165,000); of Indiana State Bonds for advance by this Fund to the State, one million one hundred and eighty-eight thousand two hundred and nineteen dollars and sixty-four cents ($1,188,219 64); of Indiana six per cent. War Loan Bonds, four hundred and twenty-two thousand dollars ($422,000); making an aggregate of two millions two hundred and eighty-six thousand five hundred and sixty-four dollars and eighty-one cents ($2,286,564 81). From this statement you will observe that a majority of the assets of this Fund is already invested in Indiana State Stocks and Bonds, and is an additional reason, in our opinion, why the whole Fund should be so invested.
We desire to call your attention to the fact that this Fund has at no time received interest on the Bond of the State for one hundred and sixty-five thousand dollars ($165,000), dated the 22d of June, 1858, bearing seven per cent. interest. The Legislature ought to make provision for the payment of the accrued and accruing interest thereon.
Although we have not been able (for want of authority) to reloan the Fund on hand, yet we have made during the past year, the nett increase of one hundred and sixty-nine thousand four hundred and forty dollars and seventeen cents ($169,440 17), besides a large saving of interest on outstanding Bonds.
We have received during the last year from the assignees of the Branches of the State Bank the following sums, to-wit :
$8,192 93 Indianapolis do
2,061 00 Fort Wayne do (closing this Branch finally)...... 7,948 35