bo a wise and prudent economy ; hut tn Ihut grwit uitere?t the State oanuo* aHurd to oe pa? Mloionioua. TUe problem tor u the whuti* the cheapest tor the tune, but what u in? best system lor managing the canal* so that the Stat* ami me people everywhere may realize ti > the fulttiNt extent, now ami ii urwiiier, Uio gieat auvan ia.irt*s were uoniutttHl K)8?curo- fcxpfirtcucj tons *tiowu ttiai (bey c.*unot, under exUtlug law#, be mo managed asto iiuiur* tuo ultras uits lor trie Ht&to or lor tbnM who are engaged ami Interested in tne business ol transportation* i'he contract system lor repairs lias proved a failure, and l reuew my recom mendation oi lust year mat u be abolished. vStoue omeaion* nave oeeu and may continue to Iw interposed to oilier methods, und it may l.e dull ouli w> wet ure an agreement lit the legislature upon any specific plan of management. in view of ilu* nossitnluy and as me constitution provides tnai tlie canals shall rem aiu the property of tue State and Uj uu.ier it* management iorever, Ire ?pectlnil.v recommend that discretionary powers, to tne fullest extent permitted l?y tue oouatliutiou, over tue canals aud everything connected with the workinir or theui, bo conforrod upon tue C'aual Hoard, to tue end mat they may adopt the best prac tical plun or combination ot plans. Tliev are a con stitullouul body wliicli it m:uiu-> to me may be properly chanted with such responsibility uno duty, in their iianos the Plate might be enabled 10 reallae all tlio benefits o: Ihou ii?e cou tract auu su peimtcu tent systems and t>e ^a.e I irotn tlio eviij incident to' tuner aloue. Ti.eycoiid c' u , eniorce such police regu atuus as wouUl project those engaged in naugaf.ju atfain^tirio winch they u re now w?? JfSSL lassly subjected. mey couia contnia ior J-epMrs wlieu In their Judgment it u as 1110,1 they could have ?ork done ulldB' f"p:1 when they eonsideied tuo Interests ol the Mate would be tnereo . subserved. 1 liov could use w"'1' ia i?oot$ttMi| and mowing. .is inoy arc hound to know. uio wtiole wurk and His iieo<*HbiU6H, could tbrou^li the yropwi omcew sec are tHo nest practical results vriUi llie '"u^eem^very' "certain that Important reductions ma* bo uiad j m canal toils. Kvorv Intercut dciu.inilh Una such reJucuoas should be made. I am informed that the Canal Hoard will recommend lower rates, and I asW the prompt concurrence of the Leulsla 1 The Kate Engineer will, in his report, recommend certain specific luiprovements. 1 .isk. for uis recotn niendatlous your mo?t favorable coaiidciation. KOL'CATHI.v. 1 submit the followin? BUt-uient in relation to common hclmo.s lor the yearenama septomocr iiO, llfui receipts from all sources, including balance on haud at the commencement of me 0 iato nearly l,i>oU,OOo children ol school use. about 1, Otto, 000 of whom a'tendoi the L?ni(.ic schools dunnu' some portion ol the year, while lau.uO i were attending private schools. Six normal schools are also in full operation, the attendance ou winch, in me aifgrepaie, amounts to *''n?e total number of public school homes is ll.ods. and the estimated value of these, with their sites, is more than $i!>.ooo,oo >. Cbese lacis snow the great proportions to which our common scnool system lias grown, i here may bedelerts in it. but Iukcii as a wnole it commands and receives tlie hearty commendation anu me cordial support of the great body of the people. Under our lot in of government, in which the voice of tlio people Is so potential, the State has a direct intereat in so educating me iujhsvs tl.ai thev may intelligcntlv understand timir duties as citizens; and no tax should be paid more cheerfully than that which enables all, without reference to station or oondi ttou. to acquire itio lUdimeutH oi u Hood hiitf JlHh education. The Legislature gtiould do all in tw nower to sustain and periect u system w inch aim- to accomplish this result. I he condition of the colleges aud academies of the State will appear irom tUo annual report of tne KeaenUi of tne University. HTA'I R PRiaOM*. The report of the Lompti-obei will show. In detail, the exitenses and earning* ol the several St t'e pr.s ons durlujr the past year umi give the necessary ex Dlanalitin* thereof. There have been, during the year, mutinous dis turbances am. tug the convicts, and the expanses of tlie prisons continue to be ".rirgelv in excess of the earnings, i renew the objection* made in my tast annual inesnaiie to the coutruct sysleni for the em ploymcnt or tue pn-onns' lanor. It is a vicious , one and should is* abandoned. The discipline of tne prisons has been serious, t artected by legislation which has deprived tnetr Min cers of nearly atl discretion in regard to punishment, j mum the chief officer of each prison should be clottocd with the fullest discretionary powers in re lation to the character und amount of punishment, subjoot to the restriction mat it shall bo iniltcted ouly In bis presence. . I sumnlt to the legislature that the subject of pri son management has become one. ol very great con sequence and detnandsearnesl attention. .More eon centrated respon-iblttty is needed, as well as protec tion against frequeut cuddies of adminlsti-aUve onicers. H is douotfui wlieiher such results can ia: atuined w ithout an amendment of the constitution making an entire chaupe m tlie ay stem. The coiiiiui.-sioiicis appointed by me, pursuant to chanter 40s Oi the laws of l^'iS, to select a site aud ?Mbimi plans lor i he construction ou l tnanagement of a state penliciitlary will, l am iiuoriiicd, make their report to liie Legislature at au early day. I nave visited durtug the tear, all tlio Mate pris on* and kiiven personal hearing to large u limbers of convicts who desired to present applications for executive clemency. The toial number of applica tion* lor pardon aud commutation or punishment, presented personally or in wi lting, ami examined by inc. ui about BOO. Klghty-six pardons and twenty commutations havd been granted. A full statement of the names aud of the reason* in ouch case will be transmitted to you lietealliir. salt 8I'kim;-i. Hie quantify of salt inspected from the Onondaga salt sprlrus during the last Uocal year was 8 .Vt4,, iw. 1 Nsl K A.SCh. The numoer of insurance companies subject lo tue ?upcrviuion of the Insurance Uejiarimeui was. on the 1st or December, inirf, J' ii. of these many are incorporations created by oilier States or by foreign countries, doing business w'thiu tins Statu, I tie total amount of stocks and mortgages held bv the department tor the protection of policy holdurs oi Hie and casualty .iisurance companies or tins state, aud ol foreign companies d"ing business within it. l.