funded debt within the same time has amounted to $676,142 48. Thus the total payment of principal and interest of the funded debt amounts to $2,578,928 19, an average of $644,732 05 each year. The Trust funds in the hands of the State at the close of the year 1868, were $2,031,440 63; at the present time they amount to $2,790,578 52, showing an increase of $759,137 89, or $189,784 47 annually. The gross amount of State taxes for the same period for all purposes, were $2,331,303 84, or an average per annum of $582,825 96, being $61,906 09 per year, and $247,624 35 for the entire four years, less than has been paid for principal and interest on the bonded debt.* The appropriations in behalf of our State institutions for the four years, have amounted to $1,428,633 44, a yearly average of $357,158 36; of this amount $663,339 50 were for current expenses, and $765,293 94 for buildings and improvements as follows: To the University, for expenses $90,000, new hall $75,000; Agricultural College, expenses $74,000, buildings $46,000; Normal School, expenses $50,000, buildings and improvements. $10,700; State Public School, buildings $30,000; Institution for the Education of the Deaf, Dumb, and the Blind, expenses $150,000, buildings and improvements $105,000; Asylum for the Insane, expenses $54,000, buildings and improvements $257,300; Reform School, expenses $140,000, buildings $15,600; State Prison, buildings and improvements $85,000; New State Offices $30,693 94; New Capitol $110,000; Soldiers' Home, expenses $22,000; Roll of Honor $1,339 50; Geological Survey and Publications $52,000; Immigration Commission, expenses $30,000. In the statement of the aggregate of State taxes above made, I have used the taxes levied in the years 1868, 1869, 1870, and 1871, and collected respectively during the years 1869, 1870, 1871, and 1872. As the appropriations made at the extra session of the Legislature, in 1872, for the New Capitol, were to be expended in future years, they have not been included in the above statement. The funded debt (exclusive of the $313,000 maturing January 1) is as follows: Unremitting efforts have been made to anticipate the payment of the entire amount of bonds maturing January 1, and to purchase an additional amount of the bonds becoming due several years hence, but so high has become the credit of the State, in the commercial world, that the Treasurer has been unable to purchase but a limited amount. It will be seen from the estimates of receipts and expenditures that will be placed before you, that the low rate of taxation of one mill on the dollar for all purposes, will be sufficient to cover needed appropriations and leave a surplus applicable to the sinking fund for reduction of the State debt. No portion of the interest-bearing bonds become due until January, 1878, and as few, if any, of the unmatured bonds can hereafter be obtaived at their par value, I am clearly of the opinion that sound policy warrants the payment of a small premium rather than allow a large surplus to accumulate and remain in the Treasury. I therefore recommend that the State Treasurer, with the advice and consent of the Governor and Auditor General, be authorized to use such portion of the surplus funds as may now or hereafter be standing to the credit of the Sinking Fund, in the purchase of any unmatured bonds, and at such rates of premium as may be deemed for the best interests of the State. STATE LANDS AND ROADS. The Land Department continues to occupy a prominent position in the State Government. During the year and ten months ending Sept. 30, 1872, 735,734.27 acres of State lands were disposed of, for $1,195,713 38, and as follows: Original Sales for Cash or Part Payment. Primary School Land, 66,961.85 acres, for................. $268,223 65 Agricultural College Land, 29,952.69 acres, for.. Asylum Land, 160 acres, for. Salt Spring Land, 40 acres, for 97,298 07 640 00 160 00 Total of original sales, 719,639.65 acres, for...$1,173,549 31 Sales of Forfeited Lands. Primary School, 5,044 48 acres, for.. University, 15.68 acres, for Asylum, 160 acres, for. State Building Lots. Total sales forfeited lands, 5,220.16 acres, for.. Total sales, 724,859.81 acres, for.. $21,053 41 188 16 640 00 282 50 $22,164 07 $1,195,713 38 Patented to settlers under Homestead acts, 10,874.46 acres. Total amount of lands disposed of, 735,734.27 acres. The entire amount of lands disposed of during the three years and ten months ending Sept. 30, 1872, is, 1,290,709.32 acres, for $2,091,090 97, as follows: Original sales for cash or part payment, 231, 211.21 acres, for............ For roads and ditches, 1,028,252.20 acres, for... $700,079 42 1,348,780 20 42,231 35 $2,091,090 97 *Total sales, 1,269,604.14 acres, for.... Patented to settlers under Homestead Acts, 21,105.18 acres Under the provisions of the Homestead Acts, licenses were issued in the fiscal years 1869 and 1870, for 46,374.66 acres, and during the year and ten months ending Sept. 30, 1872, for 28,198.98 acres. Total, 74,873.64 acres. The whole amount of outstanding licenses Sept. 30, 1872, was 85,269.19 acres. There were due to contractors for work accepted on roads and ditches, 135,703.66 acres. Roads and ditches were also under contract which, when completed, will require for payment 245,426.24 acres. The amount of swamp lands patented to the State in the Lower Peninsula, is 3,273,478.26 acres; in the Upper Peninsula, 2,646,580.84 acres. Total, 5,920,059.10 acres, of which the patents for 20,063.93 acres have been received since January, 1869. At the close of the fiscal year of 1872 the vacant or unsold lands were as follows: There were sold in 1872, 400 acres of "Asset Lands" for $740, which are not included in the foregoing statements. The State is entitled to 49,030.62 acres of additional School lands, of which 22,430.15 acres are in the Lower Peninsula, most of these have been selected, and the lists forwarded for approval to the department at Washington. There is also due to the State, as appears from the Report of the Commissioner of the General Land Office, 1,361.46 acres of Internal Improvement lands, for the selection of which, no authority has yet been received from Washington. Should the lands now vacant be disposed of at the same average rate as those for the last four years, not an acre would remain at the close of another decade; this, however, is not likely to be the case, as two-thirds of those now held by the State are in the Upper Peninsula. A large portion of the most valuable Swamp lands has undoubtedly been disposed of, but as most of those now in market are located in those parts of the State now being rapidly opened and settled, they are steadily becoming more valuable. A small quantity of these lands is held under the provisions of Act No. 97 of 1869 at two dollars per acre, while almost the entire body is in market at one dollar and twenty-five cents. I am of the opinion that the price of the two classes of land last named, should be advanced to two dollars and fifty cents an acre. The policy of using State Swamp lands for the construction of roads and ditches, adopted by the Legislature of 1859, has been continued without interruption to the present time. Much of every regular session following that of 1859, has been |