The University and Normal School Lands are very nearly all sold; and consequently these funds can be but slightly increased. Of the Primary School Lands, however, enough remain to increase the Fund nearly two million dollars. It is a question, perhaps worthy of consideration, whether with the increased value of all kinds of property, the prices of these lands should not be increased to more than four dollars per acre; or whether they should not be graduated according to value. The University lands were selected tracts; and sold for twelve dollars per acre. The Primary School Lands are the sixteenth sections of the townships; including all qualities, from the utterly worthless to the most valuable. Why should they not be appraised by a competent Commission before sale? A more detailed statement of the Educational Funds, is shown as follows:

PRIMARY SCHOOL FUND.

The amount realized from Primary School Lands

during the past year, deducting forfeitures, was, $124,531 13 The amount for lands previously sold was, .... 1,911,863 58

......

Making the total amount Nov. 30th, 1866,...... $2,036,394 71 Of this, the State holds,....

Leaving due from purchasers, payable at their pleasure,

1,268,330 63

768,064 08

Total fund drawing 7 per cent.,..

$2,036, 49 71

The fund from Swamp Lands, on the 30th of

UNIVERSITY FUND.

The State University Fund, on the 30th of November, 1866,

was as follows:

Principal due from purchasers, payable at their

pleasure,

In the hands of the State,.

Total,....

Income for the year,..

Amount annually credited to the Interest Fund

by Act of the Legislature,....

Total income for the year,.

NORMAL SCHOOL FUND.

$159,705 40

279,565 22

$439,270 62

$31,155 08

7,000 00

$38,155 08

The Normal School Fund, at the close of the fiscal year,

None of the Agricultural College lands have yet been sold, and the abundant endowment which these lands will provide, is not yet realized. The Institution has been sustained by an appropriation by the Legislature, of $15,000 per annum.

THE REFORM SCHOOL.

The Reform School has no endowment, present or prospective. The appropriations by the Legislature for the past two last years were are follows:

For payment of arrearages,.

$14,000 00

For purchase of additional land,..

For current expenses for 1865 and 1866,.....

5,206 25 44,000 00

Total current and extra expenses for two years,.. $63,206 25

The Board of Control report a debt at the close of the fiscal year, of $16,000, incurred by the increased cost of living, and the large increase of inmates. For the next two years they ask for $105,000; of which $32,000 per year will be required for current expenses.

AGGREGATE OF EDUCATIONAL FUNDS.

The aggregate of the Invested Educational Funds of the State, as above shown, is as follows:

Primary School Fund,..

University Fund, including $100,000, not in the.

above, but upon which the State pays interest, Normal School Fund,.....

539,270 62

65,996 69

$2,780,292 73

138,918 83

The statistics, as gathered from the School Inspectors' Reports, give the most reliable evidence in relation to the general prosperity of the State, as well as of the progress of popuular education. The School Census shows the increase of population with about as much accuracy as a census of the whole people; and the amount expended for school purposes, as compared with other years, is a good criterion of financial affairs.

The increase of townships and districts reported, indicates well the development of the State, and the advancing wave of population. The increasing expenditures for school purposes, show that the cause of education keeps pace with material progress.

In all these respects the School Reports for the year 1866, are peculiarly gratifying.

No reports have been received from eight towns, which in 1865, reported 513 children. Exclusive of these, reports have been received for 1866, from 735 townships and cities—an increase of twenty-two. No new Counties are reported.

The number of districts is 4,625,-an increase of 151. The number of children between the ages of five and twenty years, is 321,311. This is an increase during the year, of 22,704. This is considerably the largest increase of any year in the history of our State. That of 1865 came the nearest to it, viz: 17,440. From this result in the School Census, we may judge with tolerable certainty, that a population of not less than 70,000 was added to the State the past year. The number reported attending school is 246,957, an increase of 18,328. It should be remarked that this item is by no means reliable; many directors evidently taking the totals of the summer and winter schools, thus counting twice all who attended both terms. On this ground, I doubt not the whole number might be reduced ten or fifteen thousand.

The value of school-houses reported is $2,854,990, an increase of $499,008. The amount expended for buildings was $339,620-the difference probably being in the increased valuations, or not far from 7 per cent., certainly far short of what might reasonably be added. A fair addition to the valuation would no doubt place the value of our school-houses at three million dollars.

There were 1,687 male teachers employed, at average wages of $43 60 per month-a total of $275,676 19; and 7,495 females, at averages of $18 44 per month-a total of $539,175 18.

The total school resources amounted to $1,587,438 95. This

is exclusive of township library funds, for payment of services of inspectors, and board of teachers. Of the latter item, $155,083 63 is reported, though nearly half of the directors fail to report any estimate of the amount, as requested.

There have been added to district libraries 5,116, volumes according to the Reports. 79,594 volumes are reported. There were 95,577 the previous year; indicating a loss of nearly 20,000 volumes. The number of volumes in the township libraries is not yet compiled; but that, in most parts of the State the libraries are rapidly going to annihilation, there is little doubt. This is only for the want of some legal provision for adequate funds for their support. That it is not for the lack of interest is shown in the fact that, in some sections, as in Wayne county, where the receipts from fines, &c., amount to a considerable sum, the libraries, both township and district are in a flourishing condition. In Wayne county the amount paid for district libraries was $2,577 21. There were added, 2,727 volumes; making in all, 16,915 volumes.

The following table will show the progress of our school interests in several leading items, for the past ten years. The census of the last six years was of children between five and twenty years of age, and the previous four, those from four to eighteen. The number would be about the same whichever way the census is taken. The lower line shows the increase of 1866 over 1865: