the State tax levy for the several years from 1836, to 1878, inclusive.

"I"-Tabular statement showing the average value per acre of lands, by counties and geographical divisions, for a series of years.

“K”—Tabular statement showing the length of the several Railroads in the State of Tennessee, also the assessed value per mile, and the aggregate assessed valuation of each Road, etc.

"L"-Tabular statement showing the number of miles of Railroad, the assessed value per mile, and the aggregate assessed value, in several counties of the State.

"M"-Tabular statement of privilege taxes collected for 1877. "N"-Tabular statement of privilege taxes collected for 1878. "O"-Tabular statement giving an exhibit of the State tax account of the several County Trustees for the year 1876.

"P"-The same for the year 1877.

"Q"-Tabular statement showing the amount of tax sales and the costs on same for the years 1876 and 1877.

"R"-Tabular statement of the amount and source of current revenue collected from the several counties for the year 1877. "S"-The same for the year 1878.

“T”—Tabular statement showing the amount of warrants issued on account of criminal prosecutions during the year 1877, to the several counties of the State arranged according to Judicial Circuits. "U"-The same for the year 1878.

"V"-Tabular statement showing the amounts reported due by Delinquents Dec. 19, 1876, and what disposition, if any, has been made of each amount since that date.

"VV"-List of Delinquents, Dec. 19, 1878, and amounts due by each.

"W"-Tabular statement showing the amount and purpose of county and municipal taxes for the year 1877.

"X"-The same for the year 1877.

“Y”—Tabular statement showing the assessed valuation of taxable property and the aggregate amount of taxes levied thereon for State, county and municipal purposes for 1878.

"Z"-The same for the year 1877.

"ZZ"-Statement of the amount and character of county and municipal indebtedness, and for what purposes.

BONDS.-Statement of bonds issued by the State of Tennessee,

aranged according to the series, showing the number and amo un issued, when, for what purpose, etc., and their present condition. Recapitulation and summary being a condensed statement of the bond debt of the State.

Statement of bonds arranged according to purpose of issuance, showing how many have been registered, cancelled, etc., etc.

Recapitulation and summary being a condensed statement of the number and amount of bonds issued to the several Railroads, Turnpikes, Banks, &c.

List of securities received by the Comptroller during the two

years.

The following is a condensed statement of all the accounts kept by the State, showing the present condition of the Treasury:

RECEIPTS AND DISBURSEMENTS.

Aware that the Legislature and people are especially anxious at this juncture of our financial affairs to be in possession of all the facts attainable in connection with the bond debt of the State, I have thought proper, in addition to the usual exhibit of the financial condition of the State appearing as the first statement in the appendix, to prepare elaborate and complete tables, giving as full and aecurate history and description of the bonds and their present condition as can well be obtained from the records. By reference to these tables it can readily be ascertained at what time the bonds were issued, under what act, to whom issued or for what purpose; whether they have been registered under the Act of 1873, and if registered whether they have been cancelled since registration, or

still remain outstanding as a liability against the State. It is also shown whether they were cancelled before registration, that is, prior to the Act of 1873, whether they have been renewed, or whether they remain outstanding and unaccounted for, never having been presented for renewal or registeration as the case may be.

A correction or explanation may be necessary in reference to the one hundred bonds-Green no letter-issued to the Mineral Home Railroad Company, and which, upon investigation by the Legislature, were declared invalid and ordered to be rejected. While the word "rejected" has been placed opposite these bonds, for conveniance and to prevent the necessity of an extra column through the whole length of tables, they were all placed in the column "cancelled before registration." As a matter of fact, however, only thirty seven of these bonds were redeemed by the State prior to the passage of the Act of 1873 and before the investigation above referred to. The remaining sixty three are outstanding and have not of course been registered.

The same remarks apply to the twenty renewal bonds (same series as above) issued to the Valley of Virginia Insurance Company; three have been cancelled and seventeen are outstanding.

Much labor has been bestowed upon these tables and it is hoped they may prove of some value and assistance in the consideration of the question of the setlement of our State debt which is, recognized by all as a question of very great importance to the interests of the people of the State.

