tracting debts, by such municipal corporations. Constant complaints are made of the excesses of taxation in cities and incorporated villages in this State. In many of our larger cities the burthens of taxation have become oppressive. Too great powers are given to Boards of Trustees of villages, and to the Common Councils of cities, in expending public moneys; and the ease with which, in the early stages of indebtedness, money can be raised upon city bonds, leads to extravagant expenditures of the public funds, and, too frequently, for other purposes than in payment of necessary expenses or in making improv ments. A limit should be fixed, in every city charter, to taxation, and a limit to the creation of public debts. The debt of a city should never be suffered to reach such an amount as to bring down its credit more than 5 per cent. below par. The faithlessness and extravagance of public officers is becoming proverbial, and in incorporated cities, where a perpetuation of power, independent of any political considerations, is made to depend upon lavish expenditures of public funds for unauthorized purposes, and in fulfillment of oppressive and fraudulent contracts, it becomes a matter of urgent necessity that the Legislature should interpose, and obey the order of the Constitu tion, by placing a restriction upon the power of borrowing money, of taxation, of assessment, of contracting debts, and loaning credit. Your attention is invited to a careful consideration of this subject."

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There is another question of serious importance connected. with this subject of contracting debts by municipal and other corporations. The State is not authorized to contract public debts to exceed in the aggregate the amount of one hundred thousand dollars. It is also expressly prohibited from giving or loaning its credit in aid of any individual, association or corporation, or contracting debts for works of internal improvements. Yet the Legislature, by a series of acts running through. a number of years, has conferred upon counties, towns, cities and villages, a power to do that which the State has no constitutional power itself to do. A necessity may frequently arise

where, for some purposes, counties and towns may be justified in contracting a limited amount of indebtedness, but in no case should they be authorized, and there is no constitutional power to authorize them, to create a debt which is likely to become a public burthen, or to loan their credit for the benefit of, or in aid of, any individual, association, or corporation. There is no safety for a public corporation if it falls into the hands of a private one. Towns, and counties, and cities, were never organized for the purpose of building canals, railroads, or plank roads, or in any manner to speculate in private enterprises. Though cities may be authorized to loan their credit, the character of the corporation being esteemed in law different from that of a town or county, yet it is, in every case, of doubtful expediency to loan it to private corporations. When once the system is adopted, it is difficult to limit the extent of the liabilities in which they may become involved. There is a uniform history of embarrassment, prostration of credit, and burthensome taxation, to be written of such debts. Counties, towns, cities, and villages, like individuals, are in best condition when out of debt. No deserving private corporation needs such aid. Capital, everywhere, will seek safe and profitable investment, and will be furnished as fast as public necessity demands any given improvement at the hands of a private corporation. Private corporations are unsafe depositories of public credit.

If the whole amount of bonds had been issued which have been authorized by the Legislature, the sum in the last four years alone would have exceeded eleven millions of dollars, as the following table will show:

If the mount previously authorized to be issued be added to this sum, the aggregate would not be less than fifteen millions of dollars--a sum sufficient to bankrupt the State. It never could be paid, and would have led. as a last resort, to repudiation and public disgrace. I recommend that every act of the Legislature authorizing towns, counties and villages to loan their credit to private corporations, where their bonds have not already been issued, be at once repealed, and that the cities be restrained from any further loans of a similar character.

FIVE PER CENTUM.

The General Government continues to withhold from this State the five per centum of the proceeds of sales of the Government lands lying in this State. Whether insufficient ef forts have been made by the agents of the State to obtain the amount due, which is at the present time estimated at about $300,000, or whether the payment is delayed on account of a pretended though unfounded claim against this State; growing out of its connexion with the Milwaukee and Rock River Canal Grant, or whether it is the settled purpose of the Government, for causes beyond our control, to withhold the amount due the State, cannot with any satisfaction be determined. The attention of our Senators and Representatives should be called particularly to the failure of the Government to do justice by payment of the amount due the State. It should be ascertained without delay whether the five per centum is to be permanently withheld, or whether we are ultimately to realize any benefit from the claim of the State, and if so, how soon. In this time of financial embarrassment, while the State is engaged in the erection of necessary and

expensive public buildings, its payment would be a great relief to the people.

FOX RIVER IMPROVEMENT.

I have no definite information upon which to base any recommendation in regard to the Fox and Wisconsin river improvement. It is an enterprise of great importance to the northern part of the State, and should be treated justly, without regard to any local jealousies. No portion of the State can prosper too much, and the substantial prosperity of one portion should not be looked upon with jealousy by any other. It is the business, however, of the Legislature to look after the manner in which the work upon it is conducted, and to take care that the terms of the grant of land made in its aid are fully complied with. The State must protect itself from being involved in any liability on account of a misappropri ation of the land granted, or a misapplication of the funds realized upon a sale of those lands. It would be well to have a committee appointed to examine and report to the Legislature, whether the terms of the grant have been, so far, complied with in prosecuting the Improvement.

MILITIA AND STATE ARMS.

More adequate provision should be made for the organization of the militia system of the State. If the proper steps are taken and exhibits made, the State will be entitled to receive during the present year, arms to the value of twentyfour thousand dollars. Some safe and commodious place ought to be provided for depositing and preserving them. The volunteer companies already organized are an honor to themselves and to the State, and are entitled to favorable public consideration.

PACIFIC RAILROAD.

The necessity of a thoroughfare by wagon or Railroad, or by both, in our own latitude, to the Pacific, for the convenience of trade and navigation, is so apparent that I suggest that the Legislature join in the efforts now being made for

that purpose, and memorialize Congress on the subject. From the head of Lake Superior to Puget Sound, the distance in a direct line is about fourteen hundred miles, and by the Rail Road route lately explored by Gov. STEVENS about eighteen hundred miles. The explorations and surveys of the several routes-northern, middle, and southern-have resulted in establishing the fact that the northern route possesses advantages over all the others yet explored, in these particulars: It requires, by connecting with present roads, less railroad to be built, to make a complete Railroad communication between the Atlantic and Pacific, by several hundred miles. It is through a better district of country-one capable of sustaining an agricultural population nearly the entire way. The gradients are less and the general altitude much lower. It furnishes a greater supply, with more general distribution of wood, timber, coal, water, and building stone, and facilities for supplying workmen and material in the progress of the work. Between the navigable waters of the Missouri at Fort Benton, and the navigable waters of the Columbia at the mouth of the Peluse river, fifty miles above Fort Wullah-wullah, the distance is 450 miles. With these and other facilities for furnishing supplies, the work of constructing this Railroad can be simultaneously commenced, and carried forward, at Lake Superior, Puget Sound, Fort Benton and Fort Wullah Wullah, thus requiring less time for its completion, than other routes, where the work must necessarily be continuous from either terminus. The climate too of the northern route is better adapted to labor, and a great amount can be performed in a given length of time by the same force. In a commercial point of view this line is the most direct between the great shipping ports of Asia and India and the gat recommercial cities, New York and Liverpool, and for North American produce it avoids the tropical regions. It is of the greatest importance that Congress should make an appropriation for a wagon road from Fort Benton to Fort Wullah-Wullah. It is believed that $200,000 will be sufficient for this purpose.