ilies comfortable homes. They also bring with them more or less wealth. I invite your attention to the importance of this subject, and will express the hope that such legislation may be had as will materially aid in inducing immigration to our soil. This is the more necessary from the fact that Michigan has often been misrepresented, to her great disadvantage, either through ignorance or prejudice, by those interested in securing the greatest possible share of this immigration to States lying still farther west, and beyond us.

MANUFACTURES.

Michigan in the future is destined to become an important manufacturing district; and there is, perhaps, no State in the Union which to-day holds out so many advantages for the establishment of many kinds of manufactures. We here possess not only the raw material for many of the leading and staple manufactured products of our country, but also in abundance the necessary supplies for the sustenance of those employed in such works. We also possess, to a very great extent, not only a home market for these products, but can reach a vast

Western market" at less expense by far than can those portions of our country now supplying such market. By encouraging the establishment of manufactures, and the introduction of the necessary capital and labor for such object, we shall not only supply ourselves with needful articles at less cost than must otherwise be incurred, but at the same time very greatly increase the home consumption of the farmers' surplus products-thereby increasing to us the prices received for what we may have to sell, and decreasing the prices paid for what we may be required to buy. The idea of depending uponNew England and the East, under such circumstances, for our manufactured goods, is simply against the laws of trade and in direct violation of all the principles of political economy: Our policy should certainly be to legislate so as not to repel capital, and skill, and labor, from the State, but to invite and encourage their introduction.

I recommend, therefore, to your favorable consideration, all

measures having a tendency to encourage the investment of capital and labor in any and all branches of manufactures.

GEOLOGY.

Although science has partially revealed to us the rich stores of mineral wealth which abound in our State and lie beneath its soil, and skill and labor have conclusively demonstrated the fact, yet we know very little of their vast extent. The geological surveys, which have heretofore been attempted, although attended with considerable success, have nevertheless, been partial and incomplete in their results. A full and complete geological survey of the State has never yet been effected. And when it is remembered that for every dollar heretofore expended in this work, we have received hundreds and even thousands in return, I submit to your judgment and discretion the propriety of making such appropriations for the speedy prosecution of the work, to its final completion, as its present condition and the importance of the subject demand. In my opinion the required outlay would be fully justified, even in times like these, in view of the value of the information which would be thus acquired.

SAULT STE. MARY'S FALLS SHIP CANAL.

This is a great National work; and although Michigan can derive no direct revenue from it, yet it is of incalculable value to the State by rendering material aid to her commerce, and opening immense avenues of trade to her people. The Superintendent of the Canal, in his annual report, states that the value of the exports and imports of Lake Superior for the past year does not fall much short of $25,000,000. The amount received by tolls during 1855, the first year the canal was in operation, was $4,374 66. The amount received during the year 1864 is $34,287 31. This shows the rapid increase of business in the Lake Superior region for the last ten years-the result almost wholly of the existence of this canal. It was originally constructed by means of a grant of lands from the General Government, and after its completion was committed

to the care and supervision of the State, with the authority on her part to charge such rates of toll on vessels passing through the same as would meet the expenses of all necessary and extraordinary repairs, and of operating and having the care and charge of the same.

Extensive repairs being then required for the preservation and efficient operation of the canal, the Legislature, by an act approved February 14, 1859, authorized the raising of a sum of money, not exceeding $100,000, by loan, to be applied solely in making, from time to time, "such repairs upon the locks, gates and walls thereof" as might be deemed necessary for such object; and for the redemption of which, as the same should fall due, all the tolls and other income from said canal were pledged, after the payment of the cost of its care and management. In accordance with the provisions of said act the bonds of the State were issued in June, 1859, to the amount of $100,000, and the proceeds placed to the credit of the canal fund, to be applied and used for the purposes aforesaid. The total expenditures upon the canal, in pursuance of the act authorizing said loan, as determined by the Board of Control, was $96,083 33.

The amount of net earnings at the present time, after the payment of all repairs and other expenses, and which goes to constitute a fund for the payment of said bonds at maturity, is $50,064 07. The present rate of toll is six cents per ton on the enrolled measurement of vessels passing through the canal. I have reason to believe that application will be made to the Board of Control by parties interested in the Lake Superior commerce, urging a reduction of this rate for the coming year. The Superintendent is of the opinion that four cents per ton will be sufficient hereafter to keep the canal in good repair, pay running expenses, make such improvements as may be necessary, and leave a sufficient sum of net earnings to pay the indebtedness assumed by the State, in 1878, the period when the canal bonds fall due. Much, perhaps, can be said in favor of this change. On the other hand, it may be a question.

whether the interest to be affected by a reduction of tolls would not be more effectually benefitted by maintaining the present rates, and thereby acquiring at the earliest practicable moment the means necessary to make such improvements and such an enlargement of the work as will meet the rapidly increasing wants of the trade dependent upon the ready passage of vessels to and from Lake Superior.

But as this whole 'subject is in the hands of the Canal Board of Control, I apprehend no legislation will at present be required thereon.

SWAMP LANDS AND STATE ROADS.

The policy of using swamp lands for State Roads was inaugurated by an act of the Legislature, approved February 12th, 1859; and by subsequent acts and repeated appropriations this may now be regarded as the settled policy of the State. The purpose for which these lands-amounting to nearly six million acres were ceded to the State, as expressed in the act of Congress, approved Sept. 28, 1850, was to enable her "to construct the necessary levees and drains to reclaim the same;" and the act of cession expressly provides that "the proceeds of said lands, whether for sale or direct appropriation in kind, shall be applied exclusively, as far as necessary, to the purpose of reclaiming said lands by means of the levees and drains aforesaid." By an act of the Legislature, approved June 28th, 1851, the State accepted this grant according to the conditions contained therein; and she expressly declares in this act of acceptance, that all the money received from the sale of said lands shall be and remain a fund for the purpose of reclaiming said lands, in conformity to the provisions of the grant."

Without questioning the right of the State so to construe the provisions of these acts as to apply the swamp lands to the purposes of constructing roads, or the wisdom or utility of so applying them, I am clearly of the opinion that the practice which has latterly prevailed, to a very great extent, of making indiscriminate and wholesale appropriations of these lands for this object, is, to say the least, of very doubtful expediency

While the opening of many of these roads, and especially those which constitute "main routes," and will, as such, connect important points, are of great value, not only to the particular sections where located, but to the State at large, by having opened up the country and thereby invited settlements, others have been and will continue to be for years to come, without the least practical utility; and the appropriations made for their construction, if not wholly lost, may be regarded as of very little real worth.

This is certainly an important subject, and should receive careful consideration. Of the six million acres of land thus ceded to us, while large portions of it may be regarded as worthless, some of it was, nevertheless, very valuable. Nearly or quite all of this latter class has been sold at the minimum price, or taken upon contracts for roads which have already been built, or has been selected to meet the payment of such as have not yet been built. Among the evils which have resulted from a too liberal appropriation of these lands is this: the large quantities of scrip thereby thrown upon the market, and in the hands of parties unable to hold it, have reduced their value to little more than fifty cents on the dollar of their minimum price. This involves the necessity of making very large appropriations for the construction of the roads, other wise they cannot be let, and of course must remain unopened. Another evil is, that in the scramble for appropriations of these lands, combinations are formed more with a view, it is feared, of securing private interests than of promoting the public good.

Without, therefore, recommending any change in the policy, which now seems to be a settled one, of appropriating these lands for the building of roads, I would most respectiully suggest that a careful and thorough examination on your part be devoted to an investigation of the claims of any and every road hereafter asked for, and that none be located excepting such only as are manifestly for the public interest; and I the