your notice the subject of common highways: I refer you to the suggestions in my message of last year on this subject, and desire that it may receive your favorable consideration.

Our penitentiaries have been properly regarded as objects of great public concern, and have occupied for several years the anxious attention of the Legislature. Its views have been directed to them as the means of diminishing crimes, reforming offenders, and relieving the State from the burden of supporting convicts. Our first efforts on this subject were experiments, made without the light of much experience; and the results were quite as favorable as could have been reasonably anticipated. Though our system has been progressively improved, it has not yet been brought to that degree of perfection of which it is susceptible. The facts disclosed by the officers who have had the immediate supervision of our prisons, and by the reports of the several committees appointed by the Legislature to examine them, will direct your attention to existing defects, and aid you in applying proper remedies, and adopting such further improvements as have been suggested by our own experience or by that of other States.

One of the desirable objects, which we have aimed at, has been to make the avails of the labor of convicts defray all the expenses of these establishments. In order to produce such a result, various kinds of mechanical business have been introduced into them. The earnings of the convicts during the two last years have been more than sufficient to pay the ordinary expenses of the prisons, and to furnish the means of enlarging then and adding to their accommodations; and if a regard to the interests of a numerous portion of our fellow citizens should not require a different direction to be given to this labor, the prisons would cease to be a charge upon the treasury, and probably become a source of revenue to the State: but it never can comport with just and fair legislation to produce such a result by directing this labor in such a manner as to cause it to operate oppressively upon any particular branches of industry. It is an essential principle of our government, that burdens and benefits are to be shared equally by all; and I do not doubt that you will consider it your solemn duty as legislators, to give practical effect to this principle. The mechanics in almost every section of the State have considered their interests injuriously affected by the manner in which the labor performed in the prisons is brought into competition with theirs, and they appealed to the last Legislature for relief. The complaint of so large and respectable a portion of our citizens commanded its prompt attention, and it directed commisioners to be appointed to examine into the government, economy and discipline of the prisons, and particularly into all the matters which constituted the grounds of this complaint. The report of these commissioners, which, I presume, will be made at an early day in this session, will bring the whole subject in all its relations and bearings before you, accompanied with such suggestions and authentic information as will enable you to appreciate the extent of the evils complained of, and to apply to them an effectual remedy.

Our fellow citizens engaged in mechanical pursuits confidently rely upon the Legislature to remove any partial burden resulting incidentally from the present mode of employing convicts, and I trust you will readily grant them such protection in this respect as they may properly claim from a government founded on the principle of equal rights and common privileges. No considerations connected merely with the income of the prisons should be permitted to interpose any obstacle to removing all just grounds of complaint. This object, I am persuaded, may be attained without abandoning the present system of discipline, or defeating the main ends for which our penitentiaries were established.

Another effect resulting from the introduction of numerous mechanical branches of business into our State prisons is also a subject of grievance to the mechanics, and is worthy of your considerate attention. The necessary consequence of instructing convicts in mechanical trades is to bring them, when discharged, into more frequent association with mechanics than with any other class of citizens. Those employed in such pursuits are, in this manner, more exposed than others to the demoralizing effects of this vicious companionship. While those who have been subjected to the discipline of our penitentiaries should be strengthened in their resolutions to reform their conduct, and all the avenues should be opened to facilitate their return to a correct course of life, and to encourage them to become useful members of society, great care should be taken to do this in such a manner as not to impair the moral condition of any description of citizens, or even to expose them, either in their own or the public estimation, to any diminution of the respect and consideration due alike to all.

The number of prisoners in the Auburn prison on the twentyfourth day of December was six hundred and fifty, and in the Mount-Pleasant prison, on the first day of that month, eight hundred and twenty-eight.

The number received into the two prisons during the last year, is about the same as that of the preceding year: being in the Au burn prison five less, and in that at Mount-Pleasant, nine more. The number remaining in the Mount-Pleasant prison on the first of December last was one less than it was at that time in the year 1833, and in the Auburn prison thirty-seven less than in 1833.

The earnings and profits of the Auburn prison from all sources during the year ending thirtieth of September last were forty-seven thousand seven hundred and twenty-three dollars and twentyseven cents; and the expenses for general support and ordinary repairs were forty-two thousand two hundred and twenty-eight dollars and ninety-four cents. The income of the Mount-Pleasant prison for the same period was seventy-six thousand nine hundred and ninety dollars and eighty-four cents. The expenditure for the general support during that time was fifty-five thousand five hundred and ninety-three dollars and eighty-five cents; nine thousand three hundred and ninety dollars and four cents of the balance was paid to the corporation of the city of New-York, to satisfy a demand due to it for supporting the female convicts. There has

been expended at the Auburn prison eight thousand three hundred and eighteen dollars and seventy-two cents, for additions and improvements, and at the Mount-Pleasant prison for improvements, two thousand four hundred and sixty-six dollars and thirty-four

cents.

The income of the two prisons over their ordinary expenses, exclusive of the support of the female convicts, was twenty-six thousand eight hundred and ninety-one dollars and fifty-two cents, for the last fiscal year; and over all expenses, ordinary and extraordinary, six thousand seven hundred and sixteen dollars and forty-one cents.

In my annual message of last year several subjects, in my judgment, worthy of the attention of the Legislature were then presented for consideration, accompanied with such remarks as were deemed appropriate. I shall merely allude to them again, without however, detaining you by repeating what was then said, or enlarging upon the reasons which induced me to commend them to the favor of the Legislature. These subjects were;

The erection of a separate prison for female convicts;

The exceptionable condition of most of the county jails, as places of punishment for persons convicted of minor offences;

The improvements required in the police of most of the county poor-houses;

The claims of the blind for assistance in obtaining the means of instruction; and,

The establishment of an asylum for the insane poor. The founding of such an asylum was then, and still is regarded by me as an object deeply interesting to humanity; and it was urged upon the last Legislature, not merely for the purpose of furnishing this class of forlorn fellow-beings with a comfortable subsistence, (for this is now done in an imperfect manner by the general provision for the support of paupers,) but as the necessary, and to many of them, the only means of restoring them to mental soundness. Their claim to legislative aid is certainly not impaired by delay; and I sincerely hope it will receive your favorable consideration.

