jLo a fak»e economy, which would jeopardize millions of the public
iunds, rather than create the comparatively unim^iortaot charge
yp^ the treasury of an additional salaried office. With such
views and sentiments, I must again urge upon the legislature, th^
absolute importance of transferripg the nfumagf^ment of this loan
40 otiier hands.
. - But, if the subject b inquired into, with a spirit of candor, it
will be ibund, that the loss to the state will not ultimately prove
iBo.great as it at first imagined. By the contract with the Morris
canal and banking company, our bonds are. made dollar bonds^
and are payable, both principal and interest, in the city of New
York. In the payment of ihe interest for twenty-five years to
0pme, when the principal is to be redeemed, no commissions or
charges are accruing against the state, neither have we for the
'game period foreign exchange against us« These considerations
are of some moment, and are worthy of consideration. It may
•perhaps also be well to inquire into the sale of the stocks of other
fitates, and more particularly those of our own, issued to private
4xxnpanies| which were introduced into n>arket from other sources^
jmd which, to say the least, have elevated the credit of the state
.te no great extent. But, as there ace many circurnstanqes con*
OQded with this negotiation, which admit of explanation, and
which have, perhaps» in the excitement of a political content* re«
csived an unjust application, I woukl recomoiend the appointr-
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; <if ft conmittoa to inveitigaie nH sueh tniitteni •§ pnofleot w
nibyorable aspect to a»y portioa of your bo^. For mya^ |
coarC the roo8t rigid kiqvtiryt*— ody» I deoMiid it at the honds fif
Ab legislature.
Tbe.uo()aniUe]ed agitatioo, wfaich bas eatisted throughout tba
couBiry for the past two years* makes it pny imperative daiy to
eail your attention to the subject of the currency, it oertaiuly
is oee of the h^est duties of the legislature* to guard the puhlie
â– feaiBst the evils of a spurious and vitiated currency. Ours has
hitherto chiefly consisted of the paper issues of the state baoks^
These institutions, if properly coodocted, are not only highly
M s efiA but may be considared as essential to the prosperity of the
eouMy. The object of leigislatiou idiould therefore be, sot I9
dbestfoy, bet to eorroct the sd^oses incident to the preaent systeos
of beaking.
Jo nevievring the history of the embarrossments that have so
yeoently coavoked the Afloerican continent,' the distant observer
iBost be struck with no little wonder, when seeing a nation at the
very h^ght of its prosperity, and almost without any apparent
coM s o, snddenly plunged into bankruptcy and ruin. To him,
however, who watd^ the pr<^ress of evonts at home) the
approftcbhig catastrophe was inevitable.
But a short time previous to this revulsion throughout the
oenolry, our commercial affairs, and trade in general, were
iproatly extended, and chiefly conducted on credit. The means
4or snslainiog thb state of things, were furnished by the immonse
aoioiint of paper curreney isst;^ by the innumerable banks esta»
Mohed by the diflR^reot states. This increase of currency, if k
cnn be eaiied a currency, occasioned increase of prices, fkiciua^
liana and expansiona in tbecirculating medium, and finally a tolaJ
derangesnont of the laws of trade ; and as iho profits of the
hanks w&e m piMportton to their discounts, the approanhing de-
JMod lor specie, by a return of their issues, was overlooked.
The period arrived however, when the demand for specie, to pay
lesieign deUs« must be made, and the inability in the banks to
meet it, produced the general suspension of specie paynaentii
winoh bas been so destructive to the couatry.
No .iMe^ perhaps, has suiflfered more from the evib of a do-
nmged coireQcy than our own. A most serious and respond
hie portion of your legisianve iaborst tfaorsfoi^, consists in supply^-
ing an dfecUiaJ remedy against the disastrous scenes of the past
year. Let your attention h^ ddigently directed to this object, for
etperienee has shewn that neith^ a regard fot the rights $( the
pes^ a sense of moral obligation, nor a respect for the injuno-
lk>n of the laws of the land, are always stifficient to restrain
haoJts ia the ahuse of pKd)lie trust. To the reports of your Bftnfc
srs, I refer you, for a detailed atataoieot of the ooBdi-
2
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Iba and opera tidns of tbe dtflferent institotions of the state, and I
fiubrok to your wisdo.n, the correction of such abuses of your
banking system, as will be exhibited to you by those officers.
