has been commenced at a point about half a mile below the mouth of Salt river, on the direct bank of the Tittabawassa river. Much difficulty was at first encountered in sinking the shaft, from the presence of quicksand, but this was at length surmounted, since which the work has progressed with as much rapidity as could have been anticipated. As this shaft is commenced directly upon the bank of the river, it was deemed advisable, in order to secure the works more perfectly, as well as for other purposes, to erect a wharf, which was accordingly done. It is proposed to sink this shaft, already commenced, to the rock, which may be estimated to lie at a depth of something over one hundred feet, and to secure it carefully from the influx of fresh water. Having accomplished this, the salt rock which will probably be found, at this point, to lie at a depth of between five and seven hundred feet, will be reached in the usual manner, and until this be fully accomplished, we cannot hope to arrive at any satisfactory conclusion upon the subject. During a portion of the months of August, September and October, this work was partially suspended in consequence of the sickness of those employed in carrying it forward. Circumstances connected with my other state duties prevented a re-examination of the state salines on Grand river until about the middle of July, soon after which operations were commenced at the point selected; three miles below the village of Grand Rapids and upon the direct bank of the river :-But in consequence of the excessive heat of the season and the exposed condition of the men employed, nearly all those engaged upon the work became unfit for duty by sickness, and more than two months elapsed before I was enabled to renew the work successfully, although other hands had been employed and sent on in the mean time. They also became unfit for duty from a similar cause. A neat and commodious house has been erected at this place, a portion of the timber for a dock, to secure the works, prepared, and I have men, now, busily engaged in clearing grounds and taking all the necessary preliminary steps for commencing a shaft. A steam engine has been procured and some of the ma chinery prepared for commencing work upon the shaft, and this work would have been already commenced had the condition of the appropriation warranted such a step. The distance to the rock being, at this point. comparatively short, the expense of sinking the shaft will not be great, but the amount of rock boring required will not vary much from that at the Tittabawassa salines. I should also add that a conditional contract has been made with a man of great practical experience in rock boring, at the Kanawha salines, in Virginia, to take charge of that portion of the work in this state, and had the appropriation been sufficient, he would have commenced work before this time. In regard to the importance of this point for the commencement of these improvements, it will probably be sufficient to refer you to my report of last year, on this subject, barely adding that the examinations of this year have added confidence to my hopes of success, if the operations be continued to a final result. Other points might have been selected where little doubt can be entertained but salt water could be procured, and where operations could be conducted at a less expense, but at this stage it was deemed of the utmost importance to select such springs only as bid most fair, and such as would, in the event of a failure to realize our expectations, render it forever unnecessary to make' further attempts. Should the works already commenced prove of value, it will, no doubt, be found for the interest of the state to make similar improvements at other points, but, for the present, those commenced are amply sufficient. It would hardly have been expected, from the small amount appropriated for the improvement of our springs, that very much except to take the preparatory steps could have been accomplished, yet under ordinary circumstances no more than this amount would have been required. The sickness of the past season has been such as to embarrass our operations very much, and this embarrassment was increased in consequence of the difficulty of supplying with fresh hands the places of those who became unfit for duty in consequence of sickness. Compelled to live, for a time, until buildings could be erected, more exposed than usual, much annoyed by mosquitoes, in connection with the extremely hot weather, the men employed sickened and were nearly all, for a length of time, unfitted for labor. Their places were supplied with fresh hands as soon as circumstances would permit, and the work pressed forward with all possible despatch. There has been expended at the works on Grand river, including the expense of erecting a house and the purchase of a steam engine, the sum of one thousand seven hundred and sixty-seven dollars, fifty-two cents; and at the works on the Tittabawassa river the sum of two thousand one hundred and eighteen dollars, sixty-seven cents, amounting in total to three thousand eight hundred and eighty-six dollars, nineteen cents, a schedule of which disbursements, with the proper vouchers, will be duly laid before you. It will be seen by this statement that the expenditures have exceeded the appropriation in the sum of $886 19. I had proceeded with the utmost precaution in order to avoid a result of this kind, but the increased expenses incident upon supplying the places of those workmen rendered unfit for duty in consequence of sickness, as well as unlooked for difficulties and expenses con nected with the transportation of