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Having received all the votes cast, was declared duly elected Door-Keeper.
The House then proceeded to elect an Enrolling Clerk.
Mr. Kimmel being alone in nomination, received the following votes :

Messrs. Anderson, Ashley, Aylett, Bagley, Ballou, Bennett, Bostwick, Briggs, Burton, Carr, Carrillo, Clingan, Conness, Cornwall, Dannels, Davidson, Dawley, Fairfax, Fairfield, Gilbert, Godard, Green, Griffith, Hastings, Herbert, Hoff, Hollister, Houghtalıng, Hoyt, Hubbard, Hubert, Hunt, Hunter, James, Jones, Kellogg, Koll, Letcher, Lindsey, Mandeville, Musser, Myers, McBrayer, McDonald, McDuffie, McGee, Nichols, Noel, O'Neil, J. W. Park, Pratt, Purdy, Ring, Rowan, Spencer, Springer, Stemmons, Stowe, Sweasey, Sweetland, Tallmadge, Tivy, Van Cleft, Warmcastle, Watkins, and Whipple-65.

Having received all the votes cast, was declared duly elected Enrolling Clerk.
The House next procceded to elect an Engossing Clerk.
Mr. Kelly being alone in nomination, received the following votes:

Messrs. Anderson, Ashley, Aylett, Bagley, Ballou, Bennett, Bostwick, Briggs, Burton, Carr, Carrillo, Clingan, Conness, Cornwall, Dannels, Davidson, Dawley, Fairfax, Fairfield, Gilbert, Godard, Green, Griffith, Hagans, Hastings, Henry, Herbert, Hoff, Hollister, Houghtaling, Hoyt, Hubbard, Hubert, Hunt, Hunter, James, Jones, Kellogg, Koll, Letcher, Lindsey, Mandeville, Musser, Myers, McBrayer, McDonald, McDuffie, McGee, Nichols, Noel, O'Neil, F. A. Park, J. W. Park, Pratt, Purdy, Ring, Rowan, Spencer, Springer, Stemmons, Stowe, Sweasey, Sweetland, Tallmadge, T'ivy, Van Cleft, Warmcastle, Watkins, and Whipple---69.

Mr. Kelly having received all the votes cast, was declared duly elected Engrossing Clerk. Mr. Mandeville offered the following resolution, which was adopted :

Resol red, That the clerk be directed to inform the Senate that the Assembly has organized by the election of the following officers : C. S. Fairfax,

Speaker.
B. McAlpin,

Chief Clerk.
J. W. Scobey,

Assistant Clerk.
John Kimmel,

Enrolling Clerk.
E. A. Kelly,

Engrossing Clerk.
Geo. H. Blake,

Sergeant-at-Arms. John H. Warrington,

Door-Keeper. And that the Assembly is now ready to proceed with the business of the session.

Mr. Hoff offered a Joint Resolution to appoint a committee of two from each House to wait upon the Governor and inform him that the two Houses were now ready to receive any communication which he might desire to transmit,

Which was adopted, and Messrs. Hoff and Conness appointed on the part of the House.

Mr. Bostwick offered the following, which was adopted :

Resolved, That the Speaker is hereby authorized and directed to appoint a Page and Assistant Page for the Assembly.

Also, as many Porters as may be necessary for keeping the Chamber in proper order, and to dismiss them at pleasure.

Mr. Conness offered the following, which was adopted :

Resolved, That the employment of clerks to committees, being unnecessary and expensive, shall henceforth be discontinued.

On motion of Mr. Conness the Rules of the last session were adopted for the present session, at present.

And that a committee of five be appointed to draft Rules for the government of the present session.

Messrs. Conness, Watkins, Mandeville, Herbert and Irwin were appointed said committee.

On motion of Mr. Hoff, the Sergeant-at-Arms was instructed to make the necessary arrangements to accommodate the reporters of newspapers.

Mr. Myres offered the following, which was adopted :

Resolved, That the Sergeant-at-Arms be authorized and instructed to make arrangements for furnishing members with five copies of daily newspapers, such as they may select.