-t }(i 7att,t)?2. ui these me value of $4.otH,n: in se curities is neld for the ptotuction generally or policy holders in lire insurance companies ol tills state. For the protection ot registered policy holders, ex clusively. titers are on hand securities to the amount of $U37,noO. BANK*. During t.he last fiscal year there have been re turned, destroyed and caucelici, by tlie bank De partment. ?.iis,al? of the circulating notes oi ihe banks of t ils Siate; of which amount $4?,:;04 were the notes ot incorporated banks, aud were the notes of banks organized under the General Bankiug law. The amount ol State bank circulation , outstandtnu on the mb of r-epteiiibev last was t'2 63u,06 t, of which $l,''i were notes of incorporated bunks, 'i tie whole of the lor mer und $o7-2.072 of tlie latter are se cured jV bonds *nd moriirage*, govern ment or State stocks, uud cash deposited with the Superintendent oi the Hank Depart ment, loiving but $s70,t)S4 or itnsocured circn'auon ontHtandine, a large portion or wun-h, It is pre sumed, l:as bee 'i destroyed and the remainder Is alwavs redeemed on presentation bv the representa tive* of I tie banks winch issued the same. The total amount A securities held by tlie super intendent ol the l?auk Department at the close or the ilscal year wus $3,058, la?, oi winch 51. were neld for banking associations and iiintvid iai bankers, 0 t or incorporated banks au l 3V8 for Incorporated trust companie.-. \ detailed staiciiient of these securities will be rmind in the annual report or the Superintendent or me Hank Department. . Fill, v- even banks are now doing bflslneus under the laws ol tin- Slate, out. ot couise. Issue no circu- j lating iiotea. of these six have returned to the state j msteui from the ualtona1. under the provisions of tlio cmibliug act ol 1S07. several other national banks ,ne reported as having in contemplation a Bimiiar change or organization. one tin mired and twenty-eight savings banks are now organi/ co authorized and required to pay to rhose who would assume their caro such weekly or monthly .stipend as should be uecessary and proper. 1 his would prevent the overcrowding of the State institutions, yet add nothing to the county charges. in connection wnh the subject of insanity, I re spectlully suggest that you will give favorable con ^deration to the application winch will be made on behalf of the Slate asylum at Utlca, for authontv to appoint a special pathologist for the duty of making such investigations as seem to be now demanded oy medical science. The reasons for this will be lully slated in the report of the superintendent of that institution, winch will be transmitted to the Legis lature. THE NEW CAPITOL. The money thus far expended on tho new Capitol, according to a statement rurnlsbel me by the Comp troller is $l.:i?y 640, of which sum about one-half has been paid ror land. The appropriation made last vear was expended before the autumu of ls? ?. It seemed to be clearly tho Interest of tbo State that rho work should not be Interrupted so long as the condition of the weather permitted its continuance, An arrangement was made, therefore, with tho consent oi the Executive aud the Comptroller, by whlcn t.'ioo.uoo were ad vanced to the Commissioners and deposited with ihe Comptroller, to be drawn out on proper vouch ers. I recommend that provision be made ror the repayment of ibis advance and lor carrying ou tins work during the coniltu year. quarantine. The hospital on ths West Bank, In the lower bay ef Now Yorit, has been finished, llie structure to be used as a boardiug station is near completion. The report or the commissioners will fnruish more detailed mrormatiou, aud also the statistics in rer erence to discuses which are subjected to quaran tine. The comuusslouers deem soine iurther appro priation oi money necessary, iu order to euable theiu still further io strengthen the works under their charge. | recommend thoir suggesiions to favorable and careful consideration. lUMKJKATION. During the past year the number of Immigrants landed at the port of New York was 260,00.1, show ing an increase, as compared with the year lhfl.s, or 4?, ;H. Kor more detailed inioriuatluu 1 respectfully reier you to the report ol the Commissioners ol Kml graiion, which will De transmitted to you at an early duy. GENERAL AND SPECIAL LAWS. At its last sessiou I was obliged lo dissent fre quently from llie Legislature iu reference to bills limited in their application to localities or uiiordmg relief in special cases, when, as it app arcd tome the proper couise would have been to amend the general laws pertaining to the subject or to pass liew general laws. The Legislature, on the recon sideration which the constitution in such cases im poses upon it, in every instance concurred in and sustained uiy views. Nevertheless the statute book of 18PD contains nine bundled aud twenty nets and Is almost ns bulky a volume as that of any previous year. Tills multiplying ol laws is a serious evil and in my jiidgmeut unnecessary. I recommend io you the carerul examination of all existing general laws, with a view to ascertain what amendments are necessary iu order to lessen the number of applications made at every session for special legislation. An Important amendment to the general laws was passed at I no last session enlarging the powers or the Boards or .supervisors over roads aud bridges and otiior matters iu relatiou to wnich the Legisla ture has heretofore bceu called upon to pass many special acts, j submit, for your consideration whether the legislative powers or the Boards of Su pervisors over these aud otner subjects of strictly local interest may iiot, advantageously, be still fur met- enlarged. i lie rapidly creasing population of Westchester county ana pans or Long Island, lu tho immediate vicinity or New York and Brooklyn, renders neces sary ihe laying out of roads and avenues of a char acter wliicb could not well be provided for in the general laws applicable to other pontons of the stale. Hence there are Irequent demands upon the Legislature to create special commissions to take charge or such work. 1 recommend that a law be passed covering all such cases in these localities, which will render luture applications to tho Legisla ture unnecessary. i recoiumcuu the enactment of a general law pro viding lor the appraisal aud payment of claims or damages arising or resulting from matters con nected with the canals. I recommend, also, the examination of the general law passed tit the last session concerning savings banks, lo the end that, u necessary, it may be amended so that special charters lor these institu tion-. shall not hercaiter be requisite; and tuat no special bills for savings banks be passed at this session, unless the parties aoplylng shall have complied with the general law of last session; also mat tile general law ior the organization of lire com panies in towns be amended; it makes no provision for hook ar.d ladder and hose companies: also lor your consideration tuat t lie limit now imposed upon the amount of property permitted to be Held by literary, musical and other societies bo enlarged; also some provision, by general law, undor winch cti u i olios and societies may aitcr their names with out coming to the Legislature for authontv to do so In every special instance. 1 also recommend the careful examination of the . general laws ior i ne incorporation of villages, to the ene met. and that applications for special village charters and for amendments to charters may no longer be necessary. 