ness has visited the people, but general health has prevailed through the breadth and length of the land. An unexampled degree of prosperity has attended every branch of business-the enterprise and activity of the commercial and mercantile classes have never secured for them richer returnsthose engaged in the mechanical and other industrial pursuits have found uninterrupted employment, and received ample compensation for their labor. Although the crop of our agricultural staple has not, in some sections of the State, been as great as may have been anticipated, yet in others it was never more abundant. The harvest of other farm products, has been every where plenteous. All kinds of produce have been in demand, meeting a ready sale, at fair and remunerating prices, so that, upon the whole, the labors of our husbandmen have been rewarded with a bountiful return. For these manifold blessings, received from the beneficent hand of Him who ruleth the nations, we ought to render tribute of unfeigned and fervent gratitude. The reports of the Auditor General and State Treasurer furnish a detailed statement of the transactions of their respective departments during the past fiscal year, and of the general condition of the finances of the State-an exhibition of our pecuniary affairs, which cannot but be gratifying to our creditors, and a source of pride to our citizens--I take great pleasure in presenting it to you, and through you, to the people. The receipts into the treasury within the year, to the credit of the general fund, amount to $185,134 46, and the disbursements for the same period, have been $165,306 03, the receipts exceeding the expenditures by $19,828 41. The balance in the treasury, on the 30th November, 1847, including the balance on hand at the close of the previous year, was $64,470 35-the whole of which was in current money. The amount available for the uses and purposes of the general fund, is $44,145 77, which, during the present month, will be increased to $50,939 58, by receipts from the Primary School interest fund, and the University interest fund, for over drafts, which will be repaid from those funds, out of the proceeds of the annual tax to be received from the Central and Southern Rail Road Com panies. The laws, providing for the assessment of a certain tax upon all ratable property. for the support of the State Government, were repealed by the Revised Statutes of 1846, and no substitute for them incorporated therein; nor was any law enacted for a similar purpose by the Legislature of 1847. The omission was doubtless unintentional, and its cause is probably correctly stated in the report of the Auditor General. The action of the Supervisors in the various counties has not been uniform upon the subject. In some, the usual state tax has been assessed; in others, no such assessment has been made. This subject will, therefore, commend itself to the early consideration of the Legislature, and its exigency will demand the enactment of a law, which shall give validity to the assessments already made, and provide for the future assessment of the state tax in the counties where it has been omitted. If such remedy be promptly provided, it is believed that no serious embarrassments in the collection of the revenue, from this source, will be encountered. The aggregate valuation of the taxable property of the State, according to the returns for 1847, is $27,617,240 13. A state tax of 2 mills on the dollar, the rate established by the law in force prior to the adoption of the late revision, assessed on such valuation, would produce an annual revenue of $69,043 10-$4,379 56 less than the total assessments for the previous year. The debt of the general fund amounts to the sum of $325,169 06, and includes $100,000 for bonds chargeable upon that fund, and falling due in 1856-$60,000 for Penitentiary bonds, due in 1859 and 1860, and a liability to the School fund of $129,880 61, which is in the condition of a permanent loan to the State, the annual interest of which is to be paid out of the proceeds of the specific tax imposed on the capital stock of the Central and Southern Rail Road Companies. The resources of this fund, as stated, amount to $396,621 95, besides the annual state tax, and other assets. These are consid ered amply sufficient for the payment of all immediate liabilities. of the fund, and, it is believed, they will be made available in the redemption of the bonds above mentioned, as they reach maturity. The receipts to the credit of the Internal Improvement fund during the year, amount to $493,495 83, and consist principally of payments into the treasury on account of the sales of the Central and Southern Rail Roads. The debits and liabilities of the same fund, during the same period, amount to $429,198 79, and are comprised, chiefly, in the evidences of state indebtedness paid on account of said sales, and which have not heretofore been charged against the fund. The whole amount of the $2,000,000, for which the Central Rail Road was