The rapidly increasing amount of government indebtedness in the form of audited drafts and the existence of many un-audited claims led to the passage of the act of June 7, 1837. It provided for the appointment of a stock commissioner who, with the comptroller, should investigate all claims against the treasury. Properly audited claims were exchangeable for the bonds authorized by this act. An issue of $3,000,000 was provided for, of a denomination of $100, bearing 10% interest, and redeemable at the pleasure of the government after September 1, 1842.3 Funding under this act continued until January 1, 1840.4 The amount issued in the funding of audited drafts and claims was $771,000, and in the taking up of land scrip, $66,400, making a total of $837,500. During the period of the republic there was redeemed in land scrip $1,500, and $10,000 was received in the collection of revenue.5 The value that the government derived on the average from the liabilities funded was estimated by the auditor and comptroller at 70 cents on the dollar, and this was the rating adopted by the state.6 There were some cases in which this scaling was recognized as doing an injustice and these were recommended by the auditorial board to the legislature for relief. These bonds as a part of the revenue debt were finally adjusted on the basis of 76 9-10 cents on the dollar and at the date of settlement in 1856, the original principal and interest to July 1, 1850, amounted to $1,687,594.80.1 Sealed to 76 9-10 cents on the dollar this sum was $1,297,375.89. As this settlement did not do justice to those cases recommended in the auditorial report of 1849, an appropriation of $60,000 was made by the state legislature to make up the difference between the scaled rate and par.2

1 Act of January 31, 1852; Laws of 1852, p. 38.

2 Report of the Comptroller, 1855.

3 Gammel, op. cit., vol. 1, p. 1301.

4 Act of January 19, 1839; ibid., vol. 2, p. 51.

5 Report of the Auditor and Comptroller, December 27, 1849.

6 Ibid. Act of January 31, 1862; Laws of 1852, p. 38.