The amount received on account of Massachusetts School and other funds, as appears on

page 10, is.

To which add the amount on hand at the commencement of the year,

799,435 61

204,417 18

The amount paid, as appears also on page 10, is

832,439 19

$171,413 60

Leaving a balance of cash on hand, January 1, 1845, of

The estimate prepared by the Committee on Finance, made early in the session of last year, assumed that the receipts on account of ordinary revenue, including cash on hand January 1, 1844, would amount to $364,198 67, and that the expenditures for that period would be $405,536 48. It appears that the receipts (including $12,675 50, received in part of the State tax, which was not estimated by the committee,) exceeds their estimate $22,577 83, and that the expenditures are $55,561 43 more than estimated by them. The last mentioned sum is in consequence of the following payments, viz: $4715 to the Legislature on account of a prolonged session; $6400 for salaries due in 1843, and for allowance to the Judges of the Supreme Court; about $3000 for State map and survey; $6000 for repairs on State Prison; $5000 for State Lunatic Hospital; $2000 for Militia; $9000 for Paupers, newspaper advertising, &c.; $6000 for County Treasurers, and $11,000 for excess of interest on Western Railroad scrip and loans: caused in part by converting the interest which was due on the scrip when sold, into principal for payment of the notes, and partly by semi-annual payment of interest on the scrip, in addition to interest on the notes which were redeemed by the proceeds of said scrip; also by the payment of interest not called for in 1843. The above sums making an aggregate of $53,115.

The notes given for money borrowed (under the Resolve of March 3d, 1842,) to pay the Commonwealth's subscription to

the Western Railroad, have all been paid, as per schedule R., except a note to the Phoenix Bank for $6000, which it was not thought advisable to pay, as said bank is indebted to the Commonwealth for a semi-annual tax and for deposits made by the agents of Charles River and Warren Bridges, and the State Prison.

The sum of $150,000 on hand at the commencement of the year, and the further sum of $10,792 15 since received, under the provisions of the treaty of Washington, have been passed in equal parts, to the Massachusetts School Fund and the Western Railroad stock Sinking Fund.

The increase of the School Fund during the last year, is $115,319 32 from actual receipts in notes and cash, and that of the Western Railroad stock Sinking Fund $127,587 05, exclusive of the $150,000 above mentioned.

It may be proper to remark that a large amount of interest has been annually paid from ordinary revenue for the Commonwealth's subscription to the Western Railroad, which it may reasonably be supposed will soon be met by dividends from the road; and that the income from the sale of land has been added to the original amount of the School Fund, (which was $281,000,) and to the Western Railroad stock Sinking Fund, till the former amounts to $754,014 97, and the latter to $287,202 97.

The sum of $49,471 80 on hand belonging to the Western Railroad stock Sinking Fund, remains in bank at 3 per cent. interest, as the Treasurer has not been able to obtain at a reasonable price, that description of scrip in which he was directed to invest it.

The State tax, and the dividend on the State stock, in the Western Railroad, will probably be sufficient to pay the balance due on temporary loans, and leave a small amount in the treasury.

The liabilities of the Commonwealth, both present and future, are stated on pages 14 and 15; and it may be confidently anticipated, that the time is not far distant when the receipts, for ordinary purposes, will exceed the expenditures, without a resort to taxation, as a few years income from the sale of lands

will cause the School Fund to reach the amount to which it is limited by law, and leave that income for ordinary purposes; while in two years more, the scrip of 1842 will be paid off, which will lessen the expenditures more than $40,000 per annum, and the dividends on the Western Railroad, will meet the interest paid on the scrip which now amounts to $50,000 more. The rapid increase also of the Western Railroad stock Sinking Fund, gives assurance that it will be nearly or quite adequate to redeem the scrip issued in payment of the State subscription to said road, when it falls due.

All which is respectfully submitted.

THOMAS RUSSELL, Treasurer.