provisions, &c., rendered it impossible to make accurate estimates, for which reason, after the principal expenses had been incurred, I was under the painful necessity either of leaving the work at a season of the year most favorable to conduct the operations, or to exceed the amount appropriated for that purpose. Had a different course been pursued, the state would have been subjected to great loss and delay in the progress of the works, which has thus far been avoided, and notwithstanding the condition of the funds, I am still continuing the work, though in a manner which will render the expenses inconsiderable. The commencement of a work of the character of that under *consideration, necessarily involves the expenditure of an amount for the erection of houses and work shops, for clearing grounds, for machinery, for implements, &c., which must render the first expenses much greater than those which will follow. In conse. quence of the limited amount appropriated for that purpose, only a portion of this has been accomplished, and the sum which will be required for a successful continuance of the work, will, therefore, be considerably larger than would otherwise be necessary. With a sufficient appropriation for the current year, we may hope to be able to make such additional improvements in the grounds as will be required, to erect work shops, &c., to complete the shafts to the rock, and secure them from the influx of fresh water, and unless some unlooked for accident should occur, to sink with the augur through four hundred feet of rock at each place, making the sum total, as estimated, inclusive of earth excavation, nine hundred and seventy feet. There will be required for this purpose, under a system of rigid economy, the sum of $12,350, which estimate will include the amount of $886 19 before stated to have been advanced upon the work in progress. In closing this subject, I cannot refrain from alluding to the present state of the salt spring lands. The fact that we have a grant of seventy-two sections of land, located in different portions of the state, much of which might be made available, yet producing no revenue, is one which deserves attention. Situated as these lands now are, they are subject to constant waste from the loss of timber by intruders-a source of loss which is daily increasing. Some portions of these lands, which will never under any contingency be required for salt purposes, may be made available by lease, at once, the only course which can be pursued in conformity with the act conferring the grant, while the measures now in progress will fully test the condition of the most marked springs, and either lead to a result which will add much to the prosperity of our state, or teach us that some other method will be required to render the large amount of salt lands held by the state of any real value, It is desirable, therefore, in order that the whole subject may be placed in that situation which will prove most beneficial to the state, that the works now in progress be pursued to a final result as speedily as possible, for until it be done, no decisive steps can be taken with any other than a portion of the lands, and the interest upon the amount which is thus lying idle would soon make a return of the amount expended by the state in making the improvements. With this view of the subject, laborious as is the task of conducting these operations, in connexion with the other severe duties I am called upon to perform, the task is made light by the hope that in the end it may not fail to lead to results of the most vital importance to the prosperity of our young state. All which is respectfully submitted. DOUGLASS HOUGHTON., (No. 3.) State Treasurer's Report. STATE TREASURER'S OFFICE, Hon. President of the Senate of Michigan: SIR-In compliance with the laws regulating the duties of Treasurer, I herewith present the following statements of the bu→ siness of this department, for the year 1838, viz: ses. 1st. A statement of the current expenses, for general purpo 2nd. A statement of receipts, from all sources, applied to the payment of the current expenses. 3rd. A quarterly account current with the general fund. 4th. An account current with the sinking fund. 5th. An account current with the contingent fund. 6th. An account current with the penitentiary fund. 7th. An account current with the Ypsilanti and Tecumseh railroad company. 8th. An account current with the Allegan and Marshall railroad company. 9th. A statement of the bank fund. 10th. An account current with the internal improvement fund. 11th. A summary statement of funds on hand, and to what account they stand due. 12th. A statement of moneys received on account of sales of state stocks, and how applied. 13th. An estimate of expenses for the support of government for the year 1839. 14th. An estimate of receipts applicable to the support of government for year 1839. The expenses of the state for general purposes, for the year 1838, amount to the sum of $168,485 09, to which add balance due the Michigan state bank, on the first day of January last, $15,067 92, makes the total expenses of the state for the year 1838, amount to the sum of $183,553 01. The receipts from all sources, applied to the payment of the above, including $80,000 returned from the internal improvement fund, amount to the sum of $171,999 77, leaving a deficit in the receipts to meet current expenses, of $11,553 24, which has been made up by an overdraft on the Michigan state bank, and to which amount the state is indebted this day. I deem it my duty to present another view of this branch of the state expenditures, that the legislature may be made acquaint |