But the restoration of our currency to a sound state, ought to
be e&cted with as little injury as possible to existing institutions*
A just system of redrew for abuses committed) and the refiwrma*
tion of palpable defects, does not, by any means, necessarily imply
a hostility to banks. The sickly cry of war against the btidni
is losing its influence with an intelligent public. War against
the banks ! Is it to be seen in the banking history of the past two
years — in obligations unredeemed, laws violated, and public sen-
timent outraged ? War against the banks I Is it to be found ia
the archives of your national or state Ieg»latures — in legaHrii^
the suspension of specie payments ; in the indulgence of tho
federal government to its depositories, and in the forbearance of
the American people? Let there be an end, then, of this cry of
war against the banks. The banks have their r^ts, and sbouM
be protected in them ; but they are not above all law, both homan
and divine. The right of exemption from all responsibility to the
people, as set up by many of the existing banks of the present
day, is fraught with the most dangerous consequences^ and should
be firmly and boldly resisted. As has been justly declared, if iH
th6 pretensions of these corporations are acknowledged, it is ele-
vn ting the money power above all others — "abovo thrones and
prinofpatities, laws and constitutions. The debasing consequen-
ees which niust follow, both morally and polKically, are easilT
seen. Can it be done without debasing the noble and indepeno*>
ent spirit which created our free institutiohs, and without which it
is impossible to maintain them ? Can it be done without spreading
over the land one all-absorbing spirit of gain, which shall extii»-
guish all the mom elevated feelings of our nature, and raise' him
who may dispense the favors of banks, in public estimation, above
the philosopher, the statesman, the divine, the patroit,the warrion
or those engaged in the active and productive pursuits of life t^
In my last annual communication to the legislature, I express
ed the opinion> that a powerful and important auxiliary m die
reformation of our currency, would be found in the creation of a
ktate bank. The experience of the past year, and additional re-
ifoction, have but confirmed me in this opinion. This institiitioii>
if created, should be made in reality a slate institution, responii*
ble to the people^ and under the government of their umnodiate
agents. It may be a question worthy of serious consideration,
whether the high power of stamping paper, as a substitute for
the currency recognized by the federal constitution, should ever
have been conferred upon private corporations. It grants an
important immunity to a favored few, bestows upon tMm privi-
lei^ liable to dkuse, and takes from the people the power of re-
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_ tbeirovirneiroidaliiigit»«dfoini^ lo a sUto uMitutkm, the
MtrdToTer tbe connency is in the hands of the people, and the
expaBskmB and contractioos of paper issues^ which always prove
ap raiDOUs io their coosequences, may he remedied or avoided at
the public wilL In addition to these considerations! it is a matter
of jaasnoall moment, that whilst the profits d* private banks are
so fiMich taken from the pockets of tha people, for the benefit of a
fiivored few, the dividends ariaii^ on the discounts of a state in*
altlutioa revert back to thei people, as a source of revenue to the
poblic treasury.
Should the recommendation of a state bank meet your concur-
leoce, it will task your most mature deliberation in determining
Um ^toree and provisions* It is, however, confidently believe^
that the wisdom of the legislature will supplv every want of exr
eestive reGOomiendation» and that no bill will receive your sanc-
tion (hat does not protect the interests and guard the rights of the
people of Michigan.
Id the <»ganizatioD of such an institution, it will be found thai
the mode of procuring the necessary capital, will not be an uce
ioapovtanl ocmsideraelioii. The bank should not attempt operations
wkhoul tbe actual cafxtal required by tbe charter being paid into
its vaults. This capital might consist of the surplus revenue re->
c^ved from the federal government, tbe sinking fund arising from
tbe nceipts on our works of internal improvement, the university
and common school fund, and the proceeds of an issue of state
•lock. For the detailed features of a charter, we must avail our-
aelves of tbe lights and experience of other states. In one cooh
victioD, however, I am clear : it is, tliat the control of the instil
totioo should never be suffered to pass from the bands of the state.
Not lam than six or eight states of the Union have created hankff
vith this geneial character, and thus iar, they have realized the
moat sa^uine expectations of their respective people. The ap^
pceheosioos of political influence directing tl)e operations of a
slale iostitutiun, are shown to be unfounded. But, as declared to
yoar predecessors, whilst I can but express the opinion, that a
State bank founded on the credit and resources of the state, would
be aU-important to the prosperity of Michigan, and essential to
the reformation of our currency, I shall readily yield to the better
JQ<iranen^ of the legislature.
