REPORT.

To the General Assembly of Virginia.

In compliance with law, I herewith transmit the annual statements of the financial operations and condition of the Fund for internal improvement for the year ending the 30th September 1851, a list of which is subjoined, and respectfully submit the following

REPORT:

A summary view of the receipts and disbursements of the fund through the treasury, is furnished in statement A. The details will be found in statements B and C.

From these it will appear that the amount of dividends and interest on investments and of bonus on the bank capital of the state was $311,618 15, (statement B, pages 20 to 22,) exceeding the receipts. of the previous year on the same account by $26,733 12. This excess accrued chiefly from the increased bonus on bank capital, interest on loans to the James river and Kanawha company, and bank dividends.

Loans were obtained during the year, amounting to $ 2,080,314, viz: $1,220,314 in registered certificates, and $860,000 in coupon bonds, including the certificates of debt for $110,000 issued and delivered to the James river and Kanawha company under the act of 25th January 1850, ch. 67, and excluding $136,000 certificates redeemed. (Statement B, pages 22, 3.)

Premiums amounting to $8,348 56 were obtained on the registered certificates debt, as follows: 1 per cent. on $18,180, 2 per cent. on $70,548, and 3 per cent. on $213,435. The remainder, $ 918,151, were disposed of at par. Sales at the latter rate (3 per cent. premium) commenced on the 1st July last, and have been continued regularly since.

The sum of $592,383 53 was disbursed during the year in paying the January and July 1851 instalments of interest on the internal improvement debt. Of this amount $267,078 17 was derived from the revenue of the fund, $245,000 was drawn from the treasury and $80,305 36 was paid out of the general funds of the Board of public works in anticipation of the receipt of that sum from the public treasury, which will make the amount contributed from that source $ 325,305 36.

Subscriptions and appropriations to internal improvements have been paid to the amount of $2,008,639 89. (Statement C, pages 25 to 27.)

The cost of surveys and location of railroads and turnpikes paid during the year has been $18,250 50, (statement C, page 25,) and for the expenses incurred in the preparation of a map of internal improvements and a general map of the state, $995 62.

Statement D is a summary exhibit of the stocks belonging to the fund, amounting together to $14,016,918 98, and statements E and F contain the details of the same.

There remains to be paid in actual subscriptions made by the Board of public works, as the same may become due and payable according to law, the sum of $5,058,130 25, (statement G,) the funds for which purpose must be provided by loans.

Statement H represents the subscriptions authorized by law and not yet called for, amounting to $1,000,080.

The internal improvement debt amounts to $11,798,826 04. Of this amount $789,567 33 is held by the Literary fund for the investment of its capital, and $ 378,912 41 by the Board of public works on account of the investment of the permanent, disposable and redemption funds, leaving in the hands of the public $10,630,346 30. (Statement I, page 37.)

Estimates of the probable receipts and disbursements during the current year, shewing a deficiency of $488,076 89 in the funds of the Board of public works, to pay the interest on the debt, are contained in statements K and L.

In estimate L it is assumed that $2,515,987 45 will be required by the 30th September next, to meet the requisition upon the fund for subscriptions and appropriations, a list of which is contained in statement M. It is proper to remark, that owing to the want of correct information from the companies interested in the various improvements, there is great difficulty in presenting more than an imperfect approximation to the amount which may be required; but every care has been taken to make as near an approach to a correct result as possible.

It appeared to me that a distinct report of the public debt and resources of the state would be more useful and better adapted for ready reference than if embraced in this report, which is properly confined to the condition of the Fund for internal improvement. I have accordingly pursued that course. That document, however, accompanies this report.

Respectfully submitted.

1st November 1851.

J. BROWN, JR.

Second Auditor.

LIST OF DOCUMENTS.

A.-Treasurer's Account-summary statement.

B.-Receipts-in detail.

C.-Disbursements-in detail.

D.-General Statement of Investments and Subscriptions.

E.-Detailed Statement of Investments.

F.-Detailed Statement of Subscriptions, &c.

G.-Statement of existing engagements to be completed.

H.-Statement of authorized subscriptions to companies of whose organiza

tion no information has been received.

I.-Statement of Loans obtained.

K.-Nett Revenue applicable to Interest on Internal Improvement Debt.

L.-Certain and probable charges on Revenue, for interest on Internal Improvement Debt.

M.-Estimates of probable payments on subscriptions and appropriations.

Erratum in statement A.

By a transposition of figures the amount of receipts on coupon bonds is stated at $680,000 instead of $860,000, being $180,000 too little, and the receipts from registered certificates are consequently stated at $1,426,314 instead of $1,246,314. The total sum remains unchanged.