The revenue of the General Fund, exclusive of the annual appropriation of $200,000, from the surplus canal revenues, made by the Constitution, and including a temporary loan to the treasury of $15,000, was,

...

The canal revenues were,.•

Aggregate revenue,....

$792,451 69 3,442,906 62

$4,235,358 31

during the year,

The payments on account of the General Fund amounted to $812,228.49, leaving a surplus of the revenue on hand, on 30th September, of $113,279.22.

The payments out of the canal revenues were:

1. Expenses of collection, superintendence and ordi

nary repairs,.

2. Appropriations made by article 7 of the Constitution, toward the Sinking Funds, and to defray the necessary expenses of the government, ...

Total payment,.

$685,803 91

1,850,000 00

$2,535,803 91

This amount of payments deducted from the canal revenues of the year, leaves the sum of $907.102.71 applicable to the completion of the Erie canal enlargement, the Genesee Valley and Black River canals.

Notwithstanding the prevalence, during nearly the whole of the past season, of an epidemic disease, which greatly interrupted all commercial business, and diminished the amount of transportation on the canals, the receipts from tolls, &c., during the past year show an increase of nearly $225,000 over the receipts from the same source during the preceding year; while the fact that the canals were in excellent condition, and that the expenses of collection, superintendence and ordinary repairs are nearly $170,000 less than during the preceding year, is strong evidence of the economy, skill, and good management which have been infused into this department of the public service, under the direction of the Commissioners in charge during the year.

The General Fund debt exceeds the amount stated last year, by the sum of $400,000. $385,000 of this amount constitute the sum directed by chapter 225 of the laws of the last session, to be paid to the use of the Canal Fund, to repay the principal and interest of the amount stated to have been paid from the Canal Fund to the General Fund after the 1st of June, 1846, beyond the amount limited by the Constitution. The object of the act authorizing this re-payment, was to effect an adjustment between the two funds, in order to conform their respective actual amounts to the amendments which the Constitution made to the previously existing laws, and which amendments related back to the 1st June, 1846, although not adopted until some months subsequently. The remaining $15,000 of the above [SENATE JOURNAL.]

2

sum, were borrowed in pursuance of chapter 188 of the laws of 1849, for the building of the State Arsenal, and is to be reimbursed from the avails of the sale of the land in the city of New-York heretofore occupied for the arsenal.

The annual interest on the General Fund debt, now amounts to $354,829.86, while the annual amount set apart by the Constitution from the surplus revenue of the canals, as a Sinking Fund to be applied to the payment of the interest and principal of this debt, is but $350,000; showing a deficiency to meet the interest in each year from this appropriation of $4,829.86, which must be paid out of the revenues of the fund; throwing another burthen upon the fund, and presenting a strong admonition for the necessity of economy and discretion in the amounts and objects of legislative appropriations. With prudence in this respect, the revenues of the fund it is thought will be fully adequate to meet the current and legitimate drafts upon them.

Of the canal debt, $3,140,819.34 will become due prior to January, 1856. The avails of the canal debt Sinking Fund will be sufficient to meet this amount, as the surplus for the years 1851 and 1852 can be arranged to meet the loans falling due in 1851, and no further loan on the credit of the fund will be required to meet the stocks now outstanding until the 1st January, 1856, when $4,000,000 will become due.

cent.

On the 1st of July last, $2,149,000 of the canal debt fell due; all of which, with the exception of $87,000, bore interest at seven per The appropriations made by the Constitution from the surplus revenues of the canals to the Sinking Fund, not being sufficient to retire the canal debt as fast as it falls due, the 5th section of the 7th article of the Constitution, authorizes loans upon the credit of the Sinking Fund for this purpose. In pursuance of this authority, and under chapter 216 of the laws of 1848, $1,739,024.76 were borrowed in June last, redeemable in July, 1865. A loan has also been effected during the year, under the 10th section, of article 7, of the Constitution, and in pursuance of chapter 228 of the laws of 1849, to the amount of $50,000 for extraordinary canal repairs. And a further loan has also been negotiated, on the credit of the Sinking Fund, under chapter 232, of the laws of 1849, for the purpose of discharging the claims against the State, for damages and awards due prior to 1st June, 1846; which, although not then liquidated, constituted a part of the canal debt at that date, for the payment of which, the 1st section of article 7 of the Constitution, creates the Sinking Fund.

These several loans bear interest at six per cent, and it may be remarked with just pride and satisfaction, in contemplating the high credit of the State, that these loans, running for fifteen and sixteen years, respectively, have yielded an average premium of 11,7% per

cent.

A law passed last winter authorized the borrowing of a sum of money to repay to the city of Albany, certain expenses incurred for excavating and cleaning out the basin, opposite to that city, at the termination of the Ene and Champlain canals. The necessity for

borrowing this money, will be obviated, if the Legislature shall think proper to direct the application to the repayment contemplated by the act referred to, of the premiums received on the loan of $1,739,024.76 effected last summer, which amount to $207,954.56.

The enlargement of the Erie canal, and the completion of Black River and Genesee Valley canals, are progressing as rapidly as consists with the limited appropriations for those objects under the Constitution. In the spring of 1850, 122, miles of the enlarged Erie canal, and 415 enlarged structures will be in use; being an addition of 13 miles, and of 47 structures during the year.

Of the Black River canal, 34 miles are finished, and ready for navigation and will be open for use with the other canals next spring. Of the Genesee Valley canal, 36 miles beyond its present termination are in such state of forwardness, that they can be brought into use in the course of the next season.

The appropriation made by the last Legislature for improving the upper waters of the Hudson river, has been judiciously applied, and will have the effect of opening new tributaries of revenue to the Champlain canal, as well as new channels of approach to a large and hitherto secluded region, rich in the products of the mines and the forest, and which, until recently, had received but little if any aid from the State toward the development of its resources.

