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MORNING SESSION.

SENATE CHAMBER,

funds in worthless and spurious securities, and whose fault, if any, it has been that such fund has been so invested, and report their proceedings and the result of their investigation to the Senate at as early a day as practicable; and also embody in their report what legislation, if any, is necessary in their opinion for the better protection of the school fund. And for the purposes of a thorough, careful and correct investigation of the subject herein mentioned, said committee is hereby authorized and empowered to subpena and send for all necessary persons and papers; and each member of said committee is empowered and authorized to administer oaths and affirmations in the course of such investigation; and whatever further power is necessary for a full, thorough and rigid examination, as herein contemplated, is hereby granted.

By consent, and pending the consideration of the above resolution, Senator Parkinson offered Senate concurrent resolution No. 1, Providing for a joint committee to investigate the affairs of the permanent school fund.

The resolution was read by title, and laid over under the rules. Senator Crichton moved that the consideration of the resolution offered by Senator Peffer be postponed until after the reading of the Governor's Message, which motion prevailed.

Senator Peffer, by consent, presented a petition of George W. Martin, in relation to compensation allowed under existing laws to the State Printer, and moved that the petition be referred to a select committee of three Senators.

Senator Horton moved to amend so as to refer the petition to the Committee on Printing, which motion prevailed.

. The President of the Senate announced the appointment of Senator Wood as chairman of the Committee on Militia, and as member of the Committees on Judiciary, Finance and Taxation, Printing, and Retrenchment, in place of Senator Peters, resigned.

MESSAGE FROM THE HOUSE.

The following message from the House was received and read: MR. PRESIDENT: I am directed to inform the Senate that the House is now organized by the election of Hon. Dudley C. Haskell as Speaker, Henry Booth as Chief Clerk, and William Higgins as Sergeant-at-Arms, and is now ready to transact business. HENRY BOOTH, Chief Clerk.

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Senator Crichton, chairman of the select committee to wait upon the Governor, made a verbal report, stating that the Governor would communicate his annual message to the Legislature immediately.

MESSAGE FROM THE GOVERNOR.

The following message from the Governor was received by the Senate, and on motion of Senator Crichton, taken up for consideration, and read by the Secretary of the Senate:

To the Legislature: The circumstances under which the Legislature assembled a year ago were the reverse of encouraging. A great calamity had fallen upon the people. Grave apprehensions for the future were very generally entertained. Thousands who had been overwhelmed by the magnitude of the disaster were the grateful recipients of substantial favors from the more fortunate citizens of other States. The projects of legislation which exceeded all others in interest were those which looked to the relief of the people from immediate and prospective suffering. The annual message of the Executive dwelt largely upon this theme, and the appeals of the needy were coming up from nearly every quarter of the State.

Rarely has a transformation been more complete and surprising than that which a single year has brought about. Twelve months ago the whole country was agitated with the accounts of our trials and our destitution. I very much doubt whether there exists to-day, in any quarter of the globe, a population of six hundred thousand people, with a smaller proportion dependent upon public or private charity, than is to be found in Kansas. With improved circumstances has come an improved state of public feeling. Notwithstanding the financial depression common to the whole country, and the limited enterprise and progress incident to such a condition, there is a spirit of contentment and hopefulness abounding in the State such as has scarcely been manifested during its previous history.

Reflecting upon the benign influences which have conspired to bring contentment out of desolation, and from famine to evoke plenty, the hearts of the most indifferent must be lifted in humble gratitude to that Supreme Power in whose control are the destinies of States and individuals. There has, indeed, been no miraculous intervention, but it is not difficult to trace a beneficent superintendence in the rewards which have been assigned to hu

man activity and perseverance. Nor are our people likely to undervalue the matchless fertility of soil which, through the productions of a single year, has wrought such cheering results, and added so many millions to the wealth of the State.

While it is probable that no one will be disposed to question the faithfulness of the exhibit thus made in general terms, a few extracts from the agricultural statistics of the State will be found still more expressive. Thus, the cultivated area was 3,669,769 acres in 1874, against 4,749,900 in 1875; the taxable acres, 16,996,746 against 17,672,187 in 1875; the value of farm products, $29,920,734, against $43,970,494 in 1875; bushels of wheat, 9,881,383, against 13,209,403 in 1875; of corn, 15,699,078, against 80,798,769 in 1875; of flax, 174,698, against 447,864 in 1875. It need scarcely be stated that the agricultural interests of the State exceed all others in importance, and you will require⚫ no prompting to induce you to promote the prosperity of this interest by every legitimate means within your control.

I also gather from the statistics the cheering fact that within the past year the manufacturing establishments of the State have increased in number from 305 to 604, or about one hundred per cent. We may not, of course, reasonably look forward to the day when we will be able to compete with Eastern States in the variety and extent of our manufacturing industries, but we may certainly hope for their growth and development in such a degree as will enable us to supply the greater part of the home demand for staple articles.

My attention has been called to the great importance of an industry which has recently been established in this State, and which, with proper encouragement, bids fair to develop into extensive proportions. I allude to the culture of silk, as now in progress in Franklin county. The total value of silk consumed annually in the United States is stated to be $54,362,977, of which all but $10,452,409 is imported from foreign countries; and it is urged that with proper governmental recognition and protection all that is needed for home consumption might easily be produced in this country, as well as a surplus for exportation. The existing tariff seems to discriminate against home industry in this instance, and it is claimed that by placing the machinery requisite for the manufacture of raw silk upon the free list our own manufacturers may be able to compete with those abroad.

It occurs to me that it would be well to memorialize Congress on this subject, and, perhaps, also to offer a reasonable bounty for the growth of the plantations necessary for the maintenance of silkworms. I commend this interesting industry, as well as all our manufacturing interests, to your fostering care.

STATE FINANCES.

It is a source of continued gratification that, notwithstanding the general depression throughout the country, the treasury has promptly met all the demands which have been made upon it. The credit of the State is as good as any citizen could have reasonably expected or desired. The warrants drawn upon the treasury are equal to cash, while the few State bonds held in the East now command a premium. The fact that last year we were operating under a new financial system, with vastly reduced penalties for non-payment of taxes, renders the present financial condition of the State doubly gratifying.

The total bonded indebtedness of the State is 81,385,775, and the resources, belonging to various funds in the treasury are, cash, $123,745.01; bonds, $1,403,359.09; and taxes due from the various counties, $416,583.39: a total of $1,943,687.49. Of the bonded indebtedness, $769,550 is held by the State as an investment for its several permanent funds. Of the outstanding bonds, $150,000 will fall due on the first of July next. These were the first bonds issued by the State, and were authorized by the Legislature of 1861 for the purpose of putting the new State government in motion, and defraying its current expenses. The sinking fund in the treasury, created for the final redemption of State securities, has reached the sum of $227,525. This is invested in the bonds of the State and of the United States, and it will be the duty of the Sinking Fund Commissioners to sell a sufficient amount of them to take up the bonds about to fall due.

The total receipts of the treasury from taxes during the fiscal year, were $646,248.51, of which 430,774.79 was credited to the general revenue fund, the remainder going into the annual school, interest, and sinking funds. From the general revenue is paid the current expenses of the State government, including the salaries of State and judicial officers, the expenses of the Legislature, public printing, the support of our educational and benevolent institutions, and the money invested in the permanent public buildings. To a careful consideration of the items

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