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debt, and for other purposes." By section 8 of that act it is provided "that a direct tax of twenty millions be and is hereby annually laid upon the United States, and the same shall be and is hereby apportioned to the States respectively, in manner following: To the State of Michigan, five hundred and one thousand seven hundred and sixty-three and one-third dollars.'" The act then goes on to authorize the President of the United States to divide the States and Territories into convenient collection districts, and to appoint an assessor and collector for each district, and that each assessor may divide his district and appoint assistants. In section 13 of this act, it is further enacted, "that the said direct tax shall be assessed and laid on the value of all lands and lots of ground, with their improvements and dwelling houses," with certain unimportant exemp tions. It will be observed that this law introduces to us the United States assessor and tax-gatherer, individuals hitherto unknown to us, and whose acquaintance I think we are not desirous of making. The collector comes, also, with a new rule of taxation. He is to assess only the value of all lands and lots of ground, with their improvements and dwelling houses. The personal property is to escape altogether, if this rule is followed, and it seems that the constitution of the United States will permit no other rule to be adopted in case the tax is assessed and collected by the Federal Government. Section 53, however, enacts "that any State or Territory may lawfully assume to assess, collect and pay into the Treasury of the United States the direct tax, or its quota thereof, in its own way and manner, and by and through its own officers, assessors and collectors." And in case of such assumption and payment, or assessment and collection, a deduction of fifteen per centum will be made from the quota of direct tax apportioned to the State or Territory, notice of the same being given to the Secretary of the Treasury on or before the second Tuesday of February next. The same section (53) contains a proviso to the effect that "the amount of direct tax apportioned to any State shall be liable to be paid and satisfied, in whole or in part, by the re

lease of such State, duly executed to the United States, of any liquidated and determined claim of such State of equal amount against the United States." And in that case the same deduction is allowed as in case of actual payment into the Treasury. In order to secure such a deduction it is also required that payment into the treasury be made on or before the last day of June in the year to which such payment relates.

The advantages to be derived to the State from the assumption and payment of the direct tax, according to the provisions of the law of Congress, are so manifest and so great that I cannot doubt that you will adopt that course without hesitation. In that event it will be found that the State will be able to pay the entire amount of the tax due in June next, by its release to the United States, and without any resort to collections from the people, unless the tax should be increased by the present Congress, of which there is some probability.

The gross amount of the advances which the State has made on account of the General Government in the raising of troops, is about five hundred and thirty-nine thousand dollars, which is likely to be increased in finishing what remains to be com. pleted to about six hundred thousand dollars. Of this sum, ninety-two thousand dollars only has been refunded to the State from the appropriations made by Congress for that purpose For exact amounts I refer you to the reports of the Auditor General and State Treasurer. And for the precise details of the manner of the expenditure, and for what it was made, I refer you to the report of the Quarter Master General, and the vouchers and accounts of that office, and the State Paymaster on file in the Auditor General's office in pursuance of law.

Accompanying this message I submit for the consideration of the Legislature, a circular transmitted by the Department of State at Washington, in October last, to the Governors of the loyal States, upon the subject of the fortifications of our sea and lake coasts. With this circular the public are already familiar. At the time of its issue it was difficult to perceive any adequate reason for it. In fact it seemed more likely to


create ill-blood and furnish the occasion for trouble with our immediate neighbors than to assure the continuance of peace. The circular is, however, altogether temperate in tone and without offence to any. Subsequent events have put an entirely new face upon the whole subject. The British people, both American and transatlantic, seem suddenly, and to us mysteriously, to have become possessed of the passion for war. Turning their backs upon all their history for the last half century, they are anxious to assist the assassins of liberty in the South to establish a slave oligarchy there upon the ruins of the American Union. It is patent to all the world that we seek nothing but peace with them. Involved in a trying domestic struggle, war with England, at any time a great misfortune, would be now an evil of incalculable magnitude. This the British government cannot fail to know. With our immediate neighbors of Canada we have been on terms of the most perfect amity for many years. Notwithstanding their strange excitement of late, our people still entertain the most friendly spirit towards them. We have not mounted a gun upon one of our dismantled forts, nor committed any act to disturb our friendly relations with them. All our business interests have become so interlocked that in our material progress, we have became almost as one nation. Our railroads and theirs are only parts of the same great lines, and our currency and business intermingles throughout the entire regions lying near the boundary. Nor have our relations with the mother country been much less intimate. British capital has been largely employed in the improvement of our country, and we have been, in turn, a valuable customer to them. And all this has been mutually beneficial. Can these people have thought what it will cost them to destroy it? and do they see clearly what they will gain in its place by war?

