Bonded debt issued prior to July 1, 1874 $8,883,940.43
3.65 bonds, act of Congress June 20, 1874 2,088,168.73
Certificates of the board of audit 4,770,558.45
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15,742,667.61

Less special-improvement assessments
(chargeable to private property) in
excess of any demand against such
assessments $1,614,054.37
Less Chesapeake and Ohio Canal bonds 75,000.00
And Washington and Alexandria Railroad
bonds 59,000.00
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In the hands of the commissioners
of the sinking fund 1,748,054.37
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Leaving actual debt, less said assets 13,994,613.24

In addition to this there are claims preferred against the government of the District amounting, in the estimated aggregate reported by the board of audit, to $3,147,787.48, of which the greater part will probably be rejected.  This sum can with no more propriety be included in the debt account of the District government than can the thousands of claims against the General Government be included as a portion of the national debt.  But the aggregate sum thus stated includes something more than the funded debt chargeable exclusively to the District of Columbia.  The act of Congress of June 20, 1874, contemplates an apportionment between the United States Government and the District of Columbia in respect of the payment of the principal and interest of the 3.65 bonds.  Therefore in computing with precision the bonded debt of the District the aggregate sums above stated as respects 3.65 bonds now issued, the outstanding certificates of the board of audit, and the unadjusted claims pending before that board should be reduced to the extent of the amount to be apportioned to the United States Government in the manner indicated in the act of Congress of June 20, 1874.

I especially invite your attention to the recommendations of the commissioners of the sinking fund relative to the ambiguity of the act of June 20, 1874, the interest on the District bonds, and the consolidation of the indebtedness of the District.

I feel much indebted to the gentlemen who consented to leave their private affairs and come from a distance to attend to the business of this District, and for the able and satisfactory manner in which it has been conducted.  I am sure their services will be equally appreciated by the entire country.

It will be seen from the accompanying full report of the board of health that the sanitary condition of the District is very satisfactory.