sold, together with the sum of $27,322 14, the interest thereon, has been paid into the State Treasury in accordance with the terms of the Act providing for the sale; and on account of the sale of the Southern Rail Road $75,000 of the principal, with interest amounting to $13,500, were received prior to the close of the fiscal year. Of the evidences of State indebtedness thus paid and cancelled, $1,125,000 was of the full paid Five Million Loan Bonds. $309,449 60, was in " Interest Bonds;" and the nominal amount of $199,000 of the "part paid bonds," being a portion of the $3,813,000 delivered to the United States Bank, was also received at the rate of allowance prescribed by law. The debt of the State, on account of the loan for Internal Improvement, may now be stated thus: Outstanding full paid five million loan bonds, due January, 1863, $262,000 Outstanding "Interest Bonds" issued on the above, due January, 1850, 57,587 20 $319,587 20 Am't of principal received on $3,614, 000, part paid bonds now outstanding $1,145,537 74 Interest on the same to January 1, 1848, 524,906 31 Amount received from Morris Canal assets on account of the part paid bonds, with interest to Jan'y 1, 1848, $1,670,444 05 30,035 95 1,700,480 00 Making the total amount received on said bonds, $2,020,067 20 Amount brought forward, But if from this amount be deducted damages The total indebtedness of the State, on account And the present indebtedness of the State on account $2,020,067 20 102,934 86 $1,917,132 34 473,467 17 $2,390,599 51 The unpaid balance on the sale of the Southern Rail Road, payable by instalments, semi-annually, with interest, now amounting to $425,000, is considered an available credit, and may therefore be properly deducted from the $2,390,599 51. The amount of the present resources and assets of the Internal Improvement fund, which it is believed will ultimately be made available, towards the payment of this debt, exclusive of other credits of the State, now of doubtful availability, is estimated by the Auditor General at $301,998. The interest on all the full paid bonds, and interest bonds, to the first of July last, has been paid, or provided for, out of the proceeds of certain payments made by the Central Rail Road Company; and for the payment of the coupons, on said bonds, outstanding and falling due in January and July annually, amounting, now, to the sum of $19,175 23 only, provision is made by the "act to liquidate the public debt and to provide for the payment of the interest thereon and for other purposes," approved March 8, 1843, but as the amount cannot be assessed until the next annual session of the Board of Supervisors in October, 1848, and as the entire amount of it cannot, under the present provisions of law, be collected and made available for the purpose intended, until the lapse of more than two years thereafter, I suggest the expediency of paying the coupons, as they fall due, out of the treasury, in anticipation of the receipt of the tax alluded to, provided it can be done without prejudice to claims thereon which may be entitled to preference. To the condition of that portion of the internal improvement debt, which consists of the bonds delivered to the late United States Bank, and for which the State received partial payment only, the special consideration of the Legislature is invited. To make early provision for the ultimate payment of this debt, both principal and interest, appears to me to be an imperious duty, which we should neither attempt nor desire to avoid. Such a measure is, in my judgment, dictated, alike, by a wise and prudent regard for the honor and interests of the State, and a proper appreciation of the just rights of our creditors. That the people of Michigan intend, in good faith, to pay the public debt, I cannot doubt; and in my view, their interests will be best subserved by proceeding without unnecessary delay to provide for its liquidation and extinguishment. It is apparent, that if the situation of this debt be suffered to remain unchanged for any considerable term of years, the result cannot but be prejudicial, as the payment of the original amount, largely augmented by the annually accruing interest, will have still to be provided for, and with no additional resources. The faith of the State is solemnly pledged to pay all she owes, and her citizens will fulfill the sacred obligation. To you, gentlemen, her chosen representatives, is entrusted the high and holy office of guarding her rights, and of vindicating her honor, and I feel assured that you will discharge the duty with the most scrupulous fidelity. The suggestions of the Auditor General in relation to this part of the state indebtedness, I commend to your special attention; the whole subject is carefully considered and ably discussed in his report, which will be laid before you. I have only to add, that in whatever measures you may think proper to adopt, for the accomplishment of the great object in view-the payment of the annual interest and the ultimate absorp |