Year: 1861

funds, or from any other quarter. The
ultimate resources of tie State will be
abundantly sufficient to pay all its nec-
essary expenses, and meet all its obli-
cations promptly without borrowing,
and without being at all burdensome
to the people.


You will observe in the report of the
Auditor General, estimates of the ex-
penses and revenues for the ensuing
year, by which it appears that the rev.
enues are likely to fall considerably
short of the expenses. This deficit
seems to have occurred from a variety
of causes, but chiefly from the extra
ordinarily large appropriations made
by the last Legislature, in aid of the
Asylums and other State Institutions.
To relieve the finances from this en-
barrassment the Auditor General re-
commends the issue of stocks to meet
the interest on our outstanding indebt-
edness, falling due in July, 1861, and
January, 1862, and some other State in
debtedness, amounting in all to about
one hundred and fifty thousand dollars,
payable at the pleasure of the State
any time after two years; and to levy
a State tax to meet the same. If no
other resource can be found, then prob
ably this must be. done, if the Legis-
lature has power to do it; but l feel
exceedingly averse to adding anything
more to the debt of the State.


The contingent loan is very likely
soon to become permanent debt.


The State is also largely in debt to
the counties, and immediate provision
should be made for its payment. These
amounts are principally due to the new
counties, and the natural and necessary
hardships and embarrassments attend
ing new settlements, are largely in
creased by their inability to realize the
amounts due them from the State. 1t
will be shame to US if we allow this
to continue


In view of the present condition of
the finances, | earnestly recommend
you to encourage no new sehemes; to
undertake no considerable additions to
the public institutions of the State, and
confine your appropriations to the ac-
tual necessities of the public service.
1t is exceedingly manifest that for some
years past the State has been incurring o
burdens inconveniently heavy. We
have been building too much and too
fast for the revenues provided. 1t has
also been a source of great embarrass-
ment heretofore, that appropriations
have been made out of the general
fund, to be drawn Immediately, while
the taxes levied to meet them could not
be collected in less than year.


The treasury is thus called upon to
advance the money long period before
it can be reimbursed. This is evidently
bad practice, and should be avoided
in future; at least until the treasury is
sufficiently replenished to meet such a
call. -


A very large part of the bonded debt
of the State will fall due in January,
1868. You will see the necessity of
providing for there-issue of these bonds.
Fortunately, the credit of the State is
extremely good, and deservedly so.
The resources are very large and yearly
increasing, while the debt is moderate
in amount. State taxation has been
very light, and there will be no occasion
to make it at all oppressive for the future.
DEFALCATIoN OF THE STATE TREASURER
have not been able to see the report
Of the late State Treasurer, if indeed
that officer has made any report. He
stands charged in the report of the
Board of State Auditors, whose duty
it was annually to settle with him, and
finally adjust all claims between him
and the State, with gross violations OF
law, ,and mal-administration of his office.
There is reason to believe that the
Treasurer is defaulter to the State in
considerable amount. For all the
facts attending the defalcation / must
refer you to the message of my prede
cessor. / earnestly recommend you to
make thorough and searching inves
tigation into the condition and previous
conduct of the Treasury department
and if any further Legislation is neces
sary for the security of the public
monies, to supply the same; to direct
the Attorney General Immediately to
prosecute the official bond of the late
Treasurer, to which the State look.
primarily for its security, and to use al
legal means within the power of the
State to recover the monies which have
been illegally withheld from the Treas
urY. There ought to be no temporizine
with defaulting public officer, but th'
utmost rigor of the law ought to bs
applied to him. Officers in high places
of public trust who wilfully misconduc
themselves to the injury of the people
are criminals of the highest grade
They destroy public confidence, weaker
the faith of men in the government ant
in each other, and undermine the very
foundations of the public virtue.


/ STATE TAXATION. - ~.


recommend to your consideration
the suggestions of the Auditor General
for the Improvement of the laws pro
viding for the assessment and collection
of taxes. Sections eighty-nine $50
and one hundred and one l0l) of th'
act number thirty-two (32) of the law
of 1853, have been found useless ant
vicious, and / think ought to be re
pealed. A portion of them has alread,