premiums may be established for the best of such agricultural productions (including stock) whose growth may be considered important to the interests of the Territory; the amount of the premiums to be taken from the five per cent. fund which is required by law to be paid by every county' annually into the Territorial treasury.

The protection of the business of Mining and Smelting of lead ore which has been heretofore afforded by the United States by the duty on lead: has enabled the miners of Wisconsin to supply chiefly the consumption of the United States, and to furnish a considerable quantity for shipment to China and other countries. The largest shipments of our domestic lead it appears have been made from Boston: and it is hoped that the intelligent and enterprising merchants of that city, who have thus obtained new markets for an article of which Wisconsin has this year produced over twenty millions of pounds, will receive from this branch of our trade the reward to which they are so justly entitled.

The Fur Trade of this country is prosecuted with foreign countries under the greatest disadvantages; and its interests appear to have been overlooked or disregarded by the Government of the United States. While our furs and skins pay a duty in every port, all furs imported into the United States are admitted free of duty. The goods also which are required for the trade, are manufactured in England and France, and pay a duty on their entrance into the United States. The British trader opposes our own along our northern boundary, with goods which have been manufactured in the same shops in England as those in the possession of our traders, and he is to pay no duty. The American traders have more than a million of dollars invested in this trade; it is a valuable interest to the country and of sufficient magnitude to entitle it to consideration,

In the prosecution of the Inland trade of Wisconsin the improvement of the navigation of the rivers by which it is traversed becomes an object of primary importance; and I earnestly recommend the adoption of measures at this session to render navigable the Neenah (or Fox) and Wisconsin rivers, as this is the only route of communication by water between Lake Michigan and the Mississippi, within this Territory.

The improvement of the Rock and Peekatonik rivers can be undertaken, when Illinois shall have rendered the former navigable from the present boundary to its mouth, or the Milwaukee and Rock River Canal-with which it has been heretofore identified-shall be near its completion, or sooner, if the means of the Territory will permit. The right to improve the navigation of the Peekatonik is now held by an incorporated company, as also the right to construct a rail-road from Southport to Beloit.

I understand that it is expected that an appropriation will be obtained from Congress at the present or next session, to improve the navigation of the Platte and Grant Rivers, and the river of the Four Lakes-and possibly some of the streams which I have named; and I hope the effort may be successful

A Rail Road from Milwaukee to the Mississippi has been several times proposed and the sum of ten thousand dollars in part expended for the survey of the route. If the land which was granted to aid in the construction of a canal near this route could be given to this object, it would be of much greater general benefit. If this change should be deemed expedient by the Legislature, there can be but little doubt that Congress would give its assent to it. Whether such a work would be undertaken by the Territory, or in any other manner, is a question to be determined by the Legislature. But it is the general opinion, as it is my own, that a Rail or McAdamized road ought to be constructed on the most practicable route from Lake Michigan to the Mississippi, from and to those points which will afford the greatest facilities to our Trade and Commerce.

I am bound to express to you my belief that it is quite impracticable to make a canal, upon the route surveyed, from Milwaukee to Rock River, which will be of any utility to the public; and I am equally positive that under the system as it is now managed the work ought not to be continued. For it appears that the Territory is required to raise and advance means for the prosecution of the work, while the Canal Company has the sole control of the location and the construction of the Canal, and of the expenditure of the money. So at least the work has progressed to this time; the company having contributed little, if any thing, towards the expense;

the Territory no voice in the direction of the company; and the whole amount of it appears to be, that the Territory is involved in a debt of one hundred thousand dollars to create a water power in the town of which this company or its members are the principal proprietors. I invite your attention to the very able report of the Chief Engineer in relation to this canal which will be laid before you, and express my concurrence in the views presented by him. And I hope it will be in your power to rescue our Territory from the control of this soulless corporation, and to cause the fund which was granted by Congress, to be employed for the general good, rather than to subserve the ends of foreign or domestic speculators.

Turnpike or McAdamized Roads are much required through the timbered as well as some other sections of the Territory; and it seems to me that a portion of the large amount of taxes which is annually collected in each county may with great advantage to the public be required to be expended in their construction.

