ending on the first day of July last, exceeded the deaths by a single

one.

A minute comparison of the statistics returned with the census of the Indians will show that, in improved land and articles of food, their condition bears a creditable comparison with that of the white population. In manufactures, and especially of the necessary clothing, there is an almost total deficiency.

It is hoped that these people will institute these comparisons themselves, as they cannot fail to show them that the lands they possess, if as well worked, are capable of rendering them as comfortable, and as independent of want, as their white neighbors, which should stimulate them to still further and more valuable, and more useful improve

ments.

The people of the State have, with a unanimity almost unknown in the history of our elections, decided in favor of the proposition to hold a convention "to consider of alterations and amendments to the constitution" of the State. This decision will relieve the present Legislature from a mass of responsible labor, which has consumed much time, for several of the past years. Important propositions to amend that instrument have held prominent places upon the calendars of business of both Houses for many consecutive sessions, and have given occasion for elaborate investigations and protracted debates. This whole subject has now been referred, by the people themselves, to a convention; and it would be highly improper in me to attempt to press upon your consideration questions thus wisely disposed of, so far as our agency is concerned.

Upon this Legislature, however, is devolved the constitutional duty of re-apportioning the representation in the Legislature, according to the returns of the State census just completed; and as the election to choose delegates to the convention is to be held on the last Tuesday in April next, justice to the people of the counties, the representation of which is to be increased by the change of population, would seem to require that the apportionment should be made in season to permit this election to take place under it. No injustice will be done, by this proceeding, to the counties, the representation of which is to be lessened by the new apportionment, as they will still have, in the conven

tion, that representation to which their population entitles them, while the other class of counties will have no more.

Justice to the whole population equally requires this action at the hands of the Legislature. The same people who have voted upon the question of a convention are to be represented in that body, and they have a right to be equally represented. I will not, however, occupy your time in the discussion of a point, about which I feel sure there can be no diversity of opinion, but will content myself with recommending that this subject occupy your early attention, so that the law may be passed in time to prepare for the election in April.

The financial condition of the State is a matter, at all times, of the deepest interest, as well to the people themselves, as to their representatives, upon whose action they depend for the security of their credit, the preservation of their faith, and their indemnity from unnecessary and unjust burdens. My general views in relation to the true financial policy for the State, in the present condition of its debts and liabilities, were so fully expressed in my first message to the Legislature, as to supersede the necessity of a repetition of them here. The recommendations were, in substance, that the indebtedness of the State should not be increased; that the revenues of the respective funds should be so strengthened as to render them sufficient to meet current calls, to pay the interest on the debts, and to make annual contributions to a sinking fund, such as would extinguish the principal within a reasonable period; and that, while the redemption of the pledges contained in former laws, authorizing loans of money, should require it, the whole of the revenues, beyond the payment of current and necessary expenses, should be appropriated to the payment of the portions of the debt falling due, rather than to any new expenditures.

In this last recommendation, I was so unfortunate as to differ from the majority of the Legislature to which the communication was made; and a bill was passed to appropriate a specific amount of the canal revenues for a resumption of the work upon the unfinished canals. Various other expenditures were authorized in the same bill. I was unable to give to the measure my approbation, and, as the Constitution directs, the bill was returned to the house in which it originated, with my objections. Those objections the Journals of the last Assembly will exhibit, and any other reference to them in this communication is [Assembly No. 3.|

3

unncessary. The bill did not pass by the constitutional vote, and, as a necessary consequence, the question between myself and the majority of the Legislature was referred to the decision of our common constituents.

The statement of the canal debt, at the close of the fiscal year, on the thirtieth day of September last, as given to me from the canal department, is as follows:

Making the entire canal debt unredeemed, 30th Sept. 1845,.....

