tison, Redfield, Shaffer, Smith, Teeter, Watson, Woodward and Woolson-28.

Those voting for McCully were, Messrs. Ainsworth, English, Gray, Green, Trumbull, Udell and Williams-7.

Sharman and Stutsman having received a majority of all the votes cast were declared duly elected.

On motion of Mr. Watson, a Committee consisting of Mr. Woodward and English was appointed to inform the House that the Senate is now organized and ready to proceed to business.

Mr. Brown offered the following Resolution:

Resolved, That the Clergymen of this City be requested to act as Chaplains to the Senate during the present session.

Adopted.

The Committee appointed to inform the House of the organization of the Senate, reported that they had discharged their duty. On motion of Mr. Brown a Committee consisting of Messrs. Brown, Ainsworth and Hagans, was appointed to report permanent rules for the Senate.

On motion of Mr. Bowen a committee consisting of Bowen, Williams and Gue, was appointed to act in conjunction with a Committee from the House to report joint rules for the two houses.

Mr. McCrary of Lee offered the following Resolution, which was adopted:

Resolved by the Senate, the House concurring, That the Senate will meet the House in Joint Convention for the purpose of Canvassing the votes cast for Governor and Lieutenant Governor, tomorrow, at 10 o'clock.

On motion of Mr. Shaffer the Secretary was directed to provide better screens for the stoves.

Mr. McPherson gave notice of a Bill that he would introduce at some future day altering and defining the boundaries of the 3d, 4th and 5th Judicial Districts.

Mr. Woolson gave notice that he would at some future day introduce the following Bills:

A Bill for an Act entitled an Act in relation to the revenue, and providing for township collectors.

Also, A Bill for an Act entitled an Act in relation to the School Fund.

Also, A Bill changing the times of the meetings of the Board of Supervisors and further defining their duties.

On motion of Mr. Angle a Committee consisting of Messrs. Angle, Udell and Kent was appointed to inform the Governor that the Senate was ready for business.

Mr. McCrary of Lee, gave notice of a Bill that he would introduce at some future day, for an Act to require County Treasurers to receive United States Treasury notes in payment of taxes.

Mr. Leake gave notice that on to-morrow or some future day he

would introduce a Bill for an Act conferring jurisdiction on County Judges in actions of forcible entry and detainer.

Mr. Watson gave notice that at some future day he would introduce a Bill creating a Sanitary Committee, defining their duties, compensation &c.

Mr. Watson offered the following resolution:

Resolved, That the Senate hold two Sessions per day, commencing at 9 o'clock, A. M. and 1 o'clock and thirty minutes P. M. Mr. Leake offered the following amendment:

Resolved, That the Senate hold but one session per day which session shall commence at 9 o'clock, A. M.

Mr. Redfield offered the following amendment:

Resolved, That until otherwise ordered the Senate will hold but one session a day to begin at 2 o'clock, P. M.

The Committee appointed to inform the Governor of the organization of the Senate made the following report:

Your Committee beg leave to report that they have performed the duty assigned them, and are directed to inform the Senate that the Governor will very soon communicate with this Body in writing. A message from the Governor was announced by his Secretary. Mr. McCrary of Van Buren, moved that the resolution before the Senate be laid on the table. Carried.

Mr. Brown offered the following resolution, which was adopted: Resolved, That the Secretary be and is hereby directed to furnish each member of the Senate with a copy of the Revision of 1860, the Acts of the Legislature, and Journals of the last Session, and Acts of the Board of Education.

Mr. Burdick offered the following resolution, which was referred to the Committee on rules:

Resolved, That the Clerk of the Senate be required to furnish desks and stationery to Reporters of all papers, who now are, or may hereafter be in attendance.

Mr. Woodward from Special Committee on credentials asked further time to report.

The Secretary read the following message from the Governor:

Gentlemen of the Senate and House of Representatives:

You have had conferred upon you, and you have accepted the duty of caring for, guarding and promoting the interests of the State. This duty, at all times responsible, is at present much more than ordinarily so, for the reason that the nation of which we are a part, is engaged in civil war, most wantonly and wickedly thrust upon us by bad and designing men. I doubt not you will address yourselves to the discharge of this duty calmly and earnestly, seeking wisdom and strength from Him who is King of Kings and Lord of Lords.

The Constitution requires that I shall communicate to you the

condition of the State, and recommend such matters as I may deem expedient, and I now proceed to the performance of that duty.

REVENUE AND TAXATION.

The expenditures of the last two years for all State purposes, have been about $300,000 for each year. This includes both ordinary and extraordinary expenditures the amounts expended for the Insane Asylum, the Penitentiary, the Blind Asylum at Vinton, the printing of the Revised Statutes and other extraordinary objects, as well as the amounts expended in carrying on the ordinary operations of the State Government. The expenditure has not in any case been permitted to exceed the appropriation, and is materially less both for the Penitentiary and Insane Asylum, and in all cases that have come under my observation, been carefully and economically made. In my judgment, there is not another State in the Union in which the protection of Government is extended to as large a population, so widely scattered, more economically than in our own. But while this is true, it is equally true that our finances are not in a healthy condition. The Report of the Auditor of State discloses the somewhat startling fact that of the State tax for 1860 and preceding years, there was, at the date of his Report, (the 4th day of November, 1861) delinquent and unpaid the large sum of about $400,000- a sum more than sufficient to cover the entire expenses of our State Government for one year. This large delinquency has occurred mainly within the last four years, and the same Report shows there were at the same date warrants drawn on the Treasury to the amount of $103,645, which were unpaid for want of funds, most of which were drawing interest at the rate of eight per cent. per annum.

