REPORT OF THE COMMITTEE ON THE SINKING FUND COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, FEBRUARY 12, 1840 FRANKFORT, KY. HODGES....STATE PRINTER. 1840. 314 . V T I.T, I t>-Q ’ REPORT, &c. Mr. J. Speed Smith, from the committee on the Sinking Fund, made the following report, viz : The Committee on the Sinking Fund, to whom was referred so much of the Governor’s message as relates to that subject, together with the report of the Commissioners of the Sinking Fund, as also various resolutions of enquiry adopted by the House, have had the same under consideration, and respectfully ask leave to make the following report : The committee offer to the House, as an apology for the late period of the session at which their report is submitted, the delay on the part of the Commissioners of the Sinking Fund, in making their annual report. This delay was in consequence, as the House is already informed, of an event eis little anticipated by the Commissioners as the public. There has been an additional reason operating on the committee. Fully aware of the distrust- ful character of the public mind in periods of embarrassment — the more es- pecially when that state has been produced by revulsion in trade or de- rangement in currency — the committee have held it their solemn and bound- en duty to present to the representatives of the people a full and fair exhibi- tion of that Fund, in the correct and faithful and successful management of which, the pledged faith of Kentucky is inseparably involved. Thus im- pressed, and guided by the sense of the House, as indicated by the adoption of sundry resolutions, and to them referred, the committee have felt them- selves called upon to give, in their report, a full history of the origin, object and constituent elements of the Sinking Fund, as well as the most full and ample details of all its operations from the moment of its first inception. Impelled by the genius of the age, and governed by a laudable desire to keep position with her sister States, Kentucky determined upon the estab- lishment and prosecution of a system of Internal Improvement. This sys- tem consisted in the construction of turnpike roads, railroads, and slack- water navigation, but mainly of the first and last classes of improvements. Whatever might be the ultimate result, (for it was to some extent a matter of experiment,) it was not contemplated by the Legislature to carry the sys- tem into execution by direct taxation. The plan was adopted, of obtaining upon loan, funds sufficient for the construction of the works, at distant time, giving the system full opportunity to develope its advantages and demonstrate its worth. There existed a well founded belief, nor have sufficient reasons occurred to impair it, that the works themselves would greatly aid in the payment of the debts incurred for their construction, should they fail to J liquidate the whole amount. Hence it was necessary to provide only the *. means sufficient for the certain and punctual payment of the interest to ac- crue on the loans which might be effected, at the times and places agreed on. To this end, the Sinking Fund was created, by the act of 29th Febru- ary, 1836, which declares “that for the purpose of carrying on a system of Internal Improvement in the State, and providing for the punctual payment 4 of the interest on money borrowed, a Sinking Fund shall be, and the same is hereby established and to endow it with capacity to attain the declared object of its creation, the General Assembly, in the same act, set apart the following means belonging to the State, and by solemn legislation consecra- ted them upon the altar of public faith. Tax on capital stock in the Bank of Kentucky. Tax on capital stock in the Northern Bank of Kentucky. Tax on capital stock in Kentucky Bank of Louisville. Excess of dividends on stocks owned by the State in those Banks, after paying the interest on the State bonds sold to pay for said stock. Premiums on sale of State bonds sold, or to be sold. Dividends on stock of the State, vested in turnpike roads and bridges, made or to be made. Profits which may accrue on works of Internal Improvement, made or to be made by the State. Excess in the Treasury, over $10,000, for the current year, after defray- ing all expenditures and appropriations. That the resources thus enumerated as the elements of the Sinking Fund at the time of its establishment may be clearly comprehended, it is proper to state that theretofore — The Bank of Kentucky had been created, with a capital of $5,000,000, three millions of which had been taken by individuals, and one million by the State. The fifth million was left open, to be taken by the State, in the manner prescribed in the charter of said Bank. The Northern Bank of Kentucky had been created, with a capital of $3,000,000, two millions of which had been taken by individuals, and one million by the State. The State had subscribed for the above stated amount of stock, and paid therefor in her own bonds, bearing an interest of five per cent. Hence the ■revenue to accrue from these sources to the Sinking Fund, depend upon the •excess of dividend over five per cent, which the State owes on her bonds, executed for stock. The resources of the Sinking Fund, given at the moment of its creation, were the following : Tax on the capital stock of the Bank of Kentucky, Northern Bank of Kentucky, and the Bank of Louisville, payable 1st July in each year — cer- tain. Excess of dividends on State stock in Banks, as above stated and explain- ed, payable 1st January and July each year — amount of, precarious. Premiums on sale of State scrip — amount of, precarious. Dividends of State stock in turnpike roads and bridges, payable when de- clared — amount of, precarious. Excess of dividend on State stock in Bank of Kentucky, after paying in- terest on State scrip held by the Bank, is directed by said act to go in pur- chase of the fifth million of the capital stock of said Bank; and therefore, at the outset, contributed nothing except the means of acquiring a portion of the fifth million, to be thereafter available. The same act constituted the Governor of the Commonwealth, together with the Presidents of the Bank of Kentucky, the Northern Bank of Ken- tucky, and the Bank of Louisville, Commissioners of the said Fund. They were charged with the payment of the interest on State bonds sold. and to be sold, for works of internal improvement; and were also required to invest, from time to time, surplus money belonging to said fund, in safe and profitable stocks, in order to make the fund productive and available Although the act establishing the Sinking Fund passed the 29ih February, 1836, the Commissioners did not take upon themselves the duties of their office, until the 20th of the following October. In the mean time, however, the Treasurer had distinguished between ordinary receipts and those set apart for the Sinking Fund, and thus rendered available to the fund, all the revenue to which it was entitled from the first moment of being brought into existence. That the business and operations of the Sinking Fund might take that clear and distinctive character which was obviously designed, the Treasurer was called upon to pay over to the Commissioners, all moneys due the fund ; which he did, by placing in their hands the sum of $31,429 44, which had accumulated in the Treasury, over and above the amounts paid out, for which the Sinking Fund had been made responsible. Thus the board com- menced. The precise amount of burden resting upon the Sinking Fund at that moment^ cannot be determined ; nor is it needful that it should be. In February following their organization, the Commissioners make their first report, and shew the fiscal condition of the fund to be as follows : Cash received of Treasurer of the State, in his hands prior to the organiza- tion of the Board of Commissioners, ... - $31,429 44 Cash received since organization of the Board — Of the Shelby turnpike road, . . . . . Of the Franklin turnpike road, . . . . Of the Northern Bank of Kentucky, - - - - Of the Old Bank of Kentucky, - . . - Of the Maysville, Washington, Paris and Lexington turnpike road, 2,119 89 700 00 50,000 00 5,967 00 2,191 84 Expenditures, &c. — To Prime, Ward & King, To Bank of Kentucky, To Northern Bank of Kentucky, - To purchase of stock (450 shares,) To Northern Bank of Kentucky, $92,408 17 $2,525 50 3,750 00 2,500 00 43,599 36 25,000 00 77,374 86 Balance on hand, . . - $15,033 31 The Legislature, at their session 1836-’7, had passed an act, appropria- ting to the Sinking Fund, the interest and profits accruing from the Old Bank of Kentucky, and the Commonwealth’s Bank — hence a slight acces- sion of resources. Thus it will be perceived that within the year after its creation, the fund not only discharged all the interest which it was called upon to meet, but purchased profitable stock to a considerable amount. Thus stood the Sinking Fund, when, by the law of Congress, distributing the surplus revenue of the United States amongst the several States, the sum of $1,433,757 38 was received into the Treasury of the State. Of the 6 amount thus received, the Legislature set apart and dedicated to a general system of Public Instruction, the sum of $850,159 02, which, under the law, was paid over to the Commissioners of the Sinking Fund, and by them invested, as follows : $500,000 in 5 per cent, internal improvement bonds, dated I5th May, 1837 ; due 15th May, 1872 — 35 years to run. $170,000 in similar bonds, dated 1st July, 1837, and due 1st July, 1872 — having 35 years to run. $180, 006 in similar bonds, dated 1st October, 1837, due 1st Oct’r, 1872 — having 35 years to run. The fraction of $159 02 was paid over to the Board of Education. With a balance on hand, of $15,033 31 on their first report, we find the Commissioners, by the accession of means just herein before stated, at their annual meeting, presenting the following as the result of their fiscal operations, embracing the period between their first and second report : Receipts — Balance on hand per last report, _ . - . From Maysville, &c. turnpike road, . - - - From Shelby county turnpike road, . - - - From Northern Bank of Kentucky, - - - . From Old Bank of Kentucky, .... From Commonwealth’s Bank, .... From surplus revenue of the United States, From Anderson county turnpike road, ... From premiums on sale of bonds to Northern Bank of Ky. From Bank of Kentucky, From Bank of Louisville, ..... From Muldrow’s Hill turnpike road, ... From Springfield and Bardstown turnpike road, $15,033 31 2,056 82 910 38 28,610 37 5,967 00 31,750 00 850,159 02 468 88 7,500 00 22,157 00 5,750 00 335 68 220 37 $970,912 83 Disbursements — • Paid interest account, ^ ^ . $12,422 50 Paid exchange account, - - _ - . . 