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 has assisted the Bank Receivers and State easurer in comparing with the records and burning of the Bank of the State of An and s branches amounting the aggregate l 00 6O and also in like burning blank bank impressions $352070 The of all issued by this bank and its branches is reported this office to be l 269O0

 In communication from the Auditor the Cashier and Secretary of the Real Estate Bank stteshe whole amount of the ssueso of the Real Ee Bank and branches s54 650"at the amount redeemed cancelled and burnt up the 3Oh September Court adudged the charter of the Real Estate Bank be forfeited up to which time the bonus due the State from the Bank under section thirty of the charter amounted l226 37 which still remain unpaid

 For money borrowed of this Bank under approved 28 De cembe l80 holds six bonds of the Sae each for S OOO bear ing interest at the of five cent per all of which the has paid the day January 183 Three these bonds dated 30 June 1S4l and three 18th August 1911 the former will be due Both June, 1S51 and the lae 18th August 1851 All other bonds given for money borrowed for the of the State treasury have been paid

 These six bonds left unpaid offset part the due from the Real Estate Bank to the State

 In order make full all the liabilities of the State the Auditor has obtained from the officers of the Banks bonds sold by institutions day October 194 enterest de from the State Bank eleven hundred and sixty State bonds sold by it, amounts 24 JOS 50, of which the of s1169O7 50 payable in New York; and $975oo in London One hundred and of these bonds bear interest day January 1887 and one thousand bear interest at the of six cent and will be due and January, 1868.

 Without including the hundred State bonds hypolhecaod by the Real Estate Bank the first day of October 164 the other fifteen hundred and thirty State bonds sold by the Real Estate Bank $29000; of which the $260 All the bonds issued by the Real Estate Bank bear rate of six per and win be due the 26 day of

 therefore appears tha the stday October 18l the regu- lar and undspued interest due from the banks State bonds sold by te 650l 50 50 which hesum of $37S0 50 is payable in New York; and $126 London In answer communication fomte Auditor the Cashier and Sec eay the Real Estate Bank states that thirteen bonds heretofore sold by that Bank have been received payment due M to G and that sixteen of the five per cent bonds and three of the received by the Real Estate Bank

 Statement marked F. the probable receipts and expenditures under existing aW for two years ending with the 30h September, l8l6

 ccy to relieve the State treasury from all extraordinary expend lures and to observe the rigid economy all the departments of the government present and the which will be pad into tie State treasury during the next two years, will be sufficient 10 meet the expenditures.

 1t the humble opinion o the Auditor that would hereafter good policy to avoid extraordinary expenditures far pacca ble and when demanded by the interests of the State well fare of the people, that the most eeca check extravaganza would be insured by the adoption and strict adherence policy requiring in instance provision for ample discharge all the treasury without mourning State debt

 Under such policy the wishes and best of our citizens could not long remain unconued and when duly regarded the the bunhen of taxation sound policy admit the peo pie would be found willing contribute sufficient revenue the continual expenditures account of the Penenay would doubtless promote the interests of the Sac

 Since the reduction of salaries the last session General As semby those attached to offices provided for by the constitution do no exavaganty high especially when eaon that they paid Arkansas pa0er at par which is only worth about fifty the dollar

 rhe contingent fund of the Exuvo depannt never drawn up on by the Executive, the Secretary of Sac tudio Treasurer pay for fuel or lights used in their respective offices but pay them of his private funds this been the general practice since the organization of the State government

 Statements C. and H. contain information relation to State bonds sold by the banks

 Tabular statement shows the amount of county each o the counties named therein of forfeited lands disposed of by the Auditor

 specie could be provided pay all public pnng stationery and postage, 1t would very much lessen expenditures.

 The whole amount specie paid by the Bank Akan sas part the surplus fund he October lS44 is S2olS4 s5, of which the of $l5 9o3 paid the members and officers of the Legislature the last session and 3 50 for printing the journals of the Legislatures and $36S 35 printing re- ports ot the Supreme Court The balance this has been paid in Arkansas Bank paper.

 By section tirywo of An establish system of common shcoos in the State of Akna approved February 3d. lSd3 the Auditor authorized expnd dollars of the com fund deposited the Bank ohe Arkansas at Little Rock to purchase school books for the schools Sae and to distribute them the boards several counties Tn proportion the number children county tween the of five and The requiring that these books should be purchased where they can be had on the best terms the Auditor applied person and writing to the officers of the Bank for the thousand dollars a specie or q J1aa but they refused pay any thing but 4raas Bo pa5er winch could not be used of the Under these circumstances the money has been drawn have books been puhased but the whole subject the action of the Legislature at the approaching session.

 provision should be made by law for the Bank pay the amount of the appropriation specie the school books be obtained w out sacrificing one half of the fund appropriated.

 Tn establishing schools forthe deem cd matter ot much that school books most