The apparent cause of the excitement was the seizure of Mason and Slidell, on board the British steamer Trent, but I cannot bring myself to believe that to be the real cause. It seems to be wholly insufficient to be made the ground of such a prodig.


ious tempest, and I think it will before long be made clear, that the British Government has concealed designs, and only seeks a pretext for a rupture. Mason and Slidell, after being given a very mischievous importance by their detention, have now been given up to the English Government. Whether that course was wise or not, it does not become me to judge; at least, it does not change my purpose of recommending to you to put the State in a posture of defence as soon as may be, and for this purpose I think we need not so much fortifications as a full supply of arms for the people, and a powerful war marine upon the great lakes. Michigan is to be defended, if it comes to that, not upon her own ground, but upon the soil of Canada. Give us arms for the people, and the undoubted control of the lakes, and fortification may be safely left to the most convenient season. Not that fortifications would be useless, but that our main dependence cannot safely be rested upon them, for reasons too obvious to require a statement here.

I recommend, therefore, that provision be made for the reorganization of the uniform volunteer militia of the State to constitute an active force, and the speedy enrollment of the entire body to be subject to draft at any time. This may be done under our present laws with some amendments, or by the adoption of a new system similar to that in force in the State of Massachusetts. It will not be necessary to incur very heavy ex penses in effecting the organization until the force should be actually required for service, and for such an event adequate provision would require to be made. In addition to the organization of our own forces, I think it would be advisable for the Legislature to urge upon the attention of Congress the great and immediate necessity of establishing at some safe and convenient point in the North-West, a great arsenal and manufactory of arms and munitions of war, and also a naval station, to be located in some safe, spacious and convenient harbor of the State of Michigan, as being by all means the most advantageous, both from the extent of her coast and her

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unrivaled resources in all the materials for ship-building. As to the particular locality, you, gentlemen, are the better judges.

I also submit herewith a preamble and resolutions of the Board of Regents of the University of Michigan, which the President of that body has requested me to lay before you. By the resolutions the Board propose to establish a military school at the University, whenever the State will add to the fund $100,000, securing a permanent additional income of $7,000 yearly. That such a department as the Board proposes to establish, would be exceedingly advantageous to us as a State, I presume no one will doubt. The war in which we are now engaged has proved that we cannot safely neglect the military education of our people. Whether the present is a fitting occasion for the establishment of the proposed school, all things considered, I must leave entirely to the better judgment of the Legislature.


By the act of the extra session, approved May 10, 1861, the Governor was authorized to muster into the service of the State the volunteer militia, in number not to exceed one hundred companies, the Coldwater Light Artillery, and a corps of sappers and miners, not to exceed one hundred in number. At the time of the passage of the act it was supposed that this was as large a force as Michigan would be called upon to furnish, in any event. Such, however, was not the case. whole force authorized by the law has been put into the field, and the State has raised, and is now raising, eleven regiments more, the United States government paying the expenses, making twenty one in all; besides six batteries of light artillery, a squadron of cavalry, and a number of organized companies of infantry, which have joined regiments in other States, making a total of troops furnished by the State of Michigan of about 24,000 men. For details in regard to these forces, I refer you to the full and complete report of the Adjutant General. The aggregate cost to the State, of organizing, uniforming, paying, transporting and subsisting the troops authorized by the law, including the First Regiment, which was mustered out at

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