The condition, on 30th September last, of the three funds whose revenues are applied to purposes of education, was as follows:

The adoption by the people at the last annual election, of the act to establish free schools throughout the State, will effect a most important change in the system of common school education. Under this law, the common schools are to be free to all persons over five and under twenty-one years of age. On the first day of July last, there were 11,191 organized school districts in the State; being an increase of 570 over the number reported last year; and the number of children taught in the common schools during the year, was 778,309, being an increase of 2,586 over the preceding year. There are 1893 unincorporated and private schools in the State, comprising 72,785 pupils. The aggregate amount of public money received by the several common school districts, from all sources, during the year, was $846,710.45. Of this sum, $626,456.69 have been apportioned for the payment of teachers' wages. In addition to which, $489,696.63 were raised in the several districts on rate bills for the same object, making an aggregate of $1,143,401.16 expended for teachers wages during the year ending 1st January, 1849.

The whole number of volumes in the district libraries, is 1,409,154; 70,306 volumes having been purchased during the year, and $93,

104.82 having been expended for district libraries and school appa

ratus.

Of the schools before mentioned, 35 are for colored children, in which upwards of 4000 children have been taught, at an aggregate expense of $5,016.57; of which $2,149.60 were contributed on rate bills by those sending the children to school. Considering the usually very limited means of our colored population, this large proportionate contribution voluntarily paid by them, shows a most commendable desire, on their part, to secure to their children the benefits of education.

I

The Report of the Superintendent of Common Schools, will probably suggest some amendments to be made to the existing laws. trust that they will be such as will commend themselves to your favorable consideration.

The Normal School was removed, on the 31st of July last, to the large and commodious edifice which the State has recently erected for its use, at a cost of $25,000. The benefits resulting from this institution, are fully justifying the warmest anticipations of its friends, and are making themselves manifest in the improvement already effected among the teachers of Common Schools. The whole number of pupils admitted to the institution since its organization, has been 1129; of whom 428 have graduated, nearly all of whom are now engaged in the duties of common school teachers. The present number of pupils is 217.

A proposition will, as I am informed, be made to you to authorize the instruction at this school of a limited number of Indians, in the hope, by this means, of introducing a higher order of education and of civilization among the small remnants of the Aboriginal race which are left within our borders. I solicit for this proposition your attentive and favorable consideration, as a measure not only prompted by the dictates of humanity and benevolence, but demanded alike by considerations of high policy, and upon principles of justice toward a class of our population, who, from having once been the lords of our soil, and the founders of a beautifully simple and essentially republican government, have gradually wasted before the advances of the white race, and have dwindled in energy and in numbers, and have sunk into a state of tutelage which demands the fostering care of the Government.

In pursuance of a concurrent resolution of the Legislature, passed on the 6th of April last, I appointed a board of commissioners to mature a plan for the establishment of an Agricultural College and Experimental Farm, and to prepare a statement of the probable expense of such an institution, and a detailed account of the course of studies and plan of operations recommended.

The board entered zealously into the views of the Legislature, and has gratuitously devoted much time and labor to advance the important object contemplated in the passage of the resolution. I submit herewith their report. It is eloquent, and powerfully argues in behalf of the advancement of agricultural science. It is not improbable that differences of opinion will exist with regard to the details, and to the

extent and variety of the branches of knowledge which it is proposed to embrace within the course of instruction. But I most earnestly hope that no such differences, and that no other cause, may prevent the establishment and the endowment, upon a wise and comprehensive system, of an institution so beneficient in its design, and so promising of enduring and beneficial results, as a school for instruction in practical and scientific agriculture, and in the mechanic arts. There is a growing interest on the part of the people in the advancement of agricultural science. The Fair of the State Society, held at Syracuse, in September last, was attended by a larger number of persons than had ever before been assembled on a similar occasion in this State. And the exhibition of the various implements and products afforded a gratifying evidence of the success of this society, in the advancement of the great objects which it aims to accomplish.

The nature of the circulation issued by banks, as the representative of the precious metals, often forces it upon those who are incapable of exercising a discrimination as to its value, or whose necessities compel them to forego that exercise. Our laws have, therefore, provided safeguards for its integrity and its redemption; and the paper currency of our state may be regarded as healthy and sound. Some further legislation is deemed advisable for the prevention of abuse in the organization under the General Law, of institutions, designed rather to profit from the mere issue of notes, than to furnish banking facilities to the business community. The time will soon arrive when it will become necessary to consider whether the securities required by existing laws, to be hypothecated for the redemption of the circulating bank notes, will be sufficient in amount to furnish a basis for the circulation that will be requred to be issued upon that pledge, when the charters of the several incorporated banks shall expire, and they shall be brought under the provisions of the General Law. The operation of the Sinking Funds is gradually but certainly withdrawing our State Stocks, and will eventually render necessary the substitution of some other securities. The Report of the Comptroller will present some important suggestions with reference to these matters, to which I solicit your careful attention.

The large influx of the precious metals, which is pouring in from the Pacific regions, is adding rapidly to the amount of coin in circulation, and furnishes another and a pressing reason for a demand from this State upon the General Government, for the establishment of a Branch Mint, or for the removal of the principal Mint to our great sea port, which is the point of arrival of nearly all the gold introduced from California. It is earnestly hoped that Congress will no longer delay an act so imperatively demanded by the interests of the country.

In my Annual Message to the Legislature last year, I presented to their consideration several subjects, in my opinion, worthy of their attention, accompanied with such remarks as were deemed appropriate. I will not detain you by a repetition of what was then said; nor will I enlarge upon the reasons which induced me to present them to the notice of your predecessors. I shall merely allude to