Of this amount, the first item, Erie and Champlain canal, old debt, is provided for; the money deposited in the transfer office, and no interest has been paid upon it since it fell due, on the first day of July last. Yet it is to be paid, is due on presentment, and is therefore a liability against the means of this year. The amount is ..... $111,365 54

Of Chenango canal stocks, there be

came payable on the 1st day of the present month,

69,276 13

$19,690,020 77

2,362,535 66

2,473,901 20

Leaving a balance of debt not yet due of

....

$17,216,119 57

Carried forward, .......

$17,216,119 57

Brought forward,..

The whole of the Oswego canal stocks become payable on the first day of July next, and the amount is ...........

Of the Cayuga & Seneca canal stocks there become payable on the first

$421,304 00

day of July next, the sum of...... 150,000 00

If these liabilities of the present year be met by payment, there will remain a balance of the canal debt unredeemed, of.....

$17,216,119 57

571,304 00

$16,644,815 57

The Commissioners of the Canal Fund, during the last fiscal year, and since its close, have pursued the policy of paying these stocks at the day, and have, as means were at command, and opportunities were afforded, redeemed such of the Chenango stocks as were presented. They had given seasonable notice to the holders of the stocks, that interest would not be paid after the 31st day of December last, the stocks having been made payable "after the year 1845;" and various parcels were presented, and large amounts redeemed, before the first day of the present month, which was the day of payment. On the second day of the present month, about $1,798,000 of the Chenango stocks had been paid off and cancelled, and about $672,000 was on deposit to the credit of the Commissioners, in the Manhattan Bank in the city of New-York, ready to meet the payment of the balance of these stocks, as they should come in.

The unusually large amount of the canal tolls, during the latter part of the last season of navigation, has enabled the commissioners to place in Bank, at the proper point, all the money necessary to pay off the whole of these Chenango stocks, and thus to accomplish what it had scarcely been hoped could be accomplished, without means other than those the Canal Fund could supply. The annual report of the commissioners of that fund, to be immediately laid before you, will give more at large the present condition of the fund, its revenues and its debt.

It will be seen from the same report that the commissioners confidently expect to be able to meet, at the day, the Oswego and Cayuga

and Seneca stocks, payable on the first of July next, without any assistance beyond the means in hand, and the tolls of the next season, which may be received in time for that purpose.

If these anticipations shall be realized, we shall have effectually changed our policy in reference to the canal debt. The means of the first two years, after the arrest of the expenditures, were entirely consumed in paying off temporary loans, arrearages and damages to contractors, damages done to lands, and the like claims, which had accumulated during the progress of the works, or were occasioned by their suspension; and in replacing the moneys theretofore accumulated to pay off the old Erie and Champlain canal debt, which had been loaned to banks that were unable to pay; so that the permanent stock debt was increased rather than diminished during that period. Indeed the last year made the first real reduction of this debt, by the payment of more than a million and a third of the old stock, reducing it to the small sum before given. This balance, and the Chenango, Oswego and Cayuga and Seneca stocks, falling upon this year, amount to the large sum of $3,045,205.20. If these payments shall be made within the present fiscal year, an amount of redemptions equal to $4,314,090.01 will have been made within the two years; the canal stock debt will have been actually diminished $4,069,090.01; and the amount of annual interest upon it will have been lessened $206,396.58. Results like these will rapidly relieve the canal revenues from the consuming demand for interest, which has so long nearly absorbed their whole net proceeds.

The act of 1842, "to provide for paying the debt and preserving the credit of the State," requires a statement from the Canal Department of the revenues of all the State canals, derived from sources annual in their nature, and a like statement of all the expenditures upon those works, and of all charges caused by or growing out of them, including the sum of $200,000, required by a law of 1841 to be annually paid to the general treasury, to be made at the close of each fiscal year. That statement for the year ending on the thirtieth day of September last, shows an aggregate amount of revenue of

$2,375,232 48 And charges and expenses to the amount of......... 1,918,140 55 Leaving a surplus of revenue over expenses, for the fiscal year, of...

...

$457,091 93