Statement "E" gives an exhibit of the

APPROPRIATIONS

Of course it was

and amount of warrants issued against the same. expected that some errors would creep in and omissions would occur in the inauguration of this system, but enough of its workings is already known to justify the wisdom of the last General Assembly in establishing it. And hereafter there will be no excuse or reason for any errors or omissions to any extent. In this statement the column, "Amounts drawn to Dec. 19, 1878," should correspond with the "total" column in statement "D" and these columns or either of them will show the account of warrants issued during the past two years for all purposes, whether the warrants have been paid or not, that is, regardless of the disbursements-in

other words, they show the actual current expenses of the State Government for the period indicated. For instance, the

Total warrants issued amount to........

Deduct amount of those accounts which do not properly go

towards making up current expenses, viz:

Tennessee money cancelled...

...117,907 18

$1,632,529 81

14,305 00

7,271 19

Denominatioal warrants cancelled.......

Refunded Revenue.....

Interest State Debt.......

Interest School Fund, including Supt's Salary and expense

of Department..................

as the actual amount of current expenses for the two years ending Dec. 19, 1878, or an average of $522,207.15 per anumn. Statement "D" shows also the amount of warrants issued on each account for each of the two years. Only in one or two instances have warrants been issued, for which specific appropriation was not made and only when it was thought the public interest required it and only then with the approval and by the order of the Governor-as in the case of the expense incident to the assessment of the Railroads. And right here I would suggest that in making appropriations for the ensuing two years a reasonable amount as a contingent fund be set aside subject to the order of the Governor.

The only accounts on which claims have been presented in excess of the amount appropriated are "Tax Aggregates" and "Land Sales, Clerks fees." The claims not audited on the former account amount to $116.25 and on the latter to $479.00. These amounts are therefore the only actual "deficiencies." On the account interest on State debt, the amount issued is in excess of the interest for two years on bonds held by Educational Instiutions, etc., but this difference or excess is the amount paid on the instalment of interest July, 1875 between the date of last Report and the date of the Resolution of 1877 suspending further payments of interest, as was reported to the Extra Session of the Legislature of 1877.

The small excess on account Interest School Fund was occasioned by the lapping over of the expenses of that department, which will be remedied in the next apportionment April 1, 1879. In case of salary of Attorney General and Reporter, and also of Executive Officers, the amounts issued for the two years almost equal the

amounts appropriated for the two years and three months, because on the 1st January 1877, these Officers had due them back pay for which warrants issued and which fact was not taken into consideration when the appropriation was made.

Under advice of Attorney General I considered the aggregate amount appropriated on each account for two years and three months as subject to warrant or draft. But for this holding or construetion it will readily be seen that a considerable deficiency would have occurred in case of

CRIMINAL PROSECUTIONS

on which account the unexpended balance amounts to only $2,364.44. This sum will of course be wholly inadequate to the demands on that account for the next three months and it is hoped early provision will be made for this deficiency. It will be seen that the amount issued on this account is about the same as it was for the two preceding years, but the appropriation was based on an estimate made before the passage of the Act of 1877, chapter 65, by which petit larceny was made a felony. This Act has doubtless resulted to the benefit of the lessees of the Penitentiary, but it has been at the expense of the State treasury, and I think the Act should be repealed.

The recommendation that Criminal cost be paid by the Counties, except in case of sentence to the Penitentiary, has been so often made that I feel a hesitancy in again making the suggestion; but so well convinced am I that they will never be materially lessened as long as the State pays them and our Criminal laws remain unchanged that I feel constrained to renew this recommendation. When these costs are brought to the immediate notice of tax payers and are subject to home criticism, they will be materially lessened. Especial reference is had to the remarks under this head in the Comptroller's Report to the last General Assembly, and to tabular statements "R" "S" "T" and "U" in the appendix to this Report.

In any event I would recomend that in all Criminal Prosecutions the fees of clerks be a fixed and certain amount, determined, for instance, by the character of the offense or indictment and by the result or disposition of the cause, and graded in some manner similar to the fees of District Attorney General. This will cause uniformity in all Bills of Costs, avoid all disputes over and construc