The President also announced the following: To the President of the Senate: STATE OF MICHIGAN, SENATE CHAMBER, SIR,-Pursuant to a resolution of the Senate, I have appointed Henry S. SIR,-I am instructed by the House to return to the Senate the following: Resolved by the Senate, (the House concurring), That the joint rules of the Senate and House of Representatives, and the rules in joint convention of the last Legislature be, and are hereby adopted as the rules of the present Senate and House until otherwise ordered. In the passage of which the House has concurred. Very respectfully, DANIEL L. CROSSMAN, Clerk of the House of Representatives. The message was laid on the table. To the President of the Senate: HOUSE OF REPRESENTATIVES, SIR,-I am instructed by the House to return to the Senate the following: Resolved (the House concurring), That the Senate and House of Representatives meet in joint convention to-morrow, at 10 o'clock, to listen to such communication as the retiring Governor may be pleased to make; In the passage of which the House has concurred. Very respectfully, DANIEL L. CROSSMAN, Clerk of the House of Representatives. The message was laid on the table. MOTIONS AND RESOLUTIONS. Mr. Freeman offered the following resolution: Resolved, That rule 18 of the Rules of the Senate be amended so as to provide for an additional committee to be known as the committee on "The State House of Correction ;" Which was adopted, two-thirds of all the Senators present voting therefor. Mr. Chamberlain offered the following resolution: 2 Resolved, That rule 18 be amended so that the committees on Judiciary, and Appropriation and Finance shall consist of five members each; Which was adopted, two-thirds of all the Senators present voting therefor. Mr. Foote offered the following resolution: Resolved, That Rule 33 be amended by inserting the words "and shall be" after the word "member," and before the word "delivered" in the 4th line, as printed in the manual. On motion of Mr. Waterbury, the resolution was laid on the table. The Sergeant-at-Arms announced a Committee from the House, who informed the Senate that the House was in readiness to receive the Senate in joint convention, to hear the message of the retiring Governor. On motion of Mr. Nelson, the Senate proceeded to the Hall of the House of Representatives to meet the House in joint convention. For proceedings of joint convention, see House Journal.] The Senate returned to the Senate Chamber, and was called to order by the President. Roll called; a quorum present. The President announced that the Senate had met the House in joint convention, and had heard the message of the retiring Governor, Hon. John J. Bagley. MESSAGE FROM THE HOUSE. The President announced the following: To the President of the Senate: HOUSE OF REPRESENTATIVES, SIR, I am instructed by the IIouse to transmit the accompanying message of the retiring Governor, Hon. John J. Bagley, delivered this day to the two Houses in joint convention. Very respectfully, DANIEL L. CROSSMAN, Clerk of the House of Representatives. The message is as follows: SENATORS AND REPRESENTATIVES: On the 26th day of the present month Michigan will have reached her fortieth birthday. Neither pen nor pencil can fitly describe the transforming miracles that each succeeding year has witnessed; forest to field-marsh to meadowopenings to orchards-hut to home, have followed one another in quick succession. Standing to day in the midst of this abundant prosperity, with pardonable pride we repeat the prophetic motto which our fathers gave us,-"Si quæris peninsulam amoenam, circumspice. An empire in extent, with natural resources that seem almost inexhaustible, with means of transportation by land and water unequalled on the globe; a soil that "tickled with a hoe, laughs with a harvest;" dotted all over with happy homes; schools and institutions of learning with open doors for all; the ills that afflict humanity liberally and kindly cared for; with a history that tells of no gallows ever having been erected in our borders; no slave having ever trod our soil; no treason attainted any citizen; all this is our inheritance, ours to preserve and to increase. The charitable, educational, and penal institutions of the State are valued at $3,910,500, divided as follows: There are one hundred and five chartered banks in the State with a capital of $16,573,300, and individual deposits of $18,357,875. The State Salt Inspector reports 2,544,594 barrels of salt inspected for the years '75 and '76, an increase of 694,269 barrels over the two preceding years. The production of iron ore for 1876 was 967,000 tons; of ingot copper, 18,000 tons, representing an aggregate value of $11,000,000. The bonded debt of the State has been reduced during the year ending Sept. '30, 1876, $53,000.00, and during the four years ending September 30, 1876, $851,142.81. Of this amount, $389,142.81 were matured bonds, and $462,000.00 were