Total.............................. $2,776.51 "From this amount is to be deducted the value of the farm produce consisting of hay, roots, manures, etc., on hand November 1, 1843, which was not taken into the amount of last year, but which has been ascertained to be $762.50, as well as the value, $49.13, of the family stores which were on hand at the same time, but were also omitted from the amount. "Deducting these two amounts ($762.50+$49.13= $811.63) from the deficit as above stated we have: Deficit.......... $2,776.51 Farm produce and family stores....... 811.63 Real deficit for 1842 and 1843.... $1,964.88 "It was the opinion of a majority at least of this Board that this sum must be chargeable upon the future industry of the Association, and that no dividend could be declared until it had been made up. Accordingly the quarterly statement for the quarter ending August 1, 1844, was based upon this opinion, and a deficit of $526.78 declared to exist at that time. It is but justice to say that that statement was made up in the absence of one of the members of the Direction, Mr. Ryckman, who on seeing it objected entirely to the principle which it embodied. Subsequent consideration has convinced the Direction that the statement was in that respect erroneous, and that the transactions of previous years ought not to affect the operations of this, in the way proposed in the statement. It should be borne in mind that the deficit before spoken of is not a debt in itself, but is the difference between the amount of our debts and our joint stock, and the nominal value of our assets. The Association is not bound to pay the sum or to make it good in any way. It pays interest upon it, but can never be called on to pay the principal. The sum total of the actual liabilities of the Association, that is, of debts and obligations which it is bound at some time or other to pay, is much exceeded by the cost value of its property. Its joint stock, which it is not bound to pay, much exceeds the deficit we are speaking of, so that clearly the deficit is not to be paid, but only the interest upon it, that is, five per cent per annum forever. So that it is evident that the principal is by no means chargeable upon the industry of the present or of future years, but only the interest. And even if the said deficit were a debt to be paid it would still, as we conceive, be perfectly just and legitimate to issue stock for its amount to those members by whose labors it was made up. Because in that case we should merely, in consideration of such labor, bind the Association to the yearly payment of the interest aforesaid according to the terms of our joint stock compact.