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SIR-In obedience to the law, making lt the duty of the Auditor of the Territory to report, to the Governor, on the meeting of the Legis- latmre, the condition of the finances of the Ter fitory, have the honor to make the following

 REPORT:

 BY act of the Legislature, approved 9th Nov 1885, it was made the duty of the Auditor to make out a complete transcript of all military bounty lands that had, previous to the first of December, 1883; been sfdck of to the Territory, for five years and upwards; and to advertise the said lands for sale, at Little Rock, the first Monday of October, 1884, In conformity with this ac sixteen hundred and ffy6ye tracts advertised for sae in each of the newspapers published in the Territory, and in (" The Globe" newspaper published in Washington City; of which number nine tracts redeemed previous to the sale. The amount of money paid to redeem these tracts is S203 25 and thirteen tracts were sold by the Auditor, for which SI96 AT paid into the Treasury of the Teritory which sum, of Sl96 1T, added to the amount paid for the redemption of the abovenamed tracts makes the sum of S399 =, being the whole amount paid for the purchase and redemption of lands of this class. One hundred end forty other tracts have been redeemed for which S9S7 l9& paid; which, added to the for of S399 72, makes the total amount paid into the Treasury for the redemption and purchase of lands since the Both of September 1883, thirteen hundred and eighy-six dollars and niney-one and half eents

 In the years 1883 and 1884, four hundred and three tracts of land were1suck off to the Territory by the shefis for nonpaymen of taxes. As the revenue upon these military bounty lands appears to be Gas the

 ittee of 1893 justly observed annually decreasing; and the sale, by the Auditor, of those and which had been owned by the Territory, prior to the first of December, 1853, for term of five years and upwards appears not to have had the good effect in dspong of them, 1t anticipated 1t would have; and nu- merous applications have been made by individuals to redeem lands of this class since the sale (which, under the present laws, they could do) and also to redeem lands which were not offered at Auditors sale, but which have been owned by the Territory upwards of five years; 1t IS the humble opinion of the Auditor, that, if law passed, permitting ay individual who would pay the taxes due at the time of redemption; and take the right of the Territory to the land redeemed to deem any lands that had been owned by the Territory five years and upwards that, out of near half million of acres owned by the Territory, and upon which there now, at rough estimation, thirty thou sand dollars due the Territory many would be redeem ed and lands of this class ght thus, more become great source of revenue to the Territory.

 1t may not be improper here to fear that the Audi tor has reason to believe that many tracts have been struck off to the Territory, by shers, of which there are now no lists in the Auditors office. The present Auditor cannot account for this; but supposes that 1t would be to the interest of the Territory, if proy sion were made to rensate the office with those lists, if 1t ever contained them.

 It would be well to have all those lands which were struck off to the Territory, prior to 1883, registered in

 book, which would require considerable labor; there fore some provision should be made for that purpose and also to furnish books for the Auditors office, which it greatly needs.

 The amount of paid by the different sheris, since the 3Oth September, 1883, is SS06l 564j which sum added to the amount paid for the redemption and purchase of lands, which 1886 9la, makes the whole amount of revenue, paid into the Treasury since the 30h September, 1883, $9,448 4S4, of which amount S473 95A interest leaving $S94 523 scrip redeem ed The total amount of warrants drawn on the lrea- sy since the 30th September, 1883, of which there IS any account in the Auditors ofce is $l0,496 Ill., to which add the amount of the Territorial debt, which, according to the report of the committees was, on the Both September 1885, $6954 624, and will make the sum of SI7,45i 34a, from which subtract the amount of scrip paid into the Treasury, exclusive o the lne- rest thereon which SS974 523, and there will remain SS,476 SI4. This amount includes the amount of war rants issued to three clerks and doorkeeper for thelr services during the first 30 days of the session in 1855 and according W the books and vouchers of the Auditor office, the of the Territorial debt;* but a informed that appropriation has been made by the General Government to pay the clerks and doorkeepers for their services during the first 30 days of the session in 1885, and that the amount, which would have been paid out of that appropriations to one doorkeeper and three clerks had they not been paid by the Territory will so soon as the necessary vouchers obtained, be paid into the Territorial Treasury, which will reduce the Territorial debt in proportion to the amount paid into the Treasury.

 Many sherifs have failed to settle up the amount which they owe the Territory for the years 1883 ant 1884. There is now charged to different 5erifis tht

 NotcThe Treasurers $l 3s6 93 taken fror $e,sH 52&, therefore the debt is $6,6i5 50t |. N V