(G.)

A statement of funds belonging to the state in the Michigan state bank, said to have been left upon special deposite.

Shinplaster,

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Merchants' and Mechanics' bank of Monroe, 31 00

*This note was found with the money, dated 7th April, 1838, payable six months af ter date, endorsed by Charles Grant, and not protested when due. Commissioners of internal improvement loaned the money, says the bank.

Merchants' and Mechanics' bank, Monroe, $214 00

Bank of Marshall,

89 00

Sir-As it is important that a right understanding should exist between us, the committee beg leave to state, that they claim the right under the resolution of the House-first, to inquire generally into the condition of the funds of the state. Secondly-specifically as to each of the particular funds. Thirdly—the kind

of funds that have been received into the treasury and the kind of funds that now remain there. Fourthly-the disbursements made to public officers, agents, contractors and others, from the state funds. Fifthly-the condition of the bank in which the funds of the state are deposited, with reference to their present and ultimate security, HENRY ACKER, Chairman.

(No. 32.)

Report of the minority of the committee on the subject of the state funds, &c., in pursuance of a resolution of the 2d February last.

The minority of the select committee, to whom was referred the resolution passed on the second February last, in the following words:

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Resolved, That a select committee of five be appointed by this house to inquire and report forthwith, the condition of the funds belonging to the state, where they are, in what kind, and whether in their opinion they are now safe and available to the state, and that the inquiry extend to all the funds belonging to the state, as well as to disbursements under the last session, and that they have power to send for persons and papers;" respectfully beg leave to report in part:

That in the performance of the duty imposed by the resolution, your committee went to the Michigan state bank, which has charge of the state funds, and there met F. H. Steevens, Esq., president of that institution, agreeable to a previous arrangement: Mr. Norton, the fiscal agent of the state, being absent.

Your committee received from Mr. Steevens the last monthly statement of the bank, dated first February, 1839, a copy of which is herewith submitted.

By this statement it appears that the liabilities of the bank, exclusive of the two items denominated "capital stock paid in,” and "profit and loss," amounting to the sum of $839,811 04, of which the sum of $607,871 05 belongs to the various funds of this state. The balance is composed of items denominated "circulation," "certificates issued," and "due other banks."

The aggregate amount of the assets of the bank, as shown by this statement, is $1,060,352 01, from which should be deducted the items designated "Michigan state bank stock," and "real estate," amounting to $72,192 50, leaving a balance of $988,159 51 of funds which, it is confidently believed, will be made available to the bank.

Of this amount, the sum of $665,486 10 consisted in specie, state drafts, liabilities of banks, state stock, eastern and other bank notes, and sums advanced to public officers, &c. The amount advanced to public officers on the first of February last, was $76,449 32, which would reduce the actual indebtedness of the bank to the state to $531,421 73.

From these data the undersigned are of opinion, that under ordinary circumstances and in ordinary times, the above statement

of the resources of the bank would be deemed by financiers, abundantly sufficient to meet all its liabilities, and would prove so now, had it not been for the unparalleled run upon the bank for the last sixty days.

The undersigned have, therefore, no hesitation in saying, that it is their unshaken belief that the Michigan state bank has abundant resources to discharge all its liabilities, and that the state deposites are perfectly safe.

The undersigned have arrived at this conclusion after a careful and laborious examination, not only of the officers of the bank, but also of actual inspection of the books and other evidences of its transactions.

The bank has, at all times, furnished, with great promptitude, facilities for carrying on the different state works now in operation; and at this moment is in advance to the state on the general fund, to the amount of some fifteen or twenty thousand dollars, an item not embraced in the foregoing statements

It is apparent to the undersigned, that the bank has extended its business rather beyond the bounds of prudence, and that it will, under present circumstances, meet with some delay in making its resources immediately available to pay the debt to the state; but this difficulty is mainly attributable to the unexampled run made upon it for specie, and its temporary suspension, which was deemed necessary, both for the interest of the bank and the public.

But from the business arrangements of the bank now in progress, the undersigned are of the opinion that the debt due the state will be reduced to an amount less than $350,000 in a very brief period. In this belief we think we are fully warranted by facts, and as one evidence of the ability and the commendable disposition of the officers of the bank to redeem its liabilities to the public, it is deemed proper and a matter of justice to the bank to say, that since the first of February to the present time, the institution has paid the state over one hundred thousand dollars, as appears by the monthly statement of the first of March; and here, as an act of justice to the bank, we feel bound to state, that in our opinion the embarrassments under which it is temporarily laboring, have resulted from motives the most praiseworthy-being a disposition to extend facilities to the business public which are denied them at other institutions. As the depository of the state funds, the public expected aid at its hands, and in extending this aid with a disposition to advance the good of the community and the best interests of the state, the existing embarrassments have been created.

The undersigned, in consequence of the suspension of the Michigan state bank since their appointment, think it necessary and proper to examine the condition of that bank on the first day of February, 1839, and the prospect of its being able to redeem its