1 also recommend that ml existing village charters oe, by tne provisions of tor act suggested, made to conform to the general model of the proposed perfected law. The charier of i he village oi Oswego is to be found complete oiiiy be rriarenc? to fourteeu separate acts of tho Legislature, pas-ed at as many separate sessions. A fliitcmh amended charter was proposed lust ses sion. nut l.iiied io obtain the executive approval. I here stems lo me to be no reason why village cnar tevs should not be. like our town goveruuioats uni form in character. I recommend that all laws which have been passed conflicting with the principle or uniformity in town governments, such as those which, in special instances, permit the votes loi town oillcer* to be taken by election districts instead or In town meeting, be repealed. There is a delect in the law ! providing for two justices of the peace to sit as jus tii.es of the sessions and ol the Court of Oyer aud Terminer. Section 40 of chapter 2S0 of the laws or 1S47 provides that in case or absence of any Justice of the ?e?sions rrora any sitting of the court, or in case the otllce or any of the two justices of the peace who have been chosen justices ol the sessions snail be vacant, the county judge may designate some other Justice of the peace to acL Section '-j ol chapter 470 or tne laws or i S47 bo amends the Orst named section as to leave no provision lor appoluiment In tne case of a vacancy. In a reccni instance, by reason ol tnls omission, tne Court or sessions could not be organized. 1 recom mend the immediate passage piion, more than forty years ago, been of little practical value. 1 cannot find, after a care ful examination, that Its provisions have ever been successfully invoked against capitalists or others lor combining to raiso tne prices of grain, coal and other articles necessary for the comiort of the whole people, or to reduce the rate of wages, it has, how ever. been evoked on several occasions asralnst and lieen by the courts construed to apply to Journeymen and others for combining to raise the rate of wages or to make and enforce regulations which they deemed necessary for their mutual welfare. Cases have recently ocourred id Westchester county where Uie .aw lias been enforced agaiust persons engaged In thelast named combinations. 1 do not balleve that (be exuionou of a statute wuioti cau bo so construed as to make such acts orimiual ? productive of anr public benedt. I do be.ieve it to be productive rattier of pubno erli. Like all other laws which from tlieir nature are likely to be executed unequally, it operate*, when it operates at all, oppressively. 1 recommend, therefore. a repeal or this conaDimcy law, or sucu a modification of It as, while it lot bids a conspiracy to Injure tne gen eral trade and commerce of the Stale or country, will do awajr with that judicial construction which niakos it equally criminal for citizens to combine for the purpose of securing an Increase of the wanes of labor, or of establishing anil maintaining pru dential regulations f or their mutual interest and protection. INJUNCTIONS AND RKt'KIVERS. I recommend also the passage of a law forbidding the gran ting of injunctions or the appointing ol re ceivers in cases aiMotlug moneyed au.i otuer corpo rations on Hjr jtar e applications. l think it would bo far better even tnat tho writ 01 Injunction should be abolished altogether than that It snould continue -to ee the cause of the unseqinly oollisions between judges which have been frequent lor some years past. APPKINTIOK LAWS. I am informed tnat application will be made to the Legislature for a revision ol tho laws relating to ap prentices. one of me complaints agamst the existing statutes is that, wulle they impose severe peaulUes upon apprentices for viola tion oi the provisions oi iheir indentures, tney do nut afford suillcient protection to t/io apprentices themselves. It is claimed, and with justice, that tne employer should not only be bouud to thoroughly Instruct his apprentice iu ail tne mys teries of his business auu culling, but tnat proper penalties should be Imposed upou him lor violation of this duty. The State should make due provision for the enforcement or all contracts affecting per sons under age; and It is tho interest or the commu nity to aecure tue greatest ainouui of skilled laoor lu all mechanical occupations. I recommond the whole subject of revising the apprentice laws te your prompt and careful consideration. RKVIHION or STATUTES. I again invite your attention to the importance of a revision of the statutos of tins state. During the tlrst iort> -eight years ot our history tne Legislature provided for four dnierent revisions. The last act for tuat purpose was passed on tue 21st of April, aud the last revislou was completed in Since mat tline a new constitution has been put in force; the Stale courts have been reorganised; a new system of practice has been adopted ana many acts have been passed materially attectmg the pro visions ol previous laws, these changes, so numer ous and important, and extending. a< they now do, tnrougn at least tlfty volumes, create ereut -dim. ciilty aud sometimes uncertainty in ascertaining the exact state ol the law. A new revision, oy wliicu a.l laws of a general nature shall bo collected to gether and the vurious acta relating to the same subject arranged and consolidated, is greatly needed. * NBW JUDICIARY. The amended constitution proposed by the con veuiion which closed us sos-iious i ebruary i?.h, was submitted to tne electors at tne last general election pursuant to chapter U18 of tne laws of isou and tliut portion known as the Judiciary article was adopted. It will be the duty ol the Legislature to pass tne necessary laws to carry into lull working operation tins article, which becomes tne sixth arti cle ol Hie constitution ol the State, and I recom mend that It bedoue as cariv ui tho session as mav be practicable. KHGISTRT AND ELECTION LAWS. I respectfully call ilto attoniion of the Legislature to the wunt of iiiuforiuity iu the registry ami elec tion laws of tne state. Ail laws relating to elections should Iks uuiiortu in tlieir principles una general in their application. Ms open aud corrupt use of money at the polls aud elsewhere to control elec tions is a great evil and demamis your earnest, at tention. The laws which aim to secure the people in their right of speaking through the ballot box suould be stringent and rigorously enforced. They snould not embarrass tne electors, yet iliey should guard, with tho greatest care, ugamst frauds at ttio polls or in tne canvass, 'lue Legislature should spare no efforts in tins direction. It is to be learcd, however that no laws, though careiully aua s?nrtilly devised' can protect the purity ol the ballot oox, unless your legislation can roach what is the run laineutal evil the corrupt use oi money in eleotions. In consider ing this subject, it must not oe overlooked mat grave doubis are expressed by very Intelligent men whether our present registry laws, while tncy often times embarrass honest voters, are, in any material degree, enective lor the prevention of