Amount brought forward, . . 37 shares National Bank of Delaware stock, at $465.00 per share, 254 shares Union National Bank, at $36 per share, School Fund bond, . Loan to Sussex County, . Total investments, both funds, Assets in excess of indebtedness, To this may be added the following items : Prospective receipts, amounts due January 1st, instant, $307,650.00 17,205.00 9, 144.00 156,750.00 5,000.00 $1,168,799.00 824,750.00 $344,049.00 57,796.31 Amount of sinking fund, arising from the oyster revenue, Balance in Treasury belonging to the General Fund, 4,629.79 8,977.86 Which would increase our assets to what would appear to be their true amount, $415,452.96 This statement indicates that while the bonded indebtedness of the State has only been slightly decreased, the State's credit has been fully maintained and all her obligations met promptly. RECEIPTS AND EXPENDITURES. The report of the State Treasurer exhibits the operations of that department of the State Government, and shows the receipts and expenditures to be as follows: RECEIPTS. Balance in Treasury at settlement with Legislative Receipts since that settlement to January 1st, inst., Total receipts, present and probable, $ 7,815.49 121, 190.61 57,796.31 $186,802.41 EXPENDITURES. Total amount paid out to January 1st, instant, $120,028.24 $66,774.17 Which will be applicable to the payment of the current expenses and interest of the next year. SCHOOL FUND. The Treasurer's account as Trustee of the School Fund shows the following facts, viz: Paid out, at the August distribution, the following The Treasurer also reports, in relation to the receipts and disbursements of this department, the balances in which are appli cable only as a sinking fund for the payment of the State Debt, the following: He also reports as due the State the sum of $38,886.66 from the Breakwater and Frankford Railroad Company, now consolidated with the Junction and Breakwater Railroad Company, and known as the Delaware, Maryland and Virginia Railroad Company, and which amount, under a joint resolution of the General Assembly, is payable whenever the net earnings of the said Company shall amount to six per centum on its capital stock. CONSTITUTIONAL AMENDMENTS. For some time past public attention has been called to the subject of revision of the Constitution of our State by means of a Convention. It is of the first importance to inquire whether the defects in the organic law of the State are of such a character as to justify the calling of a Convention. Most of the provisions of the present Constitution, which have been tested by the experience of over a half century, meet with, we believe, general approval, yet it is undeniable that there is a great and growing feeling that some changes and reforms be made. It is well for us all to remember that our Constitution is not the work of a single political party; the leading and active members of the Convention which gave it being were not only among the most gifted and distinguished men in the State, many of them having had considerable experience in deliberative bodies, but were fairly representative of the two great political parties existing at the time. Amendments, commensurate with the demands of the people, have from time to time been incorporated in our organic law. Popular demand for reformation should, at all times, be heeded, and its accomplishment assisted. Reforms, to be safe, should be gradual, and ought not to be made too difficult, avoid ing all strains. Opportunity for comprehending all measures should be given, without hasty action. Amendments by the Legislature have great advantages, securing careful deliberation before changing an established law in its separate wants, and without log-rolling. And even if it be urged that many reforms are demanded and required to meet the changed condition of affairs, still, is it not better to have a few modifications at a time presented for the consideration of the people, in view of the permanent law to be established? The difficulty is, to devise a plan so that reforms by means of legislative enactments may be more easily attainable. Article ninth of the Constitution of the State provides that "the General Assembly, whenever two-thirds of each house shall deem it necessary, may, with the approbation of the Governor, propose amendments to this Constitution, and at least three and not more than six months before the next general election of representatives, duly publish them in print for the consideration of the people; and if three-fourths of each branch of the Legislature shall, after such an election and before another, ratify the said amendments, they shall be valid to all intents and purposes as parts of this Constitution." Now I would suggest, that if the rate required for ratification was changed to two-thirds instead of "three-fourths" of each branch of the Legislature, it would enable reforms to be more easily attained, and you would still preserve the wholesome checks on ill-advised and hasty changes. We have a safe guide for amendments provided by Article 5th of the Constitution of the United States, where a ratification is required to be made, not by three-fourths of each branch of the Legislatures of the several States, but by "the Legislatures of three-fourths of the several States." Each State can ratify an amendment to the Constitution by a majority vote in its Legislature, and threefourths of all the States must so act. It would be more difficult to obtain unanimity in one State than a simple majority in thirtyeight States. No better illustration of the impracticability of attempting amendments to our State Constitution, by making three-fourths of the succeeding legislature requisite for a change, could be cited than was given in the result two years ago, when a single vote defeated a general public sentiment and broke the pledge of a party honestly given. A two-thirds majority is ample, especially when two Legislatures are required to pass upon the amendment. It is doubtless true that many of the advocates-prominent and thoughtful citizens-for a State Convention, contemplate only a few changes; but I honestly believe that a Convention, at this time, amid the many dangerous questions floating in the public mind, all pressing for attention, would, when once the way was opened, expose our little State to great dangers. By allowing Legislative amendment to be made reasonably practicable, as before said, an opportunity for all needed reforms can be had. I deem it my duty to call your attention, as I did in previous communications to former Legislatures, to reforms that I believe the people desire, and which would be first to claim the attention of a Convention, if ordered. First. The question of Representation in the General Assembly. I trust, in your wisdom, you will be able to propose an amendment in this important particular satisfactory to the people. The same demand exists now as in the past, and I am satisfied is increasing, for a change in the present system of representation. Delay in this matter cannot be long deferred. Then why not act at the present, when the whole question can be fully and fairly considered, free from party excitement, and for the best interests of all. Second. The reform in the Judiciary System of the State should be thoroughly considered, and, without suggesting the changes, I deem it safest, as stated in my Inaugural Address, that you take counsel from the legal minds of the State, who will prove necessary guides and helps to you. TARIFF TAXATION. This great subject, interesting alike to all parts of the republic, and so long in an unsettled state, and vital to the interests of the people without regard to section or party, may we not hope will be so adjusted that there shall be a remission of burdensome and absolutely needless taxes, so that only sufficient revenue shall be raised to meet the wants of the government. It is evident, by confessions generally of friends and foes of the present system of tariff rates, that revenues far in excess of the requirements of the government are realized, and the paramount question seems to |