217 10 Paid contingent expenses, 567 61 Paid Bank stock, - 17,500 00 Paid Sinking Fund, (Internal Improvement bonds,) - 20,000 00 Paid School Fund, (Internal Improvement bonds,) - 850,000 00 Paid School Fund, (surplus revenue uninvested,) - 159 02 Paid profits School Fund, 3,218 75 Balance remaining on hand, Dec. 14, 1837, - - 66,827 77 $970,912 83 The sources from which revenue is derived to the Sinking Fund, are, as to several of them, not only uncertain and precarious, but vary in their an- nual yield. Thus it will be seen that the Bank dividends fluctuate — at one time promising the highest prosperity; at the next, not very flattering — if not gloomy, at least dashing the hopes previously created. The Old Bank of Kentucky and the Commonwealth’s Bank, also vary in their contribu- tions. Variations in these resources were to be expected, and are the less to be regretted, as, from their very character, they will be looked to as con- tribut.ons for a very few years more. The foregoing stated account exhibits the Sinking Fund, with means on hand, to enter upon the year 1838. The following statement gives the receipts and disbursements of the fiscal operations of the fund for that year : Receipts — Balance on hand, as per last report, From Commonwealth’s Bank, . . - From Bank of Kentucky, dividends. From Bank of Kentucky, bonus, From Northern Bank of Kentucky, dividends. From Northern Bank of Kentucky, tax. From Bank of Louisville, dividends. From Bank of Louisville, tax. From premiums, - _ - . - From Penitentiary, - - - - - From Maysville, &c. turnpike road. From Muldrow’s Hill turnpike road, - - $66,827 77 27,200 00 37,255 04 23,213 04 26,500 00 13,754 00 1,400 00 5,750 00 30,875 03 5,000 00 4,690 54 350 00 $242,815 42 Disbursements — === Paid interest account, $25,750 00 Paid exchange account, - - - - - - 1,198 37 Paid contingent account, ------ 837 50 Paid E. 1. Winter, 1,275 00 Paid arbitrators, 150 00 Paid Board of Education, 19,570 00 Paid Bank stock, 138,959 06 Balance remaining on hand, 55,075 49 242,815 42 Of this balance, the sum of $21,568 75 was due the Board of Education, which, deducted from the $55,075 49, left, belonging to the Sinking Fund proper, only $33,506 74. It will be remarked that the Sinking Fund has received but one contribution from the Penitentiary, and that, from the ex- pense of putting up two hundred and fifty new cells, all aid from that source (at best trifling and precarious,) may be considered as diverted. The com- mittee cannot permit the occasion to pass without taking leave to express their dissent, in the most decided terms, to an opinion entertained by some, that the resources of the Sinking Fund may be temporarily suspended, and even diverted to objects other than those set forth in the act, without provid- ing a more certain and ample equivalent. The excess over $10,000 in the current year, after paying the appropriations and expenditures, has not only proven an empty sound, but will continue an idle repetition and incum- brance upon the record, until the taxes shall be increased. The fiscal year commencing December, 1838, and ending 13th December, 1839, exhibits the following receipts and disbursements : Cash on hand at date of last report. Cash rec’d for premium, interest and exchange. From the Bank of the Commonwealth, From tolls on Maysville, &c. turnpike road. From Muldrow’s Hill turnpike. From Springfield and Bardstown turnpike road. From Franklin county turnpike road. From Frankfort and Georgetown turnpike road. From Lincoln county turnpike road. From Franklin and Crab Orchard turnpike road, From Louisville and Elizabethtown turnpike road Amount received from Old Bank of Kentucky, Tax or bonus on stock of the Bank of Kentucky, Amount received from Northern Bank Kentucky Amount received from the Bank of Louisville, Amount received from the Bank of Kentucky, being excess of dividend on stock owned by the State, after paying interest on her bonds held by the Bank, ------ Do. do. of Northern Bank of Kentucky do. Do. do. dividend on seven thousand shares in the name of the State, _ - - - Do. do. on 2,336 shares, in the name of the Commissioners of the Sinking Fund, Do. on 400 shares do. Northern Bank, Do. do. on 175 do. Bank of Louisville, Amount received of the Board of Education, for so much advanced, $311,985 26 $55,075 49 15,049 15 27,080 00 2,798 25 800 57 550 00 1,600 00 462 00 779 55 286 00 1, 300 00 5,967 00 23,491 52 14,903 62 5,750 00 35,000 00 42,500 00 59,500 00 14,690 50 3,700 00 1,400 00 301 61 The following sums, during the same period, for the objects stated, were expended — Paid to Prime, Ward & King, and their assignees, New York, for the interest due in January and July, 1839, on 100,000 5 per cent. State bonds. Paid to War Department, for interest on $165,000 at five per cent. - - ' - Paid to American Life Insurance and Trust Com- pany, for interest on $1,250,000 six per cent. State Bonds, ------ Paid to Bank of Kentucky, for interest on $150,- 000, at five per cent. - - - - Paid to Northern Bank, for interest on 100,000 dollars at five per cent. - - - - $5,000 00 8,250 00 56,250 00 7,500 00 5,000 00 Amounts carried forward. $82,000 00 $311,985 26 9 Amounts brought Ibyward, Paid to Board of Education, as interest upon $850,000, being the bonds held by them as the School Fund, created by act of 1836-7, bear- ing five per cent, interest, . - - - Paid Bank of Kentuckyj bn loan made to Board of Internal Improvem^t by said Bank, prior to 30th December, 1838, _ . - - Paid for interest to the Bank of Kentucky, on ad- vance made to the Commissioners of the Sink- ing Fund, o $43,625, from 18th June to 1st July, 1839, . - - - Paid as premium of exchange, at 14 per cent, on 201,853 43, on New York, Paid as premium on 10,000, at 1 per cent. Paid for contingent expenses of the Board, Paid 959 shares stock of Bank of Kentucky, at an average cost per share^ of $88 71|^|-|, Paid for 163 shares, at $79 49 1 4 per share, Exchange paid Board of Education, on $297 16, at 14 per cent, advanced by Board of Educa- tion, as before stated, - - - $82,000 00 63,750 00 6*750 00 87 25 3,027 79 100 00 1*373 18 85,078 95 12,957 64 4 45 $311,985 26 $255,129 26 Which, which when deducted from amount of receipts prior to 13th December, 1839, leaves a balance of - - $56,856 00 That the committee may, as far as their time will allow, report fully up to the meaning and spirit of the resolutions to them directed, the following balance sheet is presented, giving at one entire view, the whole operations of the Board, the receipts and expenditures, from its organization up to the 13th December, 1839 : Receipts and Disbursements of the Sinking Fund since its organization to 13^^ December i 1839. Receipts — From the Treasurer of the State, after organiza the Boai*d, ------ dividends* ------ From Northern Bank of Kentucky, do. do. From Bank of Louisville, bonus and dividends. From Old Bank of Kentucky, From Commonwealth’s Bank, From turnpike roads, - - . - From surplus revenue of the United States, From Penitentiary, - - - - From slackwater navigation, (Green river,) From/premiums, - $33,249 3 of 215,301 10 lo. 176,767 99 - 20,575 00 - 17,901 00 - 88,030 00 - 21,311 47 - 850,159 02 - 5,000 00 - 307 08 - 53,424 18 $1,482,026 17 2 10 Disbursements — By interest on loans, By exchange, - . _ _ By contingent expenses, - - . By Bank stock, _ - . . By Internal Improvement bonds. By fraction of surplus revenue paid over Education, . - . . Balance, - $289,832 25 8,629 17 4,268 - 298,099 46 - 870,000 00 of 159 02 $1,470,988 69 11,037 48 $1,482,0 26 17 Every detail connected with, and illustrative of, this general and condens- ed view of the operations and doings of the Board of Commissioners, is giv- en, with great precision and clearness, by the Secretary of State, who is also Treasurer of the Sinking Fund, in his response to inquiries made by the committee. The letter of the chairman, with the answer of the Secretary, together with documents accompanying that answer, (marked A, B, C, D, E, F, G, H, I, K, L, M, S,) are herewith presented, and incorporated and made part of this report. \ Frankfort, Januark 24, 1840. Sir : 1 The committee on the Sinking Fund, desirous of presenting (o the House the amplest information upon the subject confided to their consideration, re- quest you to give them a full, explicit and complete account of t|ie manage- ment of the Fund, from the first moment of the organization of the Board of Commissioners, up to this time. 1st. You will state and show the profit which has accrued to the State, upon the sale of scrip, made for Internal Improvements. 