except one note for $6,500, now due to the Bank of Bangor. This note came to maturity on the 12th October, at which time and six days previously, the Treasurer was at Bangor, and seasonably notified the Bank officers, (for the reasons that this Bank had not loaned and then refused to loan to the State, under the Resolve of the 15th February, authorizing the temporary loan of $350,000, as most of the sound Banks had done,)—that this note would not be paid. Means were wanting, (as other engagements in Boston were soon coming to maturity, and were to be met at all hazards punctually, as they were,) and this regretted course was imposed on and adopted by the undersigned with much reluctance, as the only means of compelling that Bank, (for they resisted a requisition which was intended,) to do justice to the State, and to share the burden in common with most of the other sound Banks, which had voluntarily and liberally loaned to the State. One other note to this Bank, for $5,000, was punctually paid in Boston at maturity, in July; and from this sum the Treasurer had paid to the Bank, in April, $1,976 25, due on former requisition notes which drew but five per cent. interest.

Subsequent to the maturity and non-payment, (without protest) of this $6,500 note, the Treasurer has proposed in writing to the Bank, to renew it, by giving a note under the temporary loan, or giving a certificate of the permanent stock. Both propositions have recently been declined by the President, verbally.

By the two Resolves, before referred to, chapters 16 and 57, there remains an authority to the Treasurer to negotiate permanent loans to nearly one million of dollars in amount, vastly beyond the wants of the Treasury. It is therefore recommended to the Legislature, that the

Treasurer be prohibited from issuing more stocks under these Resolves; that a new authority be granted him to negotiate for the smallest sum actually wanted. The authority being so enormous, it alarms foreign capitalists, who believe the whole sum is wanted.

TEMPORARY LOAN. Under the Resolve of the 15th February, chapter 23, authorizing a temporary loan of $350,000, the Treasurer borrowed of our Banks, (includ$30,000 of the Suffolk Bank at Boston, which is wholly repaid,) at six per cent. interest, the sum of $336,761 71; of which sum $62,500, and interest, have been repaid, leaving duc to our own Banks, exclusive of interest, the sum of $274,261 71.

The Treasurer feels no little gratification in stating, that our Banks, with few exceptions, acted with great liberality and promptitude in loaning their funds to the State, to enable it to meet the extraordinary expenses of the border difficulties; and as an act of justice to them, a table, exhibiting these loans, will be connected with this Report. He regrets it has not been in his power to negotiate the permanent loan, to repay them for their generous aids, as it was his anxious desire to have done. But he has the satisfaction to know, that he has justly and fully paid them all, with three exceptions hereafter named, forty per cent. of the principal, and all the interest due them on former requisition notes, one half of the principal now paid, being

due in 1838. There remain due, of principal only, $880 to Franklin Bank at Gardiner, $400 to the Central Bank at Hallowell, $480 to Neguemkeag at Vassalborough, which by mutual arrangement were not paid-and there remains due one year's interest on two of the former requisition notes, now held by a Boston Bank, which more than once refused its payment.

Thirty thousand dollars principal of the public debt has come to maturity in the year ending January 1, 1840, which has been promptly paid. The year's interest on $300,000 loan of 1838, due on the 1st May last, mostly payable in Boston, has, in every instance been punctually paid. A few hundred dollars interest on this loan, held by citizens of Maine, has not been called for at the Treasury, where payable, which has at all times been prepared to pay it. While at New York, Boston, Salem and elsewhere, the Treasurer has exchanged, as provided in the Resolve of 31st January last, $236,500 of the State Notes of May 1, 1838, and given in lieu thereof, Certificates of State Stock, bearing date May 1, 1839, running nine years from that date, with coupons annexed for the annual interest-They bear the same rate of interest with the original Notes, to wit: $150,000 at five, $65,000 at five and three quarters, and $21,500 at six per cent. These and all other Certificates, and State Notes, issued during the year, have been prepared in the hand-writing of the Treasurer, save the list of dues to the towns, which were only signed by him. This uniformity of hand-writing, in filling the Certificates, and interest warrants, or coupons as they are called, was considered necessary to avoid counterfeits, if attempted.

In compliance with the provision of the Resolve of January 25, chapter 10, all moneys due from the State to the late People's Bank, have been paid.

The payment to the late Damariscotta Bank, directed by the Resolve of February 9, chapter 21, has not been made.

An inquiry is obtruded here, for the consideration of the Legislature. If Banks desire to surrender their charters, and it is understood that several will apply at this session for that purpose, why not let them await the expiration of the term of their original contract with the State, for the payment of their claims? Shall they be paid before maturity, and at a time when money is worth, or rather commands, twenty-four per cent? And will it not require some little circumspection to guard against the applications of our sound Banks for a reduction of their capitals? Such applications should be resisted in all cases, where it is clearly for the mutual interest of the State and the Banks to adhere to the terms of the original contract. If we have any unsound Banks, let them surrender their charters if they choose, but refuse the able

ones.

There remain due four notes, amounting to $2053.06, given March 12, 1838, to County Treasurers for costs in criminal prosecutions, to wit: to York county, $1015.09, to Hancock county, $799.61, to Lincoln county, $178.26, and to Waldo county, $60. These sums, with interest, should be paid when in funds for the purpose.

There also remain due thirteen notes given to the towns for wheat bounty, &c. March 12, 1838, amounting to $3,977.95. These notes, with interest, will be paid at the earliest practicable moment when in funds; of which notice will be published. It is believed few, if more than one, of these notes have been presented at the Treasury

for payment. On the 1st January, 1839, there was due of these Notes, the sum of $29,225.99; consequently, $23,183.60, with the interest thereon, have been paid in the course of the year.

LOST NOTES. The Frontier Bank at Eastport, held three of these wheat bounty notes, which have been lost. The Bank has furnished proof of the loss, but not of their destruction, requesting payment thereof, and engaged to indemnify the State against loss, or repayment of said notes. The Treasurer has notified the Bank that the decision of payment shall be submitted to the Legislature, declining to decide the case of payment himself. The notes were given (March 12, 1838, and payable in one year,) to the towns of Whiting, $93.86, Perry, $209.51, and Eastport, $349.66, which with interest to March 12, 1839, amount to $681.61. The Treasury had funds in the Bank at the maturity of these notes, and to their amount still remain there; therefore the Bank claims only that amount. The sum is justly due from the State, and the Bank is the rightful claimant. But the Bank in equity owes the Treasury for interest on $1800 paid upon its requisition notes, then refused to be allowed, the sum of $11.11; this being allowed the Treasury, there will remain due the Bank $670.50, which ought to be paid, provided a bond of indemnity is given to the State.

It will be perceived by the table of temporary Loans, that several of the Banks, some with abundant ability, have not furnished any portion of that loan. Some of these satisfied the Treasurer that they were not in a con