The Superintendent of Public Instruction will present to you
the condition of our commoA schools, and the state of (he puolic
food committed, to his charge. In addition to previous sales, the
ales during the past year, of lands set apart for common schools,
anoonted to fifty*five thousand six hundred and fifty dollars^ and
tiioae of the university lands to ten thousand one hundred and four
dotfars* The, interest, on school lands heretofore sold, has been
pramptly paid by the purchasers, and it is confidently expectec^
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fhat the dlflerdht counlties/whiob Imve re^^ived portMr^ Hris
fund, virill meet th^ir obligations at maturity. Bat although ibd
i purchasers of these* as well as the untv^ersity iaodst bovo met tho
merest, as it accrued, yet the deranged state of our currency,
And the general scarcity of money, render it peculiarly difficult
for them, at present, to meet the instaiment on the principal now
due or coming due* It k perfectly obvious, that the interest
would not be paid, did not tho bdders desire to retain the landSf
ind the only portion of this fund the state really reqmres is the
interest. I would, therefore, respectfully suggest to your comri-
deration, tho propriety of vesting the Supefintendeot with autho-
rity to grant a reasonable extension of the payment of the insiaU
meat of ten per cent, where, in his opinion, it can be done witbotit
jeopardizing the interests of the state.
By considering the amount of duties, at present- attached to the
office, it must readily oeour to you, that those of the Superintend^
ent, arc becoming too onerous for any one officer. The fund
tmdcr his direction, is an important one, and should receive the
undivided attention of a separate and distinct officer. The ordh
nary and legitimtite duties of the Superintendent, m his superv)^
sioti of our common schools, and the univerfrity of MioMgaa, toe
likewise highly important and arduous. I wotdd therefore ear*
nestly recomniiend the appointment of an assistant, who should re«
liiBvo the Superintendent from the immediate direction of the foam
cial department of the office.
The regents of the university of Michigan, will report to yojtl
the progress of the institution under their direction. As vett their
of>erations have been limited, resulting fronk the sn^afl income
thus far received from the university rands* Five branches of
the institution have been organized and are located at Detn>it»
Monroe, Pontiac, Kalama^oo^ and Niles. At' these branches are
aU*eady one hundred and sixty^hree youths, under a course of
instruction, preparatory to entering the parent institution. An
increasing demand exists in the different counties for additional
branches ; but the limited means at present under the control of
the regents, will not justify a compliance with this demand. I
Would therefore again recommend that the seventy-two sectioBS
of land attached to the slate salines, be set apart, as a distinct and
permanent fund for the support of the branches of the univenity*
The lands belonging: to the university proper, have been loca-
ted by a competent officer, and generally confirmed by the proper
department at Washington, except the locations on the Grand ri*
vef. These locations, at an early day, were communicated to the
l^e^ral land office, but as yet, the decision of the commissioiier
has not been received by the Executive. Under the authorit}*
and by the directions of the legislature, John Mullett, Esq., was
af^ointed to review these locations ; but no report has ever been
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namd-finm hm. > Under the act <tf the latt l^i: wlami e, a lom
c( one hundred thousaad dollars has been eStcted ibr the purpose
sf coDstniotn^ the imiversiijr baildmgs ; a plan for the tMnidwigs
bas been adored, and their erectien will be commenced eiirly iti
the easuing spring.
I have so tiften referred to the subject of education in mr for*
laer comitiosiicati^ns to the legislature, and its importance to the
permaneol prosperity and happiness of the American people, is
to menifesC, that I ^H at presisnt reiraib Arom its repetteion« bk
a goremment like ours, which emanates from the people, and
where the entire administration of its afiairs is submitted to then*
supenrision and control^ no other subject can equal in importance
that of public instruction. As the friends of citiI liberty, it be-
eetnes our duty to pravide for the educatiott of the rising genenb*
tioD. To ihe mteU^enoe of those who have preceded us, we are
indebted for our admirable system of government, and it is only
opon the intelligeiKse of those who are to come ai^r us, that we
can hope for tÂŁi preservation and perpetuation of that systenv
Our own slate has been highly iavored. The federal government
hns seeored ta an ample fund for all the purposes of a liberal
system of edocation ; and it only remains for us to faster it with ^
serupolous regard to the important object for which it is assigned.