2d. You will state and show the profit which has resulted to the Sinking Fund, upon purchases of stock, since its creation. 3d. You will give the amount of Bank stock purchased, and the rates be- low par. 4th. You will please Fund. Your attention is called, in an especial manner, to the following resolu- tions offered by Mr. Sprigg, and adopted by the House ; and also to the re- solution of Mr. Hopkins, which was also adopted. distinguish the amount bought on account of School By Mr. Sprigg : Resolved^ That the committee on the Sinking Fund make their report to this House, setting forth therein, the several sums which have been carried by the Treasurer of the State to the credit of the Commissioners of that Fund ; from what sources of revenue such sums were derived, and the times when received into the Treasury ; and the committee shall state the time when moneys belonging to that Fund have been paid out to said C^ommis- 11 sioners, or upon the requisition of the Governor of this Commonwealth; and the several sums so paid out by the Treasurer, from the 20th of October, 1836, up to this time ; and after evisry such payment, the committee shall set forth the aggregate sum remaining iii the Treasury, belonging to that Fund. 'Resolved further^ That the committee shall, in their report, set forth the times when, by the charters of the Bank of Louisville, the Bank of Kentucky and the Northern Bank of Kentucky, semi-annual dividends on their stocks are declared ; and shall state the amount of stock owned by the State or held by said Commissioners, at the several successive times when said Banks have declared dividends ; and to state the rate per centum of dividends de- clared by said Banks periodically, according to their charters ; and to state the amount of money to which the State was entitled, upon the stocks so owned by her, or held by said Commissioners, at the several times of de- claring dividends by said Banks respectively, according to the rates per cen- tum upon which dividends were so declared; and to state the amount which said Banks severally paid into the Treasury of the State, as her portion of the dividends so declared; and the times when such payments into the Trea- sury were made by said Banks respectively, since the 29th February, 1836, when certain revenues of the State were set apart by law as a Sinking Fund. Resolved further, That said committee shall state the aggregate amount of moneys which, by law, were under the control and management of said Commissioners from their first organization, and on every day thereafter, when, by the duties of their Commissions, they were bound to pay the in- terest due upon the bonds of the State, sold for works of internal improve- ment ; and to exhibit the aggregate surplus of money to which they were entitled as Commissioners of said Fund, after discharging the interest peri- odically due upon said bonds ; and to exhibit the amount and description of investments made by them, of the funds under their control, and at the price at which all stocks Avere purchased by them, and the surplus of said fund remaining under their control and subject to their demand, after every such investment ; and to show to what other purposes the said Fund, so subject to their control and command, has been applied, besides paying the interest on said bonds and the buying of the stocks; and if any of said Fund has been applied to other purposes than as before stated, the committee shall specially set forth for what other purposes said Fund has been applied,^ to whom ap- plied, and the amount so applied. ^ Resolved, That the committee enquire especially into the amount of tax, and of dividends on stock, which the Commissioners of the Sinking Fund have received from the Bank of Louisville, since their organization ; and if they have not received the full amount due the State from those sources of revenue, the committee shall ascertain the reasons therefor, and make their report thereon. \ By Mr. Hopkins : 1 Resolved, That His Excellency the Lieutenant and Acting Governor be respectfully requested to communicate to this House, the amount of State 12 bonds issued and sold for internal improvement purposes, in each year since the commencement of the system ; stating, also, the persons, corporations and companies to whom the whole or any part of the bonds issued in each year as aforesaid, were sold, and when the payments were to be made, un- der the several contracts of sale ; also, the amount received under each con- tract of sale, and when the said last mentioned amounts were respectively paid ; also, whether any part of the purchase money for said bonds, or any part thereof, remains unpaid, and if so, when the same was or is payable or due, and who is the debtor ? also, what amount of State bonds, if any, have been issued, but remain unpaid, and the year in which said unsold bonds were issued; and the amount of money now due from the State to the Banks and individuals, for money borrowed by the State, for which no bonds have been issued. This resolution of Mr. Hopkins, though not directed to the committee, contains enquiries for information -necessary for the committee to receive and embody in their report ; and is therefore substituted by the committee as their own. Respectfully, J. SPEED SMITH, Chairman Committee on Sinking Fund, J. M. Bullock, Esq., Secretary of State. Executive Department, Frankfort, January 30, 1840. To the Hon. John Speed Smith, Chairman of the Committee on the Sinking Fund. Sir: I have had the honor of receiving your polite note of the 25th instant, directing my attention to the resolutions introduced by Mr. Sprigg, and adopted by the House of Representatives on the 11th instant, and asking a response to these resolutions, as well as to the resolution offered by Mr. Hopkins on the same day, and to such other interrogatories as are embraced in your note. In the following account current of the Sinking Fund, commencing with the organization of the Board of Commissioners on the 20th October, 1836, down to the present period, is exhibited in detail every transaction of the Board, showing every amount received and from what source, and every amount disbursed and for what purpose, and the balances upon each invest- ment in stock and upon each payment of interest upon Internal Improve- ment bonds, as required by the resolutions: Debtor. SINKING FUND. Creditor.' 13 o o o o O ra* 1 O Tic 00 O 5D O --H 1 O O lO o O CD 1 l-H o Tf CO O (M O CO CO 1 O lO o O ID a lO 00 Tjc O T)< O CD 1 o c? lO O CD 'TfH lO CO O CO O 05 CD 1 lO t'^ ID CD 1 r)c CO CM O^-n 1 CcT oToT 1 a-T co" CcT CD oT 1 50 CD (M 1 O O CO O O o lo ri m c 'T3 O) = Q •° S « cn C I— ( S S o > « o -= a o CL U S (U S.B > cd c V .s • o o o o .-lO a> ^ CO c “ o 0<5 OJ -B c 2 t.1 1— i o SJ o 5 ^ o . • • c a> V S ‘- ■ cO ' — ' uj m ^ £ c _ oa; S § C « « ^-s S C X O •" H Pui ti CQ — TS (u O oj X) o Q i§2 C Jai £ ° « >> « Jai D *j ■- P ^iz; g oj £ -o •- « CJ ^ c > ff5 (tf c« S s « a ^ « 05 £ C CO C7i o CO 00 r c j= o t; CO ^ a c «!■ ,- ee c 03 (D a s > 2 O) .JO I S C ^ aj DO - "O -I “ o a « o r _ CO « CD a> c - c ,1^5 = JO > ce ja o >> c c = 2:^ CC £" a? ^ ^ CO 5? W) « >=2 5-= i« 33 eO CD O ^ -S ^ £ X® >> 00 ° « -S otI r- bjo (O 00 J® 33 = DO S c «3 S OOOhH o r- 'D — ^ C CO ^ i> e ° g « y CO "5 CD ^ S lo « c .■£ o “ “3 o-— CO ^ W « t: " >> 05 o o o o o o CD CD CD O CT5_ oTo .-'SH i| ’o Is E Q« “ S ii 22 2 ^ 02 »• c c o o C" an T3 0 , . a t-3 S CO -D £3 05 a S = ^21 •g 02 CD 5 2 « Oh S 2t3M t: t» 22 fl CO S CO •!- an bO 2^ an « .- "I “ H CJ CD Q aa b-cTl^^ S n an QO CD n S a^c-t «!/2 X P P cO ;« OQ -S = ^ CO «CQ -c: fo ■B g « p E t' in CO 0^ CO 2 c3 o PP CO CM a c •Continued. 14 o O CSJ O iH" in O lO o in O O O o o o o o O HjC o o o O O to to o O 05 o ; C< to pH O to (TJ o O CO pH pH o o? «r> o to to CO to o to fp CO CQ of of CO to Jp to tp pH pH S s bjo M .5 * -S o oJ o c ^ _co CC ^ • IE . ^ t-5 - h-j « o <- c «) "c CO t: *- l- h-, 3 — 03 o « o o ^ CO f2 CO TT QJ PQ OJ !- Q CO „ CO C8 ^ c CD c o O oj j:: o) 02 O D.*- o,^ ^ XX — H H •5 o •o bJD C 'O o c -c 73 « "S E W oT •« ' IE * 'E ’ 'c E *"1 "E c E p. c. io . ■“ p = - C , « ^ •_! C cE § I ® . o2 o .m"" p ^ h-^ O — i « = t: m P lO S ° - « o) o SJ Cb Q. cj aj X X « t; W « 13 o > P C o § « « o - >0-^ 1. = - 2 - r&==i illli ii“‘- »o p >o <= !^ <= o^ o © ,.o p o p 2 !>iO ^'^35 — — DQ pH ^ — « §1 1“ © to g w 3 p “ hph^ ^ 00 >. 00 O? (N (M © © © CPC CO o CJ o 05 O^ o' 00 o O} o uo o o to •rjc 05 O)C0 00 05 .- © CO 'q, 00 c > «! I ^ ■2 = ■Sd s o I © Cm rt c£3 P a" ii O C hXJ D P g .s % I s R! et) m TC ’^O C C ^ I ‘p -S J3 © — * ^ -T'- C u .1 bO P C p .o E -c •£ c h 00 05 © © P c balance brought down, • . . ( 166,367 04 IS O o o O lO o o O .—I cT lo * o JO 05 OT 05 I O IX) O rH )0 pH t^OO crTtO lO 6 . O o> t-Z • 'O W a. R> s « •'.S fcH CO J 00 a q3 I— I c •• « C 3 >> S 3 (O a> a. => « W W to ^ CO -o 2-g X o O o o®. o tp* ■ c ^ to — ■ ::: 3 ns •-j £ E = d ^ « -a ^ ts ,1 r'O ' o 5 M a. 60 m C . T3 « a u o V .Q S - to cu .5 • G s ^ r. > a V |5|' 5 ■ 5P ^ rs “ "5 S o. ■“ J ® 05 bO c ^ o w £ to a w T 3 oT G t-T • .2“^ . P4 . • 0 ti « 0 & 0.1^ M Zl 0 ■a • a a •2 a a. a 1 ^ ® 0 0 « ^ = e cr = CO 0 -0 • « . s - * 0 g 1 §^‘ a 05 G .. ;h 0) a. £ O s S S.'a w CU Q> LO *^10 w ^g-S- > o wd'^ ■- ■|§52l , C o -p o S a »o lO I uo ^ JC 2 ^ W CO « a; ^ o) -g S 53 !