The trustees are authorized by the act chap. 323 of the laws of 1833, to sell the old State Hall and the lands connected therewith, any apply the proceeds of such sale to the erection of the new building. It has been estimated that the sale of the lot and buildings will produce $25,000, which added to the balance of the appropri ations as before given, makes a sum of $55,929.05, which is applicable to the erection of the new State Hall.

There has been furnished from the State Prison at Mount-Pleasant, for the use of the State Hall, stone amounting to the sum of $25,956.94, and for which nothing has been paid from the treasury. If the condition of the prison should be such as to enable the agent to furnish the residue of the stone required for the State Hall, without drawing upon the treasury for the value of the same, the building may probably be finished, as stated in the last annual report, without an additional appropriation.

For a full history of the proceedings of the trustees of the new State Hall, from the commencement of their duties under the act of 1833, the Legislature is respectfully referred to Senate Document No. 21 for 1835, and Senate Document No. 6 for 1836.

Respectfully submitted.

A. C. FLAGG,

JOHN A. DIX,

S. BEARDSLEY,

Trustees New State Hall.

Albany, February 11, 1837.

No. 29.

IN SENATE,

February 11, 1837.

REPORT

Of the joint committee on so much of the Governor's message as relates to the investment and distribution of the surplus revenue,

Mr. Paige, from the joint committee of the Senate and Assembly, to whom was referred so much of the Governor's message as relates to the investment and distribution of the portion of the surplus funds of the United States to be distributed to this State for deposite,

REPORTS:

That they have bestowed their attention upon the subject referred to them; and that they approve of the recommendation of the Governor, that the income to be derived from the surplus moneys of the United States, to be deposited with this State, be devoted to the purposes of education. The committee have also substantially adopted the suggestions of the Secretary of State in relation to the distribution of the income of these moneys, and the suggestions of the Comptroller in relation to the manner of their investment.

The committee, in framing a bill providing for the investment and distribution of these moneys, regarded them as a mere temporary deposite with the State, for safe keeping; and they kept in their view that the State, being the mere depositary of this fund, possessed only the right of appropaiating to its own use the income, and was obligated, not only in honor, but by virtue of its [Senate, No. 29.]

A

express engagement, to preserve the principal entire for the United States, to be repaid whenever demanded.

The committee also, in consequence of the movements in Congress in relation to the reduction of the revenue, felt themselves constrained to look forward to the period when the State would be called upon to fulfill its fiduciary obligations to return to the general government this fund, as one not very remote. From prudential considerations, therefore, the committee recommend, that the portion of the income from this deposite to be annually distributed for the purposes of education, be something less than the sum recommended for such distribution by the Governor and Secretary of State.

The committee were impressed with the weight of the consideration, that the State ought to provide against the injurious effects which would ensue a sudden diminution of the amount of the an nual appropriations for the support of common schools; a diminu tion that must necessarily occur, in case the moneys deposited with the State should be withdrawn much before the expiration of ten . years. And the committee were also impressed with the belief, that very great advantages would be derived from a pernianent The enlargement of the capital of the Common School Fund. committee, therefore, came to the conclusion, that the interests of education would be more substantially and permanently promoted, by additions to the capital, rather than by disproportionate temporary annual distributions.

It must be regarded as a self-evident proposition, that a sudden increase in the annual appropriations for the support of common schools, continued for a few years only, and then an equally sudden decrease in the amount of such appropriations, could have none other than a very injurious operation upon the common school

system.

To free communities, no subject possesses a tithe of the impor tance with which the subject of popular education, connected with common schools, is invested. For we must look to the conimon school for the general acquisition of the elements of human knowledge, and for the laying of the foundations of popular intelligence and virtue-to which alone, now and in time to come, must our republican system be indebted for its stability and permanency.

The blessings of good government, particularly in a free community, always follow in the path of pure public morals and enlarged popular intelligence. In such a community, the right of suffrage being properly extended, so as to embrace almost the entire population. its rightful exercise may be said to depend exclusively on the virtue and intelligence of the electors. Hence results the highest of all the obligations of the government, to put forth its mightiest efforts to extend the dominion of human knowledge, and to raise the standard of human virtue among all the classes of its population,

The committee, however, while they were impressed with the importance of preserving and extending the common school system, as productive of and ancillary to the extension of popular intelligence, were not indifferent to the subjects of academical and collegiate instruction. Next in importance to the blessings of a widely diffused popular education, is that higher order of instruction to be obtained in our academies and colleges, where the human mind fits itself for the elevated occupations of the learned professions, and the higher and more brilliant duties of the deliberative assembly.

The committee regretted that the temporary means placed within the power of the State, were not sufficiently ample to warrant a liberal appropriation to colleges as well as to academies and common schools, the committee believing that the interests of the State and nation could not be more essentially advanced, than by fostering these nurseries of learning and virtue. But in consequence of the indicated public sentiment on this subject, the committee have foreborne to recommend any other appropriation of the means unexpectedly placed under the control of the State, than to the support of common schools, and to such literary institutions as now or may hereafter share in the income of the Literature Fund; the committee leaving the question of the extension of the public benefactions to colleges and other institutions, to be determined by the Legislature, by their special action upon each particular application.

Aware of the importance of the education of common school teachers, the committee have adopted the suggestions of the Secretary of State, to appropriate a specific portion of the income of the U. S. deposite to this special object.

The committee would have deemed the possession of the temporary means to be derived from the investment of this deposite in reference to the powerful stimulus they will give to the interests of education, as a subject of unmixed congratulation, was it not for the consideration that the source from which these means are derived as well as the manner of deriving the same is not altogether without objection. In the judgment of the committee, a policy of legislation on the part of the general government, the object of which is to accumulate a revenue for the mere purpose of distribution, cannot and ought not to receive the approbation of the people of the United States. Such a policy would be burdensome to the people at least to the extent of the expenses of collection; and this burden would be unreasonably increased, provided the distribution should not be made upon the principle of apportioning direct taxes under the provisions of the Constitution. Any thing which disturbs the constitutional principle which makes the basis of representation the basis of taxation, will disturb the equalization of the burdens necessary to be imposed for the support of the general government. It never ought to be conceded that the general government possesses any constitutional power to levy and collect taxes, when not required by the wants of the government, for the mere purpose of distribution among the states or the people. Other considerations also present themselves to demonstrate the injurious tendency of such a policy, derived from the relations which the states and general government occupy towards each other, in reference to the economy and purity of the administration of the former and their independence as State sovereignties.

In relation to the mode of investing the monies to be deposited with this State, the committee recommend that they be distributed among the counties for the purpose of being loaned therein on real security. By this mode of investment the State will receive the greatest income, and the benefits of the loans will be most extensively diffused. From this mode of investment, the agricultural interest will especially derive important benefits, by having extended to them pecuniary assistance upon far more favorable terms than can be obtained from other sources.

The committee likewise recommend the appointment of an entire new set of commissioners in the State for the loaning of these moneys, believing that such a system is entitled to a preference over all others, on the ground of its uniformity and simplicity.