uary, to not less than four million, eight hundred thousand dollars. No other provision has been made for the payment of the principal and interest of this sum, than that contained in the act of February, 1843; and that act embraces in fact but a portion of it; and as for the immense sums of money due and to become due during the year, as has been already observed, no adequate provision for their payment has been made.

The amount of money necessary to be raised to pay the interest on the internal improvement portion of the public debt, is estimated by the auditor general at two hundred and forty thousand dollars. But this sum will barely pay the interest as it accrues, affording no surplus to be applied in extinguishing the interest in arrears. To pay these latter demands is equally imperative upon the state, as it is to make provision for the payment of interest as it may hereafter accrue. The only way this injustice can in a measure be avoided, will be to fund the interest in arrears and to become due, up to such a date as will enable the state to meet it by the receipts of the treasury. If this plan is adopted, it will increase the principal of this portion of the public debt to the sum above mentioned-four millions eight hundred thousand dollars, requiring an annual tax of two hundred and eighty-eight thousand dollars.

The total valuation of all the property, real and personal, in this state, upon which a tax can be levied, is at present only $28,922,097 59. To pay the interest, therefore, upon the internal improvement fund debt, will require the imposition of a tax of at least one per cent the total valuation, over and above the three mill tax now levied, for defraying the expenses of the government, and for the support of primary schools. Are the people of Michigan in a condition at that time to bearthe imposition of such a burden?

upon

Some idea of the hardship that would arise from imposing such a tax, may be found by comparing the resources and ability of this sate, with those of other states. Let us take for one example the state of New York.

The public debt of that state amounts to about twenty-five millions; the total valuation of real and personal estate, to about six hundred and twenty millions. A tax of one mill would bring into the treasury of that state, six hundred and twenty thousand dollars; a corres

ponding tax in Michigan would bring into the treasury, twenty-eight thousand dollars. A tax of one per cent. would produce in that state six millions two hundred thousand dollars; in the state of Michigan, two hundred and eighty thousand dollars. In the state of New York the one per cent. tax would pay the principal and interest of its entire debt in about five years; in Michigan it would only raise a sum sufficient to pay the interest, as it accrued. The debt of the state of New York is due mostly to its own citizens, that of Michigan to nonresidents. The payment of the tax in the one case would not lessen the aggregate wealth and resources of the state; in the other it would substract so much from them, thereby rendering the state each succeeding year less able to meet the demand. Notwithstanding this and numerous other advantages, possessed by the state of New York, it is doubtful whether that state with all its resources, would or could submit to the imposition of so onerous a burden.

Let us take for another example the state of Pennsylvania, with a debt of forty millions, but having taxable property to the amount of about six hundred millions. That state has heretofore found much difficulty in paying the interest on its debt, and yet it would require a tax of less than four mills to raise the sum necessary for that purpose.

Another form of illustration, will present this disparity in an equally strong light. In the state of New York, the proportion of the public debt to the assessable property, is as one to twenty-four, in the state of Pennsylvania, as one to fifteen, while in Michigan, it is as one to six. The comparative weight of our indebtedness may thus be seen at a glance.

The disparity, which these comparisons exhibit between the debt and resources of this state and the others named, is in fact, even greater than appears by the contrast. Admitting that the property of this state is assessed at a low rate, yet the difference in this respect, whatever it may be, is by no means an equivalent, for the settled marketable value of the property of New York and Pennsylvania. A tax of one mill on the dollar is less felt and more easily paid, in either of those states than in Michigan. But with reference to the pecuniary condition of the people generally, no comparison can in fact be made. Any attempt at a comparison must necessarily result