^ i Sac v5 a> ^ *r r o ^ xj H bfl^ w o 2=2=0 a ^ ^ o c £ ^ o ^ a a c o 05 05 o « o 3 « 5P 5P- - c ^ G (/) (yj ^ 2 I Q o o « « ° HW^ « CO >» s 'tf P' cT ^ hi) a. a *; 05 CC 05 02 05 0 CQ 00 OJ . CO a ■M 00 a 000 0 0 0 CO -rfl 05 0 ct 0 0 »o rH 0 r- 0 000 CO X) 0 0 CO Ip 10 t- 0 1— J 0 0 05 0 0 CO 0 0 00 0 0 05 0 0 00 VO 00 00 0 0 VO 0 t- 0? t- <=> 0 0 t- VO 0 0 OJ XI 05 1-1 0 CO IH 0 x> 00 OD VO VO (qj 0 ^ 0 ^ cT oT rH 0 G5^ VO «r I— 1 ir^ 05 wt I — 1 VO oT -Ip Ip 0 Ip 00 00 00 (?5 n 05 ^ tcT C 5 cT q; pii! • tJ O .- r- O >» « ^ -« — a 0 •>-• o W £ o = ; W (-3 S ■£ = = S «! nj O Mcq^ O X) ^ ^ CO o ^ 2 2 o M3 > ^ g^'ll o o 5 ® rS to 03 -a 5 « o q . a S ■£ 'S J £^ 02 S-S .H^ a o S-o t.1 Pi o H O O O I® " p •a ’=-*=- o ° ^ o ^ = 2 x> c o £-^*'35^ 02 05 ro H ^ S C O — .P O ;s t^l-=l o "O o M 2 05 05 . it “ £' a = o ■“ ' r. „ X •3 3 H C C G 000 cqp;m '"Ss 2 o 02^2 ^ a S 2 2 M Q. 05 « « O ^ 02 H Pi M -C lU 2 05 a CO M qS 2 P 00 o cXi 2 TH og G CO 05 ^ M a = :S 2 •= - 2 g - S-cuS 5 3 ^ O. " ■“ <0 M = -G £ -a 2 2 o 2 05- -a nJ a « =a 2 2 -S - ^ o j C/} ^ T 3 2 T 3 C to ‘.E ;e ^ Q P H • -Pi -w a 5 > a ° G 03 £ « £ JG O 6X3^ O P 05 ^ 05 C M 2 « SP "c "S ’-= ' cS * I ” 2 5l"§i ^ V) CO Qj ^ tn > Qi ^ (D £ >:j3 a =-M "a ^ G a uj ^ 7 BS H§^ a “q, c C _ C ^ ^ ° q 0 '=•-■£ a 2 r; 5^ G — C 2 p : 5 ' a:H 02 2 CO t;2 • = a.c0 00 ^ 05 ^ c i-i 05 tc cq C? a . a M o =*n : Z 4S a- j 1^ w 05 PiP P P J--2-2I g >. o ' aa 5 rtM S 2-S2i.-2P3„2S H, g 3 a =-_ —50 ^^0=^220 “g « aO«2 „ g ^-C >,£ m:5 p rr* a ^ ^ c "o CLC* o'^a)3^a>t-co 2“:2 8 o O . ,-1 ^ 00 VO 'Ot co OJ t^05 r-T oT ^ ca O'} VO "ll .-I VO O VO O i-i o ' aj tn cC . C ® ^ • tt' "C , ^ c P3 ^ a ^ . ns 3 , ° O ^ ; -r: - o S =o o- ■c c o fci o o o o o o o o o? O iC Oi < 00 ^ ^ Oi 00 SS 2 , o ^ ^c2?.s § ^ ^ 2 ^ o S S w 2 — S O bjo " .S 5 « ^ ci ^ *■’ o ^ = " -5 5 't' = « L_, .t; o aj S ■° S - = « -3 ^>1= 2 „ . . 5 ^ *-s^ o c'^P'^'-> = “cnOioSatncn;^ « « 5 c 2 3^W = = >> w)-:: o = - C^Qi-CO.— ^ Q-JS m S “' CL Q. £3 — j T3 .... - S3 -a -p 03 C vSM ” £2; !X2 0 1 ° lo .M t- c ^ S3 CO CO cn Oi CLT3 C - O “ 3 c 1; c 03 rr to .3 Q. ra KXO cc Pu .3 .^0^0“ rS'-' S3 r-, ^ G.— o , C/3 3 ^ 03 a. t; to cs s.^w.^2 W',^ •*•*/ rj • *. - •' C3 05 05 " ^ 05 VO i. O I— I to ?- -o *-Cl >, G- tG 0 ° O ss^o^^g 2 ‘3 QO' * GOO OT “ «r g o o coco«,0^«*J — aj 03 ^ 'tf 2 E G 1 “i-S’^s s s 2 a 0) a> lO CO a GS! ‘ w eg ro ^ tiO fckfi ^ S SS2St«2 = = ^C CJ (13 Cfl ctf Ctf •i^ ^ iN _S o J3 Cj a3'3j= 3j ovc 00 • CO c OD to - -2 cn CO CCJ a: . . 03 -G -G to 03 03 S VO c({ " cc G 'Ot O o o O O 00 1 r-l O 05 O l>- to o o o o o Ti< 00 00 O CSf 05 00 ^ O o o O O 'Ot ca VO o ••eft VO t-H O O o O O CO 1 VO VO O 05 CO 00 c^ooot^Gs? ca 05 ^ CJ^O CO ca vfT r-T of ca VO v— i VO VO ^ s a5W .. to • P .-T3 O ^ L, G .'•E fcT o <0 o ^ cq 5^ = 03 .sT: G > to O 'G "o r E “ o re _ -5? "m "t" re o o CQ O VO ^ c\! G E G i;^ o O to — ^ G 03 to o o Lh 03 ^ o " t« s: 2P 5 2 « « £2 fS^ S O § E "G ^ S ° ^ ■G a o o ^ .™ c S 3 to 3 re 03 -c - to -o ^ ^:> :> s=s:> fiftflnhCl •I N' to (U S G G g S & o 2 5 - I E :s 5 G s O E "O -s s - 03 'G to O G -^ — G ii to “ « 2H p^ vE . VG vj^ rH CQ s s c^ ^ . “-OtO* -C •-< ^3 *2 03 a: « > a. > .S^ O = S o :5 H G i- G Oli 3 PL| 3 ^ £ .S £ .S up p cC Ph fu 2 2 E -G -G X3 S3 <0 S3 » -5 1-5 H-5 Pm fH fl3 ^ 3 VO n! 21^ PJ •q ‘S CL, a- J2 < < 5 ^ 17 O irt o O • C< CO C« 00 0^0 IS i-H to l>- lO to' cT O O 05 O O lO o CO tjT of 05 oT S . *r 3 * • i . . * 0 . s o« = 3 ‘ g CO a> w ^ C (o • "O "05 -G 'p . ^ 00 0 . . . . . J5-clzi . . , ... C) f—H 0 , • 0 • ,5C "cS 0 . « a " 0 bO t5 3 CO c« ^ tn C .«> in C 'DtJ 0 s s-^ 0 “ C V G 05 bs- 'S 2 ^3 «J . c 1 g I s O W o S . S « S, 5 . o o o o o o o o tr r 5 o ® ^ S o E lO O O « c ® ^ «£5 lO o ^ * £ = c c W o -o o o o » rt M OT tn 5 05 S S S ^ ,S CCS o 05 MS ; -noq 05 bfl t>^ C3 rt i! « c rt E-* ■21 .11 CO o . 05 50 05 (U t» to o t:; ^ o _ <« a5 o bC ^>-1 “ I- o •-• i O 05 C iS Q, cc H C« o f ."S I c 5 ^ O- S ^ o t: OD ” S s ’« m ^ » O n“* S O P-l r-i tin bD bJO 3 3 3 . J>>SCSt 5 U QQQ 05 P 3 Q 5 MM 3 ^ 'O g •s.i -I 05 O 3 ■Continued. 18 18,875 49 19 O o o O OJ lO o lo oT'^co cT S 00 ^ Of CQ o g O CO O CO QO »0 «D 00 'O S ^o-H •? £4 « 5 oa Qlg ' sw ‘- I «•= a ^ tT ^ Pi o^ c BfflgW ►» cq o • a o . • • « o^* p« 2 o o ® o o O o '~~' ifs CO :^2S a o <5 ^ S 3 O §*^ TO Du ^ a> a X ^ ?S gf 2o o XI O C(N , ..o o O ® — pg g § 09 O O sQO i s 00 O ^ « 3 ’3 • rt • • ♦ H, O. ^ . &» • {§ .a €» 3 « 8 S Sa b a a> 0) ed • cT g ca m < O j ® 5^ J to o <»}• J ^ 00 "3 i s*s g ^ o 'O " sW g* Mio| (S eo ’ « 2 Hi ^ to'' ^ ^ afi 2 TO H? S o o o o o o ‘to ^r-T i-i0tJ« 000 O to OO O »00 O to rH O O to to 05 t- Ilt-I-I to to . ® 5 o McT an O § te-2 I <» 5 « ® bO 0 c o c X3 « S «J jc 'S s "S gpqo S 1 s I O « s w ^ 3 c 2 2 .J5 ^ ^a c c ^ «> Q» n WM a o'SS = -g s •2^5 w .2 ^ 2 : « « c M S>« ‘in tj B '« 2 O o ■^.2 m1 * o r a> CJ 1 I 4 • • XJ A S m O *11 t) XJ b B * » ^ bfl'si S o = S 2 no A P £ :o«3 s ■|£2o p «« s ■3 ° £ i ® £ o b.E'^ « A B i2 • O — - ■'i §l| g gf * w'^|i 0) W 05 ‘o33W Iq O .B to *2 D= bO -ca. a s *2 3 Q. .g u 3® o P g i s .§ o -.2 ^ - fl O ^ w . ® « 2 ^ » § a, -a V A m 05 o) tn ~ oi 05 I2 « u > u X! K HQcq §§ 'O X3 B “ •O 2 ^ •3 '2 a 3 ^ g 3 «« § g ®5 h ° « = 2^'S g I •B *2 2 « "S o H .2: .5 is g’2; ' 2 QQ Q E-« Pi 05 05 A .54 a B B C Ctf QJ (tf Cd •s-s »p(<0 ■Continued. 20 fcO o oo O O O Q O o o o S o o u:) o o o O lO O lO iO cf oT CrT (M O »rt O crj t- to O -Tt* CD O o T-i m o to CO c< 'tJ . §•§' n hfl Ph " p® .QcwfS . c « <<•2 a i-sl § n3 tn C (?? ^ rss PS o o o o o O lO lo o o c? t- o LO Tf to to CSf r-l CQ o ^ ■a -S ti. "tJ « c :S * * ‘ = o J 3 C S «* Sd o • •• • I fcfl o .S S ^ jn q; O; (U Oh Pn d- CO • •'T • PC5 ^ t-s *5 - a E c ° o 3 g o o “§ *§co2««« 8 .8 1— iS-c^suS^ooo ; ^ o o o eric > Cti « .J E s 'o cu c ® >o rt o ».o -o o WJ T3 O o CQ . . . o o "O tJ E u . . I- o o O) 'O T3 CU >o S s I a, o « ■ -I -s. o d ■a "o ..o oo a>s.§§ 2 __ a> O O a ° ^ Q."^ 0) I - ■*■• 3 ^ ^ ^ hfl hfl,^ §5«rtgn!^rt^«rt„ = g- g l-g S-go-g>-g 2 = ° g <3^ H H H H QQQ in: o Ho Ws.®" CO " -p g ^ CO ^ w g 2 O d i-S SQQ lOioirsto.s-J^o c O o ^ "3 o o •■ »■ 'tS ® O "g ^ 03 go r-( C^ g £2 a r-T G O O H Cd 0) O ^ hfl hi) o d i ^ ^ P) P >-3 O o HW C CO ^ 0? ^ o c .... o “ 00 cn QO 05 UJ lO O 05 « >» O O to o 0 0^30 O O to t- 05 O 05 to O CO 05 O 00 uo CM (TJ 00 C O & >- a g o g-cS I ■Si’^ ° J 1.2 ^ g P3 ^ < PP C ^ H-s •—3 >.12: CQ T3 ' 0-2 2 o C 5 ’-? - c Xi S .2 P O P o CO = p ^i2 S 2 « g 2 S-^ R! S p z; p C 0) > w S c ^■3 2 05 CO 05 ^ ^ 1—1 i-H ,— ( ^ uo JS .G _C CJ OI 2 2 2 >105 •fl ceJ cc P 21 o to o cn i-L w > •- s »» C bJ CO _, I— I 05 ■ m rst ^ “ c 05 J agS - a^Qo x. ^ = o^l* g „ - n o :>.« ® X o .S ^ m Oh :-■ rj I O rt 3 n_, O Ji! i — O o CJ etf c ■« . <4-^ 0^ a> 3 s » =5 .-SPo E^l £? o _r o K ^ 'DC. •* *r> ^ C C I— I flj £3 oj cC ^ iis S «c o 05 S to 3 O 05 o p ^ ’cd 3 OT _ ° a> 05 05 05 s-H tiO o ?S ^ 2 IS « C s” " Dh» m ° ^ « CO liili- CQ a. « V & E <5 Oh «5 tc c? 0 0 0 0 0 0 i 05 0 in 00 50 0 0 0 0 5/5 10 0 CO to 0 0 0 0 >0 0 0 < 0 0 CO CO 10 0 0 0 0 (M CM 0 'tit CO 0 0 0 0 —1 00 0 < 0 to 0 c 05 0 to 0 0 00 10 0 05 0 0 >0 0 0 05 0 0 1 0 CO 0 05 0 0 00 0 »o 05 00 0 05 ° 2 » 0 0 QO 5 00 CO 00 I — 1 t- 10 CM CO t- t- 0 50 oirT la 00 CO la" CO 00 irT 50 crT cm" f— 1 (?? l-H Oi CM 1 — H to f — 1 02 J-W ^ o S3 ^ g S ^CQ P3 05 >» 'H rs c 3 a o o O m CO — a • o »H0_, O 5 ^ 3 a t; cd gM W a «*-i o ^ •g§ as “ m “ .s s ^ "ot o 2j- 05 t— — CN w • a • o cq « c X = -H fq t>^ ,wa-^ S:5 '-^§o I CQ 3 05 I ^ a t 5 1 o X 1 ^S-a a 2:2W =:| Q :q« a ^ a o o 3 5'H 15 S g s B .'2 W ^ Q Q . 05 »r5 05 a o t.; 5 a ‘ H 3 2 X “ ’> Q 'a •s 3 3 a P. 5 o to *-• 3 CQ S S O 05 X . o a .a ^ 3 cq a 05 2 % ^ C3 « a i§ 11 “ = S ° c to 'ht; X • W XJ a O 2 ed ;-i CO o 2 2 3 3 3 a a •" " 1-3 3 ’a ed 3 3 ^ P-pq ■£ ri P* 3 to H-. ^ *-• a: £d -l|i®i ssjl I a CQ hJ -a o ^ o S S P o o TC rn a IH 3««2 g :2 Ph ;20 .-I (TJ o »o o OJ 10 r-l O O OJ O 10 OJ 10 OJ CO uo r-H to CO 05 -cf cf c « « CL. 'a *< ^ s ®2o-- «*- .S XI nj o bC O « c X) a c « ^ = £00 o S «-r: S i ^ S O 2 W)g 'U CIS 4 > 'S 2 « S "m m • -o ^ = T 3 2 . !> 'o c ^ S . >, 1 1 I® -s " o • ■“ rw C ^ ' JD « g g^cq « rt — jQ e rn C •“ S i 2 “ C o *; o ^ 'o o o c o § c XI ^ W £■ c.S^ c « 0) O CO -•sill S O o S o -n S fiJiX “tcH rt W) . . o ^ 'O ^ at m rvi C (u a> W § o “ g-S Sow ^o-S c ^ ^ - tS 'S 5-0 53 c 'S S Si:: O.'iO T 3 " 5 ^ » s S,| °- jd ° <010 0^0 to 0.X0 o bO ^ o 2» O ^ O o ^ «c O ^ C> t X O g " « Wpa .5 (L 5 w ^ D ^ ^ - o ^o c 2 I, !!^!!!-S s, T« O tn ^ S C ' cd S o «J (U O. (01 a t- I— t ' a 4 ) i cd Z ^ 1^ OJ 4) — c a 4} « 45 C C C J- o CJ o X X ly H c _c ta^S B a ^3 2 I «* rt '§'2 S o'* « ^ 02 2 fS« 3 -§ 03 M o; c,^ CO CIX CCS S S Q- CU 5 X « -HH m ' ^ o o t 3 ?5 (U 4J 43 QQO I 1— I O O O (M '— I O O o Ir^ t- to o o 0 0 00 0 0 CO 0 ct Tt* 00 ' 0 0 0 0 0 05 0 to 0 to T(< 0 00 t-- 0 to 0 02 0 ? c cT OJ CO CO 0 02 to 0 Tt* 00 to CO o* s 1 01 00 0 ^ m ^ *1 a 3 ^^c-o 2 j 3 a —. 4 ) 0^5 ■u (d 0 M S 3 ^*^n 30 J 2 S ^ q 'e*.^ 0 ^ 0 M . = C . CL ? dJ cPapQ rKo ,x ^ a. g, X •2 3 .'^;|.g 2 aJ®. 2 ' 0 0 Jtj « S'- c — ! brought down, )m Muldrow’s Hill tur rom Commonwealth’s Lom Commonwealth’s Balance, „ ’ 2 S Jt!§ 2 ‘ 2 c 2 ^ 5 )i go= 2 ca 2 «•>„•■§“§ SS. CO B 2 « toO^KtS B*a: fl 3 P 2 S „2 0 -« 53-2 S^O'lO "s 2 |o “ cj |;2 -o {>,^ t; ^ i>- III = gS . C '*■" “ 05 m t> c -B ,!- a C B C C B T 3 “3 ^ <£ tB '"‘ 0 ^ 9 ^ 12 ^ 4121512^2 12 ° rt ”0 P 2 « !E .S . 2 : .