my thorough appreciation of the courtesy and aid which I have ever received at their hands.

And now, after four years of laborious public service, under profound obligations to my fellow citizens for the high honor they have twice conferred upon me, and for the many manifestations of their generous confidence and support, I gladly return to the congenial pursuits of private life, and relinquish to another the responsible trust committed to my care.

Invoking the blessings of Heaven on your deliberations, on my successor, and on the people of our beloved State, I tender to you all my farewell salutations.

EXECUTIVE OFFICE, Lansing, January 1, 1873.

}

HENRY P. BALDWIN.

After which, on motion of Senator Wheeler,
The joint convention took a recess until 2:30 P. M.

AFTERNOON SESSION.

24 o'clock, P. M.

The joint convention was called to order by the President of the Senate.

The roll of the Senate was called by the Secretary thereof, and a quorum was present.

The roll of the House was called by the clerk thereof and a quorum was present.

The President announced that the joint convention had assembled to receive any communication which His Excellency, Governor John J. Bagley, might be pleased to make.

Senator Childs moved that a committee of five be appointed to wait on His Excellency, the Governor, and the State officers, and inform them that Senate and House were assembled in joint convention and were ready to receive any communication the Governor might be pleased to make.

Which motion prevailed.

The President appointed as such committee, Senators Childs and Prutzman, and Representatives Shaw, Parsons, and E. C. Watkins.

After a short absence the committee returned, and reported that they had performed the duty assigned them, and that the Governor, ex-Governor, and State officers were in attendance. Governor Bagley then read his message, as follows:

SENATORS AND REPRESENTATIVES:

In executing the trust reposed in me by my fellow citizens, who have called me to the responsible position of Chief Magistrate of the State, I shall strive not to forget, that it is indeed a trust, and not a power.

Pursuant to the requirements of the Constitution, my honored predecessor has given you a full and succinct statement of the condition of the State and all its institutions, with such recommendations as his long experience and thorough knowledge regarding them suggest. In nearly all of these, I most cordially concur. I shall only, therefore, submit as briefly as possible, such additional recommendations and suggestions as I deem worthy of your consideration.

STATISTICS OF THE STATE.

The wonderful growth of the State in every direction, through the development of our great natural resources, is a surprise even to ourselves. Few of our citizens fully realize what we are as a State. We have scarcely any authentic statistics relating to our chief productions. Were we to be asked how many millions of feet of lumber, tons of iron, barrels of salt, or bushels of grain the State has produced within the past year, I presume no one of us could give an intelligent answer.

I recommend the establishment in the office of the Secretary of State of a Bureau of Statistics, whose duty it shall be to procure from the railroads, custom houses, and other sources, the statistics of the receipts and exports of our leading productions, such as grain, lumber, iron, copper, salt, staves, cattle,

beef, pork, fruit, and wool. It would not be difficult to gather these facts, as all our exports are either by rail or water, and the railroad and custom house books are so kept that they show exactly how much of all these articles are transported and where from, and where to. This information would be of great value to ourselves, even if it never went beyond our own borders; but I am of the opinion that it would be of great benefit to us in attracting emigration and capital to our State, not only from other States, but from foreign countries. The whole expense ought not to exceed three or four thousand dollars per annum, and it would be a wise expenditure of money.

CORPORATIONS.

The State by its legislation should, in the business of banking and insurance, and in its control of railroads, be the guardian of its citizens. These important interests are the creatures of legislation, and should always be kept within State control.

INSURANCE.

Insurance, both life and fire, is almost entirely conducted by foreign companies. The present law controlling them is very stringent. It practically says to the people: "If an insurance company offers to insure your life or your property, you may be certain that the State, by its laws, has faithfully endeavored to see that the company is responsible." No good company objects to the stringency of its provisions. The law empowers the Commissioner of Insurance to visit any company doing business in this State, at the expense of such company, and to make a personal examination of its affairs. It is not often necessary to do this; but the Commissioner is so overburdened with the other duties of his office, that he cannot do it, even in the few cases where it is desirable.

I recommend that the insurance act be so amended as to

give the Commissioner the needed assistance, by the appointment of a deputy, with a sufficient salary.

Our Insurance Department, in its present features, I believe is not equaled in any of the States of the Union. The labors of the Commissioner are arduous and complicated. Only one clerk is authorized by law. The whole expense of the office is but trifling, while the income derived from it is very large, and increasing yearly. The receipts from specific taxes levied on insurance companies for the year ending September 30th, 1872, were $95,975 32.

BANKS.

There are in force two distinct banking acts.

The general banking law applies to ordinary banks of deposit and discount. It was passed in 1857, and an amendment to it, authorizing savings banks, was added in 1871. Another act, authorizing savings associations, was passed in 1869.

There are now in operation twenty-three banks under these acts, fourteen of which are general, and nine are for savings. Eight of the savings banks reported deposits of $3,239,770 18 September 30, 1872.

The establishment of savings banks in so many of our cities and towns is one of the many evidences of the growing prosperity of our people; and if they are well conducted and honestly managed, there is nothing that will add more to the general well-being, and well-doing of the community. Temperance, industry, economy, and thrift are the natural outgrowth of legitimate savings institutions. It is therefore the duty of the State to foster and encourage them, and also to throw about them every possible safeguard of security and stability. One badly managed savings bank would bring distress upon many persons, and distrust upon the whole system A large proportion of the deposits are from the industrial classes, and their pursuits, if nothing else, prevent them from

knowing much of the solvency, or even the general reputation for solvency, of banks. It is the duty of the State to take care of this for them, by its laws, just as it does by the insurance companies.

The act of 1869 allows savings banks with a capital paid in of only $5,000; which is, in my opinion, much too small an amount. The act of 1871 fixes $25,000 as the amount of capital in cities of small population, and $50,000 in the larger cities. This act is, in almost all its features, a good one, and contains many desirable safeguards. It might, however, be made much more safe, without annoyance to officers or stockholders, or any diminution of profits.

I would respectfully recommend the repeal of the law of 1869, and a revision of the general banking law, with additional legislation, providing for the establishment, in the office of the State Treasurer, of a Bureau of Banking; the examination of banks by the head of the Bureau; and requiring reports to be made and published, similar to the provisions of the National Banking Law. The expenses of such Bureau should be borne by the banks, proportionately to their capital.

It is very questionable whether ordinary banks of deposit and discount should have the powers and privileges of savings banks; and whether savings banks should be permitted to do a general banking business.

With our fast increasing population, growing wealth, and rapid industrial development, banks will multiply in a corresponding ratio, and I believe it to be one of the most important legislative duties to enact a strong and stringent banking law.

So believing, I commend the subject to your careful consideration.

RAILROADS.

Railroads, within this State, have greatly increased in number during the past few years.