frauds; and there are ninny who believe, alter a fair and full trial of ihein, that lar better results would bo attained bv providing everywhere lor the establishment of small er polling oistrlo s, and the luil and tree exercise of tne puvllcge oi challenge on the day of election. The subject is ol tne greatest importance, and demands vour earnest consideration; lor the whole system of otir government depends upou maintaining ?ud pre serving the purity of elections. CRIMINAL LAW. There are frequent cases ol murder, as tho crime is now defined, in which the Jury are unwilling to con vict, because of so little deliberation in tne aci mat they think it docs not deserve tne punishment of death. They acquit or find a verdict of manslaughter in some in lerior degree; or they convict ol murder with a recommendation to mercy, und so throw upon the executive the responsibility ol deciding whether the death penalty niiall oe enforced. A slinrue change in tue statute would, in my judgment, secure a Tar ootter administration ol criminal laws aud a more certain punishment of crime than is now attained. I earnestly renew the ro commetidation made last year, that ex press provision be made by statute, that in all casus of murder where the decree ol premedi tation or the circumstances attending tho homicide do not In the epiuion ol tne jury Justify punishment by death they uiav render a verdict of murder in a less degree, to be punished by Imprisonment for lite or for a term of years in the discretion or the court. By existing pto visions of law courts ot Sessions have the power in cases of conviction by them to grant new trials upou the merits or for irregularity or on the ground ol newly discovered evidence. I re commend that the same power be conferred upon the Oyer and 'Jerininer or upon the Supreme Court in canes of conviction by the Oyer and Terminer. I also suggest ror your consideration whether It would not be well to abolish, as has been done in England and some of the Slates, the common law which forbids the trial of an accessory to a felony until after the conviction of the principal offender. It ofteu operates to screen guilty men irom punish ment, aud so to defejy tne ends of Justice. BkCIHK lXwS. In my I03t annuul message I recommended the repeal ol the Metropolitan District Excise law for the reasons, among others, lhat it was loeal aud not general, tnat its provisions were unnecessarily harsh, needlessly violated private rights ana un duly interfered with the social customs of large numbers of sober, temperate, law-abiding citizens, whose enjoyment of such customs aid not prejudice general morals or public order. This law also authorizes anest without warraut, and under its operation a system of espionage has grown up as degrading to the police who arc compelled to carry It out as it is to the people who suffer from it. For these reasons i again recommend its repeal. Excise laws should be uniform Iu principle uuu general in their application throughout the state, regulating the sale of intoxlcutlng liquors under ilue restric tions as to time and piace, aiming to secure order and decorum on every dav oi the week, ruily recog nizing the general sentiment prevailing In favor of a proper observance ot Sunday las has ul ways been done m the stiu utes of the state irom the earliest period of its history). jet iree from the intolerant provisions winch characterize tne present Metropolitan OiHtrict law. and which are wnoily unnecessary to the analnment of thcee ends. Hoards of excise should consist of, or be ap pointed by, some local authority. 1 rccomnieiul tue abolition ol the county boards as now organized throughout the state, and the substitution or locai boards, to be composed or the supervisors hnd ius tices or I he peace ol the several towns. This was the old py steal under the Kevised statutes, and it liai not., in my Judgment, oeen unproved upou by the subsequent legislation. In villages the board might properly consist or the president and l.oord of trustees, and m cities be appointed by the Mayor. COMMISSIONS AN P CITY HOVER NMKNTS. The constitution or 1840 recognized, lor the pur poses or local government, counties, cities, towns and villages, and no other territorial divisiuus, and provided that the ollP ers thereor should be elected by the electors or such counties, cities, towns and villages, or some division thereof, or appointed by such authorities tneroot as the Legislature should uesignate. Tins provision was intended to sccnre the right or seii-governmeut in loeai affairs against any possible encroachment ?r violation. For tne purpose of evading It the Legislature created new districts (so-called), made up of two or more ailjoiniax counties, and established within their limits vurious independent boards and commissions, in winch all powers relating to police, Are, excise and health, or some of mono subjects, are vested, and the members of wntch commissions are not elected by the people or the localities or appointed ny the authorities thereof. The constitutionality of this legislation was atllrmed by tue Court of Appeals, although It is hardly denied thut it is an evasion or the spirit of the constitution. I no effect was in every instance, practically, to give the political minority in the dis tricts the power, through the central authority at the capital, of governing the majority. It cannot be denied that there were evils In municipal governments existing at the time which were seized upou as a pretext lor this extraordinary legislation. The intelligent sentiment of the com munity to-dav declares tnat such legislation was unwise, and that the true remedy for the evils com plained of was not in laws or the character men tioned, but in a thorough reorganization of municipal governments upon sound principles. I have always beeu opposed to the laws referred to, and nave recommended, and do now recommend their repeal, and a thorough revision of the charters of these cities embraced in any or these districts, in order to insure an early return to the system of local sell-government as guaranteed by the constitu tion. Exist lug Charters are radically detective, inasmuch as tnere is an aimoit enure absence of executive power in the Mayor; and. as l said in my last annual m-ssage, no good government c?n be secured to any great city unl?ss u shall have a re sponsible head, in whom shall be vested all execu tive power, and to wbom, as the elected represent ative ?f the people, atl departments charged with administrative duties shall he directly and summit rily responsible and accountable. I believe this to be the very Joundatiou stone of a good structure or mnuicipni government.. This subject Isone in which the people of l tie wnole State reel a deep interest, ami In regard to which tncy will expect prompt ami Judicious legislative actiou. KARLY Lib DILATION. It Is the practice to suoralt the annual tax levies Of the city aud county of New York to the Legisla ture for approval. For many years past the con sideration or these and of the several appropriation bill* for itio State government has boon delayed until