£ 3 .S; 0 « p HP «QQ£h« 0000 43 43 43 4> OOqP o - CO ■'t CO • I— I c a C S S B CO CO ctf 1-^ l-s l-j l-s balance on han( In the foregoing account current there is embraced several items, shotving the purchase, by the Commissioners, of gold and silver, or its equivalent, for the purpose of paying in coin the semi-annual interest on Internal Improve- ment bonds, due in New York during the suspension of specie payments by the Banks; and although this fact has heretofore received the approbation of a former committee on the Sinking Fund, and the concurring approval and sanction of the representatives of the people, I can not refrain from again noticing it, that all persons interested, either at home or abroad, may be fully apprized of the inviolable and sacred character in which Kentucky regards her solemn obligations, and the practical construction of her repre- sentatives of that feature of the constitution which makes gold and silver the only legal tender. The following table exhibits the time of the declaration and rates of div- idends by the Bank of Kentucky and Northern Bank of Kentucky on State stock, and the excess thereof, after paying the interest on the State stock bonds held by said Banks : (B.) Table showing the time of the declaration^ and the rates of dividend, by the Bank of Kentucky, and Northern Bank of Kentucky, on State stock, and the excess thereof after paying the interest on the State stock bonds held by said Banks, 1837. 1st Monday in January, Dividend on 10,000 shares stock in Northern Bank, of Kentucky, five per cent. .... ^50,000 00 Interest on ^1,000,000, 5 per cent, bonds, . 25,000 00 $25,000 00 Dividend on 10,000 shares stock Bank of Kentucky carried to the increase of State Stock in 5th million. 1st Monday July, Dividend on 10,000 shares stock Northern Bank of Kentucky, 4 per cent. ..... ^40,000 00 Interest on $1,000,000 5 per cent, bonds, • 25,000 00 15,000 00 Dividend on 10,000 shares stock Bank of Kentucky, carried to the increase of State stock in 5th million. 1838. Ist Monday January, Dividend on 10,000 shares stock Northern Bank of Kentucky 4 per cent. ..... $40,000 00 Interest on $1,000,000 5 per cent, bonds, • 25,000 00 15,000 0« Dividend on 10,000 shares stock Bank of Kentucky, carried to the increase of State stock in 5th million. 1st Monday July, Dividend on 10,000 shares stock Northern Bank of Kentucky per cent, .... ^35,000 00 Interest on $1,000,000 5 per cent, bonds, • . 25,000 00 10,000 00 Dividend on 10,000 shares stock Bank Kentucky, and 6,740.44 shares in 5th million. 16,640.44 do. 3i percent. • . $58,591 54 Interest on $1,000,000 5 per cent, bonds, . • 25,000 00 1839. 1st Monday January, Dividend on 10,000 shares stock Northern Bank of Kentucky, 4| per cent. . . . ^ $47,500 00 Interest on $1,000,000 5 per cent, bonds, . 25,000 00 $33,591 54 22,500 00 Amount carried forward^ ...... $121,091 54 M Amount brought forward, . . • > . - . . ^121,091 54 Dividend on 17,000 shares of slock In Bank of Kentucky 4i per- cent. Interest on $1,000,000 5 per cent, bonds, $76,500 00 25,000 00 Ist Monday July, Dividend on 10,000 shares stock Northern Bank df Kentucky 4i per cent. . . . , * $45,000 00 Interest on $1,000,000 5 per cent, bonds, . • 25,000 00 Dividend on 17,000 shares stock Bank of Ken .4 per cent. $68, 000 00 Interest on $1,000,000 5 per cent, bonds, • * 25,000 00 1840. Isi Monday January, Dividend on 10,000 shares stock Northern Bank of Kentucky 4i per cent. . » . . $45,000 00 Interest on $1,000,000 5 per cent, bonds, • 25,000 00 Dividend on 71,000 shares stock Bank of Kentucky was not de- clared. Total excess, * 51,500 00 20,000 00 43.000 00 20.000 00 $255,591 54 The following table shows the time of declaring dividends by the Banks, the number of shares owned by the Commissioners at each time, rate of dividends, and amount: (C.) Table showing the time of declaring dividends by the Banks, number of shares owned by the Commissioners at each time, rate of dividend and amount. 1837. 1st Monday in July, Dividend on 250 shares stock in Bank of Kentucky 3^, * $ 875 00 Do. 200 do. Northern Bank of Kentucky 4, 800 00 Do. 175 do. Bank of Louisville, 3) 525 00 And received 12th October, \ 1838. 1st Monday January, Do. 250 do. Bank of Kentucky 4, . Northern Bank of Kentucky 4, 1,000 00 Do. 200 do. 800 00 Do. 175 do. B’k of Louisville was not declared. 1st Monday in July, Do. 761 do. Bank of Kentucky 3i, 2,663 50 Do. 200 do. Northern Bank of Kentucky 3i, 700 00 Do. 175 do. Bank of Louisville 5, • 875 00 1839. 1st Monday in January, Do. 1,277 do. Bank of Kentucky 44, 5,746 50 Do. 400 do. Northern Bank of Kentucky 4|, 1,900 00 700 00 Do. 175 do. Bank of Louisville 4, • Ist Monday in July, Do. 2,236 do. Bank of Kentucky 4, • 8,944 00 Do. 400 do. Northern Bank of Kentucky 44 1,800 00 Do. 175 do. Bank of Louisville 4, • 700 00 1840. 1st Monday in January, Do. 2,399 do. Bank Kentucky was not declared. Do. 400 do. Northern Bank of Kentucky 44, 1,800 00 Do. 175 do. Bank of Louisville 3, • 525 00 Total, . . . $30,354 00 The two following tables show the investments in Bank stocks, the num- ber of shares, the cost thereof, par value, and profits made by the purchases, together with all other investments made by the Commissioners, for the Sinking Fund, since its organization: (D.) ^Vahh showing investments in Bank stock. 1837. January 24, 250 shares of stock in Bank of Kentucky, at 93 50 each, $23,375 00 Brokerage, of 1 per cent., • • . 58 44 Exchange on $23,433 44, 1 per cent, • 234 33 292 77 200 shares of stock in Northern Bank - of. Kentucky at $68 50 for 70 paid in, • • . • 13,700 00 Brokerage of 1 per cent, • • • « 34 25 Paid in full on each share 30, • . . . 6,000 00 Exchange on $19,734 25, 1 per cent, > • 197 34 April 15, 50 shares of stock in Bank of Louisville, par, 1838. April 19, 100 shares of stock in Bank of Kentucky, $81 00 • • 8,100 00 May 25, 120 shares of stock in Bank of Kentucky, 93 00 • . 11,160 00 May 26, 44 shares of stock in Bank of Kentucky, 93 00 • . 4,092 00 May 26, 60 shares of stock in Bank of Kentucky, 93 50 • » 5,610 00 May 29, 50 shares of stock in Bank of Kentucky, 93 50 • • 4,675 00 May 29, 137 shares of stock in Bank of Kentucky, 93 50 • . 12,809 50 Interest on $4,675 for 3 days, • • • • • 2 34 Brokerage on $46,446, ^ of 1 per cent, • • . 116 12 Exchange on $13,900, 2 per cent, .... 278 00 Exchange on $24,475 97, 3 per cent, . • . 734 28 Exchange on $8,086 15, 5 per cent, .... 404 30 Deficit in transfer, ....... 20 00 July 13, 75 shares of stock in Bank of Kentucky, at $90 . . 6,750 00 Brokerage of 1 per cent, • • • • . 16 87 September 17, 50 shares of stock in Northern Bank of Kentucky, at $84 for $85 paid in, ...... . 4,200 00 Paid in full on each share, $15, .... 750 00 Interest on $750, 1st July to date, .... 9 37 October 22, 150 shares of stock of Northern Bank of Kentucky, $80 for $85 paid in, - ..... . 12,075 00 Paid in full on each share, $15, .... 2,250 00 Interest on $2,250, 1st July to 8th November, . . 48 00 October 24, 150 shares of stock in Bank of Kentucky, $87 00 * • 13,050 00 October 30, 50 shares of stock in Bank of Kentucky, 88 00 • . 4,400 00 October 30, 200 shares of stock in Bank of Kentucky, 88 50 • • 17,700 00 November 10, 33 shares of stock in Bank of Kentucky, 88 75 . 2,928 75 November 26, 8 shares of stock in Bank of Kentucky, 87 00 • • 696 00 Brokerage on $50,849 75, ^ of 1 per cent, . . 127 13 Exchange on $45,298, li per cent, .... 679 47 August 20, 163 shares of stock in Bank of Kentucky, average $79 49 31-65, 12,957 64 Exchange on $297 16, N. Y. li . . • • 4 45 Exchange on $68,603 43, li per cent, • • • 1,029 05 Exchange on $10,000 ...... 100 OC October 6, subscribed in 5th million of the capital stock of Bank of Kentucky, ........ $23,667 77 19,931 59 12,500 00 5,000 00 48,001 54 6,766 87 4,959 37 53,954 35 85,078 95 12,962 09 x,12G 273,951 58 25,956 40 $299,907 98 4 26 Table showing the purchase of stock in the Banks of Kentucky^ the number of shares, their cost, par value and profit, and all other investments made by the Board since its organization: Profit, j^23,448 42 No. Shares. Cost. Par Value. 2,974, $273,951 58, $297,400 00 Subscribed in 5th million. Bank Kentucky, . 25,956 40 Invested in 5 per cent. Internal Improvement Bonds, 20,000 00 Total investments, .... $343,356 40 The next table exhibits the investments made by the Commissioners in Kentucky Internal Improvement bonds, both for the Sinking Fund and Com- mon School Fund : (E.) Table showing investments in Kentucky Internal Improvement Bonds by the Commissioners of the Sinking Fund. 1837. May 15, $500,000 5 per cent, bonds, par, .... July 1, 170,000 5 per cent, bonds, par, • . October 1, 200,000 5 per cent, bonds, par, .... Of which is transferred by the Commissioners to the Board of Education, Leaving amount held by the Commissioners of the Sinking Fund, • $500,000 00 170.000 00 200.000 00 $870,000 00 850,000 00 $20,000 00 The following table exhibits the amount of bonus and dividends paid by the Bank of Louisville, and when paid: (F.) Bank of Louisville in account with the Commissioners of the Sinking Fund. Debtor. 