been of this description. The legitimate place for this class of offenders is in a reform school. In the civil and domestic relations of life, the law, out of a tender regard for their inexperience and supposed want of mature judgment, affords them immunities and privileges not extended to the adult citizen. Why should not this distinction be made in our criminal jurisprudence? It can be demonstrated that the prosecution and maintenance in prison of these fifty juvenile offenders, have cost the Stute, in all probability, more than their moral discipline would have done in an institution of the description named.

The Rev. Thomas E. Corkhill, of Keokuk, has addressed me a long communication, filled with valuable statistics and information on this subject, which I should have been pleased to have pub lished and laid before you, had I possessed the power, under the law, to have done so. It is, however, at your service. In the name of a common humanity, the necestity and propriety of establishing a State Reform School is urged upon your consideration.

INSANE HOSPITAL.-The condition of this institution will be found in the reports of the Commissioners and Superintendent, and little need or can be added to the suggestions there made. Should it take $100,000 more to complete this structure, it will still cost less than its prototype at Northampton, Massachusetts, whilst those acquainted with both buildings will be constrained, perhaps, to admit that ours is $75,000 the better of the two. It is difficult for those not acquainted with structures of this description, to conceive why their cost should reach so high a figure; a visit, however, to this institution would reveal to them this mystery. When completed, it will ocupy the first rank of all similar institutions in the world, and be a beautiful as well as a shining illustration of the philanthropy and enterprise of the people of Iowa. I am inclined to think the revenue resources of the State as estimated for the next two years, (although the Auditor, in his estimates, proposes to reduce the taxes,) will justify an appropriation sufficient to complete this building, which is so much needed to satisfy the appeals of humanity as they come up from different parts of the State.

DEAF AND DUMB ASYLUM.-This institution is located at Iowa City, occupies a rented building sufficiently large and commodious to answer, in the main, its present purposes, is in a flourishing condition, and under the charge of Prof. Ijams, a competent and

successful instructor of mutes, who is building up an institution creditable alike to himself and the State. The time is not distant. when the State must locate this institution permanently and erect suitable buildings to effectuate its aims of usefulness. This, in my opinion, should be done at the Capital of the State, where, in the end, it will be more accessible and under the more immediate supervision of the Legislature and State authorities. I bespeak a careful reading of the annual report of the Board of Trustees, which needs no enlargement from me.

AGRICULTURAL COLLEGE.-A very brief statement of what has been done under an act passed at your last session, providing for the establishment of a State Agricultural College and Farm, may justly be expected. The Board of Trustees at their session in June last, located this institution and Model Farm in Story County, upon 649 acres of land, in township 83, range 24 west, being a central as well as an eligible site for an institution and farm of the description indicated in the law. Liberal donations were made by the counties of Story and Boone, for the support of the same. The Board established the professorships and prescribed the studies best calculated to educate agricultural and mechanical labor, all of which will be more fully set forth in the report of the Executive Committee or Board of Trustees. Connected with this institution is an Agricultural Bureau under the charge and control of Gen. Wm. Duane Wilson, its Secretary, whose unremitting attention to his duties, and great energy, has rendered it of very great service already to the State, as his valuable and interesting report demonstrates, and to which your attention, and especially that of the farmers of the State is most respectfully attracted.

BANKS AND BANKING.-The acts Incorporating a State Bank and authorizing free banks in this State, were severally accepted and ratified by the people at an election held for that purpose. The State Bank was organized on the 28th of October, 1858. There are now 12 branches established at the following points: Muscatine, Dubuque, Keokuk, Mount Pleasant, Davenport, Iowa City, Des Moines, Oskaloosa, Lyons City, Washington, Burlington and Fort Madison, with an aggregate capital of $460,450, paid in specie, and a circulation of $563,836. There are other important statistical facts bearing upon the condition of these branches contained in a consolidated statement published by the President, Chester Weed, Esq., for the information of the public, on the 5th

of last month, which makes it, perhaps, unnecessary to embrace them in this communication. There are applications pending for four more branches, and the probability is that the number will be increased to twenty in all in the course of this year, which will be able, it is thought, to supply the wants of the legitimate business of the State for some years. It these branches have not accomplished all that the public expect of them, it is gratifying, at least, to know that they have done a cautious and safe business; commanding the confidence of the people, whilst they have in no small degree subserved the interest of the community at large in relieving the reasonable wants of its business men.

