MICHIGAN. 



443 



This redaction was accomplished by pay- 

 ment in anticipation, as follows: 



By payment of bonds. $482,500 00 



By purchase of bonds not matured 88,000 00 



Of the bonds paid, only $3,000 were due; 

 the balance was paid in anticipation of ma- 

 turity, being drawn for that purpose in pursu- 

 ance of authority reserved for that object 

 under the law providing for their issue. 

 $84,078.49 of the bonds called in had not been 

 presented at the end of the year, but will be 

 paid on demand, interest thereon having now 

 ceased. The bonded debt is payable at differ- 

 ent dates, ranging through a period of seven- 

 teen years, the most distant of which is twenty 

 years, as follows : 



January 1,1873 $469,000 00 



" 1,1878 450,00000 



July 1,1878 192,00000 



1,1879 .. 84,000 00 



January 1, 1883 750,000 00 



May 1,1893 463,00000 



January 1, 1886, or, at the option of the 



State, sooner 551,500 00 



On presentation 84,078 49 



Total $3^043,578~49 



The Auditor-G-eneral estimates that it would 

 be possible, could the State bonds be reached 

 by the Treasurer, to reduce the indebtedness 

 by the use of funds pledged to that purpose, 

 as follows : 



Balance to credit of $2,000,000 sinking fund. . . $119,101 51 

 Receipts by fund during year, one-eighth-mill 



tax. r.:.... 38,495 73 



Receipts from trust funds, estimated 155,000 00 



' surplus of interest, estimated. . 100,000 00 



Total amount available to purchase of bonds 

 during ensuing year $412,597 24 



The sum falling due in 1886, together with 

 $45,100 of the bonds already called in, consti- 

 tutes the final balance of the war-loan bonds, 

 and funds are now on hand waiting their pre- 

 sentation for payment. The present is, there- 

 fore, a fit occasion for showing the progress 

 of this loan for each year, from the issuing of 

 the bonds to the retirement thereof. The first 

 table shows the face of the bonds and the 

 amount realized on the sale thereof; the 

 second, the amount of bonds outstanding on 

 the 30th day of November of each year, also 

 the interest thereon falling due, the amount of 

 bonds retired, and aggregate payments made 

 for principal during each year. Combining 

 the results of these tables with the amount of 

 interest that had accrued on the bonds prior 

 to the date of sale thereof, the actual expendi- 

 tures from the legitimate revenue of the State, 

 in retiring the war-loan, and paying the cur- 

 rent interest thereon, may be determined as 

 follows : 



STATEMENT I. 



STATEMENT II. 



Aggregate payments, principal and interest, 



as shown above : $1,784,213 33 



Discount, as shown above 30,128 56 



$1,814,34T89 



Accrued int. on bonds sold in 1861, $4.338 14 

 " 1862, 2.578 80 



" " " " 1864, 5,258 36 

 Premium, as above 10,196 75 



22,372 05 



Giving for total payments from State revenue 

 on account of the war loan $1,791,969 84 



The retiring of the war loan has rendered 

 it possible to determine, with a certainty not 

 before attainable, the sufficiency of the present 

 provisions for the payment, at its maturity, of 

 the yet outstanding unmatured portion of the 

 bonded State debt. The Auditor- General es- 

 timates that further than the -mill tax, taxa- 

 tion, for the purpose of paying the bonded 

 State debt as fast as it matures, need not be 

 imposed ; that after the levy of 1870 the -J-mill 

 tax may be abolished ; and that the trust fund 

 receipts will be sufficient to pay the instal- 

 ments of the debt as fast as they may become 

 due. In his annual report the Auditor-General 

 also demonstrates, by carefully-prepared tables, 

 that taxation for the purpose of paying the ac- 

 cruing interest on the outstanding State in- 

 debtedness will need to be resorted to but a 

 short time ; three years at the farthest. The 

 military tax now levied under an act passed in 

 1862, ostensibly for the payment of expenses 

 incurred in the maintenance of the military 

 forces of the State, but only partially expended 

 for that purpose, the Auditor-General thinks 

 might properly be repealed. The amount is 

 15 cents for each person voting at the last pre- 

 ceding election for Governor. 



The amount received from taxation during 

 the year was as follows : 



Direct taxation $722,409 57 



Specific taxation on railroad and 



railway corporations $176,487 70 



Specific taxation on State banks, 900 00 



' National banks 1,865 00 



telegraph companies, 1,160 00 

 express companies.. 98388 



insurance companies, 77,207 Ot 

 " ' mining companies ... 9,42689 



268,030 51 



Total "$990,440 08 



The specific taxes collected exceed those for 

 1868 by $16,999.54, and direct taxes are $142,- 



638.86 less. The direct taxes apportioned for 

 the ensuing year are $465,264.97; being $248,- 



482.87 less than for 1869, and little more than 

 one half the amount for 1868. ; 



