GOVERNOR'S MESSAGE.

MESSAGE OF GOVERNOR WM. R. MARSHALL,

Delivered to the Legislature of Minnesota, Jan. 10, 1867.

INTRODUCTORY.

Gentlemen of the Senate and House of Representatives:

In the events of the past year, affecting the State, and the circumstances under which you assemble to deliberate for the public welfare, there is occasion for deep gratitude to Him who governs all.

There has been no visitation of pestilence; war has not called our young men from their peaceful pursuits; no Indian incursions or alarms have disturbed our borders; immigration has beyond precedent added to our population and wealth; all industrial interests have prospered; agri culture and commerce have increased; railroads have been extended, and manufactures have been built up.

The religious, educational and charitable interests of the people have advanced equally with material interests. Our duty is to labor to perpetuate these blessings and this progress.

FINANCIAL AFFAIRS.

In communicating to you, as required by the Constitution, such information touching the State, as seems expe

dient, I would first refer to the satisfactory exhibit of financial affairs, as shown in the able reports of the Auditor and Treasurer, which will be laid before you.

The receipts from all sources, including balance in treasury at beginning of year, were

General revenue,

For interest and sinking fund,
School funds,

Total receipts,

The disbursements were

For general expense of State government,
For interest on State bonds and sinking fund,
For permanent and general school fund,

Total disbursements,

Leaving balance in treasury,

$201,582 17

111,433 65

216,439 40

$529,455 22

$195,655 78

74,213 14 191,396 37

$461,265 29 68,189 93

Last year the taxable value of property, real and personal, was $45,127,318.67. The reports for this year are not all in, but so far as received show an increase of over $12,000,000. The additional returns will raise the whole to $57,500,000. Upon this basis the revenue for 1867 of the State from taxes will be $322,546. The estimated disbursments, $318,904 14.

Our claims against the general government, amounting to about $125,000, are in a fair way of settlement. The State Auditor went to Washington, and has learned the difficulties in the way of their adjustment, and will be able, in a few months, to remove them. He expects at least $100,000 of this amount will be allowed.

PERMANENT SCHOOL FUND.

Of the permanent school fund the cash receipts during

the past year were:

From sales of lands,

From stumpage from timber lands,

Balance in Treasury December 1, 1865,

$105,957 21

3,717 70

860 35

Total,

$109,935 26

Invested in U. S. and Minnesota bonds,

No. of acres of school lands sold in 1866,

54,640,50, for

109,000 00

340,290 16

The total perm't school fund Nov. 30, 1866, $1,333,161 60 Of which sum there is invested in Minnesota

Remaining at 7 per cent. interest upon lands sold,

423,012 50

909,213 93

The funded debt of the State (exclusive of the unrecognized railroad bonds,) is embraced in the two items of

8 per cent. bonds, due July 1, 1867,

$250,000

7 per cent. bonds, due November 1, 1872,

100,000

$190,000

Leaving $160,000 not held by the State.

The Auditor estimates that the sinking fund by next July will absorb about $30,000 of bonds, and that we shall receive from claims against the United States $100,000 more, which goes to the sinking fund, so that at the maturity of the $250,000, July next, the sinking fund will be sufficient to cancel all but $50,000, which the school fund will carry until the sinking fund of 1868 provides for it.

All of the 7 per cent. bonds, except $1,000, is now held by the sinking fund and the school fund. Before the maturity of the 7 per cent.'s the sinking fund will have cancelled all.

It will be seen that we are in a fair way of speedily cancelling the funded debt.

FINANCIAL POLICY OF THE STATE.

It is gratifying to see from the Auditor's report that the increased revenues of the State from the enlarged taxable basis-without adding to the per cent. of tax for State purposes will suffice for all current expenses of State government, and supply from year to year the necessary

appropriations for buildings for the charitable and other institutions of the State.

The true financial policy is to get out of debt and keep out of debt.

It is desirable that the insignificant recognized State debt, now existing, shall be paid off as fast as the sinking fund, and payment of our claims against the United States, will allow, and that it should not be renewed.

Money comes so easily when it is borrowed, and pay day seems so distant, that it is quickly and often unprofitably expended.

Depending on our own resources, and paying our way as we go, will insure that economy in public expenditures that brings prosperity and independence.

The munificent land grants with which Congress has endowed a complete system of railroads for the State, secures to us all the internal improvements that the State will need for the present generation. Such works of internal improvements have cost other States tens of millions of dollars, and burdened them with heavy permanent debts.

Let us endeavor to present the example of a State without a public debt. It can easily be done, and we shall thereby secure prudence and economy in public affairs and light burdens of taxation.

BANK CIRCULATION.

During the year past there was redeemed $319,300 of State Bank currency, leaving but $31,378 outstanding.

SCHOOLS AND PUBLIC INSTRUCTION.

Your attention is invited to the able and full report of the Superintendent of Public Instruction for information concerning the educational interests of the State.

I subjoin a condensed statement from the tabular summary of the School Department, which exhibits a gratifying degree of progress in several important respects, particularly in the increased value of school houses, while in

others the improvement is less manifest, owing to the absence of essential returns from a large number of school

Of the many valuable suggestions of the report, none meets more fully my approval than the recommendation for an independent department of public instruction. The establishment of this department has often been recommend. ed and long considered only a question of time—when the state should be able adequately to provide for it. The time for it seems to me fully ripe. We have a school fund of nearly a million and a half dollars, which is being rapidly increased. We have over a hundred thousand children needing instruction. Surely the administration of this fund and the education of these children, demand a well organized department, with a head chosen with special reference to his fitness to superintend and direct the educational interests of the state.

I therefore earnestly recommend the passage of a law organizing a bureau of public instruction, with a superintendent at its head provided with a salary sufficient to command the best talent in the state, with a liberal allowance for clerk hire and contingent expenses.