STATE OF MICHIGAN.

No. 2.

LEGISLATURE, 1853.

AUDITOR GENERAL'S ANNUAL REPORT.

[BIENNIAL TO THE LEGISLATURE.]

AUDITOR GENERAL'S OFFICE,
Lansing, Michigan, Dec. 1, 1852.

To the Legislature of the State of Michigan:

Section 22, Chapter 12 of the Revised Statutes of 1846, requires the Auditor General to "make a complete statement to the Legislature, of the funds of the State, and of the revenue thereof, and of the amount of salaries of the officers of the Government, and of other contingent expenses, and other appropriations for the year preceding, and recommend such improvements in the financial system of the State as he may deem expedient."

In obedience to the requirements of the above section, I have the honor to submit the following

REPORT:

The condition of the finances of the State, as at the date of my last annual report to the Governor, continue highly prosperous and encouraging—indeed, the amount of receipts over and above the immediate requirements of the Treasury, and the amount of the State debt liquidated the past year, have exceeded my most sanguine anticipations.

Two hundred and seventy-four thousand dollars, which includes the entire amount of outstanding Internal Improvement Warrant Bonds, have been advertised for and interest stopped. Of this sum

$175,500 00 have been surrendered and paid, leaving $98,500 00 yet to be liquidated. This includes *$16,400 00 not yet paid in by H. H. Brown, on his bid of $100,000 00, first advertised for. The surplus of $116,555 21, now in the Treasury, will be more than sufficient to take up those Bonds as fast as surrendered.

In addition to the above surplus, there will be due the present month, about $30,000 00 from the Southern Railroad Company, and in February next, the specific taxes from the Railroad Companies will probably exceed $65,000 00.

In comparing the present condition of the finances of the State with previous years, we find much cause for gratification. A few years ago, the evidences of our State indebtedness were selling at a heavy discount-now, capitalists seeking safe investments, pay a premium for Michigan securities. The interest on the State debt, as well as all other legal demands against the Treasury, are promptly met-the State debt, the past year, has been materially reduced, and Michigan maintains a proud financial position among the States of the Nation.

It is also a source of much gratification, that individual wealth and prosperity keep pace with the extraordinary improvement in the

condition of the finances.

RECEIPTS AND EXPENDITURES FOR THE YEAR ENDING NOVEMBER 30, 1852.

The balance in the hands of the State Treasurer on Nov. 30, 1851, exclusive of amounts to meet outstanding warrants upon the General and Primary School Interest Funds, was....

$97,243 23

The foregoing table shows the several funds belonging to the State, all of which will be treated of under their appropriate heads: GENERAL FUND.

Sundry awards by Board State Auditors. 1,276 56

Perfecting census returns._

144 00

Sundry appropriations by the legislature. 2,020 50

Interest on University, Penitentiary, and

To this amount add $147 98, for outstanding Warrants, which will make $116,555 21, the amount in the hands of the State Treasurer Nov. 30, 1852.

Paid sundry counties.

RECEIPTS.

12,757 16

$116,084 63

Taxes, office charges, expense sales, &c...$55,068 18

There is now due and payable out of the above fund $24,060, interest on General Fund Bonds-$21,930 of which is due the United States on Bonds held in trust for the Cherokee Indians—the greater portion of the above sum it is believed, will soon be adjusted and liquidated, by the settlement with the United States of our claims for moneys advanced for the regiment raised here during the late war with Mexico.

There will also be due and payable out of the General Fund, on the first day of January next, $4,800 for interest on University and Penitentiary Bonds. Arrangements will be made for the payment of these as well as all other coupons, except for the Internal Improvement Warrant Bonds, at the Phoenix Bank in New York City.

INTERNAL IMPROVEMENT FUND.

$7,260 Interest Bonds, due Jan. 1, 1850, remain unpaid. They will be paid on presentation at the Phoenix Bank. There will also be due and payable at said Bank, from the Internal Improvement Fund, $18,405 65, for interest past due and unpaid, and which will become due January 1, 1853, on outstanding $5,000,000 Loan, Detroit and Pontiac Railroad and adjusted Bonds. The interest on all the Internal Improvement Warrant Bonds, except $22,450 has been stopped, and this last sum, having been advertised for November 30, 1852, the interest will cease January 30, 1853. The whole amount of interest on this class of Bonds due and unpaid, and to become due January 30, 1853, is $2,812 83. If the full semi-annual interest is due, the coupons will be paid on presentation to the State Treasury-If only a portion is due, the interest will be paid upon the surrender of the Bonds advertised for. There is due this fund from the United States on account of five per cent. on public lands sold within this State, $10,328,17.

When the part paid Bonds are funded and adjusted Bonds issued therefor, the interest annually to be paid from the Internal Improvement Fund, will be largely increased, as the interest and principal fixed by law, are both funded, which forms the principal of the adjusted Bonds, upon which interest commences from the 1st of January succeeding their issue.