a late period of tho session. The Executive la. br tuis delay, practically deprived of tbo opportunity to present objections. If aur be baa, to the provision* of these important bill*, to the end that, If bla objco tious, upon reconsideration by tbe Legislature, be deemed valid, tbu bills may be amended. Not only these but, many other bills of great importance were, but vear, presented to aie at the very end of the session, so tnat no alternative was left me but to appror*, notwithstanding some objectionable details, or alsapprove tbe bills and let thom fall to become laws, at great public inconvenience. For thus* reasons I recommend that too city and comity tax levies, aa well as all bills appropriated moneys for the support ol the State government, be taken up early in the session, and also that the consideration of other bills of great general importance be postponed no longer tnan tbe state of pubilo business manes ne cessary. I Lave now, aa far as It see ma to me necessary, presented to you facta and suggestions connected with the condition of our own mate. Our especial duty is to promote the pnbllo good, by laboring to secure a more prudent, honest and economical homo government. Keeoirnizlng the goodness of (lod, grateful to Him for all Ills mer cies. acknowledging our dependence upon film, looking to Illm for wisdom and guidance, trusting Him to lead us through uii the dangers wnlch beset us, let us all, In our respective spheres, labor to secure to the ft ate and to the country substantial prosperity and real and enduring peace' FKHKHAL APKAIKN. The people of this state are deeply concerned in a wue administration of federal affairs. An represent ing tbem 1 believe It to be my duty, before closing ibis message, to call attention to, and to protest against, whatever m the policy of thegeueral gov ernment strikes at their commercial and agricultu ral interests, or Is in any way prejudicial to their wellare. 1 protest ajfalugt tbe rovoiuttonarr courae ol Congrew wltli reference to amendments ol tbe constitution ol the United states, by wtilcb aiiiomr their other efforts at centralization, they seek tbe absolute control of elections In the states. Power, less themselves to amend it by direct act. and unable to procure the voluntary conseut of Ihree lourtlis of tbe states, they lorce the consent of the Southern States as a condition to representation and thus override and nullify the will of others whose proper relations to the federal government have never been Interrupted, and whom they can uot constrain. 1 protest agaiuat the action of both Congress and the President of the United States in subjecting the people of Georgia anew to military power, tlieir State government being m mil opera tion, and tbe restoration of their constitutional re lations with the federal government having been recognlzcd by the federal^ authorities as complete. I protest against tbe longer exclusion from repre sentation of any of the States; il uuv one be ex cluded the rights of all are unsettled, and the har mony ol our government is destroyed. TIIE TAItlKK LAWS. I protest against the favoritism of our present tariff laws, winch have virtually destroyed American shipping, and whicn boar oppressively upon the masses ol the people and especially i.pon the great agricultural States, between whom and our own State the relations are close and Intimate, and upon w liotie prosperity and freedom from uniust exac tions depend largely tbe weifaro of the whole coun try, aud its ability to defend its honor and pay its delfts. I prot-st n^aiust postponing, as has oeeu suggested by the President of ttie United States, the revision ol these laws. Tho evils connected with them are airoany ol long continuance, and imme diate relief is required. Our taxation lor the accumulated responsibilities and present cost of tho fedurul government is heavy. Its wl/tit will be felt the more severely now that low prices lor our agricultural and other products are likely to prevail. The people suoiuit cheerfully to all taxej neccssacg for the support of the government and of us credit, iney have a right to demand, however, that the burdeu of a very heavy taxation shall be rairiy aud equally adjusted, and so adjusteu as to interfere as Iiitle as possible with their daily comfort. It is the direct interest of tho people at largo that they shall be able to buy cheaply whatever thoy have to buy. our preseut tariff of duties ou imports compels the many to pay high prices lor he benefit of a few. Although en acted djr.ng the great need ol the government, it wss, nevertheless, framed not for the one great end of giving tho lederal Treasury the largest income, but with the view of favoring certain special I private interests. No government has a right to tax. except to obtain Its necessury revenue. To impose taxes upon articles of daily need for the mere purpose, by increasing their price, of favoring the capitalists engageu In their manufacture or pro duction is aa abuse of the taxing power. So long as laws are enacted upon this principle powerful com binations will be formed among those whose special Interests are to be beneficially affected by them to pu-h turough schemes which lavor their private business, regardless of tho interests alike of tlie iieople ami of tho federal ! reasury. Laws or liiis tittuue uer cent iuterest, command a premium' We are enduring great evils from onr irredeema ble currency. The financial panic w hich occurred In New Vork in September last threatened tor a time widespread disaster. A very little Increase of i he then prevailing distrust might have thrown the whole business or the countrv inio confusion. That panic would not have been possible but for our hav ing in use us money something which, lacking the intrinsic worm 01 the precious metals, must depend ior us current estimated \aluo upon the caprices of opinion. ? ? Money of shifting value Is a enrse to the great body or the people. It renders the rate of wages delusive, counteract ami defeats the economy of the household and makes the savings or labor laid tip at the cost ol much self-denial, of uncertain and variable value. If we wouid avoid discouraging regmnr industry, and fostering, In lis stead, a spirit of speculation the money which we use to denote the value ol what we have to buy and seil every day, aud in which we fix the rale of wages, must, be constant in iLs own value auu not liaJie to caori clous fluctuations. it is a misiormne that we ever departed from the use of tho money or the constitution, sooner or lat< r we shall be obliged to go back to it. We have before us the alternatives or returning to a sound condiiiou by wise and prudent efforts or our own, or or awaiting the possible advent or a finan cial psi'lc of greater inienslty than ttny we have yet, witnessed, and a return to specie payments, at the cost or great and protracted suffering, by the operation or self-enrorcing laws which are above our control. 