The following message was received from the Senate : Mr; Speaker :

I am instructed to inform the Assembly that they have organized by the selection of the following officers : Secretary,

John Y. Lind.
Assistant Secretary,

J. H. Stewart.
Sergeant-at-Arms,

W. H. Harvey.
Door-Keeper,

E. C. Dowdigan.
Enrolling Clerk,

Henry St. Clair. Engrossing Clerk,

J. C. Tucker. And that the Senate is now ready to proceed to Legislative business.

JOHN Y. LIND, Secretary.

The following was also received from the Senate : Mr. Speaker :

I am instructed to inform the Assembly that they have concurred in the resolution to appoint a committee to 'wait upon the Governor and inform him of their organization, and receive any communication he may be prepared to transmit, and have appointed as such committee, Messrs Leake and Coffroth.

JOHN Y. LIND, Secretary.

On motion of Mr. Hoff, the Sergeant-at-Arms had leave of absence granted for two days.

On motion of Mr. Herbert, leave of absence was granted to B. F. Myres for ten days.

Mr. Conness reported that the committee had waited upon the Governor, and were informed that he would communicate to this House immediately.

The following Message was received from the Governor by the Secretary of State, and while reading the same, on motion of Mr. Mandeville, the further reading was dispensed with, and the Message laid upon the table, and 3000 copies ordered to be printed in English:

GOVERNOR'S ANNUAL MESSAGE.

Fellow Citizens of the Senate and Assembly :

Under the guidance and protecting care of that Divine Goodness, to whom it is our duty to address devout gratitude for the past, as well as fervent supplication for the future, you, the immediate representatives of the people, have convened, and under the most favorable auspices, are about to commence your legislative labors. The constitutional duty again devolves upon me of communicating with you, by message, setting forth “ the condition of the State," and commending to your favorable consideration such measures as I may “deem expedient.”

In the performance of this important duty, at the commencement of a new term of office, I am filled with emotions of gratitude to the people, whose generous preference has again called me to preside over the destinies of this young State, and to that gracious Providence under whose kindly protection, we have advanced so rapidly in the paths of progress and of peace.

The obligations which the confidence of a free and intelligent people imposes, will be acknowledged, on my part, by an anxious desire and continued effort to discharge my public duties in accordance with my convictions of right and justice, and in strict compliance with the constitution and laws.

On the occasion of your assembling, permit me to congratulate you upon the healthy and prosperous condition of the country. During the year just closed, Divine Providence, ever watchful over the affairs of men and nations, has been pleased to smile upon our favored State, and to bless us with health within our borders, and plenty in our habitations. The mineral wealth of our mountains continues to be the admiration and wonder of the world—the products of our valleys, already the pride and boast of our own people, promise, in a few short years, under the hand of careful culture, to more than equal the wants of California'; our commerce greatly expanded and diversified, has been much more than remunerative ; in short, all the sources of wealth have been greatly augmented by the enterprise and well directed efforts of our people.

In compliance with constitutional requirement, and with a view to facilitate your legisislative labors, correct information, in relation to the condition of the State, will be given in as brief a space as possible ; and measures deemed important to California, and the welfare of the whole people, commended to your favorable consideration.

The existing debt of the State on the 20th day of December, 1853, is set forth as follows, in the report of the Comptroller of State :

CIVIL DEBT.

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And if we include the $463,360 received for School Warrants, then it is $3,464,815 70. On the amount received for School Land Warrants, the State is pledged for the payment of an annual interest of seven per cent. to the School Fund; but the principal is not regarded as legitimately a debt of the State, because realized from sales made of her own property, and the interest money which has accrued, as on the balance of the Civil Debt, is not included, because the amount is now in the Treasury.

Besides this, the debt contracted for Indian expeditions, amounting in the aggregate to the sum of $924,259 65, should be regarded rather as an apparent than actual indebtedness, and one which Congress is bound, sooner or later, to assume----the General Government having failed to extend to our people the protection guarantied by the Constitution of the United States.

