The resolution was adopted.

On motion of Senator Udell, a Committee of two was appointed to wait upon the Governor and inform him that the Senate is organized and ready to receive any communication from him.

The President announced Senators Udell and Patterson as said Committee.

The Committee appointed to inform the House of the organization of the Senate reported their duty discharged.

The Committee appointed to wait upon the Governor made the following report:

Your Committee beg leave to report that they have discharged the duty assigned them, and are directed to inform the Senate that the Governor will communicate with the Senate in writing at two o'clock, P. M., to-day.

On motion of Senator Udell the Senate adjourned until 2 o'clock, P. M.

AFTERNOON SESSION.

Senate convened at 2 o'clock.

Senator McCrary from the Committee on postage, submitted the following report:

The Committee appointed to confer with the Post Master of this City and make some arrangement with him as to the best manner of forwarding Legislative mail matter and paying postage on the same, have had an interview with him on the subject and would submit his written proposition, and the following resolution :

Resolved by the Senate, That the Secretary of State be instructed, in addition to the franking privilege on all letters, to furnish four dollars worth of wrappers or stamps, per week, to each member of the Senate.

On motion of Senator Hatch the report of the Committee was adopted.

Senator Roberts offered the following:

Resolved, That each member of the Senate be allowed 30 copies of Daily or their equivalent in Weekly newspapers, published

within the State.

Senator Foote moved to amend by striking out "30" and inserting "25."

Senator Parvin moved to substitute "15" for "25."

Amendment to insert "15" lost.

Amendment to insert "25" instead of "30" lost.

The original resolution was adopted.

A Committee from the House of Representatives announced that the House was organized and ready to proceed to business.

Senator Stubbs offered the following resolution which was adopted:

Resolved, That the Pastors of the several churches of this City

be invited to officiate as Chaplains of the Senate, in such order as they may determine.

Ön motion of Senator Foote a Committee of three was appointed to prepare rules for the government of the Senate.

The President announced as such Committee Senators Foote, Woolson and Parvin.

Senator Gray gave notice that he would on to-morrow or some subsequent day of the session, present a bill to amend Sec 5 Chap. 163 of the laws of the 9th General Assembly.

Senator Gue was granted leave to introduce Senate File No. 1 A Bill for An Act to repeal Chapter 17 of the Acts of the Ninth General Assembly, 1862, entitled "An Act to provide for the better protection of the Southern Border of this State. The Bill was read a first and second time and on motion of Senator Udell, was referred to a Select Committee consisting of Senators Bridges, Hillver and Moore.

The following message from his Excellency the Governor, was announced by his Private Secretary, R. G. Orwig, Esq. :

Gentlemen of the Senate and House of Representatives:

I am happy to be able to congratulate you upon the prosperity of our State. During the last two years our people have enjoyed their usual good health, and have secured reasonably abundant harvests. Labor has been well rewarded, and the products of labor have brought remunerative prices. The educational interests of the State are as prosperous as ever; and peace and good order within our borders, although on one or two occasions somewhat imperiled, have been maintained.

Let us render thanks to God for these blessings vouchsafed us during the existence of a desolating war, that has so scourged a large portion of our land.

FINANCES.

Our State finances have never before been in a more healthy condition. Our entire State debt is only $622,295,75, consisting of loan from School Fund $122,295.75; loan of 1858, $200,000, and war loan of 1861, $300,000. Of the $800,000 of war bonds authorized to be sold, $500,000 remain on hand-none have been offered since the $300,000 were sold; and it is believed no further sales will be necessary.

The report of the State Auditor shows that the moneys now in the Treasury, the delinquent taxes, the amount estimated to be due from the United States, and the taxes for 1863 and 1864, are sufficient to pay the estimated expenditures for the next two years, the outstanding Warrants on the Treasury, and our entire State debt, leaving a balance in favor of the Treasury of about $200.000. Provision should be made for the redemption of the bonds issued

in 1858 and 1861-2 as they fall due. I recommend that a sufficient sum be set aside, annually, for this purpose, and invested, with its accumulations, in United States or other good stocks. In my judgment, the amount due the School Fund should be permitted to remain as a permanent debt of the State. The State is trustee of this fund, and liable for all losses thereto; and there can be no safer mode of investing this amount of the fund, than the present.

The Report of the Auditor still shows a large amount of delinquent taxes. So much of this as is due upon real estate will be finally paid; but it is thought, a very considerable portion of the delinquency is due upon personal property, by persons not owning any real estate, much of which will be lost.

Under our revenue law, real estate is assessed biennially, and personal property annually. The assessments are made between the first of January and the first of April; the levy is made in September, and the taxes become delinquent on the first of February of the next year. It thus happens that persons may bring into the State, for sale, or may buy within the State, large amounts of personal property, which are assessed to them for taxation; may keep and use the same, within the State, more than a year, and finally dispose of it before the tax becomes delinquent; and if such persons do not own real estate in the same county in which the personal property was assessed, there are no means of compelling payment of the taxes due. This defect in the law should be remedied in justice to the State, and to the owners of real estate, who already bear their full share of the public burdens.

