the several Boards of Directors, and commend them to your favorable consideration. Economical as our constituents desire their representatives to be, they care but little what amount of money is expended in providing for the inmates of these Institutions, provided only that the expenditure is necessary, and that it be made with economy and integrity.

It will be seen that the number of these unfortunates provided for at these several Institutions, on the 15th day of November, A. D. 1862, was, at the several Lunatic Asylums (omitting Longview).

At the Blind Asylum...

At the Deaf and Dumb Asylum..

At the Idiotic Asylum....

Total number in all.....

And the total expense to the State, for the past year, was $135,487 55.

562

120

150

57

899

The blessings extended to these several classes of unfortunates, cannot be measured by dollars and cents. It cannot fail to gladden the hearts of all our people, to know how generously they provide for their unfortunate fellow-citizens. The ninth annual report of the Commissioner of Common Schools exhibits the gratifying fact that our system of Common Schools fully meets the expectations of its most ardent friends. It will be seen that the average number of scholars in attendance was 5,943 over the number for the previous year, swelling the grand army of the children in our State acquiring knowledge, to the number of 723,669. The number of teachers was: males, 10,559, and females, 10,931. The number of school directors in the State, is about 40,000. The number of officers other than directors, connected in some way with the management of our schools, is about 4,000. The number of school districts is 1,672. The number of school-houses is 10,422; their estimated value is $4,649,903. The average pay of male teachers is $26 35; female, $15 32 per month. The receipts into the Treasury for school purposes, during the year, were $2,765,806 70. The expenditures during the year, were $2,501,068 49. The levies, State and local, for school purposes, for the current year, are $446,684 60 less than for the year 1861. The report of the Directors of the Penitentiary should command your deliberate consideration; and the Institution itself, together with the accounts thereof, should be carefully examined. The receipts and disbursements are large, and hence the opportunity for fraud and peculation is great. This recommendation is not suggested from any want of confidence in either the Directors or any other officers of the Institution. On the contrary, they all have my fullest confidence, both for integrity and capacity; but I recommend the investigation, that you may so bear evidence of them, to our constituents.

The report shows the number in prison, on the 15th of November last, to beMales.....

Females.

Whites...

Colored.

Total number then in prison......

750

18

657

111

768

being 156 less than at November 1st last year. The number admitted within the past year was 237; the number discharged, during the same time, was 393, as follows:

The number of applications for pardon, made during the year, was 168. A list of the names of those pardoned by the Governor, with a brief statement of the reasons therefor, is here with presented, in a communication from Judge Hoffman, Private Secretary.

The report of the Commissioners of the Reform School and Farm, in Fairfield county, herewith, presents a most gratifying exhibit of that Institution. The number in attendance at the close of the year, was 185. The total expenses of the Institution for the year, were $19,670 49. The high character of the gentlemen in charge of this Institution, should command for their report your favorable consideration. The report of the State Treasurer, here with submitted, is a gratifying exhibit of our financial condition.

It will be seen that the payments into the Treasury from all sources, during the fiscal year ending on the 15th of November, 1862, was $6,239,323 14, and that the payments therefrom, during the same period, amounted to $5,890,043 08, and that the cash balance in the Treasury, on that day, was $478,456 49

Under the authority derived from the Act entitled "An Act to establish the Independent Treasury of the State of Ohio," passed April 12th, 1858, Royal Taylor, Esq., of Cuyahcga county, Ohio, was, on the 15th day of September, A. D 1862, appointed to examine the accounts of this department, and count the funds in the iron chest.

Mr. Taylor's report of this examination, which was made without a moment's previous notice to the Treasurer, here with submitted, proves, what all who know the Treasurer and his assistants had reason to believe, that they are honest men and competent accountants.

In calling your attention to the report of the Auditor of State, you are invited, really, to the consideration of a true, perfect and full history of all the operations of the State government for the past year. This officer is entitled to great credit for the care, skill and labor he has bestowed in preparing this important document. His several recommendations are entitled to your fullest consideration and confidence; and, without troubling you here with a particular recital of them, I commend what he has said to your favorable action.

It will be seen from this report, that the total amount of taxes levied during

the year 1861, was $11,071,127 89; that the ordinary expenses of the State. government for the year, were $715,414 13; and that there was paid, for interest on the State debt, $874,389 88.

That the entire indebtedness of the State, on the 15th day of November, A. D. 1861, was $14,897,273 34, of which there was paid, during the year, the sum of $765,610 73, leaving due, November 15, 1862, $14,141,666 61.

That of this debt, the sum of $2,879,379 29 is irreducible; that of the balance, $857,883 86 is payable, both principal and interest, at the State Treasury, and is designated, from this fact, as the Domestic debt of the State, and is supposed to be owned, mainly, by our own citizens; and that $13,283,778 80, the balance of the redeemable debt, is payable, both principal and interest, in the city of New York, from which fact it is called the Foreign debt, owned partly by citizens of our own State, but mainly by citizens of other States.

By the Act of January 16, 1862, entitled "An Act to authorize the banks temporarily to suspend specie payments," &c., it is provided, that "any solvent banking institution of this State, availing itself of the provisions of this suspending act, shall, during its continuance in suspension under this act, if required by the Treasurer of State, furnish him with sight exchange, payable in New York, in coin, for its own notes, in the proportion that the circulation of such bank bears to the circulation of all the solvent banks of this State, at a rate not exceeding onehalf of one per cent. premium, to the extent required to pay the semi-annual interest on the present Foreign debt of the State, and so much of the principal as is now or may be provided for by law."

All the banks of the State, I believe, availed themselves of the provisions of this act; and hence became liable, on presentation of their paper at their counters, each for itself, to furnish their several proportions of the coin required.

