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ing from the loan to be credited
to the war fund. Under the pro-
visions of this act I have issued
bonds to the amount of,.........$230,000 00

All of which were taken up by
this office for the sinking funds.
Of the amount levied for interest on

the “War Loan,” I have credited the war fund for the amount of interest actually paid,....

54,019 00 Amount of State bounty refunded, 50 00 The war fund is now overdrawn,.... 73,218 43

$943,603 79


During the past fiscal year the following sums have been set apart for the several sinking funds, to wit: War Loan Sinking Fund, from 1-16th mill tax,.. $10,753 49 War Loan Sinking Fund, from surplus of taxes levied for interest,...

30,674 00 Two Million Loan Sinking Fund, from 1-8th mill tax, .....

21,506 98 Primary School Fund, receipts from July 1, 1863, to July 1, 1864,...

131,892 19 University Fund, receipts from July 1, 1863, to July 1, 1864,..

24,454 59 Normal School, receipts from July 1, 1863, to July 1, 1864,..

2,510 93

$221,793 18

I have invested $230,000 for the sinking funds in war bounty bonds, as before stated.


The funded interest-bearing debt of the State is as follows, to wit: Renewal Loan Bonds 6's, due January 1, 1878,.. $216,000 00 Two Million Loan Bonds, 7's, due January, 1868, 250,000.00


1873, 500,000.00

1878, 500,000 00 6's,

1883, 750,000.00 War Loan,


1886, 1,122,000 00 Ste. Marie Canal Bonds, 6's,

1878, 100,000 00

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$3,438,000 00

The amount of non-interest-bearing debt is as follows: Adjusted Bonds past due,....

$9,000 00 Full paid 5,000,000 Loan Bonds, past due,...... 12,000 00 War Loan Bonds, $100 and $50, called in,..... 1,150 00 $140,000 unrecognized 5,000,000 Loan Bonds adjustable for........

80,999 80

Making a total of funded and fundable debt of.. $3,541,149 80


Is made up of the following amounts and funds respectively, to wit: Primary School Fund,

$1,032,638 95 University Fund,....

247,146 89 Normal School Fund,.

33,000 33 Railroad Deposits,..

2,157 32

$1,314,943 49

This exhibit is most satisfactory. The State has met all her obligations promptly, and will continue to do so, having now in the treasury a surplus of near $450,000. The Sinking Fund is rapidly absorbing the public debt, and but for the necessary increase from war loans, would soon make an end of it. We

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hope, of course, that this cause for increase will quickly pass xway.

I have thus contrasted the present condition of the finances with that existing at the time of my coming into office, not for the mere purpose of comparison, but to emphasize the recommendation that the present policy should be continued without material change. It consists simply in paying off the public debt as rapidly as possible, by means of the Sinking Fund, and of creating no new obligations, either to the “trust funds" or otherwise, except in great emergencies; and uniformly laying taxes sufficient to meet appropriations. I have the satisfaction of adding, that the finances of the State have not suffered in smy degree within the last four years from the frauds or pecuIstions of public officers. The defaulting Treasurer was legally prosecuted, convicted and punished, and it is to be hoped that That wholesome example will be efficient to prevent the occurrence of like crimes hereafter. Some effort has also been made to recover the amount lost from the sureties upon the official bond, but I am compelled to say with little success. The sureties were found to be irresponsible, and there is little doubt that the entire amount of the defalcation will prove a total loss to the Sate.


The condition of the State Prison has not materially changed since my last communication to the Legislature. The number of prisoners suffering punishment there has steadily declined since the commencement of the war, and will doubtless continue to do so. This will have the effect to render the prison less and kes successful, financially, while the war lasts. Its expenses tave also been largely increased by the general appreciation of prices in the country. The number of prisoners, as shown by ibo Agent's report, is now 292. All the laws provided for the government and discipline of the State Prison, I believe, are working well and require no material change. The pardoning power has been exercised of late, with perhaps a more than ordinary liberality. The judges, prosecuting officers, and the

people generally, have been urged and stimulated to greater activity than usual in this direction by the exceeding great demand both for soldiers and laborers, and I have felt compelled to grant their petitions more freely than heretofore. I am, however, well satisfied with the result in the cases of pardoned convicts, with very few exceptions. Many of them are doing valiant service in the ranks of the country's defenders, some have died in battle, and others are supporting themselves by honest labor. A supplement to this message will be submitted, containing the list of pardons, with the reasons for each at length. For full details in regard to the condition of the State Prison and its wants, I refer you to the full and satisfactory reports of the Agent and Board of Inspectors.


In my message to the Legislature in January, 1863, I called its attention to the rapid increase in the number of boys in the Reform School, and recommended that some legislation be had to prevent the evil. The same or even a greater rate of

a increase has continued up to this time, and it is evident that the number must be restricted or the capacities of the School must be greatly increased to accommodate a much larger body. The Board of Control report the number of inmates of the School, November 16, 1864, to have been 214, of whom 114 were received during the previous year. There were dismissed in all ways, during the year, 87, but two-thirds of these were allowed to enlist in the army. “Should this outlet be stopped,” the Board say, and they “compelled to discharge only on reformation, as the law requires,” by November 16, 1866, the number will not fall short of 300. The Legislature appropriated to carry on this School for the years 1863 and 1864, $15,000 per annum. The Board have expended this sum, borrowed $8,000, and will need $6,000 more to keep along until your appropriations shall become available. There will be required, therefore, at your hands, an approprirtion of $14,000 to supply deficiencies for the two past years, and $44,000 for

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the years 1865 and 1866, according to the estimates of the Board of Control. These sums are sufficient, I think, to attract your attention, and the whole subject requires thoughtful consideration.

The Reform School is one of the noblest charities of the State, and deserves the fostering care of the Legislature. It has two objects in view: first, the punishment of crimes; but, secondly, and principally, the education and reclamation of those criminals whose tender age gives assurance that they are still within the reach of reformation. It is to some extent a prison, but much more a school. It is not intended to bring within it all the idle, vagabond children of the State, but only such of them as are found committing such offences as society cannot tolerate, and allow the criminal to be at large. In our legislation thus far, I think two mistakes have been committed—the one in allowing too young boys to be sentenced to this school, and the other in not guarding sufficiently the trial, conviction and sentence of these youthful criminals. In my judgment, no boy should be sentenced there who is under ten years of age. He can hardly be said to be capable of crime at

. an earlier age, and needs much more to be guided and governed, than to be shut up and punished. We ought also to take care that only such are convicted and sentenced as are really guilty of serious offences; in other words, we should prevent its being made a poor-house. For this purpose, I am satisfied it will not do to let every justice of the peace convict and sentence without restraint. Under the present law, boys are sentenced to the School who are of the


of seven years and upwards, and for the smallest offences. Can it be wise to allow justices of the peace to sentence boys to the School for 14 years for the simplest misdemeanors? The law organizing the “ House of Correction," as it was originally called, contemplated the confinement within its walls of only those boys under sixteen years of age who should be convicted of crimes punishable by imprisonment in the State Prison. The law was changed to its present form in 1861. It will be found necessary either to

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