If the very extraordinary financial pressure in the midst of which they commenced their business, has limited their operations on the one hand, it has, upon the other, imparted a degree of caution and prudence in the management of their business, which is worthy of all praise, and cannot fail to commend them to the confidence of the public. In this connection I will be pardoned for suggesting, that inasmuch as the State has lent to this institution its name, and participates to some extent in managing and directing its operations, through three Directors of its own appointment, it should by the passage of an act express its willingness to receive the issues of these branches in payment of taxes.

Standing in this intimate relation to these institutions, it is but just that the State should, in this way, add its confidence to that of the public, which is an element of such vital importance to their successful operations. I need not add that this policy, in my judgment, would greatly subserve the interest and convenience of the tax payer, whilst it would tend to drive much of the foreign free bank money out of our State, and fill its place with our own issues.

I beg to say that I desire to be held alone responsible for this recommendation, as it does not emanate from the request or even suggestion of any of the parties interested in the banks.

I have not understood that any banks have been established under the Free Banking Law. I have heard it suggested that it was too stringent and ought to be modified. I doubt whether an application of this kind ought to be entertained should one be made. It is the want of these stringent provisions in the Free Banking systems of Illinois and Wisconsin that have flooded those States and Iowa with their irredeemable paper. It is infinitely

better for the people of this State to have no free or State banks, it their paper cannot be redeemed on demand in specie.

Under the 73d section of the present Revenue law, the Auditor has and is saving a large proportion of the expense attending the collection of the State revenue under the former system. The allowance of mileage to the County Treasurers, as formerly done, was an expensive mode, and less reliable than the one now adopted. From the more populous counties of the State the revenue is now paid into the nearest branch of the State Bank, and is thence forwarded to the State Treasury, at the Capitol, at the risk of the bank and upon economical terms.

I am of the opinion that the State can further economize the system of receiving and disbursing the public revenue by a slight modification of its laws. It may legitimately make the bank, to some extent, the fiscal agent of the State. The revenue being first moved from the populous counties to the Capitol, must be moved back again in large part, in disbursements, for the use of the public institutions in different parts of the State, and to pay off their officers.

A considerable amount has now to be paid in New York, semiannually, for interest on the outstanding State loan; and the rates of exchange, as well as the transportation of specie, which must be paid by the State, are less from the river counties, than from the interior.

If the Auditor should be authorized by your legislation to direct the payment from any county, to be made at any Branch of the State Bank, to be designated by him, and thence ordered into the State Treasury, as now-or thence disbursed on warrants directed to such Branch, in his discretion, it would save the transportation, both ways, of a large part of the revenue, and save time in reaching the public creditor. He is already authorized to have it paid into Bank in transit to the treasury. The additional power requisite is to disburse on warrants directed to the bank. This system would prevent any large accumulation of money at one point, and would also avoid some risks of loss inevitably attending double trasportation of the funds; while the security of the State would be equal if not superior to that of the official bond. These reasons, together with the financial economy secured by it commend it to your consideration.

REGISTRY LAW.-I renew the recommendation of my predeces

sor, for the enactment of such a law, and earnestly commend to your attention the suggestions and remarks which he had the honor to submit to the last General Assembly upon this subject.

STATE ARMS AND VOLUNTEER CORPS.-The quota of arms drawn by each State is in proportion to its representation in Congress. This provision of law operates to the disadvantage of the new States, whose population usually is much in advance of such representation. Thus far our supply has been wholly inadequate to the demand. A chivalrous spirit pervades the minds of our young men, and many highly creditable companies have been organized in the State, although we have had no military law, the enactment of which should now engage your serious attention.

The reception, custody, and distribution of the public arms, coupled with the large correspondence that necessarily grows out of it, makes this branch of the public service both burthensome and expensive to some extent, which should be provided for by law. The duties connected therewith have been for the last two years very efficiently and promptly performed by the present Adjutant General of the State, Gen. Jesse Bowen, whose compensation has borne no proportion to his official obligations and labors. STATE HISTORICAL SOCIETY.-A communication from the Executive Committee of this organization will be laid before you, exhibiting a most satisfactory account of the condition and prospects of the Society, than which it is believed no similar association in the whole land has accomplished so much in the same time.

In the hands of its present friends it promises to add great honor and credit to the State.

For further information in relation to its history, progress and aims, I refer you to the communication already alluded to; and also to the report of the Treasurer of this Society, the vouchers of whose disbursements are filed in my office, accessible to any committee your respective bodies may appoint to examine the same. I cordially concur in the appropriation asked for by the Executive Committee.

FRONTIER DIFFICULTIES.-Congress made an appropriation of $20,000 in behalf of the citizens of Minnesota and Iowa, to detray the expenses of their various expeditions against Ink pa-dutah and his band, for the murders committed at Spirit Lake in the spring of 1857. It was required that these expenses should