1 do not l>eiieve that any contraction of the legal tender currency is necessary m order to reach snecle payments. The amount of such paper is limited and it is not serlousiy depreciated. We have not as some other countries have done, issued paper I money without limit and to an unmanageable extent, making tbe depreciation or it so great as to reuder it almost worthless and Its restoration to pur hopeless, llie whole sum of tbe legal lender notes scarcely exceeds the amount or coin received in two years at our Custom Houses. 1 he amount of legal tender notes afloat on the 1st of December last was, including fractional currency. IMn.uoo.ooo. The present annual goid lucotne of the Treasury irom import duties is $180,000,000. with the abaudant resources of nie federal Treasury it ought to be, and it Is possible, to leave tnis currency at its present quantity, and yet put it, at no very dis tant period, at par, and thus to give settled pros perity to the people and save them the d is let us which win attend contraction. Alter the peace of 1815 England returned to spe cie payments by contracting the volume of her paper money. She had no other means of reaching the result. She was not. as wo are, a gold producing country; aud was obliged therefore to curtail her paper currency so as to rorce gold to flow in to her irom abroad. In consequence of this policy the trade and business or her peopio were crippled, general distress ensued auu immense numbers of those who lived by wages were deprived or their proper employment and oonaemned to Idleness and want. The ten years rrom 1816 to 1825 was a period or rearrul strife ring in England and of repeated and most disastrous financial convulsions, we should take warning from her experience. We have no oc casion lo force gold into this country from abroad. We produce it largely at home, and all we need to do is to retaio enough or oar own product to effeot oar purpose. MO UrVUUTIOH. The government la m much bound to pay Its legal tender note* m lu bonds. I aw for paying both In fun, aud against the repudiation of any portion of either. The legal tender notes are promises of the govern ment to pay luouejr? tuat is, gold com? ou donaud. 1 bey ure in tbe pockets of the laborer and tbe 1 ar mor, iu tho tills of tradesmen, In tbe va.ilts of the banks as a part of and as security for the deposits of tbe peoolo. w filch deposits constitute available capi tal esseutial to dally business. Tbe federal Treasury, in the hour of Its need, rorced this irredeemable paper on toe people; it is a matter of simple duty, now, in tbe time of it* abund ant resources, to redeem it. 't'bia paper displaced tbe coin which was boiore in use. The buMinesa or tbe country has adapted Itself to tbe exU,iln* quantity of our presdht lawful money, aud tbe people rely upon this legal tenuer pai>er wnerewith to pay ail ordinary debts; It is the sub stance. too, iu which bank notes are redeemed, and in wbicb all that vast aggregate of indebtedness anown as hank deposits is payable. On thin paper, tnorejore, the whole structure oi onr uitorual busi ness now rests: aud upon its soundness is dependent tho substantial prosperity ot tho people. It is bad fuith to the people to lessen its nuautity or to take iroiu it its legal tender quality until it is paid. THB CONTRACTION T1IK0RT. \> hen coin occupied tlia bame place in our monev system wbich is now held by tbe legal tender notes any serious withdrawal, from whatever cause, of the gold then in one from the general circulation In variably produced financial trouble. The with drawal of legal tender notes now must be followed by liku trouble. The theory of those who advocate contraction is that so soon a* the legal tcuder notes shall have been reduced to $260, 000,000 or soma other theoretical sum the government will be able to make this reduced quantity redeemable in coin, and so pnt tho notes at par with gold. If it will be possible to put the lesser quantity at par by making it redeemable, it is obvious that, wim a lntie more effort, the present quantity can be made redeemable and put at par; and tliH effort is due from the government to the people. COIN AND PAPKR MONHY. The fedoral government la bouud to restore coin to the place which u formerly occupied in the business of the country, and from which the Treasury, for lta own convenience, dis placed it. It should be ready to substitute coin in the general circulation before it undertakes to withdraw legal tender notes; otherwise the with drawal of the paper amounts to an absolute destruc tion 01 so much of our stock of lawful money, and, practically, of so much of the people's capital in the form of ready money. 8uca withdrawal would lessen everywhere the resources for paying debts make all debts less secure, diminish confidence and render disastrous panics probable. Two kinds of money of unequal value will not circulate together. The government, therefore, caunot make coin take the place in general circu lation 01 any portion of the notes which may be wttbdrawu until the notes are first renderel equivalent to ooin. This can only bs done by making them redeemable in coin on demand. Aud It must be borne in mind that this Is ail that la necessary to oe done to restore general specie payments. The banks are not in a state of suspension; they redeem their notes and pay their other debt* in the lawiul money of the country; if that lawful money were to-day equivalent to coin, they would find themselves and all their customers paving specie without any effort on their part and without any distress, it ts the government, and the government only, which has suspended payment; the legal ten der notes alone which are irredeemable. When the federal Treasury is ready to redeem its legal tender promises lu gold, as fast as the public are likely 10 present them, s|K5cte payments are thereby re sumed uil over the country, without fur ther effort on the part of auy ono aud without luconvenienco to the peop.e. Then, and not now, will be the proper time for taking In the paper; tor Htich contraction can do no mischief, it will in tact be 110 contraction. The Treasury may then cancel every note so soon as it is paid; for gold and the notes being at par, tbe coin paid out 01 the Treasury will enter Into the general circulation in place of the notes redeemed; and uo diminution of tne stock of lawful money In use will be forced on the people. The essential evil of oqr present lawful monev la to be found not In Its quantity but In the ract that it is not redeemable; it is, for that reason, depre ciated. A less quantity would as ccrtainly be de predated, if that less quantity contiuueJ to be lrrodeei liable, fcven a single note, issued by the government, or by uny other debtor, without pro vision made i^r its payment, would become de preciated. The remedy which wisdom suggests is to make the nores redeemable, without pausing to dis cuss the question of bow much money the people ought to have tn use. In looking back we sec that when our money was good in quality no apprehen sions wero iclt that too much of it would be used. Ihe government passed through its mint all the gold the people chose to bave coined. Political economists aud statesmen may speculate, as they do, as to how much money is necessary