χχίν. As the people of the south were impelled by a mysterious but All-wise Providence to rebel against the government, that they might perpetuate in their midst the hideous crime of human slavery, and thus struck the blow which finally set free all who were in bondage there, so now that same Providence impels them to force the people of the north to do that which, but for their desire to conciliate, they would long since have done,—their whole duty. There is a time when "mercy to the criminal is cruelty to the state." Gentlemen, that time has come. The day of compromise has passed, and passed forever. The day for doing that which is right in itself has come, and until we have done the right, and done it for all time, we have shamefully failed in our duty, not only to the world and to ourselves, but to the five hundred thousand brave men who gave their lives so freely that liberty might live. In my opinion, it is the duty of congress, the only remaining hope of loyalty and justice at the south, to provide for the future establishment of local governments over those portions of the south lately in rebellion, which have refused their assent to this amendment, such governments to be based upon impartial, loyal suf frage. In this I advocate no disregard of the constitution. I yield to no man in my reverence for that instrument. The fact that illegal local governments have been in operation there since the cessation of hostilities, forms no bar to the right of Congress to establish legal ones. Let Congress act, and the loyal people will sustain it, be the consequences what they may. No other course will settle our troubles beyond the possibility of a recurrence, and insure justice to the Unionists of that section. The safety of our country and the fulfillment of our pledges alike demand it. We have pledged our honor that we would stand by and protect those who were loyal at the south during the struggle just ended. It were better to have failed in .the contest, than now to coldly turn our backs upon those who were "faithful found among the faithless." We should deserve to be wiped out from among the nations of the earth, did we do this. I am firm in the faith that with proper action on the part of congress, the day of settlement is at hand. Let the people stand fast in the position they have taken, and it must soon come. Would that my voice could reach all loyal men in the land, to tell them to be of good cheer, for the day is not far distant when our beloved country will be, in all its sections, a land of freedom in fact as well as in name; free in speech, free in press, and free in ballot. May God speed the coming of that happy day! LUCIUS FAIRCHILD. EXECUTIVE CHAMBER, Madison, Jan. 10th, 1867. OF THE SECRETARY OF STATE, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1866. OFFICE OF THE SECRETARY OF STATE, To his Excellency, LUCIUS FAIRCHILD, Governor of the State of Wisconsin : I have the honor to submit, as required by law, a statement of the funds, revenues and expenditures of the state for the fiscal year ending on the 30th day of September, 1866, together with several statistical reports and recommendations. The balance in the Treasury at the close of the fiscal year ending Sept. 30, 1865, was $234,490 45, belonging to the General Fund, War Fund, Trust Funds, and sundry minor funds. The balance in the Treasury at the close of the fiscal year ending September 30, 1866, was $212,465 25, belonging to the several funds above enumerated. The receipts into and disbursements from the Treasury during the past year, pertaining to the several funds, were as follows: The detailed statements appended, will show that among the disbursements of the General Fund and Trust Funds, are included transfers to the War Fund and the several Trust Funds for interest on state indebtedness. STATE INDEBTEDNESS. The present indebtedness of the state is $2,282,191 00, and is classified as follows: Of the amount of bonds outstanding, ($440,100,) $34,000 fall due on and before April 1st, 1867, which must be met from the General Fund, leaving only $406,100 in circulation, the annual interest on which is to be provided for, as well as principal at maturity. If these bonds be taken up by the Trust Funds as an investment, which undoubtedly can be done, the state will owe its whole debt to these funds, at an annual interest of $157,353. This would seem to be the proper policy to be adopted, in view of the great expenses incurred and still to be incurred in providing additional public buildings for the Insane, Blind, Deaf and Dumb, State Reform School, State Prison, and the completion of the Capitol, REDUCTION OF STATE INDEBTEDNESS. The total state indebtedness at the close of fiscal year, Sept. 30, 1865, was.......... Additional loan from Trust Funds to War Fund, Dec., '65. Highest aggregate of indebtedness........ ..$2,555, 101 2,366 $2,692, 467 This has been reduced during the last fiscal year by The state, by virtue of several laws, the last of which is found in chapter 25, General Laws of 1866, very wisely provided for the investment of the Trust Funds in the bonds issued by the State for war purposes. This not only withdraws the bonds from market, enhances the value of those still outstanding, and relieves the people from the burden of taxation which would be felt, were the principal to be paid at maturity, but it is the most safe and most economical method of providing for the safekeeping of these sacred funds, and the prompt payment of the interest when required for distribution among the people in support of Common Schools, Normal Schools and the State University. So long as the bonds of the State can be purchased with the surplus of these several funds, it is to be hoped that no other source of investment will be sought. It it fortunate that the necessities of the state have forced the abandoment of the former pernicious system of numberless loans, in small amounts and on most uncertain security. In compliance with section 1 of said chapter 25, General Laws of 1866, the Commissioners of School and University Lands reported to this office "the amounts belonging to the several Trust Funds which had been invested in the bonds and certificates of the state up to and including the 31st day of May." In accordance with sec. 2 of said act, the Governor, Secretary of State and Treasurer have issued to the several funds certificates of indebtedness in lieu of those then in force, and including subsequent purchases of bonds. These bonds were purchased for the benefit of the Trust Funds, at prices ranging from 93 cents to $1,00 flat, according as it was for the interest of the holder to sell; thus saving the state, without repudiating or compromising any of her obligations, a large amount of money. The following is a statement of these |