Our system S educatioo, as adqtted, has not yet had sufficient
time ^ <leveiope its defects, if any exist It would not therefore
be advisable perhaps, to attempt any material change at present.
The sacoess of die system, thus for, is as great as could reasonii«
Wy be expected, from the short period it has been in operatioo.
The geological surrey authorized by the legislature, has pro-
gressed with all the expedition the nature of that important work
wooU permit ; aiid die ingh clnracter and scientHic abiKty of
those to whom the survey is entrusted, ensure its satis&ctory conn»
pietbn to the pubtte. For foil information on the subject, I refer
you to the report of the chief officer of this department, whicb
wiB be submitted at an early day. FVom this source it wiU be
perQeive4 that the anticvpatioti o( benefits to- the state frota thb
survey, are about to bo folly reaitted, and that the resources of
vrealth developed to Michigan are unbounded.
At the last session of the legislature, I called the attention of
your predecessors to the importance of encouraging, by legislative
enaelimeiit, the agricultural kilerests of the state. A bill with this
ob^t, passed tfa^ House of 'Representatives at that period, bat
Med to receive she action ot the Senate. The a^cultural into-
rest is iooe of great importance, and claims with justice the pro-
leoidBjof the government, and yet it has received less aid from
direct legislation^ than any other department of industry. But I
foet thnt when it is reeolieoled how essentially the real prosperity
of JtfkUgandqpnnls npeotbecultmitien of her soil and the lar
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bm of her basiniiidmeii, flie subject wiR reosive join' <
ooMideration and favorable actioD.
The coBunissiODers appointed to soperioteiid thpeefeetiaD of tbo
iCate peiuteiitiary« have proceeded in their work whb ooeKairipM
rapdity. The plan of the buildings has been alteied from the
original desigot so as to prodtice a saving to the. state of two hon-
dn^ and fifty thousand dollars. The buildings will be fire proo^
and will contain eight hundred cells; The probaUt coat of the
eotire plan, as estimated^ will be about four hundred thouaand
dollars, being nearly three hundred thousand dollars less than the
Auburn prison. New York. The commissioners also report thir*
ty-four cells in a state of readiness for prisoners.
The loan authorized by the legislature for buildii^ the prison,
has been negotiated, and the* contract filed with the Treasurer tÂŁ
the state. This appropriation was so limited, that the commit*
aioners were compelled to borrow additional funds^ so as to hmre
the buiMings ready for occupation during the present year. Moob
labor and expense would have been saved tfie state, had the au**
thority existed for transferring the convicts confined in the difibr^
ent counties to the state prison, where they might have beenent*
ployed on the public works. I therefore call your attention to tho
enactment of a law conveying such authority. The acting con*
naissioner, also, suggests the further appropriation of one hundred
thousand dollars at your present session. This sum will eover the
advances made the commissioners by the state deposite bank, wiU
meet the estimates and contracts of the present year, and wiB
complete one half the block of ceHs, together whh the. ketper^a
bouse. The whole subject is submitted to the legislature for their
favorable consideration.
The judiciary department of the government, being one oo
which we must chiefly rely for a just and efficient admtnistratteo
of the laws, I must be permitted to call yoor attention to iti
present oarganization. The basis of our judicial system is laid by
the constitution. It consists in one supreme court and such omr
courts as the legislature may from timo to time establish. At the
original organization of our state government, the judicial power
was vested alone in a supreme court, the judges of which warn
to perform the duties of circuit judges. That system exists at the
present day ; but from the increase of business in the dii^ent
counties, and from original defects, it is rendered inadequate to the
accomplishment of the ends designed by its institution.