1837. July 15, To Bonus on capital stock, .... Dividend on 175 shares stock, 3 per cent., received 12th Oct 1838. July 1839. January 15, July 2, 1840. January 6, Bonus on capital stock, • Dividend on 175 shares, 5 per cent. Dividend on 175 shares, 4 per cent. Bonus on capital stock, . Dividend on 175 shares, 4 percent. Dividend on 175 shares, 3 per cent. , 1838, $5,750 00 525 00 5,750 00 875 00 700 00 5,750 00 700 00 1 to 1 ^ 00 $20,575 llsl 1837. January 15, By Bonus, " 1838. • July 1, October 12. Dividend, Bonus, Dividend, Amount earried forward, Credit. $5,750 00 875 00 5,750 00 525 00 $12,900 00 27 Amount brought 1839. January 15, Dividend, November 11, Bonus, July 2, Dividend, 1840. January 6, Dividend, forward. • $12,900 00 700 00 5,750 00 700 00 525 00 $20,575 00 The following table shows the aggregate amount received into the Sink- ing Fund since its organization, and the sources from whence received, the amounts expended, and for what expended, and the balance remaining on hand: (G.) • A table showing the aggregate amount received into the Sinking Fund since its organization^ and the sources from whence received — the amounts ex- pended, and for what expended. Aggregate amount received, .... Sources from whence received, to wit: From James Davidson, upon settlement after organization of Board 20th October, $1,482,026 17 1836, Turnpike roads and slack water navigation, Old Bank of Kentucky, profits, Commonwealth’s Bank, do. Bank of Kentucky, bonus and dividends. Northern Bank of Kentucky, bonus and dividends, Bank of Louisville, do. do. Surplus Revenue United States, Penitentiary, profits. Premium obtained by J. M. Bullock on negotiatiation of sale of $1,250,000 of scrip. Premium from all other sources. $33,249 33 21,618 55 17,901 00 88,030 00 215,301 10 176,767 99 20,575 00 850,159 02 5,000 00 44,609 50 8,814 68 1,483,026 17 Amounts expended, and for what expended, to wit: By aggregate amount of interest paid on Internal Improvement bonds, and expenses, such as exchange, &c. Investment for School Fund in Internal Improvement Bonds, Fraction of surplus revenue U. States paid Board of Education, Additional of 1 per cent, paid E. I, Winter, as commission for sale of State Bonds, on $510,000, . Aggregate amount invested in Bank stock. Subscribed in 5th million in Bank of Kentucky, Contingent expenses, . . . t . Investment in 5 per cent. Internal Improvement Bonds, . $296,657 40 850,000 00 159 02 1,275 00 273,951 58 25,956 40 2,989 29 20,000 00 1,470, Balance on hand. $11,037 48 The two following tables exhibit the entire sales of Internal Improvement bonds, and State scrip issued in payment of stock in the Bank of Kentucky and Northern Bank of Kentucky, the par value, and net proceeds and pro- fits of the sales: 2S (H.) TabU showing sales of Internal Improvement Bonds. 1835. May 25, $100,000 5 per cent, bonds to the Bank of Kentucky, at par, - August 1, $100,000 5 per cent, bonds to Prime Ward & King, by E I. Winter, .... At a premium of 3.10 per cent, 2 days interest, .... Exchange, ..... $100,000 00 $100,000 00 .3,100 00 27 39 207 50 i of 1 per cent, commission to agent on $103,127 39, . . » Expenses of advertising and numbering bonds. 103,334 89 $515 63 111 76 627 39 1836. April 25, 100,000 dolls. 5 per cent, bonds to the Northern Bank of Kentucky, at par, June 1, 50,000 dolls. 5 per cent, bonds to the Bank of Kentucky, at par, 1837. April 1, 165,000 dolls. 5 per cent, bonds to War Department by John Tilford, ...... At $98 for 100, . • • • 3,300 i per cent, commission to agent, . • 825 102,707 50 100,000 00 50,000 00 165,000 00 4,125 00 Exchange, I per cent, on $125,440, 160,875 00 1,254 40 162,129 40 500.000 00 170.000 00 200,000 00 May 15, 500,000 dolls. 5 per cent, bonds to Commissioners of the Sinking Fund, at par, July 1, 170,000 dolls. 5 per cent, bonds to Commissioners of the Sinking Fund, at par, October 1, 200,000 dolls. 5 per cent, bonds to the Commissioners of the Sinking Fund, at par, ........ 1838. July 1, 1,250,000 dolls. 6 per cent, bonds to the American Life Insurance and Trust Company, N. Y. by J. M. Bulbck, • 1,250,000 00 Premium of sale, exchange and interest realized upon the negotiation, . . • 44,609 50 Expenses of Negotiation, . . ■ 1,508 13 1,290,101 37 October 1, 21,500 dolls. 6 per cent, bonds to Board of Education, at par, 21,500 00 1840. January 1, 22,000 dolls. 6 percent, bonds to Board of Education, at par, 22,000 00 January 1, 18,000 dolls. 6 per cent, bonds to Contractors on Turnpike Roads, at par, .... . 18,000 00 January, 1, 1,000 dolls. 6 percent, bond to J. Swigert, at par, ► 1,000 00 $2,737,438 27 (I-) Table showing State Scrip issued in payment of stock in the Bank of Ken- tucky and Northern Bank of Kentucky, Amount from table of sales Internal Improvement bonds. 1835. $2,737,438 27 April 18, 500,000 dolls. 5 per cent, scrip to the Bank of Kentucky, par, July 1, 500,000 dolls. 5 per cent, scrip to the Bank of Kentucky par, September 15, 500,000 dolls. 5 per cent, scrip to the Northern Bank of Ken- tucky, ..... 500,000 00 At 2 per cent, premium, . • . 10,000 00 500,000 00 500,000 00 J of 1 per cent, commission toE. I. Winter, 510,000 00 2,550 00 507,450 00 Amount carried forward. $4,244,888 27 29 Amount biought forward, ..... $4,244,888 27 1836. July 1, 500,000 dolls. 5 percent, scrip to the Northern Bank of Kentucky, .... .500,000 00 Premium li per cent, • • • 7,500 00 507,500 00 Net proceeds of sales of bonds and scrip, • • • 4,752,388 27 Par value of bonds and scrip, ..... 4,697,500 00 Net profit, ....... $54,888 27 The first Internal Improvement bonds ever issued by Kentucky, were issued under Lieutenant and Acting Governor Morehead, who sold $350,- 000 thereof, and the Auditor of Public Accounts, on the 8th June, 1835, is- sued a quietus for $100,000, and on the 11th August, 1835, for $103,000, and on the 25th August, for $207 50, exchange received on $83,000 eastern funds, which quietuses are on file in the office of the Secretary of State. For the evidence of the payment into the Treasury of the $100,000 sold to the Northern Bank of Kentucky, and for the $50,000 sold to the Bank of Ken- tucky — see Auditor’s Report, Journal of the Senate 1836-7, page 49. All moneys received from sales of Internal Improvement bonds by the late Governor Clark and Lieutenant and Acting Governor WicklifFe, are embraced, also, in the foregoing table, showing the sales of Internal Im- provement bonds; and the Auditor of Public Accounts has issued, at the ap- propriate times, as hereinafter stated, quietuses for the following sums, to-wit; on the 18th April, 1837, for $126,694 40; on the 22d June, 1837, for $36,- 062 20 — these two quietuses are for the sums received for the $165,000 of bonds sold to the War Department. On the 9th June, 1837, for $500,000; on the 20th July, 1837, for $170,000; on the 2d October, 1837, for $200,- 000 — these three quietuses are the sums received for the three sales made to the Commissioners of the Sinking Fund. On the 6th July, 1838, for $150,- 000; on the 16th August, 1838, for $100,000; on the 14th September, 1838, for $100,000; on the 22d September, 1838, for 50,000; on the 11th October, 1838, for $146,091 87 ; on the 5th December, 1838, for $100,000 ; on the 31st December, 1838, for $100,000 ; on the 31st January, 1839, for $30,- 000; on the 12th February, 1839, for $30,000; on the 25th February, 1839, for $30,000; on the 12th April, 1839, for $60,000; on the 19th April, 1839, for $261,999 59; on the 29th April, 1839, for $50,000 ; on the 11th May, 1839, for $41,908 54 — these fourteen quietuses are for the $1,250,000 received from the sale of bonds made to the American Life Insurance and Trust Company. On the 1st October, 1839, for $21,500 ; on the 6th January, 1840, for $22,000 — these two quietuses are for the sums received from two sales made to the Board of Education. On 16th Jan- uary, 1840, for 18,000 — this quietus is for the sale made to contrac- tors on turnpike roads. On the 17th January, 1840, for $1,002 83 — this quietus is for a bond sold to Jacob Swigert, Esq., and the interest that had accrued thereon from 1st January, 1840. All of these quietuses are on file in the office of the Secretary of State. By reference to the above table it will be seen that the sale of $1,250,000 of bonds was negociated by the agent at a premium of one per cent., and which premium, by his subsequent negotiations with the Bank of the Uni- ted States and Bank of Kentucky and Northern Bank of Kentucky, he in- creased to the aggregate sum of $44,609 50, all of which, by the provisions 30 of existing laws, passed into the Sinking Fund. It is proper here to state that the quietuses of the Auditor for the payment into the Treasury of the $1,250,000, have issued for $3,908 13 more than was paid into the Treasu- ry, and for which sum the Treasurer should have credit on his books.* Of the sum above mentioned there was used in defraying the expenses of the agent, printing and numbering the bonds, employing a young man, worthy of such confidence, to bear them to Kentucky and back again to New York, for the signature of the Governor and seal of State, $908 13, the balance of the sum, $3,000, was allowed and paid by the Governor to the agent for effecting the negotiations; this sum is greatly less than the usual allowance made to agents who sell State scrip; one half of one per cent, was paid both to Jno. Tilford and E. I. Winter, Esqrs. for the sales made by them for the State, at which rate the agent making the sale to the American Life In- surance and Trust Company, would have received the sum of $6,473, but in consequence of the relative position in which the agent stood, both to the Governor and the Commonwealth, only the sum, as above stated, was re- ceived for effecting a negotiation by which there was realized to the State a net profit, over and above all expenses and the nominal amount of the bonds sold, the sum of $40,101 37, exclusive of interest on advance of $250,000 obtained by the contract as hereinafter stated, some time previous to the period from which the interest on the bonds sold was to be computed. The following table shows the receipts and disbursements of that portion of the Surplus Revenue of the United States that came into the Sinking Fund, and the succeeding one exhibits the receipt and disbursements of the entire amount of the Surplus Revenue of the United States deposited with the State of Kentucky: (K.) Table showing receipts and disbursements of the Surplus Revenue. 