Ret Is the State TreasureF~authorieed to cancel the eolal LoanFund balance of $79, "g 09.501 Your letter of September 20; 1943, has been given OUF oare- ful conttlderation, It reads as follousr

"Tiu conmotion with & audit we &e now malc- lng of the books of auoount ,and q+mrds or the @tats ue pmssent t&i2 fellowing datat ?freamq.Be~nt, '& kr'lieu thereof

tltlo~te 0r ~mbllc Debt. ror ~that amount i In other uorda, the fierieral Revenge aa oount b&-mttM $Xwc$he’ Speoial lean %?ax aecumnt thqamount stated. As no Wads uem iswed uader %hia law, and a8 the p’lpoaeedg, ii bonds ‘had been Issued and fold, wouzd have been available for the vem gurpoae to which in effect the money rw2eiwtd was applied, 1 see no reason why this aertdficate should not be *2 >'* .fionorable C.H. Cavness - Page 2 o-5626

cancelled. The account In fact represents absolutely nothing. ,

. . . . . '"We reapectfWly ask your opinion as to whether this certificate can be asnaelled and whether the State Treasurer has the authority to clear this old balanae of $79;&9.50 fYom the books of the State Treasury De- partment. If the State Treasurer does not have this authority, how can suah alearance be effeoted?"

It appears that on April 8, 1861 the Legislature authorized the Governor of the State to borrow $l,OOO,OOb~CO to be used to pay the Said tact provided that a tax State debts and pay current approIjciatlons. real and,personal, should be of q on eaoh 8lCO.00 value of' property levied to pay said bond and Interest. fSee Qanmwtl~s~ Laws; Vol. 5, p. 375).

Qn January 13, 1862, the Legislature amended the Aat of April 8,~1861, ln which the Lagiglature reaited that no bonds at that time had beenissued. (See Cbmmel~s Laws, Vol. 5, p. 486).

Iri your letter you stu$e that as a matter 0r faot no bonds have avti been 'imtued in or by v&Hue-oi~said'~atatites~ As we underst&nd yam letter, there was howevm aelleeted in taxeS.lev%ed in virtue 0r ~ssid st+ttite j&e main oi~$79,&@0; tPhidh &I reprCrsetit&d b$ the $tste ~;~p~l.er+g o~ifioate fy said~pmount @.v~Stto~G.H,; Bsll4olph, the Tremmer, on &me 8, 1865. ,, ,~ . ,,, ?~~' ';&&li, &&y&& :rv,&:.lts*..i ~w.,in.,q~,+e, llaid statute the purpose for which the fsx uas ~leviad'and oolleeted failed. Siaoe t&q monfq obtained rromtheszile or thebonds wad,~ Under Bald law, to,be~wed!'Lti p&rt.for fJeneral:Fux& expenses, the ~sheuld have been tran6ruTed t.0, the Qeneral Fkmmue hoooun*. Aa M yadarar* your letter, said Fund wan, in truth and in ,%"a&, tParW%Wred to ~the.oCneral Rind; and had ban~p~tedbythe.~~~Curcraarprgaa~s'~o,

Said warrant or 'osrtiireate'&n~ld now be oan&ed. This aooount haa ezvoneousl~ been aarrbd as a liobilit;a of the State l'or all these ream.

A1cKIRNKp -0FTxAs By s/ oeo. w. Barcue Qeo. w. 3arcus Assistant WB-MR-WO

Approved Opinion Committee By s/,EklB Chairmcur