unmatured aud paid in advance. A premium of $6,043.45 was paid for $151,000.00 of these bonds,- -an average of about 4 per cent. The disbursements over and above receipts for interest in 1873 were $82,706.52, and.in 1876 $21,885.98. The bonded debt of the State, Sept. 30, 1876, was $1,392,149.07, divided as follows: Sault Canal Bonds, 6's, due July 1, 1879 Two-Million Loan Bonds, 6's, due January 1, 1878. Two-Million Loan Bonds, 6's, due January 1, 1883.. $46,000 00 101,000 00 244,000 00 629,000 00 357,000 00 3,000 00 12,149 97 $21,000.00 Part-paid Five-Million Loan Bonds, adjustable at $578.57 per $1,000.......... The cash in the Treasury set apart for the payment of the Bonded Debt is as follows: Sinking Fund $415,407 47 Canal Fund... 54,611 54 Balance from sale of Two-Million Loan Bonds to pay adjusted and 15,149 97 $485,168 98 Which leaves the total Bonded Debt of the State, less cash in the Treasury, applicable to its payment, $906, 980.99. In addition to this there was remaining unpaid of specific taxes September 30, 1876, on call, $290,499.33, which when collected will add that amount to the Sinking Fund, and leave the State debt, less fund applicable to its payment, only $616,000.00. The State Treasurer has been diligent in his endeavors to purchase the bonds of the State, having personally visited many holders, and offering premiums to the full amount of the interest received by the State from its depositories, but with limited success. The Trust Debt of the State is composed of the following funds and amounts: SINKING FUND. This fund is created by the Constitution, Sec. 1, Art. XIV., as follows: "All specific taxes, except those received from the mining companies of the Upper Peninsula, shall be applied in paying the interest upon the primary school, university, and other educational funds, and the interest and principal of the state debt in the order herein recited, until the extinguishment of the state debt, other than the amounts due to the educational funds, when such specific taxes shall be added to, and constitute a part of the primary school interest fund." The increase in specific taxes, and the rapid extinguishment of the bonded debt will soon leave, under this provision, a large balance of specific taxes that can only be used in the support of the primary schools. I can see no reason why specific taxes should go for the support of schools, that would not apply to any other tax, and I believe our schools would soon be ruined if they were supported by state taxation alone. The people need to watch the schools and their management,-if they pay for them they will, if they do not they will soon lose. their interest in them. I would not advise the discontinuance of the Sinking Fuud, as we should put beyond the control of any power whatever the question of the faithful payment of the public debt, and the interest on the educational trust funds in the hands of the state; but I recommend the submission of an amendment to the Constitution striking out the clause directing that the balance of specific taxes shall be placed in the School Fund, and insert in its stead that it may be used for the ordinary expenses of the state. Should this proposition meet your approval and that of the people, it will soon reduce general taxation quite largely, and equalize the burden of governmental expenses. Practically out of debt-in all new undertakings paying as we go-meeting every demand of duty and charity cheerfully and promptly-this exhibit of our financial affairs can not be other than gratifying to every citizen. The repeal of sec. 124 compiled laws, commonly known as the "five-year law," will work seriously to the disadvantage of the state. The state is obliged to advance to the counties all the taxes of every nature returned to the Auditor General's office as delinquent, as soon as the period of redemption expires. The result is that a county may make any sort of assessment as to value, or neglect to collect its taxes with impunity. Worthless lands can be assessed at high prices-taxed for township, school, or highway purposes, and the state is bound to pay it. The amount that the state will be obliged to advance as e what now stands, without recourse upon the county for any part of the loss, in case of failure to collect, will be from seventy thousand to eighty thousand dollars per annum, with a probable continual increase. The amount of unsold state tax lands (i. e. lands struck to state at tax sales on which no money has been collected, but for which the counties have been paid by the state for the taxes returned thereon) for the past five years is as follows: Oct., 1872, $618,167.87. Oct., 1873, $683,414.62. Oct., 1874, $790,112.97. Increase of $65,246.75 over 1872. Oct., 1876, $1,462,977.61. Increase of $316,098.50 over 1875. The extraordinary increase in the last two years proves very clearly that it will be necessary at an early day to re-enact something similar to the old law, |