1837. RECEIPTS. May 8th, Surplus revenue United States rejected by the Bank of Louisville, June 7, do. do. do. Northern Bank of Kentucky, • July 15, do. do. do. Northern Bank of Kentucky, . DISBURSEMENTS. 1837. May 15, $500,000 5 per cent. Internal Improvement Bonds at par, $500,000 00 July 1, 170,000 5 per cent. do. do. do. 170,000 00 October 1, 180,000 5 per cent. do. do. do. 180,000 00 1838. March 12, Fraction of surplus revenue uninvested, paid over to the Board of Education, ..... 159 02 $500,000 00 170,939 35 179,219 67 $850,159 02 850,159 02 ♦Note. — That portion of the funds arising from the sale of $1,250,000 of bonds for which there existed no immediate demand, was, by contract, deposited with the Banks upon an interest of six per centum per annum, and was only drawn out and paid into the Treasury as funds were needed by the Board of Internal Improvement. During my absence eastward the last amount and balance of the $1,250,000 remaining on deposit with the Banks was required by the Board of Internal Im- provement from the late Governor Clark, and he, at the time being exceedingly indisposed and in very precarious health, made his requisition for a greater sum than stood to his credit on the books of the Banks, and thus, as I am informed, the mistake occurred. 31 (L.) Table showing receipts and disbursements of the Surplus Revenue. RECEIPT. Total amount of the surplus revenue of the U. S. deposited with the State of Ken . $1,433,757 38 DISBURSEMENTS. Invested by the Commissioners of the Sinking Fund in 5 per cent. Internal Improve- ment bonds for the benefit of Common Schools, • . $850,000 00 Paid over to Board of Education, fraction, .... 159 02 ^ Invested in 5th million of the capital stock of the Bank of Kentucky, 583,598 36 1,433,757 38 The following table exhibits the Internal Improvement bonds and Bank stock purchased for and held by the Board of Education : (M.) Stocks purchased and held By the Board of 1837, 5 per cent. Internal Improvement Bonds, 1839, 735 shares of stock in the Bank of Kentucky, “ 6 per cent. Internal Improvement Bonds, 1840, 6 per cent. Internal Improvement Bonds, Education. . $850,000 00 . 73,500 00 . 21,500 00 . 22,000 00 Total par value. . $967,000 00 The following table shows the total aggregate receipts and disbursements of the Sinking Fund, since its organization. (S.) Table showing the receipts and disbursements of the Sinking Fundf since its organization. RECEIPTS. From the Treasurer of the State, after organization of the Board, From Bank Kentucky, bonus, dividends, and excess of dividend, From Northern Bank Kentucky, bonus, dividends, and excess of dividends. From Bank of Louisville, bonus and dividends. From Old Bank of Kentucky, .... From Commonwealth’s Bank, .... From turnpike roads, ..... From surplus revenue of the United States, From Penitentiary, ..... From slackwater navigation, (Green river,) From premiums, ..... Total receipts, . . . . . • $33,249 33 215,301 10 176,767 99 20,575 oa 17,901 00 88,030 oa 21,311 47 850,159 02 5,000 oa 307 08; 53,424 18 00 1 o 17 DISBURSEMENTS. By interest on loans, ....... 289,832 25 By Exchange, ....... 8,629 17 By contingent expenses, ....... 4,268 79 By Bank stock, ....... 298,099 46 By internal improvement bonds, ...... 870,000 00 By fraction of surplus revenue paid over to Board Education, . • • 159 02 1,470,988 69 Balance, ...... 11,037 48 $1,482,026 H7 "-r V 32 Most of the information asked for by the resolution of Mr. Hopkins will be found embodied in the preceding part of this communication, and in for- mer reports made by the Commissioners of the Sinking Fund to the Legis- lature; there are some of the interrogatories, however, that have not been answered — the answers to which are as follows: The following payments for Internal Improvement bonds sold, were made in Kentucky, $100,000 by the Bank of Kentucky on the 8th day of June, 1835; $100,000 by the North- ern Bank of Kentucky, on the 4th May, 1836; $50,000 by the Bank of Kentucky, on the 1st June, 1836; $500,000 by the Commissioners of the Sinking Fund, on the 9th June, 1837; $170,000 by the Commissioners of the Sinking Fund, on the 20th July, 1837; $200,000 by the Commissioners of the Sinking Fund, on the 2d October, 1837; $21,500 by the Board of Education, on the 1st October, 1839: $22,000 by the Board of Education, 6th January, 1840; $18,000 by Contractors on Turnpike Roads, on the 16th January, 1840; $1,002 83 by Jacob Swigert, on the 17th January, 1840. The payments on the sale made to the War Department were, by the con- tract, to have been made in New York, and on the 18th April, 1837, $125,- 440 was paid agreeable to contract, but the Department failed to comply further with the contract, and the residue, $36,260, was, on the 22d June, 1837, received in Kentucky. The payments made for the $1,250,000 of bonds sold to the American Life Insurance and Trust Company, were made in New York, as follows: $150,000 on the 1st June, 1838, one month in ad- vance of the date of the bonds; $100,000 on the 18th June, twelve days prior to the date of the bonds; $100,000 on the 1st August; $100,000 on the 1st September; $200,000 on the 15th September; $100,000 on the 1st October; $100,000 on the 15th October; $100,000 on the 15th November; $100,000 on 'the 15th December; $100,0(B on the 1st January, 1839, and $100,000 on the 1st February, 1839. The payments on the sale made of $100,000 to Prime Ward & King, were made in New York on the 1st and 3d of August, 1835. No part of the purchase money for any of the Internal Improvement bonds, sold, remains unpaid. A contract of sale of $415,000, in 1837, was made with the War Department, $250,000 of which the Department has failed to consummate ; no bonds, however, have been issued by Kentucky un- der this contract, except for the $165,000, for which payment has been made. In 1839, his Excellency, Governor Clark, signed a number of bonds for sterling and federal money, a portion of which have been completed by the attestation of the Secretary of State, and his signature to the coupons; none of them have been sold; they were all carefully counted and sealed up in a strong box and deposited for safe-keeping in the Merchants’ Bank in the city of New York, and a receipt of deposit setting forth the kind, denom- ination and number of the bonds is on file in the office of the Secretary of State — $200,000 of which the agent brought back with him to Kentucky, and deposited them in the office of the Secretary of State. Some sales, as will be seen by reference to the proper table contained in this letter, have since been made, and those bonds being signed by the late Governor Clark, it was thought most advisable that they should not be used ; others, therefore, were prepared, all of which, except those signed and sold by Lieutenant and Acting Governor Wickliffe, are deposited in the Executive Office. The amount of money now due from the State to the Banks for money borrowed by the Board of Internal Improvement, is $445,000, for which no State bonds have been issued. 33 No money is due from the State for borrowed money for which bonce have not been issued, either to individuals or Banks. In thus responding to the interrogatories contained in your letter and the resolutions referred to your committee, you will discover, sir, that there has been embodied in this communication a full, varied and minute exhibition of all the transactions of the Board of Commissioners of the Sinking Fund since its organization, in relation to every particular, whether directly or re- motely connected with the Fund. Respectfully, your obedient servant, J. M. BULLOCK. These documents give a precise history, in detail, of every* act of the Board, and many of the reasons adopted by the Board for conclusions to which it came. The committee feel assured that they could not, in any oth- er manner so ample and clear, give to the House information sought by the resolutions adopted. The Legislature of Kentucky, fully alive to the high tendencies and beni- ficent results of a system of general education, if carried into execution, es- pecially in a government like ours, set apart a large portion of the surplus revenue of the United States received by this State, to constitute a School Fund. This sum, when set apart in round numbers, amounted to $850,000. The system of common schools, which it was intended the interest of this fund should aid to uphold, has found, so far, but little favor with the public. Hence the principal business performed by that fund has been to accumulate and invest. It now stands $917,000 of productive capital, and will produce during the current year, something like $51,666 65 — fifty thousand dollars of which, at least, judging from the past, will stand ready for re-investment. The residue of the surplus revenue of the United States received by Ken- tucky (being $583,598 36,) was paid for shares subscribed in the fifth million of stock in the Bank of Kentucky. The profits of this stock, with all accu- mulations, have been set apart and kept separate from all other funds, and dedicated exclusively to the payment of the accruing interest and final re- demption of the principal of loans made and to be made by