I commend to your consideration the recommendations. of the superintendent in regard to the application of the agricultural college grant without fully concurring therein. Congress having extended the time five years-or until 1872-within which the state is required to comply with the conditions of the grant, there is not that need of immediate legislation which there seemed to be a year ago. If you shall not see clearly what is best to do with the grant, it will be better to wait until fuller discussion and information and the experience of other states shall guide us aright. The report will show you the progress and the condition. of the state normal school.

The institution at Winona, under its able superintendent, Professor Phelps, aided by assistants of the highest quali fications, is doing a noble work, and is worthy of your fostering care. An adequate appropriation should be made for the building now in progress.

STATE UNIVERSITY.

The regents of the state university have made satisfactory progress in paying off the debts of the institution. Over thirty thousand acres of land will be saved out of the original endowment of forty-six thousand. Five years ago it was recommended-and believed to be the best that could be done-to convey all the lands in satisfaction of the liabilities! The result of the labors of the regents is truly wonderful, and entitles them to the lasting gratitude of the people of the state.

The unfortunate early experience of the institution, ad. monishes us of the wisdom of making haste slowly. But so soon as direct aid from the state, added to the revenue of the university, shall warrant a beginning, such aid should be given. The great success of the Michigan University, having a like foundation with ours, should encourage us to hope that the University of Minnesota may yet be an honor to the state and a blessing to countless generations of its youth.

The claim of the state to seventy-two additional sections of lands, under the act of congress, approved February 26, 1857, having been denied by the commissioner of the general land office, has never been fully decided by the Secretary of the Interior. I recommend that you authorize the regents of the university to employ counsel to prosecute the claim, giving in payment a per centage of the lands that may be obtained.

MILITARY AFFAIRS.

The adjutant general's report will inform you of the military affairs of the state.

The few volunteer organizations of the state remaining in service at the close of 1865 were mustered out in the early part of 1866.

The voluminous and incomplete records of the adjutant generals office, accumulated during the war, have been orderly arranged and made as complete as possible. From these has been carefully collated the military history of every man in service from the state. This history is given as an appendix to the report. It will be invaluable as an historical record of the state. It will be an enduring testimonial and monument of the noble contribution of the state, to the great war for national life, and to each man and his descendants, whose record it bears.

The flags of the several regiments, battalions and batteries were turned over to the state at the muster out of the troops, and are now deposited in a suitable case in the upper hall of the state capitol. Battle-torn rags, as many of them are, they are eloquent witnesses of the heroism of the men that bore them.

In the late revision of the statutes, the militia law was repealed and no new law enacted. The state has therefore been without any militia law since the revised statutes took effect.

It was perhaps well to clear away the rubbish of the old law, but it is indispensible to the fulfillment of the act of

congress of 1752, that there be at least an enrollment of the militia. The act of 1792, and amendatory acts as shown by the report, require the appointment of an adjutant general in each state, and annual returns from him to the President of the United States of the enrolled militia of the state.

Beyond such law as will meet these requirements, and give encouragement to independent volunteer military companies, I would not recommend legislation. The complex militia laws heretofore on the statute books, requiring an elaborate and imposing organization of the militia, amounted to a formidable array of general, field and staff officers, without any rank and file. If the national congress shall perfect a uniform system for all the states it will then be time to thoroughly organize the militia.

Happily, our borders have been free from Indian disturb. ance during the last year. Early in the year I directed the adjutant general to visit the frontiers with regard to their safety and confer with the United States military commander. His observations are embraced in the present report. Under the administration of the distinguished officer, General Terry, in command of this district, we may hope for peace in the future; although I regard absolute security as unattainable so long as the present miserable and fatuous Indian policy of the general government is continued.

Especially are we interested in clearing away hostile Indians from our pathway to the gold fields of the Rocky Mountains and the Pacific states.

SOLDIERS' CLAIMS.

A large increase of business has been created by the late act of congress, giving increased bounty and pensions. During the year 2,335 claims were prepared and 472 settled, the latter amounting to $65,190. The value of claims pending is estimated at $173,248. Much delay was caused at Washington in issuing rules and instructions under the late act.

ADDITIONAL BOUNTY.

In this connection let me recommend that you memorialize congress to do fuller justice in bounties to the earlier volunteers of the war. The late act giving $100, was but a half measure. Let the men who volunteered first and served longest, be made equal in this respect with later volunteers. The government can afford this justice to its gallant defenders. It cannot afford to neglect them.

I cordially concur in the adjutant general's recommendation for additional compensation to the chief clerk. The duties he performs are equal to those of the grade of clerks at Washington whose salary is twice his. Indeed, all the clerks in the several state departments are inadequately paid. Their salaries are fifty per cent. less than those of first class clerks in the commercial houses of Saint Paul. And if the above be true of the chief clerk, much more may be said of the inadequacy of the salary of the adjutant general himself. Having given the best years of his life to the service of the country his time should not now be taken for less than a living compensation.

STATE PRISON.

The report of the warden and inspectors of the state prison gives evidence of faithful management of that institution. The inspectors' report shows for 1866 :

Current expenses of the prison,
Expended for improvement in prison buildings
and grounds,

Total expenditures for 1866,
Total estimate for 1867.

$12,085 01

9,187 SO

$21,272 31

14,443 72

The warden's report shows in detail the expenditures and management of the prison.

Both inspectors and warden recommend that the law of 1863 be so far restored as to give convicts a credit on their term of imprisonment for continued good behavior. This provision was left out of the revised statutes. I join in

their recommendation that this incentive to good conduct on the part of convicts be restored.

LOGS AND LUMBER.

Reports of the surveyors of logs and lumber show the following amount of logs scaled in 1866:

The surveyor of the second district estimated the amount of lumber manufactured in that district during the season of 1866 at 76,605,100 feet.

AGRICULTURAL STATISTICS.

From returns of assessors, not complete but approximately correct, the total number of acres under cultivation in 1865 was 638,000, in 1866, 790,000. Tilled area in wheat 1865 400,000. Tilled area in wheat 1866, 520,000. The exports of wheat in 1865 were 8,112,565 bushels; in 1866, 9,267,153.

STATE LIBRARY.

The librarian's report will show you what additions have been made to the library by the purchases under the direction of the judges of the supreme court, and by exchanges with other states.

I fully concur in the recommendation that the law library be placed under the care of the judges of the supreme court. Until the state shall feel able to make considerable additions to the library and affix a salary that will secure a well qualified librarian, it might be well to place the entire