I renew the following recommendations, made by me to the Ninth General Assembly:

"In order to make the revenue of the State more certain, I recommend that the County Treasurers be required by law to pay the State Treasurer, at fixed times, certain proportions of the amount of revenue due to the State, until the entire sum for each year is paid, whether the County Treasurers have received the entire amount of State tax or not. At present the State is wholly helpless as to its revenue. It has to depend wholly upon the officers of counties for its collection and transmission, and if the county officers are inefficient, the State is remediless. Each county is now liable by law to the State for the amount of State tax assessed in it, but this liability, without any means of making it effective, is useless. If the counties were requred to pay the revenue due the State, whether collected or not, the County Supervisors would be stimulated to require of the Treasurer a strict performance of his duties; and if, in addition, you should so change the present law as to give County Treasurers in lieu of salary, a per centum on the amount of money collected and disbursed, or provide for township collectors to be paid in the same way, our taxes would, in my opinion, be more punctually paid."

"I also recommend that it be made the duty of the Board of

Supervisors of each county to employ a competent accountant, once in each year, to examine the accounts of each county officer, and state an account between each officer and his county, and between officer and officer; and also that County Treasurers, and all other persons who receive public moneys, be prohibited, under severe penalties, from using them in any way, or placing them with others to be used, for their private benefit."

There is due this State, from the United States, for expenses incurred by the State in raising and equipping troops, and sending them to the field, and for other purposes growing out of the rebellion, the estimated amount of $300,000. There is much difficulty in procuring an adjustment of this claim at Washington. When these moneys were expended by the State, there was no law of Congress, or regulation of the Federal Government, prescribing the form in which proof of the expenditures should be taken; and the General Assembly of this State provided, by law, for such proofs and vouchers as were deemed sufficient, both for the protection of the State and the United States. Upon presentation of these proofs and vouchers to the proper Department at Washington, they are found not to comply,.in form, with regulations since adopted by that Department; and it is doubtful whether they will be allowed without some legislation by Congress. Some portions of these expenditures, thus made, are also objected to as not coming within the letter of existing laws of the United States. Among these are the sums paid by the State for the subsistence and pay of the troops that went from this State to Missouri, at the request of the United States officers, under the command of Colonels EDWARDS and MORLEGE.

There is, also, an unsettled claim against the United States, for expenditures by the State, for the protection of our people during the two winters following the massacre on our north-western frontier, by Ink-pa-du-tah and his band. The United States are also, in my judgment, justly liable for the amount expended by this State in protecting our people on the north-western and southern borders since the commencement of the rebellion. I recommend the appointment of an agent of the State to proceed to Washington to press the adjustment of these claims, and to secure, if necessary, additional legislation by Congress for that purpose.

The expenditures of the State on the north-western and southern borders are made payable, by law, out of the War and Defense Fund. This fund was found to be insufficient, and, in June last, a large amount of warrants on that fund were outstanding and drawing interest for want of means to pay them. There was, at the same time, a large amount of ordinary revenue in the Treasury not needed for ordinary expenses, and the Auditor and Treasurer, upon consultation with me, decided to apply the ordinary revenue to the payment of the War and Defense Fund Warrants, so far as it could be done without interfering with the payment of ordinary

revenue warrants as presented. This was done to the amount of about $159,000, and thereby a considerable amount in interest was saved to the State. As some doubt exists as to the strict legality of this course, the matter is laid before you that you may take such action as may be necessary. If the amount due from the United States could be recovered, it would, probably, be sufficient to reimburse the revenue fund and redeem all outstanding warrants and claims on the War and Defense Fund.

In my judgment, all real estate should be carried on the tax books in the name of the true owners; and this result can be effected with very little labor and expense, by requiring the Treasurers to furnish the Assessors with complete lists of the names of all real estate owners, as shown by the last tax book; to correct the names erroneously entered, whenever such error is shown upon the payment of taxes, and by requiring all deeds to be presented to the Treasurer for the transfer of the real estate therein described to the new owner, before the same can be recorded.

I recommend the enactment of a law for receiving the new national currency, and a modification of the present law for receiving the notes of branches of the State Bank, that both may be available in payment of taxes. As the law now stands, the notes of said branches cannot, legally, be received after any one of them shall have suspended specie payment. A change of the law so as to authorize the receipt of these notes, so long as they shall be redeemed in legal tender notes of the United States, would, in my judgment, be wise and proper.

I cannot leave this subject without special mention of the Board of Auditing Commissioners. I am well satisfied, that, to their faithful and impartial discharge of their duties, the State is largely indebted for its protection against improper claims, and, consequently, for its healthy financial condition.

THE SCHOOL AND UNIVERSITY FUNDS.

The situation of these funds demands your earnest attention. You are their guardians and custodians. Upon their management depends, to a great degree, the educational interests of the State; and upon the proper education of our youth depends the welfare and safety of our Government.

I cannot approve the systen by which these funds are now managed. The principal, received by the State in cash, has been distributed among the counties, to be loaned to individuals by certain county officials; at one time by the School Fund Commissioners, at another by the County Judges, and now by the County Clerk, subject to a limited control by the Board of Supervisors. Would any of you, having a large amount of money to lend, lend it through those agencies? If not, is it right to do so with the public money? Is it not right and proper that you should do, in regard