the State, for in- ternal improvement, and for that purpose have been, as required by the act of 1837, passed into the Sinking Fund. That the Sinking Fund has met the expectations of its most sanguine friends and supporters — the more especially when its limited and precarious resources are taken into consideration — cannot be doubted, for a single mo- riient, by the committee. It has paid all the accruing interest charged against it up to 1st of January last, including the semi-annual payments on that day. It has from time to time invested surpluses, to the amount of $343,356 40. The semi-annual dividends due from the Bank of Kentucky to said Fund on 1st January last, estimated at the rate of eight per centum per annum, and amounting, by that estimate, to $52,956, were not then paid over for re-investment ; but which, when re-invested as principal, and added to the foregoing investment of $343,356 40, will make an aggregate of $395,952 40 — the same being the total increase, by way of investments, up to the 1st January, 1840. The progress of accumulation by compounding interest semi-annually on this fund of $395,952 40, is shown in the following table, 34 and demonstrates its ability, at six per cent, to redeem all the bonds sold for internal improvement up to that day, as fast as said bonds reach ma- turity : A statement showing the value of $400,000, out at an interest of six per centum per annum, the interest re-invested every six months . Principal, End of i year, “ 1 do. “ li do. 2 do. “ 2i do. *• 3 do. “ 3i do. 4 do. “ 4i do. ‘‘ 5 do. “ 5i do. 6 do. “ 6i do. “ 7 do. “ 7^ do. “ 8 do. “ do. “ 9 do. “ 9i do. 10 do. “ m do. ‘‘ 11 do. “ lU do. 12 do. “ 12i do. “ 13 do. “ 13i do. “ 14 do. « Ui do. “ 1.5 do. 15i do. “ 16 do. “ 16i do. “ 17 do. “ 17d do. . $400,000 00 . 412,000 00 • 424,360 00 . 437,090 80 . 450,203 60 • 463,709 60 . 477,620 80 . 491,949 60 . 506,708 00 • 521,909 20 . 537,566 40 . 553,693 60 . 570,304 40 . 587,414 60 . 605,036 00 . 623,186 80 . 641,882 40 . 661,139 20 . 680,973 20 . 701,402 40 . 722,444 40 . 744,118 00 . 766,441 20 . 789,434 80 . 813,117 60 . 837,511 20 . 862,624 40 . 888,515 60 . 915,171 20 . 942,626 40 . 970,904 80 . 1,000,032 00 . 1,030,033 20 . 1,060,934 00 . 1,092,762 00 . 1,125,544 80 End of 18 years. m do. 19 do. u 19i do. u 20 do. 20 i do. (I 21 do. il. 2U do. n 22 do. a 22^ do. U 23 do. 23 i do. (( 24 do. ((. 244 do. (li 25 do. (i 25 i do. K 26 do. 26i do. “ 27 do. (( 27^ do. (( 28 do. (( 28i do. (( 29 do. a 29 i do. u 30 do. u 30i do. (( 31 do. u 3U do. (( 32 do. u 32 i do. (( 33 do. Ki 33i do. a 34 do. a 34^ do. (( 35 do. $1,159,311 20 1,193,090 80 1,229,913 20 1,266,810 00 1,304,814 20 1,343,959 60 1,384,242 40 1,425,806 80 1,468,580 80 1,512,638 40 1,558,017 60 1,604,758 40 1,652,900 80 1,702,487 60 1,753,562 40 1,806,169 20 1,860,354 40 1.916.164 80 1,973,650 00 2,032,859 60 2,093,845 20 2,156,660 40 2,221,360 40 2,288,001 20 2,.356,641 20* 2,427,340 40 2,500,160 80 2.575.165 60 2,652,420 40 2,731,993 20 2,813,952 80 2,898,371 60 2,985,322 80 3,074,822 40 3,167,128 80 The following tables show the calculations upon various sums for different periods of time, demonstrating the accumulative capacity of a well organ- ized and prudently conducted Sinking Fund. semi-annually. At 6 per cent. At 7 percent. per annum. per annum. For a period of five years, $537,566 $564,236 For a period of ten years, 722,444 795,904 For a period of fifteen years, 970,904 1,122,692 For a period of twenty years. 1,304,814 1,583,652 For a period of twenty five years. 1,753,562 2,233,880 For a period of thirty years. 2,356,641 3,167,128 3,151,084 For a period of thirty five years, 4,444,880 A statement^ showing the value of $350,000 placed at compound iniertsi oj six and seven per centum per annum, for periods of Jive, ten, fifteen, twenty, twenty jive, thirty and thirty Jive years — the interest re-invested semi-annually. At six per cent, per annum. At 7 per cent. [)er annum. For a period of five years, ....... $470,371 494,707 For a period of ten years, ....... 632,139 696,416 For a period of fifteen years, ....... 849,666 982,356 For a period of twenty years, ...... 1,141,713 1,385,696 For a period of twenty five years, ...... 1,534,367 1,954,645 For a period of thirty years, ...... 2,062,061 2,763,199 For a period of thirty five years, ...... 2,771,237 3,889,270 Prior to January last, the sales of bonds for internal improvement purpo- ses, were as follow : Of bonds bearing an interest of five per cent. - - $1,365,000 00 Of bonds bearing an interest of six per cent. - - 1,315,500 00 Total, - 2,680,500 00 This is the total amount of State bonds for internal improvement up to that date, and the semi-annual revenue of the Sinking Fund, including its dividends upon Bank stock, is sufficient to pay the interest on that sum, and I’edeem the principal at maturity. In other words, the Sinking Pund has a semi-annual income sufficient to pay the gales of interest charged upon it, and has already invested in stocks, a sum which, if kept at work at six per cent, interest, will pay the principal ; and it follows as a consequence, that the whole of the internal improvements now made and completed, are a clear profit to the State — at all events, a clear saving to that amount. To illus- trate still further : the State has completed, according to the Governors message, 467 miles of turnpike road, and 247 miles of slackwater navigation, and has provided for the payment of principal and interest, without taxation. There is, however, a quantity of unfinished work, a part of which has been paid for, and a part unpaid, to the amount of about $850,000 ; which work is supposed to be a fair equivalent for the outlays upon it. The committee conclude they have shown, so far as reliance can be placed upon human agency, that the investments of the Sinking Fund are adequate to the final redemption of the internal improvement debt, being sufficient to pay the State bonds for that purpose, as they come to maturity ; and that its semi-annual income will pay the interest. And they beg leave, in order to give the House a full and clear view of the subject, to state briefly the true condition of the State debts, and its total indebtedness on its bonds or scrip. The State owes the Bank of Kentucky and the Northern Bank of Ken- tucky, one million each, for which she has given her bonds, bearing five per cent, interest ; and those Banks owe the State, each one million, for Bank stock, paid for with said five per cent, bonds. The dividends on the Bank stock owned by the State, pay the interest on the bonds given for said stock, and have left a fraction over three per cent, as annual dividends to the State, declared semi-annually. Hence the State is ready at any moment, to liqui- date those two millions. In truth, the transaction is not a debt, but a source of income. The State received, as before set forth, $1,433,757 38 of surplus revenue, which sum is safely invested, and ready to be re-paid to the National Trea- sury, if called for. But as the money will never be reclaimed, the commit- tee will place it at an equation. The assets of the State are therefore equal to its liabilities ; and this is probably as much or more than can be said by any other State in the Union, engaged in making internal improvements ; especially as the improvements already made are a clear profit to the State, as before stated. A question seems to have sprung up suddenly in Europe, that the States are not bound to pay the loans obtained by them for State purposes ; or, in other words, the States are not bound to perform their engagements. How an opinion so obviously at war with the first principles of common honesty, as well as the obligation of contracts, could have originated, is perhaps of lit- tle consequence. The idea is too absurd for serious refutation, and is men- tioned only to be rebuked and repudiated. Such a notion — for it is a mere notion — ^Jesuitical, most surely — may have been mooted on ’change in New York or London, for stock-jobbing purposes ; but no statesman of reputation would venture to maintain a pretension at once so untenable and so dis- graceful. The State of Kentucky has considered its engagements to pay the loans, and in the meantime the interest thereon, as amongst its first and most sacred duties ; and it has accordingly made sufficient investments to redeem the principal of its loans, as well as to pay the semi-annual gales of interest. And so strictly has the State adhered to good faith in this matter, that during the suspension of 1837, the interest was paid in specie, or its equivalent, at New York ; and the same has been done during the present suspension. In conclusion, the committee would hold themselves but faithless sentinels over the public faith, were they not to enter their united and stern protest against the impostion of further burdens upon the Sinking Fund, unless simultaneously therewith, means ample, certain and unquestioned, should be added to its resources. This distinct and direct avowal, the committee owe to themselves — to the house — to the public — to the world. The committee is rendering only sheer justice to Kentucky, in avowing their opinion, that whilst the people of the State might censure their representatives for impro- vident or prodigal expenditures of the public money, they would overlook the error, and forgive the wrong ; but for a loss of the pledged faith of the State, they would neither forget the offience, or pardon the culprit. J. SPEED SMITH, Chairman Committee on Sinking Fund,