The sum needed to pay the July interest, was $405,625 00, which was promptly furnished by the several banks, without exacting the presentation of their paper, thus saving to the State the expense incident to assorting and presenting their paper.

The difference between coin and currency, or legal tender notes, prevailing for the past few months, was so great, that it was scarcely to be expected, that this liberality on the part of the banks would be repeated, for our interest becoming due January 1st, 1863, amounting to $393,506 00. Hence, the financial officers of the State wisely provided themselves with the notes of the several banks, for presentation. Thus provided, the several banks promptly met the demand upon them. The interest, therefore, upon that portion of our debt, made payable out of the State, has promptly been paid in coin.

The interest upon our domestic debt has been paid, like all ordinary transactions between man and man, in what is known as currency, which is now, and has been for some months past, about thirty per cent below coin. It is difficult to find any good reason for making this difference with our creditors. It is therefore recom

mended that you make provision for the payment of interest in coin, upon all of our debt, or that all be paid in the legal tender notes of the Federal Government. The banking interest is not alone interested in this question. It is true, that for the past year, this interest has sustained the burthen; but it is idle to suppose that it will continue to do so, for any considerable length of time. Much as the bankers may desire to continue in the business of banking, it is safe to assume that they will be governed by what they may consider their ultimate interest. And it requires but little knowledge of the business to see, that they cannot make money in purchasing coin at thirty per cent and selling it at a half per cent. A failure, therefore, on your part, to relieve the banks from the provisions of the act heretofore recited, is substantially inviting them, at once to wind up their business.

This great interest is so intimately connected and blended with all the other varied interests of the State, that any measure, tending to drive them out of existence hurriedly or rashly, must necessarily derange all other interests. It is therefore recommended that you relieve the banks of this burthen.

Upon the question, itself, of paying our interest in coin, much may be said on either side. In favor of the measure, it may be claimed that Ohio agreed to pay in coin, and having thus agreed, and being abundantly able to perform all her agreements, we cannot with honor, compel our creditors to take any thing else.

On the other side, it may be said, that when this agreement was made, it was not even contemplated by our wisest statesmen, that any thing but coin would ever be declared a legal tender, nor, that the national government would ever be compelled to issue a currency, and require the business community to receive it at par, when he same would not command in coin its nominal value.

This state of things, however, is upon us, and the wisest cannot tell how long it may continue. Is this a sufficient reason to justify us in violating an agreement? Surely our constituents will respond, No. The Fund Commissioners should therefore be directed by law, to provide sufficient coin to pay the interest upon all of our debt. The principal of the debt, being payable at our pleasure, after stated periods, may be suffered to run until a more favorable time for its liquidation.

The semi-annual reports of the Fund Commissioners herewith presented, contain a detail statement of their proceedings for the past year. The total receipts for the year were $1,952,838 00, and the disbursements $1,899,552 69. Under the authority given them by the act of March 1862, they have exchanged certificates due in 1881, for like certificates due in 1860, to the amount of $4,095,309 47. They so that the total funded debt of the State, is $14,141,662 61. These reports should command your profound attention.

As all legislation authorizing associations for the business of banking, must be submitted to the people, for their approval; and, as the charters of most of the present institutions will expire in May, 1865, it may be thought advisable by some, that measures be taken at your present session to ascertain the views of our constituents upon the subject.

With great deference to the opinions of all such, I can but think that the present is a most inauspicious period to legislate on this subject. The unsettled con

dition of our monetary affairs, hereinbefore alluded to, is enough, of itself, to embarrass, and render uncertain, the workings of any system of banking. In addition to this, the Congress of the United States have the same matter before them, and will probably adopt some measure materially affecting the whole subject. It is therefore recommended that you postpone all action, looking to the re-charter of our banking institutions, and thereby leave the matter to our successors.

The report of the Superintendent of the State House is herewith submitted. It affords me pleasure to bear testimony to the faithfulness of this officer. He is ever at his post of duty, and disburses the fund placed at his disposal, with strict integrity and economy. His recommendations are fully endorsed, and merit your approval.

The report of L. L Rice, Esq., Supervisor of Public Printing, herewith, should not escape your special attention. Mr. R. is by trade a printer, and hence well educated to the performance of the duties of his office; and it is but a simple act of justice to a faithful public officer, that I bear testimony to his industry and attention to duty. A faithful discharge of the duties committed to his hands, standing as he does between the Treasury and the several contractors, is certain to bring down upon him a severe pressure. His report will demonstrate the wisdom of the law under which he acts, when, as it has been, faithfully administered.

The report of the Commissioners, created by the Act of May 1, 1862, entitled "An Act to provide a Board of Commissioners to examine certain military claims, and make an appropriation for their payment," herewith submitted, should command your respectful attention. The total amount of claims submitted to this Board, was $136,972 84; of which sum, the Commissioners allowed the sum of $33,930 98. By the provisions of the 4th section of the Act, the powers of the Board ceased on the 15th day of December last. To avoid special legislation, 1 respectfully recommend that further time be given the Commissioners to adjust these claims.

The members of the State Board of Agriculture have faithfully discharged the important duties committed to them. Their report, herewith presented, is a document of interest, and should receive great consideration at your hands. You will be glad to learn, that throughout the State, the husbandman has received rich rewards for his labor.

Your attention is invited to the report of the Board of Commissioners of the State Library, now presented. The Librarian, by strict attention to duty and gentlemanly deportment to visitors, has won for himself the profound respect of all who know him.

It will be seen that there has been added to the Library, during the past year, 1,326 volumes, making the total number 25,423.

The condition of the several Canals of the State, will be shown by the report of the Board of Public Works, here with presented. Although these important avenues of trade and commerce, have passed from the immediate custody and control of State agents, you should not lose sight of them-for, they are liable at any time to revert to the State, and they are certain to do so at the expiration of the