One objection to the present organization is, that as the judges
of the supreme court are required to review their own decisioiis,
made as presiding judges of the circuit courts, the very natorslf
and almost inevitobie result must be, that it tends to lessen the
public confidence in the administration of justice. Tlie ju4ges of
the court of last resort, whose decisions in law and b e^fiity afe
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iiiiiipQOinmttnBof tb»gre«tett ttommt to iadividvab and Ibd
whole caaaaxwity^ ou^t, ao far at the law is coDcernedi to ba
pboed beyond tbe iiabBky d* ail su^ncion or imputatiofi. Ab
adcfitiooal obi^t^on to tbe present sjrstem is, also^ that the proper
business of the soprenie ooort mil very aooo, if it does not no^
reqaife an ainonnt of labor and diygeiioe> which wiU occujpy mxM
ef tbe tiaie of the judges* Over and above its original iurisdic-
tkMu this coort has appellate jurisdiction from tfaecooil-of chaooe^
ly, firam all tbe circuit courts in criminal and civil eases, on writs
of error, and from the courts of probate of tbe different counties*
This roust necessarily bring before the judges, many importAat
•od onsettled questions, and .as the decisions in all such cases are
faalaod conclosiTe, great labor and responsibility must be a^
laehed to the discbarge of duties, where the great leading print*
oplesof law are to be established,, which are to govern our oiti^
sens in all time to come, and to prcteet them in all their rq;iita and
fiberties.
Satisfied, then, that our present judicial system is inadequate to
die great ends foe which it was established, I would reoommead
snob an alteration as will lead to the organization of cireoit
•omts, as reported by the reviser of the laws at tho last session of
die l^islature. This change .will ensure the speedy admiaistra-
lioa of justice inthe diiierent circuits, and will leave tbe supreme
judges suffici»9t time for study and mature deliberation. Tliree
oiicoMs would probably meet the demands of the public* In
point of eoonomy, nothmg would be lost by the change ; for, by
eoofioiog the supreme jwiges to three m number, as well as tlie
drcoit judges, it is but the increase of two additional offices ; and
what is this, when balanced with the immense advantages acoro-
ing to the community, from. having your judiciary at once placed
â– pan a jint and correct foundation. Wluitever view the Ie^sift>
tore OMiy take-open the sub^eet, their speedy aedon onit is bigUy
dasiffabie.
I may here eati your attention to the wretched mamier is
wUch criminal justice is administered in the dtflferent comities
From neglect and inattention, our criminal laws hav^ become al-
nesEt inoperative. The prompt and eflicient execution of our cri*
ninaJ code* chi^y depends upon the exertions oi tbe prosecuting
nttomey of each county. The inadequate compensation, however*
which these offieers receiTe, renders it impossible to secure their
attentkmio the duties imposed upon them. I would reeontfnend»
<s a remedy for the evil, if no constitutional impediment exists,
dnt tbe stale be divided into districts, and that an attorney be ap-
fdmkdd for each district. Such a measure, if adopted, would
eferae the office, as it would increase the compensation^ and thus
Qamowad htther legal attainments. The constitution provides,
that flieiiB snail bea prosecuting attamey.for eaohoountyf and
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the <foesrioQ will arise, wbstber tUf piD^oo woridpimmit Ite
ftppointment of the same ittdtTidudl for more than erne codaty^
My own opinions are in &vor of (he right of ^ liq^tilatQfe I9
make the contemplated changey but I refer (he tufojeet to your
oansideration. A report iroin the atlomey general wiii aleu ba
ftttbmitled, embmomg other aovenJmente to the existing Jaws.
There is one subject, connected with the duties of the phiian*
thropic legislaton Co which I b^ leave to call jrour mo6i aerious
attention. At repeated sessions of the legislature, I have earnest^
ly recommended the total abolition of imprisonment for debt.
This reoommeadation received the sanction of two socoassive t^
gislatures, the reviser of the laws was instructed lo erase the vym
tern from his revisiooi and yec, strange as it may appear, it ml
lemains a blot upon your statute book* ImprisoomeiK for debt
-has been entirely abolished, except in cases of fraud, in several of
the states of the Union, withont any inoonvenienoe resulting to the
administration of justice. In our own state, a modification has
taicen place, but stiU oar laws leave the liberty €^ the oi^oea at
the mercy of an unrelenting creditor, ooatrary 10 every principii
•of religion, humanity and justice. If imprisonmeatior 4ebt sbouM
be abolished at ail, its total abolition is demanM ; for the aama
considerations and principles govern in the one case as. the othen
My views on this absorbing topic, have been fuHy prosenlad S»
the legislature in frequent executive cemmuaicatioas. The lub^
ject is again presented for your action, with (he coovietiaot that
your regard for the happiness of the poor and unforcaoate, yoar
aense of what is due to the spirit of our free ins titutidna, and iha
expanding phiiambropy of the age, render iarther tacommenda^^