To His Excelleney, W. W. HOLDEN,

Provisional Governor of North Carolina:

In obedience to the requirements of the commission which I hold under your Excellency, I submit the annexed Tabular Statements, showing the total amount of the State's indebtedness, the amount of each class of indebtedness, the date and authority under which each class of indebtedness was incurred, when due and the rate of interest which each class bears:

Exhibit A shows the bonded debt of the
State, consisting of bonds issued under
acts passed prior to May 20th, 1861,
And Bonds issued under acts passed since

May 20th, 1861,

Exhibit B shows amounts due Banks and
individuals by way of Temporary loans,
Exhibit C shows the amount of Treasury.
Notes issued and the amount withdrawn,
Leaving still in circulation,

$ 11,119,500

13,121,500

508,423

5,246,336 25

Exhibit D shows the total amount of inter-
est which will have accrued on the bond-
ed debt of the State, the amount which
has
as been paid, leaving the balance of
such interest unpaid,

The amount of interest due on

anon the temporary loans from Banks and individuals to October 1st, 1865, is abdol à enina)

$ 4,151,132 07

71,591 29

$34,218,485 61

Exhibit E shows the condition of the Sinking Fund. The State Bonds held by this Fund, amounting to $2,372,500, were all issued under Ordinances or Acts, passed since May 20th, 1861, and were all burned when the United States Army was marching on Raleigh in March last, and the certificates of the Public Treasurer issued to the Commissioners of this Fund as provided for in the act ratified in February 1861, entuded an Act at An Act to create 1861, entitled An Act further to amend" An Act to create a Sinking Fund." And to 107)

"

The Books of the Treasury do not enable me to give any information relative to the debt created in England to raise funds for running the Blockade. 791019974 1-1/

Soon after my appointment as Provisional Treasurer, I addressed a letter to John White in London, through whose 品 Agency, as I understand, most of this debt was made, asking him to give me, in time to be laid before the Convention, as precise information as he could, in relation to this debt, and the property or money belonging to the State in England, the State operation. 1 or in transitu, connected with this blockade operation. I have an answer from him, dated London, August 5th, 1865, in which he says he regrets his ir at that time, to A give me an accurate statement, owing chiefly to the fact that J. H. Flanner, who had been the State's agent in London for some time previous to December 1864, (when Mr. White re-.. turned to London, after a visit to North Carolina,) was on the continent. Mr. White had corresponded with Mr. Flanpoltsinorio ni lita yaives

ner who was in Paris, asking him to return to London, to which Mr. Flanner had replied, stating that he had in his hands some £12,000 or £13,000 belonging to the State: that Mr. Flanner had paid over £5,000, but had not returned to London. Owing to the failure of Mr. Flanner to account and pay over, and the fact that the accounts of Alex. Collie & Co., through whom the greatest portion of the business of thie State has been transacted in England not being made up, Mr. White at the date of his letter, could only say that he had no money, &c. I append his letter as part of this report. If he shall make the further communication which he expresses a hope he may be able to make, I will immediately report it. It will be seen from this letter, that Mr. White estimates, from such information as he then had, that the whole State debt in England will amount to about £30,000.;

Among the bonds set forth in Exhibit A, are embraced, bonds to the amount of $1,500,000, which were sent to England to be used as collaterals, if necessary, in negotiating the State cotton bonds. I have uniformly understood that the cotton bonds were negotiated without this security, and that these bonds were deposited for safe keeping in some Banking House in England to be returned when a cessation of hostilities should make it safer to return them.

By the sale of one half of the Steamer Advance, Governor Vance paid off and filed in this office, bonds issued since 20th May, 1861, to the amount of $130,000, and the commismissioners of the Sinking Fund hold bonds issued since the war, to the amount of $2,372,500.

The amount of indebtedness, which has accrued since the 20th May, 1861, is therefore diminished by the amount of these three items:

Total balance of debt contracted since May
20th 1861,

To this balance of $16,596,485.61,
Add debts contracted before the war,
Estimated amount of unpaid Coupons on
this $11,119,500,

508,423

5,246,336 25

1,651,132 07

71,594 29

$ 16,596,485 61

11,119,500

2,500,000

Total indebtedness (excluding English debt,) $30,215,985 61

My books enable me to show the total amount of due Coupons on the total bonded debt of the State, which have not been paid; but do not enable me to ascertain the amount due and unpaid on any class of these.

I have distributed this amount between these classifications of the debt by an estimate which I think approximates accuracy.

The State holds stocks and bonds as follows, all of which date prior to May 20th, 1861, excepting the bonds on the City of Raleigh, and on the Raleigh and Gaston Rail Road:

Stocks held by the State in the following corporationsthe dividends on which are granted to the Commissioners of the Sinking Fund by Act of 1856, chapter 37:

North Carolina Rail Road Company, an ineot l
Raleigh & Gaston, R. R.

:682,500 1,066,000

at 1,418,000

350,000

$ 6,516,500

The State owns in several other Companies, Stocks of considerable amount, but of equivocal value, which I omit. Bonds held by the State on the following Corporations:

City of

ty of Raleigh, 10 og vel mềm 48,000 g Tempe (1 Raleigh & Gaston R. R. Co., 3. Wilmington, Charlotte & R. R. 1 R. Company, Ꭱ. yf tot baby2,000,000 joning safT Western (Coalfield) R. R. Co., for 600,000b oldalt die Accrued interest on these bonds un no saique. To oniq G up to Oct. 1st, 1865, mis ed tommas, ol268,625)-m] 6 21 199 Balance due on bond of Atlantic, to sdipo tuo ni genitub & N. C. R. B. Comitatuqur of 181,164 18891 / di 2009 £ olg od To Hosmaid lays of mini berantenen (3,117,789 88

18w out soula botoenting Adob olla sui de-al uddur Total set off, moit bas efund wilt no 9,634,289 88 elfivibui ano$ bood utakéto ofas odt vd baseste teroit to a lest This sum being deducted from the $30,215,985261, leaves a balance of State indebtedness of $20,581,695.7310 0769 For Recapitulation see Exhibit Fovea edi qualsibel, aút Whether this debt is to be further reduced by the scaling or non-recognition of a portion of it, depends on the Legisla tive power of the State. If any recommendation be expected from me on the subject of such scaling or non recognition, or the ways and means to meet such amount as may be recognized, I beg to be allowed further time before submitting such recommendation. The monetary affairs of the State are intimately blended with those of the Banks. I have not yet obtained full information as to their condition. I hope to