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year, as estimated by the Commissioner from the partial returns received by him up to the present date :

CULTURE. Whole No. acres occupied for farming purposes......... ......... 3,300,000 No, acres under cultivation....

520,000 No. of farms...

22,000 Average No. of acres tilled per farm......

23 PRODUCTS. No. bushels of wheat harvested....

5,400,000 corn

2,200,000 oats

3,900,000 potatoes

2,000,000 AVERAGE YIELD PER ACRE. Wheat.... Corn..... Oats..... Potatoes.

The great preponderance of the wheat product shown in this statement, indicates the marked adaptation of our soil and climate to the cultivation of this important staple, and foreshadows the high place it is 16. fuld hereafter in the agricultural industry of the State. It is an intere: ill. fact that Minnesota produces more wheat per capita than any State in the Union, being in the proportion of 30 bushels to one inhabitant, while Wisconsin produced last year but about 22, Ohio but 11, and Iowa only 20 bushels.

Of the products above enumerated there have been forwarded to market, Or Wheat.....

......750,000 bushels. Other grains...................................

... 60,000 " Potatoes.................................

.................... 20,000 Estimating the consumption of wheat by our own population, in food and seed, at 1,500,000 bushels, the surplus in that article alone will be 3,900,000 bushels, of which 3,150,000 bushels yet remain in the country. As our other farm products are raised mainly for domestic consumption, they do not form iinportant items of export.

The value of the surplus products of Minnesota in 1859, was estimated at two million dollars. The exportable surplus of the past year may be valued approximately as follows: Grain......

..................$2,800,000 Potatoes....

10 000 Lumber....

629.000

190,000 Cranberries.....

20,000 Gioseng....

70,000 Hides.......

30,000 Other articles....

100,000

Furs.......

$3,939,000 Exbibiting an increase in one year in the nett results of our domestic industry of nearly 100 per cent. Certainly, then, if we have not of late doubled our numbers annually, we have clearly acquired sounder views of domestic and political economy.

While reviewing the progress and improvement of the past year, it is fitting to speak with proper commendation of the labors of your immediate predecessors. They reduced the number of members composing the Legislature nearly ope-balf, and provided for the submission to the people of an amendment to the Constitution, limiting the sessions of the Legislature to sixty days; which amendment, I am glad to say, was ratified by a very large majority. These two measures will effect a reduction in the Legislative expenses of at least $27,000, over the average bitherto.

In remodelling the system of Town and County organization, their legislation has been found to give to these corporations both more efficient and cheaper government. They also, in many other respects, reduced the current expenses of the State Government; and they wisely limited the rate of allowable taxation by counties and towns.

Recognizing the fact that the assessments of previous years were made confessedly at speculative and fancy rates, and that there bad been no limit assigned by law, and almost done found in practice, to the ruinous

rates of taxation which these subordinate corporations could impose, they abated the interest upon the delinquent taxes of previous years, if paid before a certain day. They had a double purpose therein ; to relieve the people, as far as possible, against the effects of official extravagance of the past, and to put the finances of the State in sounder condition, by calling in, if possible, the delinquent taxes. As the same reasons yet exist, I would recommend another attempt, by remitting the interest due on delinquent taxes levied under the old system of taxation uolimited by law, if received prior to a certain time, to secure the payment of the large arrears yet due the State.

The last Legislature enacted a law relating to the assessment of taxes, intended to secure the just and equal valuation of the property of the State, which is believed to be worthy to remain a lasting regulation in that regard. The election law of the same session provides increased and ample pains and penalties for any attempt to tamper with the independence of voters or the purity of the ballot box. The provision therein for the registration of voters, changing as it does, the time and mander of making the proof of a right to vote, while it adds no new and unconstitutional qualification of such right, should accomplisb, in a great degree, that prevention of fraud which is better than any subsequent punishment of th: perpetrators.

Such is a brief statement, by no meaos exbaustive, of the labors and accomplishments for us, of the year that has just closed. It explains and justifies the renewed confidence and increasing energy and business activity, wbich, prior to the late and now passing events of political insubordination, began to be felt througbout the community.

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I believe we have every reason to anticipate a continuance of growth in prosperity, if the various departments of government in legislation and administration, as well as the people in individual effort, bear ever in mind the bright future, the glorious destiny of our State, easy of acomplishment, if not inevitable, while acting always with due regard to the present parrower and more straitened circumstances of the Commonwealth. We may confidently expect, within the next decade, to equal if not surpass the increase in population of any other State in the corresponding period of its history. We lack no inducement which they could offer, to encourage settlement. Indeed we claim advantages over any other, the most favored. Let us be liberal and comprehensive in our designs, as becomes our expected development, but prudent and economical in administration, as comports with our existing condi. tion.

The Reports of the Auditor and Treasurer will be laid before you, from which our financial condition will be evident. The receipts of the Treasury from all sources, from the 1st of December 1859, to the 1st of January, 1861, were as follows: Balance in Treasury.........

......... $1,014 16 From tax of 1859........... From tax of previous years. ......

8,475 27 From U. S. Treasury (by appropriation)............................. 24,805 09 From U, S. Treasury (5 ct. fund)....

91 50 From sale of grass on School lands.....

... 10 00 Total......