and proper lor the business of a couutrv; but this is a question beyond their wisdom. If the government w ill ukc care thRi the money It issues is good, the people will regulate the quautlty to be used by ttieir needs. it is the special duty of the federal Treasury, the issue of whose irredeema ble paper haa brought us to our pres ent condition, io see to it that there Is an ample supply of win retained m the couairy so as to make the transition from our pieseut currency to gold both easy and permanent, it seems obvious that this supply of gold should be lu the federal Treasury, which is responsible for the only Irredeemable paper now afloat, so that the coin may ha ready, when the proper time comes, to flow promptly out of the Treasury into general circulation in exchange lor the notes redeemed. GOVERNMENT CREDIT. The first great duty of the government is to mako Its legal tender promises as good as gold. Having thiii established lta credit, It will find no difficulty in negotiating loans at lower Interest, and in man aging Its bonded debt, ft cunuot, any tin re than a private debtor, hope for high credit while paying some debts aud ignoring others. It is a delusion to suppose that the payment of a few tf our bonds before they are due' materially helps the public credit: the Treasury is not bankrupt as ta us ootids: it is paving the interest according to contract, and the principal is not yet due. This is not the point where the public credit needs to be helped. The Treasury is bank rupt on its legal tender notes; for a failure to pay a promise when it is due is bankruptcy. No debtor Improves his credit by anticipating the pay ment or some of his obligations which are not due while he neglects to pay those which are due. Nor do?-s the payment of tne bonds before maturity tend materially to lessen the burdens of the people. Were we to cancel $100,000,000 of bonds In any year there would result an annual saviug of Interest of W.OOu.oOO. If, on the other hand, we could reduce the rate or interest on our loans by only one per cent we should thereby effect at once a saviug 01 over fiio.uuo.ooo a year for the whole time the debt may ran. Moreover, this payment of the bunds berore maturity can be made only out oi surplus revenue? that is to sar, by keep lug up taxation to a point rar beyond the actual needs of the government. We must not forget tha: financial laws are self created out 01 tho circumstances existing at the period. They cauuot be constrained by legislation. Wo shail be moat likely to avoid trouble by seeking the natural solution or our present difficulty, whfh natural solution is, as It seems to me, that the power which issufed the irredeemable paper, under which we now suffer, should get ready to redeem it. UOVKKNUENT UOI.D 8A1.ES. Spasmodic sales of gold front the Treasury impart no additional worth to the ie#ai tender notes, cou fidence Iu ability to meet obligations is the only source or solid credit as well for the Treasury as for othar debtors. Increasing public confidence in the grow lug ability 01 the Treasury to meet the notes in coin would operate not merely to affect, from day to day, as these sales do, the speculative pticc of gold, but towards the recognition or a greater Intrinsic value in i lie legal tender note, aim so to make the possible ran^e of gold speculations narrower. it is obvious that saies of gold out or the Treasury cannot have the eiiect of bringing legal tender notes actually and permanently nearer to the value of gold; lor it won. doe absurd to maintain that The Treasury, any more than any other debtor, can, by parting with coin, made its promises to pay coin more valuable. Tne Treasury sales of gold have simply tne effect which is always produced by throw, j lug upuu any market a supply oi an article lor which there is, in that market, a liiultod demand. All ueots, with rare exceptions, being now payable lu legal tender notes, the need or gold ror use in busi ness is not general, aud therefore tho demand lor it is coullned to a few, and is a very limited one. In a market bo situated a very temporary and small over supply may depress it much below its true and cor rect value as compared with Jegu tender notes, which depends ooviously on the prospect oi the notes being paid 111 coin, beraugeincnt of business is as certain to follow the artificial depression or gold below this true value as its elevation above it. Such a depression cannot be relied upon as lasting: nor doe? it afford any guarantee against great sub sequent iiuctuauons. These Treasury sales, while they do not improve permanently the value of the government paper, couiouud the most prudent cal culations or business men. 1 must not be understood as favoring any expan sion ol the legal tender currency. The government cauuot at present pay the notes of this kind already issued. It would be utterly unjustifiable to put out any more of them. FEDERAL TAXATION. The federal Treasury is not warranted In taxing the people to keep up its preseut enormous Burulus of revenues. U the country can bo ke^t in a pros perous condition every year of its growth will make tha payment of the principal of ihe debt come easier. A moderate surplus beyond the interest on tho debs and the expenses of government is all that Is desira ble or necessary to enable It to devote Itself em clently to the great, Imperative duty of making its paper money good. RKbKMPdON or PAPER MONEY. The moment the people see that the government Is getting ready to redeem its paper by providing Itself with the only means of doing it the apprecia tion in the actual value of tho legal tender notes will commence. It will oonunae, and the pro gress towards a return or specie payments will be gradual, steady and certain The very ract that tne government Is nnder a fixed and stable, and not an experimental and variable poiiey. pre paring to redeem its paper, and will some day an - rea par all, its debt*. m well its legal tender promises oh it* bonds; that high credit is the coudltion precedent to a lower rate of Interest on government loaua; that lowering the rate of interest on the loans will atrord great roller to the people; and that no relief either to Treasury or people can be expected from what tends to derangement or stagnation in the business of the country. ? ARI.Y RETURN TO Bt'BCIE PAYMENTS 01WIRABJ.B. The earliest practicable return to the hard moner of the constitution is, thorefore, desirable, an being. m every way, for the interest of the people; but tills return should be made wisely, by a process which wilt not cost neodloss suffering, under a declarod and lixed policy, intelli gible to tho whole country, and wnlch will insure that the change, wheu it comes, shall be permanent. A rash attempt would, by its failure, inane our ooa dltiou worse than It is now. But no time should be lost In adopting measures which shall tead by pru dent steps to the attainment, at no very distaut day, ol a result to which sooner or later wa must dome. If the federal government does not trv to accom plish au euriy return to the uso of gold and stiver, without spreading rulu among