The system of taxation throughout the Territory is considered unequal, illegal, and highly oppressive. Large sums of money are collected in each county, but few if any improvements are constructed, and the people very justly complain that they are burdened with heavy taxes, without receiving any apparent benefit from their expenditure. Its operation in these times, is to confiscate the property of bona fide purchasers, and to transfer it to speculators in tax titles. But if it is to be pursued, and the titles of honest purchasers must be forfeited, I would recommend that the Territory become the purchaser of all lands sold for taxes, and that they be held for the benefit of the Territory.

All of the expenses of the Territorial government being paid by the United States, there can be no necessity, in my opinion, for levying so large sums for the support of county government alone The occasion for this seems to arise from the protracted sessions of of the courts, the very great number of county and township officers, the high rates at which they are paid, and the number of days they are employed. The system, perhaps, may be well adapted to a country densely populated, where the land is owned by individuals, and every foot of land pays its proportionate share of tax. But our

country is as yet only sparsely settled, and the lands are chiefly owned by the United States and therefore are not subject to taxation.

It would be a more economical system, and better adapted to the condition of our settlers at present, if the duties which are now performed by the county commissioners and their clerks, were required to be performed by the justices of the peace, the assessments made by the register of deeds, and the taxes collected by the sheriffs.These officers can afford to perform these duties for the public, without any other reward than the fees allowed them for other services which they render. This change, or any other which shall diminish the number of offices, is therefore recommended, and I will be happy to concur with you in any change of the system by which the people will be relieved from unnecessary taxation.

It is usual, in the commencement of the settlement of a new country, for the settlers to render all such services as are required on behalf of the public, without compensation; and in Virginia and Kentucky I am informed this is still a part of their systems of county government, and the honor of the office is its reward. But here the reverse is the case, and the pernicious doctrine prevails that the offices are created to put money in the pockets of the holders.

The public charges are largely increased, and unnecessarily, I think, by the organization of counties in which there are but a few more inhabitants than are required to fill the offices. The whole number of votes given in six counties at the last election, varied only from twenty-one to forty-eight in each county.

In several counties, I am informed that all wild lands are assessed at not less than two dollars and fifty cents an acre, and some even as high as seven and eight dollars, when adjoining lands of government can be purchased for one dollar and twenty-five cents an acre. It is believed that but few individuals have been able to sell the wild lands which they own for cash within the last three years at any price; and many a man is compelled to forfeit all he has paid for his land-often hundreds of dollars-because he is unable to procure in these times, when all classes but the money brokers feel the severities of the pressure for money, the amount of his tax-a

tax which would be enormous in its amount even if business was prosperous and money abundant.

In those counties where nine-tenths of the settlers are occupants of the public land, they are in fact, almost wholly exempt from taxation, while the few owners of real estate, of merchandize and of stock in companies, are required to pay all of the county charges. Can it be possible that all the land owned by a citizen can be sold to pay his tax for one year? Shall a sale of eighty acres, to pay a tax of two dollars, be valid, and the owner lose his property forever.

The power to compel any one species of property to pay all the taxes for the support of government, if granted by Congress, ought not to be exercised. To exclude all improvements made upon lands from taxation, is to require all wild, uncultivated land to be taxed higher than cultivated land, which is forbidden by the acts of Congress. The ordinance of 1787 provides, that in no case shall non-resident proprietors be taxed higher than residents." And the act to establish this government provides: "nor shall the lands or other property of non-residents be taxed higher than the lands or other property of residents." To exclude the property of a resident from taxation and to tax all the property which is owned by a nonresident is certainly a violation of these provisions.

The more we learn of the practical operation of this system, the more objectionable does it become. Numerous sales have been made of lands by the Territory, before the issuance of the patent to any individual. While the title is yet in the United States, the Territory undertakes to sell and convey these lands to some other person than the purchaser of the government. The acts of Congress declare that no tax shall be imposed upon the property of the United States;" and that "no law shall be passed interfering with the primary disposal of the soil."

Instead of diminishing the taxes, when it is found that the rate of taxation was higher than the people could generally pay, the legis lation appears to have been entirely in favor of the tax title speculators. My predecessor approved on the 13th of January, 1840, a law to deprive every citizen whose lands may have been sold for taxes, of the right to contest the legality of the sale three years