So far as the principal of the debt due to the School and Seminary Funds, amounting to thirty-nine thousand five hundred dollars, is concerned, there is no necessity for a payment at present. The interest due upon these funds, however, should be paid. This is all that under the grants, can be applied to the cause of education, and there could be no justification for the State, who is the trustee, should she undertake to apply these funds to her own use and fail to provide promptly for the semi-annual interest. The interest now due on them amounts to twelve thousand and eighty-seven 71-100 (12,087 71-100) dollars, and to that extent I respectfully recommend an appropriation and the necessary provision for raising the money.

The debt due to the Internal Improvement fund, amounting now to the sum of thirty-four thousand four hundred and ninety-one 06-100 (34,491 06-100) dollars, will, I hope, be needed at an early day, and I therefore recommend that the Comptroller be authorized to borrow from the School and Seminary Funds, as collections may be made, the amount necessary to discharge this debt, and pay the same to the Treasurer of the Board of Internal Improvements.

TAXATION.

Taxes are paid by the people cheerfully, because the money raised is necessary for the support of a government which guarantees to every citizen the protection of life, liberty and property. These being the purposes and objects of free Government, the question naturally arises, in what proportion should each citizen contribute to its support? The answer should be, according to the protection which he receives! Now so far as the Government protects the life and liberty of its citizens, their contribution should be the same, because each man receives the same measure of protection; and for this a capitation tax is lev

ied. So far as the protection of property is concerned, every man should pay exactly in proportion to the amount of property which he has protected. Every man in our country has a right to invest his money in what he pleases; one man may invest in land, another in horses; one in slaves and another in furniture; each consults his own interest or fancy in the investment. The Government gives to each exactly the same measure of protection, and there is in my judgement no good reason why one of these should be required to pay and another be exempted, and yet under our present revenue law such is the case. I charged the census takers with the duty of obtaining the valuation of slaves, lands, buildings not embraced in Towns or Villas, household and kitchen furniture and horses, mules and plantation outfits. These as reported amount to fortynine million five hundred and twenty one thousand and twenty one (49,521,021) dollars. Add to this sum the assessments made by the Tax Collectors on Town lots, stock in trade, pleasure carriages, saw mills, money at interest and cattle, and it will show that the aggregate private property of the State is not less than fifty five million (55,000,000) dollars. A tax on this amount, at twenty two cents upon the hundred dollars, as is now levied upou Town property, saw mills, money at interest, &c., would yield a gross revenue of one hundred and twenty one thousand dollars, and yet we are collecting but little over one half of that amount. This is easily accounted for. A large proportion of the property of the State is now taxed upon a supposed valuation which is but little over one half of its real value, while another portion, amounting to about nine million dollars, is not taxed at all. This nine million is composed of horses, mules and plantation outfit, buildings in the country and furniture. All of these, of great value, are owned by the wealthy, who, we are bound to presume, desire no special

exemptions, and if they do, are not entitled to them.Referring you to my former communication for a discussion of the unconstitutional character and unequal bearing of our present revenue system, I now respectfully recommend an ad valorem Tax, and that no return shall be received except upon oath or affirmation, and no tax collector settled with until he makes oath or affirmation that he has complied with the law in this respect, with such other safe guards as the wisdom of the General Assembly may provide.

INDIANS.

In my former Communication I expressed my views fully in regard to the Indians still remaining in our State.-Nothing has since occurred to change the opinions I then entertained, and it is only necessary for me to refer you to that Communication. There have been no depredations on the frontier reported to me since your adjournment, and the forces stationed by the Government on the border of, and in the Indian Country, has been sufficient to preserve order.

I have received a Communication from Samuel S. IIamilton, President of the Indian Emigrating Society of the Creek Nation, proposing to enter into a Contract for the removal of the Indians from the State. I have made no reply, preferring to lay the matter before the General Assembly. The letter is herewith communicated.

INTERNAL IMPROVEMENTS.

The Act to provide for, and encourage a liberal System of Internal Improvement, approved on the 6th January last, has inaugurated a new era in our State. The lethargy of former years has given place to energy and enterprize. Under its encouragements, the Central, Atlantic and Gulf Rail Road Company have surveyed and located the Road from Jacksonville to Alligator, a distance of sixty miles,

and have advertised for proposals for its construction. The Pensacola and Georgia Company have surveyed and located their line of Road from Alligator westward as far as Tallahassee, and have advertised for proposals for its construction. There are also encouraging, and I think reliable assurances from the west, that as soon as the part now located is placed under contract, and a connexion with the Atlantic rendered reasonably certain, there will be a movement made in that direction which will hardly fail at an early day to place our Atlantic ports in connextion with the beautiful bays of St. Andrews and Pensacola. The Florida Road has been located from Fernandina to Cedar Key, and the whole line placed under contract. The Tallahassee and St. Marks Road has been nearly re-graded, the cross ties furnished, the iron purchased, a part delivered, and the balance expected daily. These are the results of about ten months of active effort, and furnish a happy assurance that our great system of Roads can, and will be completed at no distant day.

Each of the companies above named, have, since your adjournment, had the aid of practical and intelligent Engineers; and experience, it is said, has shown that some of the details embraced in the general bill may be repealed or modified with great advantage to the Stockholders, and without detriment to the Internal Improvement Fund.These modifications will probably be asked by the companies interested, and so far as they may be made, without impairing the security of the fund or encroaching upon vested rights, and are calculated to facilitate the construc. tion of the Roads, I shall take great pleasure in co-operating with the General Assembly.

CHARTERS.

The Southern or Peninsula Road, extending to Tampa

Bay, and which I regard as a most important part of the system, has been retarded in consequence of the failure to procure the necessary amendment to the charter of the Florida Road, at your regular session. This, to me, has been a matter of deep regret; and I cannot too earnestly urge upon the General Assembly the importance of granting a liberal charter for the construction of that important link in the chain of our great State enterprize.

The Pensacola and Georgia Road, I understand, was also an applicant for important amendments to its charter, That application, like the one for Tampa, failed, and the failure has, I understand, resulted in some embarrassments to the company. It is not too late, however, to make the necessary amendments, and I respectfully recommend that the General Assembly grant such charters and make such amendments to existing charters, as may be necessary to carry out and perfect the State system as inaugurated by the general bill approved January 6th, 1855. While I would thus earnestly recommend great liberality in granting, amending,or modifying charters of companies which have undertaken, or which may undertake the construction of any part of the great lines of Rail Road embraced in the State System, I would, with even greater earnestness, urge the General Assembly to protect the system by refusing to grant charters calculated to allow rival enterprizes from neighboring States to connect with the Gulf through our territory on such terms as to secure advantages over our own Roads. Such grants would be hazardous to the State fund, and illiberal to our own citizens who have embarked in the construction of our State system.

In this connection, I would respectfully call the attention of the General Assemby to the bill entitled "An Act incorporating the Florida and Macon Rail Road Company,' 24 which passed both Houses prior to your adjournment, and