the people. It falls In lis uuty; 1L with its abundant revenue It cannot do vise a method of doiug so, it (ails in wisdom. JOHN T. HOl-FMAN. CHARITIES AND CORRECTION. Improvement*, Expenditures, &c., on the Cltjr and Inland Institutions During the Past Year ?Abstract of the Annual Report. Dnring the year just closed the Commissioner* of Pubilo charities and Correction have through their Indefatigable efforts succeeded in accomplishing substantial work for the city In their administration over the reformatory and oharltaoie institutions of tne Commonwealth, they having expended tbrongn oat the year no less a sum than $1,476, 006 in oh jects of charity and Improvements. The island Institutions, as well as those located In the city, have lu many distances been enlarged and Improved by the expenditure of considerable sums of money out of the appropriations made at the commencement of Hie year, and the citizene or the metropolis may congratulate themselves on the fact that the money thus expended has and wilt attain the objects for which It was laid out. At the different islands under their supervision tliere are improvements constantly goluj on and new buildings boiug erected, the inost important of which is the s MEW LUNATIC ASYLUM, m course or construction on Ward's island Three hundred thousand dollars was appropriated by the Common Council for Ha erection, and at prfesent there Is everr prospect that it will receive its Unletting touches by June or July. It is greatly needed, aa the present structure oa Blackwell's Island 1$ wholly inadequate for the wants of the constantly Increasing army of unfortu nates conflued within Its walls. There are at present at least 1,400 male and female patients packed together in this tily arranged bedlam, aud 200 In the lower tier or oells at the Workhouso. which la the best accommodation that can be given them under the existing circumstances. TUB INFANTS' HOSPITAL, oa Ward's Island, upon which some $60,000 has been already expended. Is last aoproachlng com pletion. One hundred and twenty-live thousand dol lars has been added to tho orulual appropriation, aud It promises to be a magtnUoeat structure. There arc at preseut about 600 foundlings in the old building, who are remarkably healthy, consider ing their crowdod couduion. During the (TionTn of November the managers of the institution have been trying an artificial rood (Hustle's bread-and-milk flour, socalled) with a number of bottle-led babies, aud the result attained was that It u destined to become a valuable adjunct in the feeding of babies, and it la very probable that it will generally be adopted throughout the hospi tals for foundlings throughout tne United States. TliM 1NKIIKI AI ? ASYLUM, Ward's Island, contains at present soo inmates, or whom 100 are non-pay i'tg patients. Forty thousand dollars was appropriated tor tuis institution and it has been In operation two years and is considered by ail to be a failure, but still the physician in charge has hopes of success. Hoard in this asylum runges i rout ttvedollars to fifteen dolla s p-r week, and more are a number of well known characteis u idor treat ment there, among whom is an ex-Governor or th? "Prairie state." tub scuooLsmr mercury. The Commissioners take great pride in this vessel rroui the raot that she is the a*pioneer" or their ex periment, and has up to the present time proved a complete success. Thirty-flve thousand dollars was paid for her, aud she is destined to : create a revolution iu the management or cast-away street gamin*. On board or tuis vessel there are now ;;oo laas who nave been picked up in the streets. They are subject to striot discipline, but and doubt less prove good sailors. The Commissioners have asked an appropriation of $40,000 more to enable them to make a lew altera tions and provide for the present pear. KXPBNUITURES, The following is the table or expenditures for the pa?i year;? For various Improvements and outdoor poor |l,oia,ooo Inebriate Asylum 7.TT9 Island improvements est Labor Bureau 3,247 For the bliud." 1,828 New storehouse buildings 600 Infants' Hospital 136,844 Hart's Island 1,8.(4 Central office, build inns, Ac. 30.0A4 Idiot House 4,945 Morgue 103 steamer Mlntiehannock 33.973 Lunatic Asylum building 102. 000 Sclioolship Mercury 70,174 Rand all's Island, general improvement.... 14/269 Ambulance Department 2,137 liellcvue Hospital 7,7 <6 Charity Hospital 2i>5 inebriate Asylum ::w Idiot Asylum - 00 Lunatic Asylum 280 Total $l,47u,oou ESTIMATE OK EXPENSES FOR 1370. Hospital*. Average i So. ol Patients. Belicvue Hospital 900 $115,016 Chant/ Hospital U09 104,114 Fever Hospital Go 0,117 Smallpox Hospital cu 0,772 Incurable Hospital Ijo 16,180 Lpilepno and Paralytic Hospital. 120 14. .148 Infants' Hospital.... 600 50, IM Nursery Hospital and Idiots' House 400 62,333 Asj ium lor Indigent Bliud I/O 11.421 Lunatic asylum 1,200 122,987 Lunatic As>luiu, Ward's Island.. 160 18,020 Moigue ? . 818 Randall's Island Nurseries 820 63,137 Industrial School, Hart's Island., mo 20, tin Sclioolship Mercury 300 44,(03 Inebriato Asylum 3jO 10,737 Almshouse l,2oo 78 601 City Prlsous 400 67,078 Workhouse Coo 49.072 Penitentiary 600 66,92'i Ward's Island Farm 20 6,0011 Free l*abor Bureau ? l7.7o? Steamboat expenses ? 22,040 General expenses ? 37,600 Central Oflloe ? 40,400 Colored Home ? ?,000 superintendent Outdoor Poor.... ? 160,004 Total ? $1,220,706 Discovery op Another Oiant? This One only a Skeleton.? The on city (Pa) Tune* is responsible for the following:? on Tuesday morning last, while Mr. William Thompson, assisted bj Robert R. Smith, was engs?ed In making an excavatiou near tne bouse of the former, about hair a mile north of W est Hickory, preparatory to erecting a derrick, they ex humed an euoriuous helmet 01 iron, which was cor roded with rust. Furteer digging brought to light a sword which measured nine feet lu length. Cu riosity Incited them to enlarge the hole, aud after some little time they discovered the bones of two enormous feet. Following up the "lead" they had so unexpectedly struck, in a lew hours' time tney had unearthed a well preserve* skeleton of an enormous giant, belonging to a species of the human family which probably inhabited this and ether parts of the world at the time or which the Bible speaks, when it says, ?'And there were giants In those days." 1 he helmet is said to be or tha shape of tuose found among the ruins or Nineveh. The bones of the skeleton are remarkably white. 1 he teeth are all in their places, and ail or them are double, and of extraordinary sue. These relics have oeen taken to Tloucsta, where they are visited by large numbers of people daily. When his giant ship was in the flesh he must have stood eighteen feet la his stockings. These remarkable relics wi.l b$ forwarded to New York early next week. Tea Joints or the skeleton are now being giuea together. Thesa remains were found about twelve foet below the surrace or a mound which bad been thrown up probably centuries ago, and wtuoh was not more (hag three feet above tha leval ol the ground around it. a?ra is suolimr uut for auutuanau* to acMJb