enue from specific taxes is rapidly increasing-and it is not unreasonable to expect that in a few years there will be sufficient realized from this source to defray all the ordinary expenses of the State government. Limited biennial sessions of the Legislature will materially lessen the State expenditures, and proportionably relieve the people of the burthens of taxation. The educational funds, with the liberal provisions of the last Legislature in favor of schools, are amply sufficient to secure the universal education of the youth of the State:

RECEIPTS AND EXPENDITURES FOR THE YEAR ENDING NOVEMBER 30, 1851.

To this amount add $147 98, for outstanding warrants, which will make $97,391 21, the amount in hands of State Treasurer Nov. 30, 1851.

EXHIBIT OF FUNDS.

The foregoing table shows the several funds belonging to the State, all of which will be treated of under their appropriate heads: GENERAL Fund.

Taxes, office charges, expense sales, &c.,.$39,719 14

Licenses and duties,..

Salt spring lands,....

691 72

1,108 36

Specific taxes, (see statement No. 7.,)... 27,717 30

Rec'd from sundry counties,

71,199 29

Redemptions, State tax lands, &c., ... 23,112 88

Proceeds of sales,

Rec'd for carpet,..

46,481 97

18 56

$210,049 22

There is now due and payable out of the above fund $20,610, for interest on General Fund Bonds-$19,140 00 of which is due the United States, on bonds held in trust for the Cherokee tribe of Indians-but, as the amount advanced by this State ($17,193 70,) for the regiment raised here during the late war with Mexico, and which is a just and proper charge against the United States, remains unprovided for, I see no reason why we should not continue to neglect to pay the interest on the bonds thus held, until this advance, as well as the claim for expenses incurred while a Territory, in maintaining our Territorial boundary, shall have been adjusted. The Legislature of last winter passed a joint resolution relative to those advances, and requested our Senators and Representatives in Congress to use their influence to procure the passage of an act or joint resolution, by Congress, authorizing or requiring the proper officer of the treasury department to allow and pay to the State the money thus expended.

Our delegation, in compliance with the above resolution, will no doubt use all honorable means to procure a final and equitable adjustment of these claims.

There will be due and payable out of the General Fund, for interest on bonds other than those held by the United States, the sum of $5,910 00. Arrangements will be made for the payment of these coupons on presentation at the Phoenix Bank.

There are some other liabilities against the General Fund, but none which will require a very large amount to be kept on hand, as there will be sufficient received from time to time in the State Treasury, to liquidate all such demands.

INTERNAL IMPROVEMENT FUND.

Large amounts have heretofore been drawn from the General Fund, in aid of the Internal Improvement Fund; but the amount appropriated by the last Legislature, together with other resources, will be amply sufficient for the next two years to meet all liabilities, and the Legislature will, no doubt, continue to make provision for the prompt payment of all demands, without encroaching upon any of the other funds. The $13,260 interest bonds, due January 1, 1850, mentioned in the last report from this office, remain unpaid, not having yet been presented to the Phoenix Bank in New York. The State Treasurer however, has made an arrangement with the Bank to take up said bonds when presented, and to notify him immediately of the fact. This arrangement obviates the necessity of keeping that amount lying idle in the city of New York. There will also be due and payable at the Phoenix Bank, from the Internal Improvement Fund,

$13,721 04, for interest past due and unpaid, and which will become due January 1, 1852, on outstanding $5,000,000 loan, Detroit and Pontiac Railroad, and adjusted bonds. The Treasurer will forward this amount previous to the 1st of January, and the coupons will be promptly paid. The interest on the Internal Improvement Warrant bonds past due, and to become due January 1st, 1852, amounting to $7,459 50, (exclusive of the bonds that may be issued between Nov. 30, 1851, and January 1st, 1852,) will be paid on presentation of the coupons at the State Treasury.

The amount of interest payable from this fund is liable to be largely increased by the surrender of part-paid bonds, and the issue of adjusted bonds therefor, as interest commences on the 1st of January succeeding such issue. There will be at least $9,000 more interest payable on this class of bonds in 1852 than there was in 1851. The Legislature foreseeing this, appropriated for 1852 $75,000 to this fund and for 1851 only $29,000. It is expected that a large portion of the $2,831,000 part-paid bonds now outstanding, will be surrendered during the coming year, as the constitution of 1850 fixes the amount at which they shall be funded, and the holders can no longer reasonably entertain any hope of increasing it. The sooner these bonds are surrendered and new bonds issued therefor, the sooner the holders will commence drawing interest upon the interest already accrued.

The amount now due the Primary School Fund is $238,252 18,