From these facts the following conclusions are inevitable: 1st, That during the last four years there has been levied a State tax larger by about $300,000 than the necessities of the State required. 2d, That this was rendered necessary by the fact that only a portion of our people paid the tax due the State. 3d, That the State has been compelled yearly to pay large sums by way of interest on warrants, which need not have been paid, had the taxes been collected promptly, and the Treasury kept supplied with funds to meet all demands upon it. 4th, That the State being compelled to purchase its supplies with warrants has had to pay higher prices than if it had had the cash to pay. 5th. That the tax-paying portion of our people have thus been compelled to pay not only their proper share of the public burthens, but also the share of those who did not pay their taxes, increased by interest and high prices. These things should not be so. They reflect discredit not only on those of our citizens who seek to avoid their just share of those burdens which are imposed upon all for the benefit of all, but also upon the

laws which permit them to do so with impunity. I, therefore, very earnestly recommend to your attention a careful examination of our revenue laws for the purpose of ascertaining if they can be made more effective in enforcing the prompt payment of taxes.

The leading features of a good revenue law, in my judgment, are: 1st, The imposition of such penalty for the non-payment of taxes when due, as will make it unmistakably the interest of every tax-payer to pay promptly. 2d, The assurance to the purchaser of property at a tax sale, of a valid title at the expiration of a fixed time. There is, in my opinion, much misapprehension in the minds of many persons on this subject. Some seem to think they receive no value for the money paid by them as taxes, and that they are, therefore, not culpable in avoiding payment if they can. Others, whilst they admit there is some kind of doubtful obligation upon them to pay their taxes, if convenient, yet insist that any stringency in the laws to compel payment would be unjust and oppressive, and that no greater penalty should be imposed for nonpayment than the interest allowed by law between citizens. These are radical errors. Every citizen is protected by the State, in life, liberty, and property, in all that he has, and all he may acquire, and in all his honest efforts for further acquisition; and in return, he is bound as a good citizen, to render obedience to the laws; to pay promptly his share of the taxes necessary for the support of government; and, in time of war, if need be, to defend the government with his life. If he fails to perform either of these duties of a good citizen, he is liable to punishment, and the amount added to his taxes for a failure of payment at the time fixed by law, is not the interest due upon a debt, but a fine or penalty for the non-performance of a duty. Nor can any one justly complain of this. Why should any one of our people claim that he should enjoy all the benefits of civil government and be exempt from its burthens; that he should have all these advantages at the expense of his neighbors?

It may be said that some are unable to pay their taxes. This, it seems to me, is erroneous. The amount of tax each one has to pay, is in proportion to the property he has, the greater the tax the greater the amount of property from which to raise means of payment I am well convinced that taxes are paid most promptly by our farmers, and by men of comparatively small means, and that there are very few of us who do not spend yearly for articles of luxury which do not promote either our health, our prosperity, or our happiness, more than the sum required from us as taxes for the support of the government that protects us. The subject of revenue and taxation assumes a graver interest and importance at this time, for the reason that our State is called upon, for the first time since its admission, to pay a direct tax for the support of the General Government. We may expect to be called on to pay, during the present year, a Federal tax of from $600,000 to $700,000. This is ren

dered necessary by the heavy expenditures incurred by the General Government in preparing to put down the Rebellion in certain States of the Union. A resort to loans has been, and must continue to be, necessary to meet these expenses, and prudence and sound economy require that the General Government shall not be compelled to borrow money to pay the interest accruing upon its loans. The interest upon loans made, and to be made, must be met by actual payment, and not by incurring further indebtedness. The capitalists of the country have, thus far, responded nobly to the calls made upon them by the Government, and have given it assistance and support as necessary as that rendered by the soldiers in the field. Six hundred thousand gallant men, 20,000 of whom are from our own State, are in arms, giving their labor, their health, and their lives, for the country; and now the call comes to us who are at home, and we are asked to give a little of our substance to the same good cause.

I have cause to be prepared from documents in the office of the Auditor of State a table, heretofore appended, giving some interesting information touching the taxes paid by our people. It will perhaps be a matter of surprise to many that the taxes for the support of the State Government bear so small a proportion to the entire amount of taxes paid. It appears from this table that the whole amount of taxes for all purposes for 1861, was $1,700,000, and that of this amount only $300,000 was expended from the State Treasury for State purposes, while $1,400,000 were expended from the several County Treasurers, for County and other purposes. I regard this table as useful, for this, among other reasons, viz: that the people have been led to believe that the great bulk of our taxes was caused by the expenditures of the State Government under appropriations made by the General Assembly, and they have been taught to look to a reduction of State expenses as the means of relief from taxation. This table shows clearly and conclusively that of every $5,66 paid by the people of the State as taxes, but one dollar reaches the State Treasury, or is used for State purposes, while the other $4,66 are retained in the counties aud used for county and other purposes. I would not desire our people to relax their vigilant supervision of State expenses, but I am of opinion this information may lead them to give as vigilant supervision to the expenditures of their respective Counties, where equal vigilance is, in my judgment, equally needed. It is evident from an inspection of the table, showing the amount of taxes paid and the purposes for which paid, that if it be deemed desirable to decrease our present expenditures by an amount equal or approximating to the amount of taxes required by the General Government, much the greater amount of such reduction must be made in the taxes levied for other than State purposes.

In some particulars the expenses of the State may be materially less for the next than for the last two years. The appropriation of