..............$139,522 62 During the same period the total disbursements were as follows : Scrip cancelled and returned to Auditor.....

..... $138,051 34 Discount on depreciated Minnesota currency returned to Auditor..... 795 45 Total.........

.......... $138,846 84 Balance on hand Jan. Ist 1861..

675 78 The Federal Congress by an act approved June 16, 1860, appropri: ated to the State of Minnesota, so much as then remained undrawn of a former appropriation of $26,000, made March 3, 1856, to defray the expenses of the Territorial Legislature. The amount received from the United States Treasury by virtue of this appropriation, which was, under the circumstances, cl arly just and due to the State, was $24,805,09. – With this were paid the warrants issued in payment of the interest due in January and July, 1860, on the Minnesota 8 per cent. bonds, and also territorial Bonds issued by Gov. Medary, under the act of 23d of May, 1857, $3,500 of which and interest, I discovered after the adjournment of the Legislature, to my great surprise, were still extant. These bonds bore interest at the rate of twenty per cent. per annum, and were due two years from date. As they had been long over due, the question of the interest to be paid after maturity, presented itself in this case :

whether the State should continue to pay the same interest after dae as before, or avail herself of the decision of her highest court, which determines that between individuals, on the breach of the contract to pay at maturity, interest technically so called, ceases, and damages for the deten. tion of the money are to be assessed at 7 per cent. per annum.

That decision is declaratory of the existing law, and it seemed that a payment by the Executive Department of the unabated rate of interest, without an act of the Legislature, would be a payment against law as declared on the highest authority. Accordingly the Treasurer paid only the amount found due according to the rule established by the decision just referred to. Although advising this at the time, as the only proper course for a public officer, I submit to your favorable consideration the

question of appropriating a further sum to Mr. English, equivalent to the balance unpaid, computing interest and damages alike at twenty per cent. per andum.

The floating debt of the State may be stated as follows, including warrants issued in payment of the interest due, January 1st, 1861, on the 8 per cent. loan: Outstanding warrants....

:::............. $51,314 44 Indebtedness for which warrants are not yet issued, about......... 8,000 00

$59,314 44 The floating debt due January 1st, 1860, was then estimated by me at $80,000 : a more particolar calculation by (the Treasurer has found the amount to have been somewhat over $85,000. From this it appears that the floating debt has been reduced within a twelvemonth by the sum of $26,000.

To estimate the probable expenses of the present fiscal year, with a view to the required appropriations, it is necessary to examine those of last year in detail. The statement which follows, is based on that contained in the Auditor's Report, simply correcting the same, in the case of the item of State Prison expenses by the accurate report of the Warden, and assigning to the year 1859 its proportionate share of the expenses of the Legislature which sat twenty-five days in December of that year, and of the printing ordered by that body, on the principle that each year should be charged with the debt therein incurred, and not the liabilities therein discharged. I have also omitted, now as formerly, to include the interest on the State debt in the current expenses of the gov. ernment: Executive Department..... legislative Department..........................

................................$18.500 00

...... 87,856 00 Judicial Department.......................

19, 200 00 Public Printing.......................

14,120 00 State Prison ...

3,593 88 Normal School...

2,000 00 $95,269 88

CIDR ....................................................

Total.

The gross amount, it will be perceived, falls short of my estimate made January 2d 1860, only some $280,00.

The wise reduction of the number of members of the Legislature, and the limitation of their session to sixty days, will work a very satisfactory retrenchment of expenses. You may also bear in mind, that as your predecessors made a saving to the Treasury by providing for the limitation of all sessions, you may perhaps be able to add to their good work by making the present one laborious and short.

The Treasurer has prepared a careful estimate of the expenses for 1861, considerably in detail, of which I here present the aggregate : Executive Department......

................. $18,500 Judicial Department....

19,400 Legislative Department..

19,800 Printing :................

12,000 State Prison..............

5,000 Total........................................

................ $74,700 Let your scrutiny of appropriations keep the ordinary expenses within that limit, and we may safely anticipate a gratifying record to be exhibited of the position of the State's finances in January, 1862.

The aggregate demands on the Treasury during this fiscal year may be, then, quite accurately stated as follows : Ordinary Expenses..

......................... $74,700 July interest 8 per cent.............

10,000

59,000 Prison accommodations.....

5,000 Railroads.

4,000 Total.. To meet this we have the tax of 1860, due March 15th, 1861,

::::.. $152,700 amounting to..... Delinquent tax, due Jan. 1, 1861........

"............. $147,018 58

........... 216,594 22 Total...............

........................ $863,607 75 With the increased ability of our people to pay, I believe it is not too much to hope that the receipts of taxes for the fiscal year ending December 21st, 1861, will be sufficient to pay every indebtedness of the State excepting her funded debt.

In conclusion of this subject, and as a general exposition of our aims and responsibilities, I would repeat to you gentlemen, remarks first ad. dressed to your predecessors:

“It will not be expected of us, that in a single twelve month, we shall discharge every indebtedness incurred in the past, and provide for every want of the future, while economising the expenses of the present. We can at most, institute a system of retrenchment and encourage a policy of conomy, by which, if persisted in for a few years, the State sball be disencumbered of her floating debt, her annual expenses kept within her annual resources, and while the burdens of taxation upon her people shall

Floating debt........................................................

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