in the conviction, that the people of this state are not in a situation to bear heavy taxation. The mass of them are poor, so far as the command of money may be supposed to constitute wealth. It should not be forgotten, either, that the settlement of Michigan is of recent date. Fifteen years since, the entire surface of our peninsula, from Lake Huron to Lake Michigan, was nearly an unbroken wilderness, and a majority of those who now call Michigan their home, date their residence among us, at a period since the adoption of the constitution It is true, that during that brief space, much has been accomplished, but the entire fruits of the enterprize and labor have been expended in the general improvement of the country; Although the people have perhaps secured to themselves as many of the comforts of life as are ususually enjoyed by early settlers, yet, a majority of them are, nevertheless, still tenants of log cabins. Whatever profits are yielded by the surplus products are required for the improvement of their farms; for the construction of comfortable dwellings; for the education of their families, and for necessary annual supplies, leaving little or nothing to meet extraordinary demands of the state, in the shape of direct taxes. Unlike most of the older northern states, the resources of Michigan depend upon a single staple; a short crop, therefore, ushers in a year of pecuniary distress and embarrassment. The failure of the wheat crop of 1844 paralyzed every interest in the state. Such, indeed, was the severity of the shock given to every branch of business, that much time must yet elapse before the state will have fully recovered from its disastrous effects. And it should be borne in mind, that we are still exposed to the recurrence of the same calamity, and that whenever it comes, it will bring with it the same consequences upon the general ability of the state. Nothing can protect us against it, or obviate its effects, but years of continued prosperity, re sulting in an accumulation of wealth, and a large increase in the va riety and extent of our productions.

But Michigan is subject to other embarrassments from which the older states are exempt. And some of these are coeval with the settlement of the state. A large proportion of the wealth brought by the early settlers, was absorbed in the purchase of lands. The money thus expended was paid into the coffers of the general gov ernment, but added little or nothing to the wealth of Michigan. À

drain was thus opened, through which millions of money has flowedout of the state, and through which it will continue to flow, as long as there remain any unsold lands, or until the general government adopts a more just and liberal policy towards the new states. But the effect of it has been to retard the prosperity of the state and keep its citizens poor.

Another drain upon the resources of Michigan, less open and more insidious, but not less fatal to the prosperity of the state, is to be found in the operation of a protective tariff, which seems now to be permanently fastened upon the country. Unfortunately for this state, its chief production consists of a staple that derives no benefit from the principle of protection. We have no large manufacturing or mechanical interests that can be protected. We therefore feel the burdens of a protective tariff, and enjoy none of its benefits. Under its operation we not only pay our due proportion towards defraying the expenses of the general government, but also pay a large tribute to the manufacturing states, in the consequent enhanced price of their commodities. Its injustice may also be seen in the disproportion that exists between the price of the articles we sell and those weare compelled to purchase.

In view of these various causes of embarrassments, the committee can come to no other conclusion than that it would be impracticable at this time to levy a tax sufficient to pay the interest upon our publie debt. They are confident if such a tax were levied whatever might be the disposition of the people in regard to it, that it could not be colrected. The people have not the means with which to meet it, in addition to the other necessary taxes. They are aware that it has been urged, that the facilty with which the large amount of taxes now yearly paid by the people under existing laws for the support of government, furnishes evidence of their ability to bear increased taxation. But it should not be forgotten that nearly a moiety of the tax is paid By the resident in labor and not in money, and that the whole of the fax as at present collected, is disbursed within the state. Far differ ent would it be if the half million now annually collected or paid, should be taken out of the state and withdrawn from circulation. The failure of a bank with a circulation of one hundred thousand dollars, causes a shock that is felt throughout community. What then would

be the effect of withdrawing from our means and from circulation three times that amount by a process no less summary?

The aggregate amount of the present taxation is something over a half a million of dollars, as appears from the following table, gath ered from the Auditor General's report:

In addition to this amount, there will be required, as has already been seen, to meet the interest on the entire internal improvement debt, nearly three hundred thousand dollars more. This last sum alone would require a tax of one per cent on the dollar, of the whole assessible property of the state. The whole taxation of the state, then, for all purposes, would amount to about eight hundred thousand dollars, or upwards of two and a half per cent on all the taxable property of the people. To state the amount is sufficient to show its oppressiveness.

We will now proceed to the consideration of the last proposition, namely, the financial policy proper to be adopted to relieve the state From its embarrassments.

The necessity of such a change in our financial policy as will lead to an entire separation of the government from its works of internal improvement, can be readily demonstrated, if it is not already sufficiently apparent. We are indebted to the connexion that has heretofore existed for the load of embarrassments under which the state. is now laboring, and which will cling to it so long as that connexion is allowed to continue. The force of these propositions will be felt and acknowledged by all those who have watched with any degree of interest, its operations and effects. For the purpose of illustration we propose to refer very briefly to the past policy of the state in this respect.

The first great error committed by the state consisted in borrowing money and embarking in a scheme of internal improvement. It is dif ficult at this day to invent reasons to justify the wild and extravagant