The adjusted indebtedness of the State on the 31st of December, 1851, as reported by the Comptroller, amounted to $1,242,339 74, as follows : Total amount of adjusted Civil indebtedness,

$796,963 95 War debt,

445,375 79

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$1,2-42,339 74

It is deemed proper, in this connection, to explain the causes of the apparent increase of State indebtedness within the last two years, and in doing so it may

be necessary to enter more into detail than has heretofore been the custom of the Executive.

Before recapitulating the several items and dates necessary to a correct understanding of the subject, I may be allowed to remark, that the responsibility, whatever it may be, rests entirely with those agents of the State who contracted the debts, and not upon those who, subsequently, in obedience to law, merely adjusted and issued warrants upon the Treasury in payment of them. With the latter, there was certainly no discretionary power; whether it existed with the former, it is not necessary for me now to inquire. The faith of the State had been pledged for indebtedness incurred, and without actual repudiation, there was no other course to be pursued by the present agents of the State than to issue warrants on the Treasury in compliance with law.

The explanation deemed proper, will, in part, be found in statements A, B and C, herewith transmitted. (See Appendix.) )

Statement A exhibits the various debts contracted prior to the 1st of January, 1852, but which were not audited by the proper officer until after that date, amounting, in the aggregate, to the sum of one million fifty-two thousand four hundred and ninety dollars and ninety-two cents.

Statement B exhibits the several amounts appropriated by the Legislature of 1852 nnd 1853, for special objects, having no necessary connection with the administration of the State Government, amounting in the aggregate to the sum of four hundred and thirty-six thousand, three hundred and fifty dollars and seventy eightcents.

Statement C exhibits the expenses of the several departments of the State Government since its organization.

Amount of adjusted indebtedness on the 1st day of January, 1852. (See Comptroller's special report of January 22, 1852,) $1,242,339 74

Amount of indebtedness incurred prior but not audited until after January 1, 1852. (See statement A.)

$1,052,490 92

Amount of actual debt on 1st January, 1852,

2,294,830 66

Amount appropriated by the Legislatures of 1852, and 1853. for special objects unconnected with the administration of the State Government. (See statement B)

436,350 78

$2,731,181 44

Amount of actual debt on the 1st January, 1852, and special appropriations by the Legislatures of 1852 and 1853,

Since the 1st of January, 1852, of the then adjusted debt, in the shape of three per cent. Bonds redeemed, including interest, there has been paid in coin,

$272,978 41 In seven per cent. Bonds due in 1855, and redeemed, there has been paid in coin since January 1, 1852,

77,000 00

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Total amount of coin paid in the redemption of three and seven per cents. of 1850 and 1851,

$349,978 41 From the above recapitulation it will be seen that the debt of the State, incrrred in defraying necessary and legitimate expenses of Government since January 1, 1852, has increased comparatively but a small amount.

The amount of coin, ($349,978 41,) applied in the redemption of Bonds since January 1, 1852, it is proper to state, was diverted, at a time when much required, from the revenues relied upon to defray the current expenses of Government, and in lieu of which it became necessary to issue Comptroller's Warrants for a greatly increased amount, the difference between $349,978 41 in cash and scrip, at eighty cents on the dollar, being $87,494 60.

The enormous rate of interest, (three per cent. per month, or thirty-six per cent. per annum,) payable on most of these bonds, rendered their early redemption a matter of great importance to the State, and it gives me sincere pleasure to be able to inform you that there are now outstanding but about four thousand dollars, of the whole amount issued.

The whole amount of three per cent. bonds originally issued was $290,000, upon which interest to the amount of $182,268 50, has been paid, exclusive of the $5,501 25, due on the $4,075 00, still outstanding.

The receipts and expenditures for the ensuing fiscal year are estimated by the Comptroller, as follows: Receipts,

$780,000 00 Expenditures,

960,000 00 The assessment returns have been received from twenty-seven counties. Appraised amount of real and personal property $91,338,175. The remaining eight counties will increase the assessment to at least $1,000,000, being an increase, compared with 1852, of $40,783,144.

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