Recent events, and particularly the discussions relative to the renewal of the charter of the Bank of the United States, have turned the thoughts of the people towards the character of our circulating medium, and the tendency of banking institutions and other corporations. Public opinion has every where accorded a full measure of approbation to the general views of the national executive on the subject of a metallic currency; and the people of this State now call in no equivocal voice upon their Legislature to aid in accomplishing this object, by withdrawing from circulation a portion of the notes of our banks, with a view to facilitate the introduction and circulation of gold and silver coin. For this purpose it is recommended that provision should be made for prohibiting the issue and circulation of all bank notes under the denomination of five dollars. The benefits of such a measure would be manifold; it would give the public a better currency, composed

in part of the precious metals; it would relieve, partially at least, the laboring classes from the losses and inconvenience to which they are exposed from uncurrent and spurious bills; it would, in some measure, prevent the ruinous consequences not only to individuals, but to the public, resulting from the sudden expansions and contractions to which a paper currency is constantly liable; and it would give greater stability to the business transactions of the country. Attempts have heretofore been made to adopt this measure, but were probably defeated by the apprehension that the small bills issued by the banks of adjoining States, although their circulation in this State was prohibited by law, would be substituted for those of our own institutions, and that the evil would be thereby continued, while the advantage of the circulation would be transferred from our own banks to those of other States. To remove this objection, and to render the measure effective, the Executive was directed by a resolution of the last Legislature, to open a correspondence with the Governors of the adjoining States, with a view of obtaining the adoption of a similar measure in each of them. This duty has been performed, and there is reason to believe that the subject is viewed by the people of those States, as it is here, in a favorable light, and that they will co-operate with us in this movement for remedying the evils of a paper circulating medium, and procuring a sound currency.

Though I do not anticipate any serious objection to the measure of suppressing the circulation of small bills, there may be some diversity of opinion as to the time and manner of effecting it. In determining upon these, particular regard should be paid to the state of things as it now is, and is likely to be for some time to come. Within a short period, the concerns of an enormous monied institution, to which the people of this State owe several millions of dollars, will probably be closed, and it would not be prudent to assume that this will be done with any special regard to public convenience. A considerable portion of this debt, and of the business which has been done by this institution, will be necessarily and gradually transferred to the local banks. Such a transfer, under the most favorable circumstances, would cause some inconvenience, and it might become very serious, if the ability of these banks should be greatly impaired, or our present extended system of credit rudely shaken by any ill-timed measures in regard to

them.

By a resolution passed at the last session of the Legislature, each bank in this State is required to report to you this day, the amount of the several denominations of bills under that of five dollars, which it had put in circulation, as money, and which were outstanding on the first day of December last. These are the bills which are proposed to be withdrawn; and the amount of them now in circulation is estimated at about four millions of dollars. object in withdrawing them, is not to diminish the amount of the circulating medium, for that would operate injuriously, by reducing the wages of labor and the price of property, but to introduce instead of this paper money, a like amount of gold and silver coin.

The

There should be no hesitation in providing at the present session of the Legislature, not only against the further issues of each denomination of these small bills, but also for the withdrawal of those now in circulation, at a proper time. The withdrawal should be made at a successive period for each denomination, with the view to secure an effectual substitution of the coins for the paper money withdrawn, and to prevent a sudden and injurious contraction of the circulating medium.

In relation to fixing these periods, it should be borne in mind that we have now an unusual quantity of the precious metals. This circumstance will facilitate the operation of substituting coin for the paper to be called in, and allow it to be conveniently done at an earlier period than that which could be prudently selected for executing this measure if there was a scarcity, or no more than the ordinary quantity of specie in the country. It is also proper that you should consider the inconvenience which might result from a too sudden withdrawal of the small bills from circulation, in connection with the unfavorable effects which the continuance of their circulation has upon our currency and business, and the advantages. which their withdrawal will secure to the public at large. To ensure success to the measure proposed, it will be indispensably necessary to make effectual provision for preventing the circulation, in this State, of the small bills issued by the banks of other States.

I conceive it to be my duty to repeat the recommendation which was made to your predecessors in relation to reducing the amount of circulation now allowed to the banks. It should not, in my judgment, be permitted, in any case, to exceed the amount of their respective capitals, nor should their credits be allowed to exceed twice that amount.

Charters of banks are applied for, and granted upon the alledged ground that they are required for the public good; but it is the nature of such institutions to be less regardful of this consideration than of their own pecuniary interests: their conduct is therefore very properly an object of constant scrutiny. Any contrivances which they may resort to, with a design to enhance their profits, should be promptly suppressed. I have reason to believe that in this respect, the public have had just grounds of complaint against some of our banks.

Instead of discounting notes according to the usual course of business, they have required drafts of their customers payable at some distant place, knowing that the drawers had not and did not expect to have funds at such place to pay them. When these drafts arrived at maturity, others were offered to the same banks, and taken in payment of the former. A discount of one per cent beyond the legal rate of interest has been exacted on these successive drafts; and by this mode of doing business, those who have been under the necessity of applying for accommodations to the banks which have resorted to this practice, have been subjected to pay an exorbitant sum for the use of the money thus obtained.— Such a mode of oppressive extortion did not long escape the vigi